Labour think tank’s radical plan to tackle apprenticeship levy’s ‘abject failure’

The government should reverse the “failure” of the apprenticeship levy by tripling the number of businesses that pay into it and releasing all funding raised by the tax to be spent on training, a Labour-linked think tank has said.

In its new report “Levying-Up: how to make the growth and skills levy work”, the Fabian Society argues that the levy system has crashed on its key goals of increasing the number of apprentices, meeting employers’ skills needs and driving social mobility.

To “unleash growth and unlock opportunity”, the government should create a new “growth and skills fund” worth more about £5.5 billion – double its 2023-24 value – by lowering the levy threshold, increasing the cost for large businesses, and forcing the Treasury to ringfence income from skills charges for training.

The report calls the levy system an “abject failure” at creating more apprenticeships, which have “plummeted” by 31 per cent since its launch in 2017 – especially “letting down” small and medium sized employers (SMEs) where the number of starts is down by half (48 per cent) – or at boosting employer investment in skills, which fell by £9.5 billion to about £44 billion between 2017 and 2024.

Report co-author Joe Dromey, Fabian Society general secretary, said the number of entry-level opportunities for young people has also “collapsed”, while employers have “increasingly invested in workers who are already well qualified”.

He added: “The government’s commitment to reform the levy is hugely welcome, but we need to see progress soon. The growth and skills levy must seek both to boost employer investment, and to redirect it towards those who could most benefit.”

‘Growth and skills fund’

Labour is currently reforming the apprenticeship levy into a “growth and skills levy”, where an unspecified portion can be spent on non-apprenticeship training in some priority sectors linked to the industrial strategy from April 2026.

The Fabian Society wants the government to go further. Its proposals include lowering the levy threshold from companies with a payroll of £3 million or more to £1 million, to ensure more SMEs have “skin in the game”.

Combined with increasing contributions from large employers from 0.5 to 0.7 per cent, levy revenue would grow by £2.55 billion, giving greater “headroom” to the budget (currently £3.075), which overspent for the first time in 2024-25.

However, results from a survey of 2,000 employers this year showed 60 per cent of non-levy payers opposed extending the levy, while 39 per cent supported a levy increase in return for increased flexibility.

The report said: “The decline in both apprenticeship starts and employer investment represents a drag on growth, contributing to growing skills gaps, and sluggish productivity growth.

“In reforming the levy, the government should seek to boost the size of the funding pot available to employers, enabling both more flexibility in how funds can be used, and greater total investment in skills, without a decline in apprenticeship numbers.

“It should do so through ensuring all funds raised by the levy are invested in skills, and through both increasing the levy and broadening the levy over time.”

End levy top-slice and lump in immigration skills charge

The report also argues that the Treasury should no longer retain its near-20 per cent top-slice of apprenticeship levy income. Updated analysis shows that between 2017-18 and 2024-25, £4.5 billion of funding raised by the apprenticeship levy was retained by the Treasury.

Government should also ringfence income from the immigration skills charge (ICS), which raised £668 million in 2023-24.

The ICS is a charge on employers who bring skilled foreign workers into the UK, introduced in 2017 with the promise of putting revenue “towards addressing skills gaps”, although how the funding is spent has never been confirmed.

Labour’s immigration white paper included plans to increase the charge by 32 per cent and pledged to use the ICS to support training in priority sectors.

The government faces “clear policy choices and difficult trade-offs” if it wants to avoid either another overspend or a “further decrease” in apprenticeship starts if flexibilities are added to the levy system, the report warns.

But it nonetheless argues that its revenue-raising proposals would create the financial headroom to give employers “greater flexibility” on what type of training they can spend the levy on.

This should be guided by Skills England and new sector skills boards to “lead” the system, as well as the industrial strategy, migration policy and devolved local government.

Rebalanced investment 

The levy system has made the UK’s “stark inequalities” worse as funding is increasingly spent on higher level apprenticeships, for older and more educated learners, in more prosperous regions of England, and in large businesses, the report argues.

It added: “This shift is bad for growth, given apprenticeships for older workers have poorer labour market returns, and those at higher levels offer worse value for money.”

A key cause of this is the Conservative government’s “flawed ideology” that put employers in charge, which failed to either boost growth or widen opportunity because businesses chose to “rebadge” existing training as apprenticeships and maximised investment in their current staff and “alienated” SMEs.

The report also cites Department for Education statistics suggesting that apprenticeship starts in the most deprived neighbourhoods declined by 47 per cent between 2017 and 2024, while those in the least deprived declined by only 11 per cent.

To counter this “highly unbalanced” system, the Fabian Society has backed calls to ban graduates from levy-funded apprenticeships.

It said only apprenticeships for workers without a degree level qualification should be funded through the levy.

In addition to the restrictions to level 7 apprenticeships coming in from January 2026, this measure “would save £250 million, which should be redirected to investment for young people and lower-level qualifications”.

Bring back AGE grants

Government should also bring back grants for employers and providers to reverse the decline in starts at SMEs (48 per cent) and for young people (34 per cent), at an estimated cost of £515 million from the new, larger growth and skills levy.

The Fabian Society’s employer survey suggests a grant of £3,000 per start for SMEs employing an apprentice aged 16 to 25 would be “effective at incentivising employers”. The report argues that a previous scheme offering an employers’ grant between 2012 and 2017, known as the Apprenticeship Grant for Employers (AGE), was also “effective”.

A grant should also be created to incentivise providers to work with SMEs and young apprentices, with £1,000 and £1,500 available for each respectively, to “help them through the process”.

However, the survey suggested incentives were the least popular proposal to increase young apprentices, behind pre-apprenticeship training, advice and support, and restricting levy funding.

Overall, employers were “evenly split” on whether the levy should be more focused on young workers, with 39 per cent in favour and 39 per cent preferring an all-ages approach.

A DfE spokesperson said: “We are transforming the apprenticeship levy into a new growth and skills levy, which will offer greater flexibility to employers and learners and support the industrial strategy.

“In August we introduced new foundation apprenticeships for young people in targeted sectors, as well as shorter duration apprenticeships to break down barriers to opportunity and drive economic growth through our Plan for Change.

“To support business and boost opportunity the Government announced at the Spending Review that we will spend £1.2 billion more on skills by 2028/29, to ensure young people are developing the skills they need to succeed.”

Providing our future workforce with the skills to succeed

With T Level and A-level results day fast approaching, young people across the country will be thinking about what comes next.

 I wish them all the very best and want to particularly salute T Level learners for choosing what is still a relatively new but exciting education route.   

These enterprising young people put their faith in a winning package. T Levels are quality, employer-designed pathways into rewarding careers, backed up by substantial industry placements.   

Now, they deserve more than just congratulations.  A healthy proportion of T Level students go straight into jobs after collecting their results, often following up on their work placements.  But many progress to higher-level training and need the full support of a forward-looking skills system.  

I’m extremely proud to be chair of Skills England, where we are lucky enough to work with expert employers, who understand their sectors and contribute outstanding insights and knowledge to help shape apprenticeships and other training. We are also committed to co-creating solutions with FE and HE providers, regional partners, and departments across government.   

Skills England’s success will be built from outstanding partnerships and we will always be prepared to listen and learn.   

But while the benefits of harnessing all that first-hand expertise are huge, it’s also vital that our work follows the evidence. We must and will be data-driven. 

Learning the right skills

We have today published a new report: Assessment of Priority Skills to 2030. It analyses future employment needs across ten critical sectors, aligned with the government’s industrial strategy and plan for change.  

Our findings show that demand for jobs in priority occupations is expected to grow significantly by 2030.   

Jobs in areas such as digital, adult social care, construction, and engineering will experience some of the biggest increases in demand.  

Added to this, the report highlights the scale of demand. 

Over a quarter of a million people enter priority occupations from the skills system each year. Those are vast numbers, and we need to double down on making sure they learn the right skills.  

It is also important to recognise the levels of training required. Our analysis found that one-third of the projected extra demand in priority occupations will need workers with a career entry-level qualification. The rest will require higher-level qualifications and training that many of the young people about to get their T Level and A-level results will soon be progressing to.  

This is the third major publication from Skills England.   

In September 2024, we published Driving growth and widening opportunities, which outlined how skills can drive UK growth, along with an initial assessment of skills needs in the economy. An important insight I drew from this was that far too many employers and learners found the skills landscape baffling. The system is too complex and fragmented. Skills England will help simplify it.  

In June 2025, we published Skills England: Skills for growth and opportunity. This summarised findings of our analysis and engagement on the growth and skills offer, and skills needs assessments for the 10 priority sectors. Key takeaways from this included that apprenticeships needed to be more responsive and flexible.   

No room for complacency

Together, the three publications amount to a major step forward in our understanding of the skills landscape.  

However, there is no room for complacency. 

With seismic shifts in technology — particularly the accelerating impact of AI — the shape of our economy is in flux. That’s why Skills England is doubling down on future planning, continuously monitoring emerging trends and refining our thinking as fresh data becomes available.   

It’s about staying ahead of the curve and providing the nation’s future workforce, including the wonderful young people who will be receiving their results in the coming days, with the skills they will need to succeed.  

Child’s play: Early years apprenticeship provider gets top Ofsted marks

An early years training provider in West Yorkshire has received top marks from Ofsted for its “culture of high standards” and high level of distinctions achieved by apprentices.

Leeds-based Cliffe House Training Academy impressed the watchdog with apprentices developing their professionalism quickly and a “substantial proportion” taking on more responsibility at work, according to its first full inspection report published today.

The provider began to offer early years apprenticeships to staff at the seven Cliffe House Day Nurseries and five other nurseries in West Yorkshire in January 2023.

It had 14 apprentices on level 2 early years practitioner apprenticeship and 15 on the level 3 early years educator apprenticeship at the time of its June 30 to July 2 Ofsted visit.

Inspectors found Cliffe House leaders “carefully” plan curriculums, which results in apprentices conquering the fundamental knowledge they need, particularly for level 2 apprentices, many of whom are new to the sector.

The report noted that apprentices swiftly develop as professional practitioners and make “exceptional progress” from their starting points.

The assessment of apprentices’ progress was found to be “very thorough”. For example, level 3 assessments include a project where apprentices demonstrate how they apply their child development knowledge to support children successfully.

Inspectors were also wowed that tutors worked with employers “exceptionally well” to coordinate work-based training and classroom-based training.

Tutors also assess the English and maths skills and “very effectively” plug the skills gaps that apprentices come to them with.

The report said: “Tutors support apprentices well to fill gaps in their mathematical skills through a range of activities such as learning how to budget. The few apprentices who need to gain functional skills qualifications in English and mathematics achieve these quickly.”

Ofsted inspectors also pointed out that leaders make sure that staff workloads are “manageable” and that they have effective arrangements for overseeing the quality of growing apprenticeship provision.

For example, managers frequently meet with tutors in standardisation meetings to share good practice and discuss any concerns.

The report said: “Apprentices have highly positive and mature attitudes to their learning. They thrive in a culture of high standards and expectations set by staff. They are highly committed to developing their knowledge and understanding of early years, recognising the considerable responsibilities that they have for children.”

All apprentices who have completed their apprenticeships so far have passed, with “many achieving grades at distinction level”.

Tori Doherty, training manager at Cliffe House Training Academy told FE Week: “We are proud that this high quality of education has been reflected in all areas of our recent Ofsted inspection, gaining outstanding across the board.”

“One stand out element of our delivery programmes are Skills Builder Days which are a great hit with our students and really help to build a wider skill set,” she added.

From September, the provider will be starting to deliver the Level 5 Early Years Lead Practitioner standard, which has had a “great amount of interest in so far”, Doherty added.

“I am very proud of our teams achievement and we are excited to see our delivery programmes continue to progress and develop, to ensure our students always gain a high quality apprenticeship that develops their wider skills too,” she said.

University clearing: How teachers can support students

Results day is a key moment not just for students, but for the teachers, advisers and colleges who have supported them every step of the way.

Each year, most students go on to secure their first choice (known as their UCAS ‘firm’ choice). Last year, a record 279,550 18-year-olds in the UK were accepted into university.

But for those who don’t get the grades they had hoped for, may wish to revisit their decision, or are applying for the first time – being up to speed on the full range of options available can make all the difference.  So here’s how teachers and advisers can help students feel prepared and informed.

Understand the options

If, come results day, students are still looking for an available place (rethinking their plans and considering a different course or institution, or even submitting an application for the first time) they’ll enter clearing — the final stage of the UCAS admissions process.

Clearing allows students who have received their results to find university or college higher education places that are still available. Clearing opened on July 5, and many students may already be researching clearing options.

UCAS’ message to applicants is to build a results day plan in advance and reflect on any research they did earlier in the cycle, so they are ready whatever happens.  

When guiding students through the process, you may want to encourage them to revisit the original five choices they listed on their UCAS application. Many students ultimately decide to return to one of these institutions through clearing, so it’s worth considering them again as viable options.  

You could also suggest they make a quick checklist to prepare for clearing, like jotting down their top choices, key phone numbers, and a few reasons why each course stands out. 

Utilise tools and resources

UCAS has a dedicated space, with practical tips and useful resources to help you guide your students in making informed decisions about their future. 

The UCAS clearing toolkit is another really useful resource. It includes lots of material, such as an editable checklist to help you prepare for results day, and posters to help students visualise their next steps.

Knowing what each application status means is essential for supporting students. UCAS’ guidance can help with this, giving you a summary of what each status means so you can confidently talk students through their next steps. 

A crucial part of the clearing process for students is contacting universities and colleges to discuss available places.

You may want to signpost them to UCAS’ videos offering advice on how to approach these conversations. It’s also worth reminding students to have their UCAS personal ID and clearing number ready when making those calls.

For students who accept their place on results day, UCAS also provides guidance on what comes next – from budgeting and finding part-time work, to securing accommodation and looking after their mental health.

We also recognise the significant role parents, guardians and carers play in supporting the young person in their lives, especially on results day.

To ensure they feel fully informed and confident, we’ve created a clearing toolkit for parents which you can share with them, to help them in supporting a young person with their options and decision-making. 

Learning unlocked: The rise of functional skills in prisons

Of the nearly 90,000 people currently in custody across England and Wales, almost half arrive without any formal qualifications. At the same time, more than half of those assessed upon enrolling in education in prisons are found to have some form of learning difficulty or disability – ranging from dyslexia and dyscalculia to ADHD and developmental issues.

Despite these barriers, a significant number of prisoners actively seek out learning opportunities.

We know this, because we have an ongoing partnership with the Ministry of Justice who have adopted our AI-driven Assessment and Learning solution in over 100 prisons in England. The solution is focused on functional skills improvement in English, maths and digital.

Encouragingly, functional skills achievements in prisons are on the rise. In 2023-24, there were 17,126 full or partial achievements in English, maths, or ICT – an 18 per cent increase from the previous year when adjusted for population size. This upward trend reflects a growing commitment to education within the prison system, and a shift toward digital solutions that enhance engagement and accessibility.

For many, education is more than a way to pass the time. It’s a chance to build a future, gain meaningful employment after release and break the cycle of reoffending.

The desire to learn is real and widespread. In 2023-24, over 47,000 prisoners completed initial assessments in English and/or maths – more than half the prison population. These assessments are invaluable. They not only provide an accurate level of attainment but can help uncover undiagnosed learning difficulties. Armed with the right information, assessors can then use digital assessment and learning tools to create individualised learning plans – giving each learner the tools they need to succeed.

Digital learning platforms offer a scalable, secure and adaptive way to deliver education in environments where traditional classroom settings may be limited. The best of these platforms use AI to tailor content to each learner’s ability, adjusting questions based on previous responses to ensure the learner is stretched and challenged. Multimedia formats keep learners engaged, while accessibility features such as adjustable fonts, screen readers and simplified interfaces support those with learning difficulties.

The impact is measurable. Prisoners who participate in education are 7.5 per cent less likely to reoffend within a year of release and those who complete functional skills courses are significantly more likely to secure employment. These statistics are not just numbers. They represent lives changed, families stabilised, and communities strengthened.

For the individual, prison learning offers a renewed sense of purpose, improved self-esteem, better coping mechanisms and a way to reclaim identity. For many prisoners, education is the first step toward seeing themselves as capable, worthy and ready to contribute to society. This is a shift from being defined by past mistakes to being empowered by future possibilities.

However, delivering digital education in prisons comes with unique challenges. Security protocols mean internet access is tightly controlled. So any digital platform must operate within a secure, closed environment. The ideal solution balances safety with functionality, offering robust educational content without compromising security. It must also be intuitive and user-friendly, especially for learners who may have limited digital literacy.

The right solution must also keep pace with technological change. Long-term prisoners face a world transformed by technology. And without exposure to the latest digital tools, even basic tasks like online shopping or banking can feel insurmountable. Keeping prison education software up to date ensures that learners are not left behind. It prepares them not just for employment, but for everyday life in a digital society.

Ultimately, digital education offers more than skills. It offers hope. With the right tools, prisoners can rebuild their lives, reduce their chances of reoffending and rejoin society with greater purpose. For those on the inside, digital education offers a pathway to dignity, independence, and reintegration. These positive outcomes extend far beyond the prison walls.

Learning for Herning: Inside the Team UK bootcamp teaching mind over medal

With just one month to go to EuroSkills 2025, Anviksha Patel was invited to get a glimpse of the behind-the-scenes preparation that WorldSkills UK puts its competitors through ahead of the international competition.

A group of 19 young students and apprentices gathered from England, Wales, Scotland, and Northern Ireland at the University of Warwick last weekend for their final training bootcamp before travelling to Herning, Denmark, in September.

Together, they are Team UK and they will go head-to-head against around 600 other young professionals from September 9 to 13, competing for bronze, silver and gold medals in their vocational specialisms, which range from cabinetmaking to mechatronics to hairdressing.

WorldSkills UK’s training programme is an intense schedule for Team UK and the dedicated band of training managers that support them. There are multiple pressure tests against international counterparts and exercises on handling the mental pressure that comes with competing for your country on the international stage. 

Parisa Shirazi, WorldSkills UK’s director of standards, said the support has to be wraparound and holistic.

“This weekend is primarily positioned around equipping those individuals with competition craft, in terms of the things that will help them improve their game, from lean working principles, so work organisation management all the way through to focus and distraction control,” she said.

At the bootcamp, competitors and training managers heard from the organisation’s health and wellbeing team to understand how nutrition and sleep will impact their performance. 

They also had a stretching session, which competitors are expected to practise before each competition day. There was mindset training too, teaching the team how to get out of their heads and focus on the task at hand.

Stretching session at WorldSkills UK bootcamp, University of Warwick

In a session delivered by one of the WorldSkills UK team, competitors focused on all the potential distractions they could encounter at EuroSkills; members of the public cheering and filming them for hours, potential sabotage by rival competitors and even how to coordinate toilet breaks.

“Just by being in a large public environment is going to be quite overwhelming,” Shirazi said. 

She added: “We instil some of the steps, practices and methods that are going to help you perform at your very best, and this is about personal best. 

“Yes, it’s the European championships, but all we can ask of these individuals is to have that mindset that’s going to enable them to kind of push beyond where they are at, making sure that they’re striving for excellence.”

Pressures of training

Melody Cheung, graphics design competitor

The 19 competitors will participate in 17 skills at the European event. The competition marks a milestone in the 18-month training schedule, which crescendos at WorldSkills 2026 in Shanghai, China.

EuroSkills Herning will see the first UK entry in the graphic design competition, represented by 19-year-old Melody Cheung, a student at Bridgend College.

She told FE Week that she was feeling the pressure a little.

“It’s a lot of pressure, but at the same time, there’s nobody to compare me to, which has its downfalls, but again, there’s nobody to compare me to. So we don’t have previous training to look back on.”

Cheung was homeschooled and had her first experience of mainstream education at college, studying a level 2 art and design before moving onto a level 3 animation course.

When asked how it has shaped her journey to Team UK, she said: “It’s important that I am where I am from being homeschooled because I think there’s a lot of disbelief about homeschool kids.”

Her biggest challenges for this competition are flying abroad for the first time and the potential distractions of the competition hall.

Web technologies competitor Finn Gallagher was feeling a bit nervous about travelling too.

“I haven’t been to another country before,” he admitted.

Finn Gallagher, web technologies competitor

The Cardiff University student’s confidence has grown a lot since joining the WorldSkills squad 18 months ago.

“Towards the start of the competition, I wouldn’t really say I’m somebody who actively strives to push myself out of my comfort zone,” he said.

Examples like the bootcamp weekend itself, meeting new people, and conversing were especially challenging initially.

But Gallagher said his coaches have provided tips to hone their craft that have bled into his everyday life.

“I think one thing that they focus a lot on is time management,” he explained, adding that he is currently juggling two jobs as well as university work.

“Definitely at the start of university, I found myself a procrastinator, disorganised, and a tiny bit messy, but they give us tips to like handle that, how to schedule ourselves, and I found that also very applicable to my personal life as well.”

Most of Team UK have other commitments, such as self-employment, like mechatronics competitor Jason McVerry or being part of another national team, like health and social care champion Grace Longden.

Longden is a UK triathlete in her age group and is eagerly awaiting her T-level results this week, with the hope of studying physiotherapy at Keele University.

“Confidence has been quite a big thing for me,” she said.

“Before WorldSkills, I wasn’t as confident, I was quite a quiet person. But now it’s just developed my communication with other people and built my confidence that I have that self-belief in me, that I am good enough.”

Serious about productivity? Then get serious about R&D in FE

In Canada, a CEO recently told me that for every dollar invested in research and development (R&D) in colleges, on average five come back in return. Unlike in Australia and the UK where avenues for such investment are limited, Canada seems to have gotten the memo on the value of R&D in further education.

For the past 20 years, Canada has been building an enviable network of what they call Technology Access Centres (TACs), which drive applied R&D that supports businesses achieve commercial success. Universities are very good at turning money into research, rather than research into money. This is the role of TACs.

TACs in Canada provide businesses with access to cutting-edge facilities, equipment and support to enhance their technological capabilities. They are equipped with state-of-the-art tools and offer expert guidance from skilled professionals to help drive R&D. Key features include tailored services for product testing, prototyping and process improvement. Opportunities for collaboration foster an environment of shared knowledge and a drive for technological advancement.

Currently, there are 70 TACs operating. In some ways, they are both lighthouse and fire department in the regions they operate. They attract businesses and investment through the innovation and talent they provide while helping economies pivot in the face of market pressures or changes in demand. In the past 12 months, more than 6,000 businesses have commissioned research, in addition to 980 partners.

Relative to their impact, the ongoing investment that underpins this is tiny relative to comparable R&D programmes. Instead, the programme focuses on leveraging the ad-hoc and time-limited investment that is often a feature of vocational education and training policy around the world, as well as the myriad related industry grant programmes in operation.

Through targeted R&D support, TACs have validated a nanobubble ozone system that enhances food safety and shelf life. Another project improved solar panel efficiency using new materials tested in harsh climates, supporting renewable energy adoption and local production. A third initiative delivered a manufacturable battery pack prototype, enabling scale-up and better production. These few examples show how college-led innovation boosts industry productivity and public benefit.

What can the UK learn from this model? Four things struck me on my recent travels to Canada:

Build systems, not transactions

TACs bring together operating and capital investment along with services that promote engagement between colleges, universities and businesses. Through Tech-Access Canada, a body co-funded by colleges from the operational grants they receive, they have a clear steward to drive progress and share best practices between the different TACs to promote a common level of service excellence, for the benefit of their client companies across Canada. They don’t just connect businesses to colleges, but also to other programmes that help derisk investment in R&D.

Invest to build capability ahead of significant investment to scale

Colleges that aspire to have a TAC receive a small operating grant to help build capacity and capability within their institutions. It is not about flashy buildings but rather showing they can mobilise their existing resources to meet industry needs. This helps to keep the mandate narrow, rather than try to be everything to everyone.

Recognise and build from existing performance

To be recognised as a TAC, there is a competitive process that, until recently, included site visits that covered facilities and involved talking to staff, students, and partners. This ensures the capability and capacity exists to meet TAC standards and provide confidence to business partners. There are other funding supports for one-off projects, or aspirational centres. The TAC grant rewards established capacity and capability, not smoke and mirrors or good intentions.

Don’t be precious about intellectual property (IP)

The philosophy of TACs is that all IP generated leaves with the client. No equity stakes, royalties or other ties are involved. This approach is based on belief that the private sector is best placed to commercialise the results of R&D and does not want to encumber a small company on its commercialisation journey. The value to colleges is in the partnerships developed with these businesses, which often evolve to include employment for graduates, support in teaching, or provision of equipment.

TACs are not perfect. Use of the R&D tax credit in Canada continues to trend in the wrong direction and as funding dries up it will become more challenging for colleges to co-invest with government and industry in this critical infrastructure. However, the focus and entrepreneurial spirit that has bought them to this point provides confidence that the model can continue to evolve and grow as the need has never been greater.

As England embark on investment in college infrastructure though technical excellence colleges, it could do worse than look to Canada and consider the lessons learned over the past 20 years.

First ‘technical excellence colleges’ named in £100m construction skills drive

Ten further education colleges have become the first to be awarded ‘technical excellence college’ status and will receive a share of £100 million in government funding to tackle construction skills shortages.

Ministers say the construction technical excellence colleges (CTECs) will train 40,000 people by 2029 in high-demand trades such as bricklaying, carpentry, roofing and electrical work. 

The winning colleges are Derby College Group, West Suffolk College, New City College, City of Sunderland College, Wigan and Leigh College, North Kent College, Exeter College, The Bedford College Group, Dudley College of Technology and Leeds College of Building. 

Technical excellence colleges are a new government designation for FE colleges that will receive extra funding to deliver training in sectors where there are shortages. Each will receive a share of £80 million in capital and £20 million in revenue over the next four years.

This first wave covers construction, and comes on top of £625 million announced for the sector in March to cover 60,000 training places through foundation apprenticeships, skills bootcamps and other funded construction courses. 

The government hopes these initiatives will plug skills shortages in the construction industry and “backs the British working class” by reducing the sector’s reliance on overseas workers.

Today’s announcement confirms a CTEC in each region of England, with The Bedford College Group working across regions.

Each college will be expected to act as a “hub” in their region and partner with “spoke” local training providers and employers to expand courses to more learners and improve training standards. They will need to provide training routes into entry-level jobs as well as retraining and upskilling options for existing workers.

Colleges had to bid for the status earlier this year. The Department for Education (DfE) said it received 51 applications in total.

Education secretary Bridget Phillipson said the announcement “underlines our commitment to the next generation of homegrown talent”.

“We need skilled workers to deliver the homes, schools and hospitals that communities across the country are crying out for. Construction technical excellence colleges will enable us to invest in people and give them the skills they need to break down barriers to opportunity in an industry which is essential to delivering growth through our plan for change.”

The Department for Education claims “fewer than half” of FE learners who get a qualification go on to work in the relevant industry, but said today’s investment will ensure learners are “ready for work when they complete their qualifications”.

Yiannis Koursis, CEO of The Bedford College Group said: “The construction sector is central to delivering the homes, infrastructure and sustainable communities our country needs. By working in partnership with other colleges, training providers and industry leaders, we will help equip the next generation with the skills, knowledge and experience that employers demand, from cutting edge technical training to real-world, site-based learning.

“This is not just an investment in training, it is an investment in the future workforce that will shape Britain’s built environment for decades to come.”

TECsplained

Alongside introducing Skills England and replacing the apprenticeship levy, technical excellence colleges were a major skills pledge in Labour’s manifesto for last year’s general election. 

Since then, Labour has begun to reorganise its skills spending through specific plans for priority sectors outlined in the government’s industrial strategy, published in June.

Construction is one of those priority sectors, central to Labour being able to deliver on its promise to build 1.5 million new homes by the end of this parliament. 

Office for National Statistics figures show that there are over 35,000 job vacancies in the construction sector, and employers report that over half of vacancies can’t be filled due to a lack of required skills – the highest rate of any sector.

At the same time, Labour committed to using the skills system to help reduce an “over-reliance” of foreign workers in the economy. Construction and health and social care are so far the only sectors that have been identified as needing to cut the use of overseas Labour.

The Department for Education said today that the construction industry has been “preventing our young people from filling the skills needs of our nation” and contributing to the youth NEET crisis by importing workers from overseas.

David Hughes, chief executive of the Association of Colleges said technical excellence colleges “represent a new era for the college sector, with government backing them to lead a step-change in post-16 skills and education.”

Technical excellence colleges have also been promised as part of sector training “packages” for the engineering and defence industries. 

Walking the freedom of speech tightrope without falling over

The Higher Education (Freedom of Speech) Act 2023, introduced on 1 August 2025, covers those offering HE and their student unions.

It imposes duties upon them to ensure lawful freedom of speech and establish a freedom of speech code of practice, while also protecting individuals from physical and mental harm.

Crucially, the act prohibits the use of non-disclosure agreements to prevent victims of harassment, abuse or sexual assault from speaking out, thereby promoting their freedom of speech. This includes members of staff as well as students.

Promoting academic freedom

The new laws seek to strengthen the obligation to actively promote academic freedom. FE providers offering HE should enable robust discussion between students, staff and external speakers to “question received wisdom”, and “put forward new ideas and controversial or unpopular opinions”.

This has caused some concern among academics, with one in five suggesting when polled by HE regulator the Office for Students (OfS) that they didn’t feel free or comfortable with being encouraged to teach controversial views on topics such as sex or gender.

This has led the OfS to publish guidance that provides illustrative examples of how HE providers might best respond to differing scenarios.

Difficult balancing exercise?

The balance between upholding free speech and protecting personal rights, for example the prohibition on harassment, remains an ongoing challenge for FE providers, particularly as many students aged under 18 may not be comfortable hearing controversial views.

By way of example, during a classroom discussion concerning euthanasia, when student B expresses a controversial position relating to older people, this could be lawful speech. However, student C repeatedly posts social media comments attacking student B and their views.

If the college carries out an investigation and issues a sanction to student C under its social media policy, which forbids unlawful online harassment, it is unlikely in this scenario that the college has breached its duty to “secure” student C’s free speech. Student C’s speech was not within the law and could be disciplined.

The OfS has outlined a three-step framework to assess compliance with the obligation to secure free speech.

Step 1: Is the speech “within the law”?

Providers must first confirm the speech is lawful and not prohibited by primary or secondary legislation, legal precedents or court decisions.

If it is not, they may need to consider other steps outside the scope of duty – for example, whether to inform the police or another third party such as a regulatory body.

Step 2: Are there any ‘reasonably practicable steps’ to secure the speech?

Next, providers should determine if there are any “positive” steps to take action or “negative” steps that refrain from taking action. These should be “reasonably practicable”, considering legal and regulatory obligations, such as protecting physical safety, and maintaining essential functions including learning, teaching and research.

Less focus should be given to the viewpoint expressed – even if it’s deemed controversial, offensive or does not align with an organisation’s values – and reputational impact. If there aren’t reasonably practicable steps to take, proceed to step three.

Step 3: Are there lawful or proportionate restrictions that can be taken?

If there are no reasonably practicable steps to secure free speech, any restriction or regulation must meet the conditions set down under Article 10 of the European Convention on Human Rights (ECHR). The third step is to ensure it does.

Firstly, any interference with free speech needs to be justified by a specific English legal rule or regime. The individual affected would need to have adequate access to the rule or regime to enable them to foresee the circumstances in which the law might apply, and the likely consequences.

Secondly, that interference must be proportionate – in other words, sufficiently reasonable or necessary to justify the limitation of free speech. Even then, less intrusive measures should be applied first.

If the answer to this final step is “yes”, it’s likely a provider’s restrictions are consistent with free speech obligations. If “no”, a revised approach is needed.

Clear policies and procedures

To facilitate compliance with the free speech laws, colleges should develop transparent procedures and a code of practice for handling speaker invitations and events, monitor their student unions for compliance, and ensure disciplinary processes respect free speech rights.

Providers should also train staff to understand the boundaries and protections of free speech, and inform students of their rights and how to raise concerns. Seeking independent legal advice when necessary would also ensure compliance.

What happens if it goes wrong?

Failure to adhere to these obligations can lead to investigations and penalties from the OfS, as seen in the £585,000 fine imposed on the University of Sussex in March for failing to protect free speech and academic freedom.

It is therefore crucial for colleges to balance freedom of speech with the protection of individual rights under the Equality Act, terrorism legislation and the Public Order Act to ensure a safe and inclusive environment for all.