UK Govt to Invest £3 Billion in Training Young Workers to Reduce Reliance on Migrant Labour

LONDON May 27: The UK government has announced a landmark £3 billion investment in domestic skills training, aiming to reduce dependence on migrant labour and tackle workforce shortages across key sectors such as construction, healthcare, and digital technology.

Unveiled today (May 27), the sweeping reforms will create 120,000 new training opportunities, with a strong focus on equipping young people for roles in high-demand areas like bricklaying, carpentry, engineering, and health and social care. The initiative forms a key pillar of the government’s broader strategy to address long-standing labour market gaps with homegrown talent.

According to the Department for Education, the new measures will “refocus the skills landscape towards young, domestic talent.” The investment is supported by a record-breaking £3 billion apprenticeship budget, which includes an additional 30,000 apprenticeship starts during this Parliament.

Education Secretary Bridget Phillipson stated: “A skilled workforce is essential to driving our economy forward. Today we’re backing the next generation—giving young people more opportunities to learn a trade, earn a wage, and build successful careers.

“When we invest in young people’s skills, we invest in a stronger, shared economic future. But a thriving economy depends on everyone playing their part, and we’re providing more routes into employment. Now it’s time for young people to take those opportunities.”

Key Measures Announced:
Immigration Skills Charge Increase: A 32% rise in the Immigration Skills Charge is expected to fund up to 45,000 additional training places, helping shift the workforce reliance away from overseas recruitment.

Apprenticeship Funding Reform: From January 2026, funding will be redirected away from Level 7 (master’s-level) apprenticeships to prioritise training at lower levels, especially for those aged 16–21, where impact is greatest.

New Construction Courses: Thirteen new Level 2 construction courses will be launched for adults in non-devolved areas, as part of the Free Courses for Jobs scheme.

Additional Investments:
£14 million in Adult Skills Funding for construction, devolved to local mayors from next academic year—supporting up to 5,000 additional adult learners.

£136 million for Skills Bootcamps across priority sectors in 2025–26—benefiting over 40,000 learners.

£100 million over four years to expand Construction Skills Bootcamps.

Ten new Technical Excellence Colleges specialising in construction, set to open in September 2025.

These reforms are a cornerstone of the government’s Plan for Change, designed to deliver on its youth guarantee while addressing acute skills shortages and fostering economic growth.

The announcement follows a sharp decline in apprenticeship starts over the past decade and comes as new ONS figures reveal that one in eight young people aged 16–24 are currently not in education, employment, or training.

To oversee implementation and align skills policy with employer needs, the government has also confirmed board appointments for Skills England, a newly established national body that will work alongside businesses and local leaders.