Why a new tech skills drive is sorely needed for the UK's tech startup ecosystem
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It promises that 'pupils across the country will be given the skills and tools needed to get the AI-powered jobs of the future'. This is a much-needed initiative that will benefit individuals, businesses and the UK economy.
Digital skills gap
The 'digital skills gap' is costing the UK around £63bn annually. This is the mismatch between the digital capabilities employers need and the skills available in the workforce. With growing demand for tech talent, especially in areas like AI, data science, and cybersecurity, the supply of qualified candidates has not kept pace. 75% of tech firms are struggling to recruit, and of course it's not just tech companies that need tech skills!
Tech talent and growth
The digital skills gap isn't just a recruitment issue - it's a growth inhibitor. When one in three UK tech founders cite talent shortages as their biggest challenge, it reveals a systemic drag on innovation, product development, and market expansion. While the AI sector races ahead, startups without access to skilled talent risk being left behind, especially those based outside London. Closing the skills gap means more than filling vacancies; it's about unlocking capacity, speeding up time to market, and enabling the next wave of high growth-potential companies to scale with confidence.
Access to tech skills
The TechFirst programme should be of particular interest to startups. Startups often can't compete with big tech salaries. So, a steady stream of skilled young talent will reduce recruitment and training costs and will help startups grow sustainably. Young people are looking for purpose-driven roles, where they can quickly see the impact of the work they do. Many startups provide this environment, often with the opportunity to contribute to different areas and develop a broad skill set.
The reality of tech roles
Most people who work in tech do not write code. This fact seems to be a tightly kept secret to everyone outside the tech sector. Initiatives aimed at getting more people to consider a career in tech are often focused on coding – such as coding clubs and boot camps. There is very little emphasis on the wide range of roles that require curiosity, collaboration and creativity, and absolutely zero coding ability.
Hopefully the TechFirst programme will consider the full range of tech roles, and the skills needed to be successful in them. Startups need team players, people who are flexible and adaptable and can learn new skills as their role and the organisation evolves.
Routes into tech
Only about 10% of the UK workforce has a computer science or IT related degree (Data from BCS and Coding Black Females). This typically comes as a surprise to students, teachers and careers advisors who believe this is the main route into tech. Tech professionals have a variety of educational backgrounds, including STEM, humanities and arts degrees, and many have followed non-university paths into tech, including apprenticeships and entry level roles.
Digital apprenticeships
Start-ups often struggle to make the 12- or 18-month commitment required to take on a digital apprentice. This is a missed opportunity, for the startup and the apprentice. Apprenticeships are a budget-friendly way to scale. Government funding and incentives help cover training costs, and selecting the right person and the right apprenticeship programme can benefit the whole organisation.
The tech sector gets less diverse as we look at more senior positions in the hierarchies. By creating opportunities for early-career professionals, such as apprenticeships and other types of entry role, it is much easier to start to turn the dial on diversity. A diverse workforce can be a strategic asset for startups. Diverse teams are far more likely to make better decisions, and Innovate UK found that 73% of startups believe that diversity improves innovation. According to Shaw Trust, companies with above-average diversity generate 45% of their revenue from innovation, compared to just 26% for those with below-average diversity. That's a huge edge for startups trying to disrupt markets.
What will 'AI skills' look like in 5 years?
Given the rapid evolution and advancement of generative and agentic AI, it is very difficult to predict exactly what skills humans will need to work with and develop AI tools. One thing is clear: that a growth mindset and a commitment to life-long learning is what keeps tech professionals in jobs. Fostering this approach in the next generation of tech professionals is absolutely vital, because while tools and 'tech skills' may change, the ability to learn, adapt and grow will always be the most future-proofed skill we can pass on.
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