UK unveils £3 billion plan to train 120k workers, cut reliance on migrants

Business Standard

27-05-2025

The UK government has unveiled a sweeping £3 billion skills initiative aimed at training 120,000 British workers in key sectors such as construction, engineering, and social care. The plan is part of efforts to reduce reliance on foreign labour while addressing workforce shortages.
Announced by Education Secretary Bridget Phillipson on Monday (local time), the Labour government's 'skills revolution' includes 30,000 new apprenticeship starts during this Parliament and is backed by a 32 per cent rise in the Immigration Skills Charge, a levy on employers hiring overseas workers.
Currently, one in eight people aged 16-24 in England is not in education, employment, or training, the government said. The investment aims to equip domestic workers with essential skills, boost productivity, and lay the foundations for long-term, inclusive economic renewal.
This funding is expected to create 45,000 additional training opportunities, particularly in sectors hit hard by post-Brexit labour shortfalls.
'We're backing the next generation by giving young people more opportunities to learn a trade, earn a wage and thrive,' said Phillipson. 'A skilled workforce is key to a stronger economic future.'
Skills England, the national skills body, will coordinate with employers and local leaders to shape future training delivery.
From apprenticeships to bootcamps: Key plans
The package, part of Labour's broader 'Plan for Change' agenda, includes:
A shift in apprenticeship funding away from master's-level training (Level 7) from January 2026 to prioritise lower-level courses.
Launch of 13 new Level 2 construction courses under the Free Courses for Jobs scheme.
£14 million in devolved adult skills funding for construction, supporting 5,000 adult learners.
£136 million for Skills Bootcamps in 2025-26, with training for over 40,000 learners.
£100 million over four years to expand Construction Skills Bootcamps.
Ten new Technical Excellence Colleges in construction, set to open in September 2025.
Migration focus: English reforms, tighter residency rules
The reforms come as political pressure grows to reduce net migration. Reports suggest Labour is also seeking to counter the rise of Nigel Farage's Reform party while boosting growth and delivering 1.5 million homes.
Measures such as stricter English language requirements and tighter residency rules for foreign workers have also been announced in recent weeks.
Are training schemes enough?
According to Bloomberg, business leaders warn that training schemes alone can't immediately fill workforce gaps. An ageing workforce and the time required to train new workers could create short-term bottlenecks in construction and care.
A Boston Consulting Group report recently cautioned that Britain's supply chains could buckle under the £900 billion infrastructure investment planned by 2029 unless migration rules are eased for shortage roles.
Migration trends: UK sees sharp decline
Net migration to the UK fell by almost half in 2024, dropping from 860,000 in 2023 to 431,000, according to data from the UK's Office for National Statistics (ONS). This is the largest annual drop on record, driven by new rules limiting family members on work and study visas and international students leaving the country after Covid-19.
The policies were introduced by the Conservative government under Home Secretary James Cleverly, who aimed to reduce overall migration by tightening visa rules for dependents.