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Business Standard
27-05-2025
- Business
- Business Standard
UK unveils £3 billion plan to train 120k workers, cut reliance on migrants
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.
The Independent
29-04-2025
- Business
- The Independent
Department for Education stifling efforts to boost skills, warns Andy Burnham
Resistance within the Department for Education (DfE) to devolving powers to regional mayors is stifling efforts to boost skills and risks becoming an 'anti-growth policy', Andy Burnham has said. The mayor of Greater Manchester told MPs his counterparts in other parts of the country share his view that local efforts to improve technical education and boost the workforce are being stifled by the department, which he said is 'wasting time' over a crucial way to boost economic growth. During an appearance before the Commons Business and Trade Committee, Mr Burnham was asked what had been his 'biggest frustrations' during his term as mayor. He said the 'evidence is clear' that the current model of devolution in Greater Manchester is the right one and delivers economic growth. But Mr Burnham added: 'The frustration, to answer your question: the biggest is the Department for Education, without a shadow of doubt. 'Why are we remaking the case for devolution to this department now? I've been doing it for eight years. 'It stands to reason that you can create stronger technical education pathways when you can work with actual employers in your city region who will be employing the young people, or the older workers, who will come through. 'We are the only ones who can create that pathway. We are the only ones that could commission our colleges for the actual sectoral strengths of our economy, and yet it still seems that is resisted. 'I think the kind of position of the Department for Education on this issue risks becoming an anti-growth policy. It risk pulling back the growth that we've got.' Greater Manchester Combined Authority, currently has full control of an apprenticeships and adult skills budget, but is yet to secure devolution of 16-19 education spending. Mr Burnham has created the 'Greater Manchester Baccalaureate', which he describes as an 'equal alternative to the university route', but he was clearly frustrated at perceived resistance to his plans in Whitehall. The latest official figures show that 11.2% of young people in the North West of England are not in education, employment or training. Mr Burnham added: 'We know our employers. I'm convening our employers to get those work placements, to really create those extra pathways for our young people, and to fell now that we are still having to argue for that and get permission to do that just seems to me to be wasting time.' Greater Manchester Combined Authority has created an online portal called Beeline, which enables users to search for training and educational routes to certain jobs in the region. Mr Burnham said the portal currently shows about 450 vacancies for software developers. He added it would not be a surprise if the high level of young people missing out on job opportunities continues if a 'top-down' approach without local flexibilities continues. Mr Burnham conceded that the department had 'moved a bit… down the path with us' and he welcomed the potential of Skills England, which will work with combined authorities, businesses and training providers to boost jobs when it is launched this year. 'But I just want to leave the committee in no doubt, the reason there's urgency in my voice is we're growing fast, but we could quickly have a vacancy problem that turns investors away. That is why it is mission-critical for this Government,' he added. The Department for Education has been approached for comment.
The Independent
25-04-2025
- Business
- The Independent
UK risks missing out on £200bn boost from slow take-up of AI, warns Google
The boss of Google's UK and European operations has issued a 'call to arms' over a worrying gap in the UK's adoption of artificial intelligence (AI) that could leave Britain at risk of missing out on a £200 billion boost to the economy. New research from the tech giant suggests that two-thirds of workers (66%) in Britain have never used generative AI in their jobs, with usage particularly low among women over 55 and those from lower socio-economic backgrounds. The firm said that while AI has the potential to add £400 billion to Britain's economy by the end of the decade through enhanced productivity, only half of this will be realised if the UK does not plug the adoption gap. Debbie Weinstein, president of Google in Europe, the Middle East and Africa, told the PA news agency the group's report was a 'call to arms… to make sure we're providing the tools that workers need for the UK'. She said: 'Addressing this adoption gap is essential to realising the economic benefits and the benefits in terms of time savings.' ' More needs to be done,' she cautioned. Google said that while many countries are slow to adopt AI in everyday life, the UK has historically trailed behind other countries in its adoption of new technology. In its AI Works report, it said: ' History shows this pattern recurring worldwide through successive waves of technology. 'But the challenge has been particularly pronounced in the UK, where a gap between innovation and implementation has repeatedly undermined economic potential.' 'Given AI's extraordinary economic potential, this long-tail pattern of adoption risks delaying productivity and compromising long-term growth,' it added. The company's study – conducted by research group Public First – found that AI adoption is being held back by a lack of accredited bite-sized training courses, as well as a failure by companies to provide official guidance on its use in the workplace. The survey of more than 3,100 respondents found that 70% of workers chose to use AI tools on their own rather than being asked to by their managers or employers, with just over a fifth (22%) being encouraged to do so by their employers, down from 28% six months ago. 'AI adoption is largely happening without official workplace guidance,' the firm said. Google is calling on the Government to use its industrial strategy to 'set out how AI adoption can be best supported in key industries'. 'Our research shows that workers are looking for explicit permission and guardrails on what they can, and are encouraged to, use AI for.' It also urged the new arms-length government body, Skills England, to support an accreditation system for short and effective training courses. Technology Secretary Peter Kyle said: 'We will support workers to develop the skills they need for jobs in and with AI, so that all parts of society can benefit from this technology.' 'As part of that, our AI Opportunities Action Plan will see us work closely with Skills England on a range of initiatives, including building a detailed picture of the gaps in our talent pool and working with training providers and industry to fill them.' Google has been running a pilot with small firms in the UK to help increase the take-up of AI, using behavioural science to help drive the programme, while also working with school academies and the Community Union. It is planning on rolling out AI Works pilots to other countries, such as Germany.
Yahoo
25-04-2025
- Business
- Yahoo
UK risks missing out on £200bn boost from slow take-up of AI, warns Google
The boss of Google's UK and European operations has issued a 'call to arms' over a worrying gap in the UK's adoption of artificial intelligence (AI) that could leave Britain at risk of missing out on a £200 billion boost to the economy. New research from the tech giant suggests that two-thirds of workers (66%) in Britain have never used generative AI in their jobs, with usage particularly low among women over 55 and those from lower socio-economic backgrounds. The firm said that while AI has the potential to add £400 billion to Britain's economy by the end of the decade through enhanced productivity, only half of this will be realised if the UK does not plug the adoption gap. Debbie Weinstein, president of Google in Europe, the Middle East and Africa, told the PA news agency the group's report was a 'call to arms… to make sure we're providing the tools that workers need for the UK'. She said: 'Addressing this adoption gap is essential to realising the economic benefits and the benefits in terms of time savings.' 'More needs to be done,' she cautioned. Google said that while many countries are slow to adopt AI in everyday life, the UK has historically trailed behind other countries in its adoption of new technology. In its AI Works report, it said: 'History shows this pattern recurring worldwide through successive waves of technology. 'But the challenge has been particularly pronounced in the UK, where a gap between innovation and implementation has repeatedly undermined economic potential.' 'Given AI's extraordinary economic potential, this long-tail pattern of adoption risks delaying productivity and compromising long-term growth,' it added. The company's study – conducted by research group Public First – found that AI adoption is being held back by a lack of accredited bite-sized training courses, as well as a failure by companies to provide official guidance on its use in the workplace. The survey of more than 3,100 respondents found that 70% of workers chose to use AI tools on their own rather than being asked to by their managers or employers, with just over a fifth (22%) being encouraged to do so by their employers, down from 28% six months ago. 'AI adoption is largely happening without official workplace guidance,' the firm said. Google is calling on the Government to use its industrial strategy to 'set out how AI adoption can be best supported in key industries'. 'Our research shows that workers are looking for explicit permission and guardrails on what they can, and are encouraged to, use AI for.' It also urged the new arms-length government body, Skills England, to support an accreditation system for short and effective training courses. Technology Secretary Peter Kyle said: 'We will support workers to develop the skills they need for jobs in and with AI, so that all parts of society can benefit from this technology.' 'As part of that, our AI Opportunities Action Plan will see us work closely with Skills England on a range of initiatives, including building a detailed picture of the gaps in our talent pool and working with training providers and industry to fill them.' Google has been running a pilot with small firms in the UK to help increase the take-up of AI, using behavioural science to help drive the programme, while also working with school academies and the Community Union. It is planning on rolling out AI Works pilots to other countries, such as Germany. Sign in to access your portfolio
The Herald Scotland
25-04-2025
- Business
- The Herald Scotland
UK risks missing out on £200bn boost from slow take-up of AI, warns Google
The firm said that while AI has the potential to add £400 billion to Britain's economy by the end of the decade through enhanced productivity, only half of this will be realised if the UK does not plug the adoption gap. Debbie Weinstein, president of Google in Europe, the Middle East and Africa, told the PA news agency the group's report was a 'call to arms… to make sure we're providing the tools that workers need for the UK'. She said: 'Addressing this adoption gap is essential to realising the economic benefits and the benefits in terms of time savings.' 'More needs to be done,' she cautioned. Google said that while many countries are slow to adopt AI in everyday life, the UK has historically trailed behind other countries in its adoption of new technology. In its AI Works report, it said: 'History shows this pattern recurring worldwide through successive waves of technology. 'But the challenge has been particularly pronounced in the UK, where a gap between innovation and implementation has repeatedly undermined economic potential.' 'Given AI's extraordinary economic potential, this long-tail pattern of adoption risks delaying productivity and compromising long-term growth,' it added. The company's study – conducted by research group Public First – found that AI adoption is being held back by a lack of accredited bite-sized training courses, as well as a failure by companies to provide official guidance on its use in the workplace. The survey of more than 3,100 respondents found that 70% of workers chose to use AI tools on their own rather than being asked to by their managers or employers, with just over a fifth (22%) being encouraged to do so by their employers, down from 28% six months ago. 'AI adoption is largely happening without official workplace guidance,' the firm said. Google is calling on the Government to use its industrial strategy to 'set out how AI adoption can be best supported in key industries'. 'Our research shows that workers are looking for explicit permission and guardrails on what they can, and are encouraged to, use AI for.' It also urged the new arms-length government body, Skills England, to support an accreditation system for short and effective training courses. Technology Secretary Peter Kyle said: 'We will support workers to develop the skills they need for jobs in and with AI, so that all parts of society can benefit from this technology.' 'As part of that, our AI Opportunities Action Plan will see us work closely with Skills England on a range of initiatives, including building a detailed picture of the gaps in our talent pool and working with training providers and industry to fill them.' Google has been running a pilot with small firms in the UK to help increase the take-up of AI, using behavioural science to help drive the programme, while also working with school academies and the Community Union. It is planning on rolling out AI Works pilots to other countries, such as Germany.
