Skills policy updates - April 2026

Welcome to the Enginuity Policy Team’s policy update for April 2026. Our monthly update is designed to keep you informed about key developments in skills policy. This edition shares insights into recent government announcements and their implications for our sector, helping you stay ahead of changes shaping the skills landscape.

UK and England                                                        

London Mayor Sadiq Khan published the decision that he will use £9 million of the Greater London Authority’s (GLA) Adult Skills Fund (ASF) reserves to pay for London’s youth NEETs programme.

The GLA holds about £28 million in ASF reserves, which are accumulated underspends built up wince the authority gained devolved control of about £340 million per year in adult skills funding in 2019. Experts have expressed concern that diverting adult skills funding in this way is “undermining already stretched adult education budgets”.

The British Chambers of Commerce published a survey revealing that labour costs were the biggest cost pressure for businesses, and that 71% of firms experienced hiring difficulties in Q1 of 2026.

The research was carried out between 9 February and 9 March, before the impact of the Middle East conflict was fully apparent. More than 4,560 businesses across the UK (91% of whom are SMEs) took part. 78% of employers in manufacturing cited labour costs as the biggest cost pressure.

DfE announced that a new careers advice service for schools and colleges will replace the functions of the Careers & Enterprise Company, but the CEC plans to bid to run its successor.

DfE revealed that ministers intended to create a new careers advice service by August 2027. The CEC told FE Week it would bid to run the new contract “if and when” it goes to tender. DfE officials also said that the service would include a training offer for careers advisers, the provision of digital tools and a “searchable, high-quality digital resource bank” for schools and colleges. 

Government announced 19 new Technical Excellence Colleges.

The colleges selected will begin delivery from April 2026. This next phase aims to give around 65,000 learners access to training in high-demand roles and is backed by £175 million in public funding and builds on the first wave of TECs announced in August 2025 (£100 million).  

DfE revealed that providers taking on additional 16 to 19 learners in 2025-26 will only receive around three-quarters of the funding expected. 

Colleges and sixth forms in England will therefore have to absorb the cost of rising student numbers.  DfE said that due to a rise in 16 to 19 funded students this year, “the current growth is significantly above the budget available for in-year payments, and so we cannot fully fund this growth.”

Gatsby released new data demonstrating that T-Levels offer a range of destinations.

T-Levels are continuing to demonstrate a high rate of positive progression to education, employment and training. This report follows the progress of T-level students who completed their qualifications in 2024 and includes for the first time T-levels in Engineering and Manufacturing.  

Skills England published the funding rate for each individual apprenticeship unit as well as minimum delivery hours. 

Starts on the new short courses can begin from April 28. Funding rates will range from £750 up to £3,200. This is the first time levy funds can be used for non-apprenticeship training.

Government announced the expansion of its devolution programme; seven regions will take control of adult skills funding for the first time this year.

Newly devolved areas will join 13 existing authorities with full devolution of adult skills, bringing the percentage of devolved adult skills funding and free courses for jobs to 77% of the approximate £1.4 billion national budget.

Skills England answered questions from the Work and Pensions Committee in an examination of the strategic role and responsibilities of Skills England.

Skills England stressed their awareness of system complexity, SME disengagement and youth unemployment, but often struggling to give concrete examples when pressed by MPs. They struck an optimistic tone on the move from DfE to DWP and on NEETs as a strategic priority, leaned on LSIPs as evidence of employer engagement, and acknowledged weaknesses at levels 4–5 compared with international peers.

A new report from the Socal Security Advisory Committee found that the benefit system is penalising families when young people take up apprenticeships.

The report revealed that young people from low-income families are costing households hundreds of pounds in benefits due to 16-year-old apprentices being classed as “independent workers”. The committee recommended ministers address the timing gap between benefit cessation, currently the August 31 after the young person’s 16th birthday, and participation commencement.

Wales

Medr announced regional events to test the design of the new apprenticeship programmes.

Medr has invited apprenticeship providers, employers, training professionals, and sector partners to take part in a series of regional engagement events. These sessions will test and refine the design of the new apprenticeship programme, ensuring it is responsive, and aligned with the needs of learners, employers, and the wider Welsh economy. Enginuity will be attending.

Northern Ireland

Government announced a new £50 million defence growth deal for defence tech start-ups and small businesses in Northern Ireland.

The deal will create a targeted programme to help small and medium-sized enterprises (SMEs) and start-ups in Northern Ireland by making it easier for them to enter the defence supply chain. the UK government is also providing additional funding for a skills initiative in Northern Ireland. Defence will work with industry, colleges and universities to develop defence-related skills.

Scotland

A change to the Core Skills requirements in Scottish Modern Apprenticeships is being considered by the Scottish Government.

Currently, all Modern Apprenticeships must incorporate five Core Skills at levels determined by stakeholders in the sector (subject to minimum levels). It is proposed that this should be reduced to three Core Skills: Communication, Numeracy and Information & Communication Technology.

Consultations & Inquiries

• Ofqual: Introduction and consultation details. Closes 2 July 2026.
• DfE: 16-19 performance measures. Closes 21 July 2026.

Decision maker changes

• Mariella Frostup appointed the Government’s Women’s Employment Ambassador 
• Baroness Lane-Fox appointed as Chair of new London AI and Jobs Taskforce 

What’s coming up in May

• Publishing of the qualitative findings from Enginuity's SME Snapshot roundtable to supplement the SME Snapshot data.
• Launch of the SQW Report on the Cost of the Skills Gap. 
• Scottish and Welsh elections, as well as some English council elections, on Monday, 7 May. 

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