Skills policy updates - May 2026

Welcome to the Enginuity Policy Team’s policy update for May 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                                                          

DfE announced that the government platform advertising school teaching roles is set to feature FE college vacancies for the first time later this year

Officials expect the service to reduce FE provider recruitment costs and improve the visibility of teaching roles in colleges. The intention to include FE roles on the teaching vacancies service was first floated in the post-16 white paper, where ministers said it would make it easier for providers and candidates to “connect with opportunities”.

DfE removed work placement limits on T Levels and enabled placements to be split across unlimited employers

The changes mean that a student on a standard 315-hour industry placement could now complete the entire requirement remotely and divide the hours among as many employers as necessary. Officials still “recommend” using remote hours for no more than 20 per cent of the placement “where possible” and says providers “should” still aim to use no more than two employers.

DfE published the post-16 pathways implementation plan. Here is a quick summary:

• DfE scrapped the single-licence model for T Levels and the awarding body approach for new vocational qualifications. Under this model, awarding organisations that meet Ofqual’s recognition criteria will be able to enter the market and offer their own T Levels and V Levels.
• A number of programmes will be newly funded, including 2028 V Levels, Foundation Certificates (FCs) and Occupational Certificates (OCs) in Engineering and Manufacturing.
• In July 2026, subject content will be published for 2027 V Levels, FCs, and OCs.
• In early 2027, subject content will be published for 2028, and 2029 subjects will be confirmed.
• In September 2027, the first teaching will commence for 2027 FCs, V Levels and OCs.

Government responded to the Transport Committee’s report on skills for transport manufacturing without fully committing to any new measures. Here are the key outcomes:

• Four recommendations were partially accepted, including the call for Skills England to consult on the benefits of a ‘competency passport’. Government did not set out any specific or time-bound plans to consult the transport manufacturing sector on the potential benefits of this approach.
• Government rejected recommendations on loosening levy spending constraints and re-introducing level 7 apprenticeships funding for all ages.
• Government also rejected a recommendation on getting Skills England to detail how it will support the Government’s target to increase diversity in the manufacturing sectors, instead referring to the Make UK Equality Taskforce.

Skills England launched the UK Standard Skills Classification (SSC), a “simpler, shared system for describing skills needs”

Created by the University of Warwick’s Institute for Employment Research (IER) and the University of Sheffield, the SSC is a standardised set of categories that identify the skills, knowledge and tasks required across UK occupations. It offers the most detailed, data driven picture yet of the UK labour markets and aims to make it easier to match people to job opportunities and target skills investment where it matters most.

King Charles gave his annual speech in the House of Lords, outlining the government’s plans for new laws in the next session of parliament. Key headlines included:

• Reducing regulatory burden: Commitment to reduce unnecessary regulation to support British business.
• Infrastructure delivery: Legislation to unlock airport expansion, accelerate road building, and deliver a fair rail deal for the North of England.
• Steel industry protection: Commitment to safeguarding domestic steel production.
• Vocational education and apprenticeships: Ensuring no child is disadvantaged by a “lack of respect for vocational education”, with continued investment in apprenticeships and technical education, and a forthcoming response to the Milburn and Timms review.
• Energy independence: Introduction of an Energy Independence Bill to scale up homegrown renewable energy and protect living standards.

Government announced new “bite-sized” university courses to become available at 130 institutions as part of the Lifelong Learning Entitlement

The courses are aimed to support adults who need to fit study around life commitments or want to return to learning later down the line to upskill. Modules on offer will focus on subjects that tackle skills shortages, including engineering, and will enable people to gain qualifications over time, rather than needing to complete a 3-year full-time degree in one go. New modules will start from January 2027.

Alan Milburn, the government’s social mobility adviser was questioned by the DWP Select Committee on NEETs. Here are some key takeaways:

• NEET levels are worsening, with 57% not actively job-seeking and a 70% rise in work‑limiting health conditions, which Milburn framed as a “jobs crisis being fuelled by a health crisis.”
• The UK is performing poorly, with around 3x the NEET rate of Holland and 2x that of Ireland.
• Milburn stressed NEETs are a cross-cutting (‘horizontal’) issue - spanning early years, education, skills, health and communities - while current policy operates in silos; the review will take a whole-system approach, starting with a diagnostic report and followed by a national solutions framework.

Alan Milburn published the interim findings of a major review of youth unemployment, revealing that UK youth unemployment is costing the UK £125 billion a year, with over a million young people currently falling under the ‘NEET’ category.  Here are some key reflections:

• This is a “whole-system failure”, not a failure of young people. 84% of young NEETs want a job or training opportunity.
• NEET numbers have exceeded 1 million, with a cost of around £125 billion a year to the UK.
• There has been a major decline in entry-level and mid/low-skilled jobs.
• Ill-health is a key determinant of who becomes and stays NEET. There has been a major rise in mental health-related inactivity among young people.
• There is a significant imbalance in spending: for every £25 spent on benefits, only £1 is spent on employment support for young people.
• Milburn wrote that colleges must be funded for outcomes and not headcounts to bridge the “post-16 cliff-edge” after 18, when local authority tracking responsibilities largely fall away and no institution has responsibility for young people who become NEET.
• In interviews and at his press conference, Milburn suggested government should drop pledge to apply national living wage to all over-18s.

Wales

Plaid Cymru leader Rhun ap Iorwerth became the first non-Labour Welsh First Minister

Wales held a general election that saw Plaid Cymru win Welsh Senedd elections and end 100 years of Labour dominance in Wales. First Minister Iorwerth appointed his ministerial team following the election win.

Medr published its total investment for the 2026/2027 academic year, totalling £1.018 billion.

Budgets in apprenticeship budget (ring-fenced), junior apprenticeships (Ring-fenced), and mainstream further education have been increased since last year. The budget for adult community learning and for employability and skills has remained the same. The increased participation budget has decreased significantly, from £21million to £6million.

Scotland

Following the general election in Scotland, the SNP won a fifth successive Scottish Parliament election.

However, the SNP fell short of its target of an overall majority at Holyrood. First Minister of Scotland John Swinney appointed his new Cabinet, unveiling a streamlined team of Cabinet Secretaries.

Consultations & Inquiries

• Medr: Apprenticeship funding model. Closes 19 June 2026.
• APPG Apprenticeships: Apprenticeships and the Industrial Strategy. Closes 1 August 2026.

Decision maker changes

• Andy Williams appointed as Director of ADS Scotland
• Ben Blackledge appointed CEO of the City & Guilds Foundation

Welsh Ministerial Appointments:

• Anna Brychan appointed Welsh Cabinet Minister for Education and the Welsh Language
• The role, Minister for Culture, Skills and Social Partnership was removed from the Welsh cabinet
• Cefin Campbell appointed Deputy Minister for Skills and Tertiary Education, a new position in place of the removed role, Minister for Further and Higher Education.

Scottish Ministerial Appointments:

• John Swinney nominated as First Minister for Scotland
• Jenny Gilruth, a former education secretary and teacher, appointed as Deputy First Minister and Finance Secretary
• Màiri McAllan appointed as Cabinet Secretary for Education, Culture and Gaelic. The role has changed from Cabinet Secretary for Education, Culture and Skills
• Gillian Martin appointed as Cabinet Secretary for Climate Action and Rural Affairs
• Stephen Flynn appointed as Cabinet Secretary for Economy, Tourism and Transport
• Stephen Gethins appointed as Minister for Europe, External Affairs and Energy
• Hannah Mary Goodlad appointed as Minister for Public Finance
• Siobhian Brown appointed as Minister for Children, Young People and The Promise
• Ben Macpherson appointed as Minister for Innovation, Technology and Tertiary Education
• Tom Arthur appointed as Minister for Business and Fair Work

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