The Government’s new Post-16 Education and Skills White Paper sets out reforms designed to strengthen the UK’s skills base – particularly in advanced manufacturing, engineering, and clean energy. Below is a summary of the key measures and what they mean for CEA members.
The paper introduces ‘V Levels’, a new suite of vocational qualifications that will become the single pathway of vocational qualifications at Level 3 for young people. Sitting alongside A levels and T levels, V Levels will be offered across key employment sectors and built around occupational standards. The current range of around 900 approved Level 3 qualifications will be rationalised into this single route, with a consultation opening this autumn.
New foundation apprenticeships will be introduced in engineering, digital, and other priority sectors. Employers will receive a payment of up to £3,000 per apprentice to support the additional costs of early-career training.
From April 2026, the reformed Growth and Skills Levy will allow levy funds to be used on short, modular courses – initially in artificial intelligence, digital, and engineering – described as ‘apprenticeship units’. These will expand over time to meet critical skills needs.
The Government also confirmed plans for a network of Technical Excellence Colleges (TECs), designed as regional hubs for high-level technical training. There will be four in advanced manufacturing, five in clean energy, five in digital and technology, and five in defence. TECs will be based on existing colleges, receiving additional funding to become specialist hubs within a ‘hub and spoke’ model, working with local partners. Employers will have a direct role in shaping course content and curriculum design.
The Engineering Package supporting these reforms includes £47 million to fund engineering skills for adults, £2 million to expand engineering T Levels, and £8 million of capital funding for clean energy engineering courses at Levels 4 and 5. Selection for TECs will begin by the end of 2025, with delivery expected from April 2026.
The paper also confirms that Government will take employers’ investment in skills and training into account when awarding public sector contracts. Employers are expected to co-invest in workforce education and training, with Government co-funding only where there is clear national interest or market failure.
Finally, Government will work with businesses and industry bodies to create Sector Jobs Plans to identify future skills needs. The Immigration Skills Charge will rise by 32%, and access to the immigration system will be restricted for employers that do not demonstrate a commitment to developing domestic skills.
These reforms have clear relevance to the construction equipment and advanced manufacturing sectors. CEA members will have opportunities to influence the design of new V Levels, collaborate with Technical Excellence Colleges, and take advantage of the Growth and Skills Levy for flexible upskilling. Demonstrating investment in workforce training will also become increasingly important in future government procurement decisions.
The CEA will continue to engage with Government and education partners as these plans progress and will update members as consultations and funding opportunities open.
Read the full Post-16 Education and Skills White Paper on GOV.UK:
https://www.gov.uk/government/publications/post-16-education-and-skills-white-paper
