Skills for a thriving economy
On 24 April, the APPG on the Future of Work convened parliamentarians, industry leaders, and policymakers to explore the question: Are we equipping people with the right skills for a thriving economy?
The discussion centred around the evolving UK skills landscape, the challenges facing Skills England, and the opportunities for building a future-proof, resilient skills system. The session highlighted the urgency of thinking differently about skills investment, life-long learning, and the impact of technology and AI on future work.
Chaired by Lord Jim Knight and Anna Thomas MBE, the panel was joined by:
Simon Parkinson, Chief Executive and General Secretary, Workers Educational Association (WEA)
Lizzie Crowley, Senior Skills Policy Advisor, Chartered Institute of Personnel and Development (CIPD)
Donna Ford-Clarke, VP of Vocational Qualifications and Portfolio, Pearson
Dan Howl, Head of Policy and Public Affairs, BCS – The Chartered Institute for IT
Lauren Edwards MP, Labour MP for Rochester and Strood, Co-Chair of the APPG for Skills, Careers and Employment
Skills England: the promise and the challenge
Simon Parkinson, Chief Executive of the Workers Educational Association, opened the session by urging a broader understanding of "basic" skills — reframing literacy, numeracy, and digital proficiency as essential skills. He pointed to the post-Brexit skills shortages across key sectors and questioned whether Skills England would have the cross-government influence necessary to succeed.
Simon stressed that local communities must play a central role in identifying and addressing their specific skills needs, warning against a too narrow, sector-specific focus that overlooks broader, transferable skills.
Lizzie Crowley, Senior Skills Policy Advisor at the CIPD, reflected on the complexity of the current system, citing constant policy churn and low public investment in skills. Lizzie called for greater agility and resilience within the skills system, and for Skills England to think beyond skills supply, encouraging employers to invest in skills as a route to boosting innovation and productivity, not just as an operational cost. She emphasized the importance of stronger local delivery capacity and warned against over-reliance on industrial strategies that only target a fraction of the economy.
Donna Ford-Clarke, VP of Vocational Qualifications at Pearson, underscored the need for a systems-level approach. She argued that Skills England must look beyond today's job roles to anticipate the skills needed for jobs that don't yet exist. Donna advocated for a standardized UK skills taxonomy and a focus on discreet, transferable skills to help workers navigate career transitions in a changing economy. With 80% of the 2030 workforce already in work, upskilling and reskilling must be the top priority.
Technology, AI, and the human skills imperative
Turning to the impact of technology, Dan Howl, Head of Policy and Public Affairs at BCS, shared insights from their 70,000-strong IT professional membership. He highlighted that 61% of senior tech leaders identified AI skills gaps as their biggest challenge, alongside cybersecurity and data science needs.
Dan called for Skills England to promote flexible learning pathways into AI roles and to address the significant gender gap in the tech sector, noting that 500,000 women are missing from the digital economy. He stressed that while technical skills are critical, human-centred skills like leadership, ethics, and critical thinking are essential to maintain trust in AI-driven workplaces.
Political leadership and future directions
Lauren Edwards MP, Co-Chair of the APPG for Skills, Careers and Employment, closed the session by emphasizing the economic prize on offer if skills gaps are properly addressed, citing a potential £16 billion boost if more young people are supported into work.
Lauren called for better business engagement with the skills system, particularly for SMEs often overwhelmed by bureaucracy. She highlighted the importance of Local Skills Improvement Plans, the need for a cross-Whitehall approach, and stressed that green skills and AI skills must be front and centre of future skills strategies.
She also pointed to the vital role of trade unions in boosting skills and productivity, warning that past neglect of this area has contributed to the UK’s persistent productivity gap.
Key policy takeaways
Some key policy proposals and takeaways surfaced by speakers and attendees alike include:
Reframe essential skills: Literacy, numeracy, and digital proficiency must be recognised as essential, not basic, to avoid devaluing foundational capabilities crucial for the modern workforce.
Strengthen Skills England’s authority: Skills England must operate across government departments with genuine influence to coordinate a long-term, joined-up national skills strategy.
Address the demand side of skills: Policy should not just focus on the supply of skills; employers must be incentivised to invest in workforce development as a driver of innovation and productivity.
Simplify the skills landscape: The complexity of the current skills system has eroded confidence among employers and individuals. A systems-level approach, rooted in local delivery and institutional memory, is urgently needed.
Anticipate future skills needs: Skills England must plan for a future shaped by AI, green transitions, and technological change, focusing not just on current occupations but on discreet, transferable skills.
Promote lifelong learning and reskilling: With 80% of the 2030 workforce already in work, reskilling must be prioritised to ensure people can adapt to changing job roles and industries.
Close the digital skills gap: AI, cybersecurity, and data science are critical areas of shortage. Flexible pathways into digital roles and greater efforts to tackle gender disparities are vital.
Enhance SME engagement: Support mechanisms must be simplified so SMEs — often lacking dedicated HR support — can more easily navigate skills and training initiatives.
Prioritise green skills: Green skills must be embedded into local and national skills planning to support the UK's transition to a sustainable economy.
Revitalise the role of trade unions: Trade unions should be seen as key partners in building a more productive and skills-rich workforce.
Next Steps: Crafting recommendations for Skills England
Building on the insights from this session, the APPG on the Future of Work will shortly be convening a follow-up roundtable.
This roundtable will bring together parliamentarians, industry leaders, and education experts to craft a series of targeted recommendations for government on how Skills England can deliver on its mission for building a resilient, future-proof skills system that drives economic growth, inclusion, and innovation.
We look forward to sharing the outcomes of that discussion in due course.
Lord Knight, Donna Ford-Clarke, Lizzie Crowley, Lauren Edwards MP, Dan Howl, and Simon Parkinson.