Budget Reflections: Key Impacts on Skills and Training

By Mike Worley, Managing Director

Well, Budget Day has come and gone, sparking plenty of discussion. Some say it’s a tough one for small businesses, and it’s clear there’s going to be some pain as the country works to get back on track. It’s certainly a brave budget –  for years, budgets have aimed to please voters, but this one can’t be accused of being populist. It’s a bold move and has certainly given us all something to talk about.

When it comes to skills and training, there are some key points that we’re watching closely:

£300m for Further Education

Labour has dedicated an additional £300 million to further education in England, signalling their commitment to youth development and skills training. While details on where this funding will go are still emerging, it’s crucial for the sector that funds are allocated fairly across the different types of training providers. With a large portion of apprenticeships taking place outside traditional college settings, we’re hopeful that all providers, including those like us, will see support. The specific details of how this will be invested have not been included in the Treasury’s budget documents.

Foundation Apprenticeships Get £40m

With £40 million set aside to develop foundation and shorter apprenticeships, this budget looks to expand the accessibility and relevance of apprenticeship programmes in key sectors. We believe that tapping into the existing levy funds to create employer-led foundation apprenticeships could be an efficient way to deliver the skilled workforce needed. HIT Training Ltd will continue to advocate for flexible and industry-aligned approaches that allow employers to play a significant role in shaping the workforce.

£950m for Skills Capital Funding

A substantial £950 million has been allocated for skills capital, as part of a larger £6.7 billion for education capital investment. This funding is intended to improve and maintain college and training facilities. By investing in the infrastructure that supports high-quality training environments, the government underscores the importance of vocational training as a key component of education.

Lifelong Learning Entitlement Deferred to 2027

The launch of the Lifelong Learning Entitlement (LLE) has been pushed back to January 2027, to align more closely with Skills England and the Industrial Strategy. We recognise that a carefully coordinated rollout could support a more sustainable approach to lifelong learning. Expanding access to flexible training opportunities for adults is essential for building an adaptable, future-ready workforce.

£46m to Support Local Planning Authorities

The budget provides £46 million to recruit and train 300 graduates and apprentices for local planning authorities, boosting talent within critical public sectors. While not directly related to our sector, we see this as a positive sign of investment in skills development across essential roles.

Eight Youth Trailblazers in Devolved Authorities

The Budget introduces eight new youth trailblazer programmes in devolved authorities, with details on locations yet to come. These initiatives are expected to receive devolved funding to support youth employment by tailoring skills and work programmes to meet regional needs, creating new opportunities for young people across the UK.

Increase in Apprentice Minimum Wage

Apprentices can expect an increase in their minimum wage from £6.40 to £7.55 per hour, helping to ease the cost-of-living burden and make apprenticeships a more attractive option for young talent. This change is a step forward in making apprenticeships a viable and rewarding pathway for more individuals.

The Government’s commitment to reforming the apprenticeship levy remains. Through our work with sector bodies and trade associations, HIT Training Ltd will continue to engage in these important discussions. We know that quality skills-based training is a crucial driver of economic growth, employee retention, and overall productivity and we’re here to champion the needs of our industries and employers.

This budget might bring some challenges, but it also presents an opportunity for all of us in the sector to strengthen our impact, advocate for flexible training models, and continue supporting people in building rewarding careers.