Post 16 education and skills strategy: implications for local government

The Government published the Post 16 Education and Skills White Paper in October 2025, outlining its vision to reform the system in England. The paper sets out measures to close skills gaps, support economic growth, and ensure high-quality education and training for all learners. It includes plans to strengthen  employer engagement, enhance further and higher education, and improve access and outcomes for disadvantaged students, including young people who are not in education, employment or training.

LGA view

The ambition for a joined-up, high-quality skills system supporting young people, including those who are not in education, employment or training, employers, and local economies is welcome. We value the Government’s commitment to engage on the reforms with local government and sector partners to ensure they are practical, inclusive, and responsive to local needs. Our press response stated that the strategy must deliver a place-based approach, embedding local government’s role so the skills offer is locally led and aligned with helping people into work. 

The White Paper sets out a vision for a connected, data-driven skills system to support employment and give employers access to talent. It strengthens Strategic Authorities’ role in shaping Local Skills Improvement Plans (LSIPs) to align training with employer needs, tackle shortages, and drive growth. The reforms support the Industrial Strategy skills ambitions to meet rising demand for advanced technical and professional skills, and create an integrated, flexible system combining adult learning, employment support, and employer engagement, with a target for two-thirds of young people to pursue Level 4 and above learning by 2040. Key announcements include:

• The Adult Essential Skills Review will align English, maths, ESOL (English for Speakers of Other Languages), and digital skills provision with priority sector needs. The Adult Skills Fund (ASF) will integrate with Jobcentre Plus support, aiming for all public investment through the ASF and Growth and Skills Levy, alongside LSIPs and Local Growth Plans.
• Boosting the skills offer by providing up to 100,000 places for pre-employment training and guaranteed interviews through Sector-Based Work Academy Programmes (SWAPs) and investing £100 million in Construction Skills Bootcamps over four years to boost construction skills. Skills England will work with industry to develop skills passports.
• The English Devolution Bill will formalise Strategic Authorities’ position as the default delivery partners for adult skills, giving them greater flexibility through the Integrated Settlement to target funding where it is most needed. Building on skills devolution to Strategic Authorities, Skills Bootcamps will be devolved starting with Greater Manchester and West Midlands in 2025/26, then rolled out to all Mayoral Authorities, with direct funding for Foundation Authorities.
• Pathways to Work Guarantee, backed by £1 billion annually by the end of the decade, will provide tailored employment, health, and skills support for disabled people and those with health conditions.

LGA view on joining up the skills and employment systems

• A coherent local skills offer is essential to helping residents achieve their potential and supporting employers with their workforce needs, which in turn supports inclusive local growth ambitions across England. Both councils and mayors are key to achieving this.
• It is positive that Government is devolving skills responsibilities to Mayoral Strategic Authorities (MSAs), giving local areas greater influence over provision. In these areas, councils should be fully involved in shaping local skills strategies and implementation.
• As devolution will take time to mature across England, the Government should also work with councils outside devolved areas to ensure a coordinated, locally led skills offer. This will help every place deliver a coherent approach that supports people into work, drawing on councils’ wide-ranging skills expertise, statutory duties, and their role in developing Local Get Britain Working plans.
• There needs to be greater alignment across a range of Towards an effective and financially sustainable approach to SEND in England, strategies (such as LSIPs, Local Get Britain Working Plans, and Local Growth Plans), with powers and multi-year, long-term, funding to deliver them.
• The LGA’s Work Local proposal recommends devolving skills and employment services across England through three interlinked offers to support inclusive growth:
  • Skills for All (addressing local skills supply and demand issues)
  • Working Futures (helping adults that need to secure and progress in work, with Connect to Work as the building block) and Youth Pathways (coordinating support for young people who are not in education, employment or training to be supported into first jobs or career paths).
• A Local Labour Market Fund (combining employability, skills, and health support) is needed to replace the UK Shared Prosperity Fund (UKSPF) after March 2026, which will impact employment and skills activity. UKSPF has funded vital local programmes from basic and sector-specific skills training to holistic employability support for those furthest from work, including job readiness and wellbeing. Without a successor fund, these services face a cliff-edge, risking higher unemployment and widening skills gaps. The LGA recommended Local Labour Market Fund to replace relevant parts of UKSPF, and that it should be additional to existing funding such as the Adult Skills Fund.

The Government is introducing measures to reduce the number of young people who are not in education, employment or training and ensure every young person has access to education, training, or employment support, while enabling adults to re-engage in learning. These include: 

• A Youth Guarantee to ensure every young person has access to education, training, or employment support. This includes a guaranteed job for young people on Universal Credit who are unemployed for over 18 months - full details to be confirmed in the Autumn Budget, and the doubling of Youth Hubs across the country over the next 3 years.
• All students will receive two weeks of work experience during secondary education - one week in Years 7–9 and another in Years 10–11, delivered in partnership with councils, schools, and employers.
• To prevent the number of young people who are not in education, employment or training, automatic enrolment will be introduced for 16–17-year-olds without a post-GCSE plan, alongside enhanced support for vulnerable learners. The prevention of young people who are not in education, employment, or training will be supported by AI-powered risk indicators and improved data sharing between schools and councils. Local areas and Strategic Authorities will learn from devolved trailblazers, support collaboration to track attendance and intervene early.
• Updating the Raising Participation Age Guidance and September Guarantee to clarify expectations on preparing students for post-16 transitions, using a co-production approach with the sector, Local Government Association, and third-sector partners.
• SEND provision will be boosted by supported internships up to £12 million to March 2026 and improved advice across post-16 education. Mental health support will expand with Mental Health Support Teams covering 60 per cent of students by April 2026. 

LGA view on building a system that leaves no learner behind 

• Councils have statutory duties to support young people’s participation in learning, prevent the number of young people who are not in education, employment or training and ensure sufficient post-16 places by ensuring effective tracking, transition planning etc. This makes them central to shaping these reforms. We welcome the co-production approach to updating Raising Age guidance and the September Guarantee to strengthen transitions and improve participation.
• We are keen for councils to play an even greater role in shaping the local post-16 offer with the right funding and powers, for instance through a formal role in FE accountability cycles to shape priorities and ensure provision meets local needs, a clearer role in 16–18 sufficiency reviews, and a move towards a multi-year, place-based approach to capital investment.
• Councils play a key role in delivering adult and community education through accountability cycles. The LGA and County Council Network’s research, Towards an effective and financially sustainable approach to SEND in England, sets out a vision for transforming SEND support and outcomes. LGA calls for urgent fundamental reform of the SEND system with councils given adequate powers to lead local SEND systems and hold partners to account. We recognise the important role colleges need to play in delivering provision for learners with SEND, and believe it is important for collaboration between councils, FE providers and Government.
• We support the continued roll-out of Mental health support teams in schools, delivered with local flexibility to reflect community needs. This should include a named mental health professional for each school and development of open-access community hubs for early intervention. Greater investment in prevention is vital, including a school nurse in every school and an uplift to the public health grant to underpin the Healthy Child Programme refresh. Youth work is likely to deliver high value for money, improving mental health, wellbeing, and employment opportunities. There is an estimated return on investment between 3.2:1 to 6.4:1. The upcoming National Youth Strategy must integrate initiatives, align with the Young Futures programme, and recognise councils’ existing youth services and family hubs, with local flexibility and additional funding for effective delivery.

Skills England will collaborate with employers, Strategic Authorities, and partners to identify skills needs and create a more agile system using better data and AI. The aim is to drive employer co-investment, support individuals into work, and align training with sector growth strategies, preparing for 1.4 million new jobs by 2035. For local government, this means working closely with employers and Strategic Authorities to ensure sector pathways reflect local priorities. Key announcements include:

• Skills England will provide national and local labour market intelligence, supported by AI and Labour Market Evidence Groups, to anticipate future needs and reduce reliance on international recruitment.
• Sector Jobs Plans will align training with sector growth strategies, supported by sector-specific skills packages: £625 million for construction, £187 million for digital and AI, £182 million for engineering, and £182 million for defence. Strategic Authorities will co-design sector pathways aligned with Local Growth Plans and lead delivery of sector packages.
• Employers will gain flexibility through the Growth and Skills Levy, enabling funding for short, modular courses (apprenticeship units) from April 2026. Foundation Apprenticeships will target young people who are not in education, employment or training and priority sectors, with up to £3,000 per apprentice for employers.
• Lifelong Learning Entitlement will be launched in 2026, providing individuals with four years of loan funding for higher-level education or training, including modular courses, starting in 2027. 

LGA view on skills planning and investment to meet employers’ needs

• As mentioned previously, councils within devolved areas should have a clear role working with mayors and as devolution will take time for coverage and to mature, Government must also work with councils outside these areas to strengthen skills provision for residents and employers.
• Local Skills Improvement Plans (LSIPs) remain central to skills planning. It is good to see Strategic Authorities have joint ownership of LSIPs with the Employer Representative Bodies (ERBs) embodied through the Devolution White Paper. Outside devolution areas, while we recognise the lead role of ERBs in shaping LSIPs, councils play a key supporting providing data and connection to the broader business community. It is disappointing that the new LSIP guidance (November 2025) does not reflect this.
• Local government is a major local employer which commissions or directly delivers services but has retention and recruitment challenges. As a levy payer, councils use the Levy as best they can to address these.
• We welcome the Government’s announcement to reform the Apprenticeship Levy into a Growth and Skills Levy with employer co-investment.  We want to see its use maximised to address workforce needs of local government as an employer, as well as across the wider local economy, improving life chances by promoting social mobility and supporting local growth. DfE has already announced reforms to the Levy to introduce more opportunities for young people through Foundation Apprenticeships and shorter apprenticeships linked to the Industrial Strategy, which will be an important lever for employers locally. The re-focus of Levy funding (above), restricting Level 7 (masters-level) apprenticeships to those over 22, will impact local government’s ability to address skills challenges in professions such as town planning, social work, environmental health, legal, civil engineering, and occupational therapy.
• We would welcome the opportunity to work with Government to address these skills needs through a reformed Levy and explore a new Level 2 Business Administration standard to create more opportunities for young people in the sector. Greater transparency on local levy expenditure and joint design of provision will ensure the levy delivers maximum impact. The Government could also consider piloting a place-based offer (including through pooling if there is agreement with others) to better plan provision, address supply and demand issues, target priority sectors, and widen participation - supporting local skills strategies, LSIPs, and place-based plans.

Further Education system

The Government plans to build a high-quality further education system that delivers world-class provision, removes barriers to opportunity, and enables two-thirds of young people to progress to higher-level learning - academic, technical, or apprenticeships - by age 25, supported by clear pathways into employment and further study. Key announcements include:

• FE will lead adult retraining through modular courses, working with higher education and employers to address skills gaps, strengthen the domestic workforce, and boost growth. This will be supported by Skills England’s data, greater specialisation via Technical Excellence Colleges (TECs), and reforms to strengthen regional impact through LSIPs, aligned with Local Growth Plans and Get Britain Working Plans.
• TECs will be expanded beyond construction into advanced manufacturing, clean energy, digital technologies, and defence, backed by £175 million, with employers shaping curricula and co-financing capital investment. TECs will take a place-based approach, with Strategic Authorities and partners driving collaboration to align specialist skills with regional priorities and strengthen local skills pipelines.
• The qualification landscape will be simplified with V Levels replacing vocational technical qualifications at Level 3, sitting alongside A Levels and T Levels to offer flexible combinations of vocational and academic study. Two distinct Level 2 pathways - occupational and further study - will be introduced, supported by new Level 1 English and maths qualifications before GCSE resits.
• £200 million investment in priority sector facilities, £375 million to expand post-16 capacity, and £1.7 billion for estate maintenance, supported by Regional Improvement Teams and enhanced roles for Strategic Authorities and Employer Representative Bodies in accountability agreements. A review of the 16–19 funding formula will target high-value courses, and measures will be explored to enable colleges to access loans from local or Strategic Authorities for infrastructure improvements.
• £1.2 billion investment annually by 2028–29 to support 1.3 million learners, recruit 6,500 expert teachers, including bursaries and retention incentives for STEM. Strengthening quality and industry links with the expansion of the Industry Exchange programme and introducing new in-service courses in technical teaching, English, maths, and SEND. 

LGA view on transforming Further and Higher Education system

• Councils have a statutory duty to ensure sufficient post-16 places and support young people’s participation in education or training. They work with FE colleges, schools, and providers to plan provision, prevent the number of young people who are not in education, employment or training, and deliver targeted support for vulnerable learners, including those with SEND. The Government’s ambition for a high-quality FE system that meets the needs of learners and employers depends on strong local collaboration. Councils are critical to aligning provision with local labour market needs through LSIPs and place-based strategies. However, challenges such as rising demand, lack of relevant and appropriate provision in some areas, SEND pressures, and fragmented funding mean councils need greater flexibility and resources to fulfil these responsibilities effectively.
• The LGA welcomes the Government’s intention to simplify the qualification landscape and introduce V Levels alongside A Levels and T Levels, providing flexibility for learners to combine vocational and academic study. It is vital that reforms do not reduce choice or disadvantage for those furthest from the labour market. V Levels should not be restricted to shorter qualifications; longer V Levels are essential for sectors such as computing, health, and social care, where extended training is critical to meet industry standards and workforce needs.
• The creation of two distinct routes, occupational and further study, is positive, as is the introduction of new Level 1 English and maths qualifications to support low-attaining learners and the expansion of the education record app to enable smoother post-16 transitions. Councils have long advocated for more blended learning, increased Maths and English funding, and a wider range of Level 1 and Level 2 options to help learners progress.
• We welcome the Government’s commitment to expanding TECs beyond construction into advanced manufacturing, clean energy, digital technologies, and defence, backed by additional investment. The LGA’s Skills for Infrastructure report recommended recognising and funding Institutes of Technology as strategic enablers, and TECs play a vital role in delivering high-quality technical education, aligned with national priorities such as net zero, urban regeneration and economic growth.
• The White Paper rightly recognises the importance of transport in supporting skills and employment. As highlighted in the LGA report How local transport influences economic inclusion, those reliant on public transport often face significant barriers accessing colleges or jobs, putting opportunity out of reach. The LGA calls for funding and powers to be extended to all councils to integrate transport and skills planning locally, ensuring individuals can access training and employment effectively and affordably.

Higher Education system 

The Government aims to strengthen the UK’s higher education sector through reforms that widen access, raise quality standards, and foster growth, creating a skilled workforce to support the Industrial Strategy and drive economic prosperity. Key announcements include: 

• Higher education reforms will promote seamless progression between further and higher education, including Level 4 and 5 technical qualifications. The Lifelong Learning Entitlement will offer four years of tuition fee loans for modular and flexible study, improving access and participation.
• Targeted maintenance grants for disadvantaged students, funded by an International Student Levy, and inflation-linked maintenance loans will enhance affordability.
• Stronger statutory guidance will require higher education providers to engage with LSIPs.
• £500 million investment through Local Innovation Partnerships will grow regional innovation clusters in collaboration with councils, businesses, and universities. 

LGA view on Higher Education system

• We welcome the introduction of targeted maintenance grants for disadvantaged students, funded by an International Student Levy. These grants are vital to widening participation and supporting learners who face financial barriers, particularly in college based HE.
• Local government and FE colleges should be recognised as equal partners in Local Innovation Partnerships. These partnerships aim to bring together FE and HE institutions, businesses, and local government in collaborations to drive local innovation and growth; therefore, equal involvement of councils and FE is essential to align skills, innovation, and economic priorities.
• Councils and anchor institutions, such as, universities and colleges, are central to shaping local skills ecosystems and driving inclusive growth. Their fixed presence and long-term commitment allow them to leverage assets, spending power, and influence through procurement, employment, and partnerships, building local wealth and resilience. Local government acts as a key enabler, coordinating efforts across planning, regeneration, transport, housing, and skills. Together, these institutions can unlock significant economic potential, LGA estimates £276 billion nationally with sustained funding and devolved powers. Success of reforms depends on collaboration to meet diverse learner needs and deliver a workforce aligned with the UK Industrial Strategy.