Make UK’s Industrial Strategy Skills Commission proposes sweeping reforms

21 May, 2025

Among its proposals, the Commission advocates for ringfencing the £800 million in unspent employer contributions to the Growth and Skills Levy and redirecting the £650 million raised annually from the Immigration Skills Charge solely to skills investment. These funds could train 40,000 new engineers, addressing the manufacturing skills gap that costs the UK economy £6 billion annually.

The Commission also highlights the decline in vocational courses, particularly in engineering and manufacturing, due to financial pressures on education providers. To remedy this, it recommends increasing funding for key courses, such as the Level 3 engineering apprenticeship, and allowing levy funds to be used for investing in equipment and machinery.

To further support upskilling, the Commission proposes a tax rebate for businesses investing in accredited training, along with a revamp of careers guidance in schools. It also calls for expanding the University Technical College (UTC) model to provide more technical training opportunities.

Robert Halfon, Co-Chair of the Commission, emphasised the need for reform to support innovation in manufacturing and engineering, especially in new green technologies. He warned that failure to act could undermine the UK’s growth agenda.

Make UK CEO Stephen Phipson echoed these concerns, criticising the current Apprenticeship Levy and urging immediate action to ensure proper funding for vital courses and recruitment of experienced trainers.

The Commission’s message is clear: urgent action is needed to address the UK’s skills crisis and secure the future of its manufacturing sector

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