Restoring adult skills attainment to 2010 levels could boost the economy by £22 billion

Date:

08 10 2025

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Funding adult learning Lifelong Learning

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A new report from Learning and Work Institute is calling for sustained action to reverse over a decade of decline in adult literacy and numeracy skills as well as learning to GCSE and A level equivalent – with an economic prize of £22 billion at stake.

Restoring adult skills attainment to 2010 levels would be a ten-year effort, the report finds, and require an extra £2.2 billion annual investment from people, employers and the Government. But it would save UK taxpayers £8 billion each year and boost the economy by the equivalent of £500 for every working-age person.

Learning and Work Institute (L&W), the independent policy and research organisation behind the report, is calling for a “lifelong learning century” signalled by an overhaul of how learning is valued in the UK economy and society. This would mean reversing a previously reported £1 billion cut to Government investment in skills in England since 2010 and 26% fall in employer investment in training since 2005.

Discover the full report

'Ambition skills: toward a lifelong learning century'
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An earlier report in L&W’s ‘Ambition Skills’ series, which is supported by City & Guilds and NOCN, warned the UK risked plateauing mid-table among comparator countries by 2035. Today, L&W argues that the UK should set its sights on entry into the upper quartile in the OECD for all skill levels, involving:

  • An extra 3.5 million people gaining essential skills like functional literacy, numeracy and digital by 2035 compared to today, of whom over 3 million would be in England
  • An extra 3 million people (2.7 million in England) than projected to gain level 2 and 3 qualifications, with a focus on progression to level 3, by 2035
  • Continuing progress increasing the proportion of adults with higher education qualifications, with the UK on track to 10th in the OECD, and focusing on expanding vocational and apprenticeship routes for people throughout life.

The Government has announced it wants 65% of people in England to have gained higher education qualifications by age 25, by expanding university, technical and apprenticeship provision. But L&W contends that any plan to deliver this will need to address shortfalls in the number of young people and adults qualified to level 3 (A level equivalent) where the UK lags other countries. Moreover, given previous research showing 80% of our 2035 workforce having already left compulsory education, L&W calls for support for adults to improve their skills too.

L&W argues that to truly deliver a world-class skills base and make learning an everyday choice, the UK needs clear measures of success such as improved ranking in international skills league tables; more radical devolution with local areas in England empowered to tailor provision locally as well as focus on the number of people finding work and increasing their earnings; and a rewired skills system with open data, better advice for people and employers, and simplification of programmes to reduce running costs.

Stephen Evans, Chief Executive of Learning and Work Institute, said:
Lifelong learning is increasingly vital for our economy and society. A step change in effort from Government, employers and communities to create a lifelong learning century could reap the rewards of a £22 billion growth prize. Our research has shown the UK compares poorly to other countries, particularly in essential and intermediate skills, and inequalities between areas are larger than many European countries. It’s time to rewire our learning and skills system, focusing more on outcomes, encouraging employers to invest more, and harnessing the digital learning revolution.
Graham Hasting-Evans, Chief Executive of NOCN and President of BACH, said:
I’m pleased to see this timely report bringing much-needed attention to the importance of restoring skills. Investing in stackable, micro-credential learning will be a game-changer. This approach allows people to upskill quickly and flexibly, using more modern, personalised approaches to learning. Crucially, it helps employers tap into a wider pool of talent – people who are ready to step into roles where we’re facing serious shortages of competent and skilled workers. This kind of targeted investment is exactly what we need to build a future-ready workforce, and this report provides a clear and practical roadmap to help make that happen.

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press@learningandwork.org.uk