Employers across the UK are investing less in training, with those with the lowest qualifications missing out. This is the finding of a new report by Learning and Work Institute, supported by NOCN, which shows the Government’s aim of developing a high skill, high wage economy is being put at risk. Marking five years since the introduction of the Government’s apprenticeship levy, the report argues for a new ‘Super Skills Tax Credit’ to support levelling up.

This report comes after the Chancellor’s pledge in his Spring Statement to look at ways to support employers to invest more and improve the apprenticeship levy. It finds that Government policy has been subject to almost constant chop and change over recent decades, and often now reinforces existing inequalities rather than tackling them. ago.

The report argues that we need a bigger ambition to level up opportunity and increase the amount employers invest in training. It concludes that the Chancellor should introduce a new Skills Tax Credit. Modelled on the successful R&D tax credit, this would allow employers to deduct 230% of the cost of apprenticeships and accredited training from their tax bills, with a Super Skills Tax Credit allowing 300% of training costs to be deducted in priority levelling up areas.

20 January 2026

Labour market dashboard

Every month, Learning and Work Institute produces detailed and timely analysis of the latest labour market statistics from ONS. Explore our interactive charts.

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24 December 2025

Falling short: Understanding further falls in employer training

This briefing looks at how employer investment in training continues to fall – now down 36% per employee since 2005 – and argues that we must turn this around to improve economic growth.

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22 December 2025

From confusion to clarity: rethinking England’s 670 occupational standards

L&W’s Stephen Evans and Pearson’s Donna Ford-Clarke reflect on findings from our recent research on England’s occupational standards – of which there are now more than double the number in countries like Germany and Switzerland.

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27 November 2025

Responding to the full year apprenticeships data release

Learning and Work Institute’s Deputy Head of Research Dr Corin Egglestone responds to the full year apprenticeships data released on 27 November 2025.

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18 November 2025

Responding to higher technical skills needs

Supported by Gatsby Charitable Foundation, this report explores employer and employee decision making about training and the development of higher technical skills.

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7 November 2025

No train no gain

This research, supported by Multiverse, finds that access to training is a boon for people’s pay and careers. The training dividend is greatest for those on the lower rungs of the occupational ladder, helping them go further, faster.

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7 November 2025

Working class people paid more when they get training from their employer

Experts are calling on the Government to do more to get employers investing in training, as research reveals it’s a “boon for people’s pay and careers” – particularly for working class people.

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5 November 2025

Investing in skills: International policy insights for the UK

This report is the first in a series of three publications supported by the Nuffield Foundation that present the findings from multi-year research into employer investment in upskilling and reskilling in a changing economy.

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5 November 2025

New international case studies reveal how the UK can boost employer investment in skills

A study identifying international practice among employers and in public policy could help the UK increase employer investment in training, which has fallen by 30% per employee since 2011.

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