In this guest blog for Lifelong Learning Week 20204, Hannah Larsen, Policy Officer at British Chambers of Commerce, sets out how employers, government, learning providers and individuals can work together to meet skills needs in a changing economy.
In today’s fast-evolving economy, driven by rapid technological advances and shifting global dynamics, lifelong learning is no longer optional; it is essential.
Future growth will be predicated on an economy where continuous learning becomes the norm, ensuring that the UK workforce remains competitive and adaptive to change. To make this vision a reality, a collaborative effort is required from employers, government, training providers and learners, to create a tectonic shift in our adult learning culture.
Skills shortages a pressing problem
The scale and urgency of the issues is clear. From May to July 2024, there were 884,000 vacancies in the economy, while the number of economically inactive people stood at over 9.4 million. Meanwhile, British Chambers of Commerce (BCC) research shows 62% of businesses report they are experiencing skills shortages, rising to 74% for manufacturing firms. These shortages hinder growth, innovation, and productivity, underscoring the pressing need for a skilled, adaptable workforce. Addressing these gaps is vital, and it requires both immediate and long-term solutions rooted in lifelong learning.
Support needed for cultural shift
For employers, fostering a culture of continuous learning must become a priority. Training should not be a one-time event; it should be embedded into daily operations. Many businesses are already taking steps to invest in training, but smaller companies face barriers to accessing the skills system and risk being left behind. This disparity must be addressed, as upskilling is essential across all business sizes.
Apprenticeships, T Levels and modular courses offer practical pathways for upskilling employees. These initiatives are vital for filling skills gaps and providing career progression, particularly in sectors where talent shortages are acute. Employers who prioritise training will not only future-proof their workforce but also retain top talent.
Critical role for government
Yet, businesses alone cannot shoulder the responsibility. The Government has a critical role in creating the right policy and funding environment to boost training, upskilling and reskilling. The Lifelong Learning Entitlement (LLE) is one such initiative that promises to make education more accessible throughout a person’s career.
However, more must be done to raise awareness about the LLE and ensure it is rolled out effectively. The Government must work closely with businesses to help integrate the LLE into their training and recruitment strategies, making it easier for employees to upskill and retrain.
Modular learning is key
Beyond the LLE, the Government should also promote modular learning options through the reformed Growth and Skills Levy. Employers need the flexibility to invest in appropriate training for their business needs, and learners value shorter, more manageable courses that can fit around their busy lives. Access to funding and modular qualifications will further empower employees to move between roles and industries as the economy transforms in the modern era.
These policies need to be complemented by a tectonic cultural shift in Britain, where learning is seen as a lifelong necessity rather than something to be completed at an early age.
The power of local skills improvement plans
Employer-led Local Skills Improvement Plans (LSIPs) have already begun to transform how local skills needs are met in England. Over 65,000 businesses have engaged with the skills system through LSIPs, many for the first time. Chambers are working with businesses and providers to ‘change hearts and minds’, and this work can only bear fruit through long-term, stable engagement to build trust and embed a culture of lifelong learning.
However, funding is set to end in March 2025. The Government must commit to continued funding for LSIPs for at least a one-year extension beyond the current cut off point. Skills England should then set out a plan for their long-term funding to ensure they become integral to the fabric of the skills system.
Taking ownership of skills
Finally, learners themselves should be encouraged to take ownership of their skills. Lifelong learning is a personal commitment, and individuals should seek out opportunities to update and expand their skills throughout their careers. By embracing a mindset of continuous learning, employees can future-proof their own careers in a rapidly changing world.
This journey to a culture of lifelong learning is ambitious but necessary. Employers, government, educators and learners must all play their part to create a system where learning is integrated into the fabric of everyday life. Through a collaborative approach, as embodied by LSIPs, we can build a skilled, adaptable workforce – ready to meet the challenges of tomorrow.
