The British government has announced a record £3 billion investment in skills training, aimed at reducing the country’s dependence on foreign labour by equipping locals with industry-relevant skills.
This comes amid growing political pressure to curb immigration and revamp the labour market.
The new initiative, unveiled on Tuesday, is expected to create 120,000 training opportunities across high-demand sectors including construction, engineering, health and social care, and digital.
Looking inward for talent
According to the Department for Education, the strategy is designed to “refocus the skills landscape towards young, domestic talent.”
- This policy shift arrives at a time when labour market inactivity remains stubbornly high. The UK’s latest data shows that over 21% of working-age Britons are neither employed nor seeking work, a trend that has worsened since the COVID-19 pandemic.
- The Labour government, under Prime Minister Keir Starmer, has been under increasing pressure to tighten immigration policies.
- Following the local election gains of the right-wing Reform UK party in May, Starmer declared that the “open border experiment” was over, signaling a tough new stance on immigration.
Other reforms
Among the reforms is a proposed 32% hike in the immigration skills charge—a levy paid by employers hiring foreign workers.
The government expects this move alone could fund up to 45,000 additional training places in priority sectors.
Officials argue that these reforms will help “upskill the domestic workforce and reduce reliance on migration.”
However, businesses have raised concerns, warning that restrictions on foreign hiring, if not matched with meaningful skills development, could worsen existing labour shortages and drag on economic growth.
What you should know
Nairametrics earlier reported that the UK Prime Minister Keir Starmer unveiled a major immigration White Paper on May 12, 2025, outlining a comprehensive overhaul of the country’s migration system.
The proposal introduces tougher rules across work, family, and student visa categories, with a central emphasis on encouraging long-term integration and reducing dependence on foreign labour.
- A significant reform is the extension of the residency requirement for permanent settlement from five to ten years.
- To raise the skill threshold for work visas to degree-level qualifications, companies will now be required to demonstrate investment in domestic skills before hiring foreign workers.
- Post-study Graduate Route visa will be shortened from two years to 18 months.
- Family visa rules will also be tightened, with new English language requirements extended to dependents.
- A Temporary Shortage List has been introduced to manage the recruitment of foreign workers for low-skilled jobs (RQF 3–5). These roles will be allowed only on a limited basis.
