In a sweeping reorganisation of government responsibilities, the skills brief has shifted from the Department for Education (DfE) to the Department for Work and Pensions (DWP), ending nearly a decade of unified education and skills policy.
This move signals a change that directly connects skills to welfare, employability and economic growth. The creation of a new “growth department,” combining DWP with skills, reflects a serious commitment to tackling the UK’s long-standing productivity challenges and rising welfare costs.
Heading up this ‘super ministry’ will be Pat McFadden, widely seen as a political fixer with a longstanding commitment to boosting social mobility, and whose background suggests he is well-placed to join the dots between these different policy areas. This is given weight by his regularly voicing concerns about number of young people not in employment, set against the context of rising number of economically inactive adults and soaring welfare bills.
Elsewhere, Baroness Jacqui Smith will now combine two roles – Minister of State for Skills for both Department for Education and the Department of Work and Pensions, retaining her responsibilities for both further education, higher education and her women and equalities brief.
While dividing the skills brief between two departments raises legitimate concerns around funding and strategic oversight, it also presents a rare opportunity to align employability and skills policy — something successive governments have struggled to achieve.
With the number of young people not in education, employment or training steadily rising since 2021 (837,000 aged 16-24 in England), and the welfare bill supporting an increasing number of working-age claimants, the urgency for reform (with a small r) is clear.
Underinvestment in skills has long held back productivity. Business investment in training has declined, and policy has often focused on supply—designing programmes from the top down—rather than demand, which reflects what employers actually need. What’s required now is a shift toward skills utilisation, job creation, and locally tailored solutions within a national framework.
For the skills sector — which has a pivotal role in rebuilding our workforce — this moment could be transformative, or more accurately, it’s about re-skilling our workforce to meet the demands of today. The jobs needed to capitalise on AI, deliver world-class research and support the growth of clean energy aren’t waiting for Gen Beta to enter the workforce: employers need skilled workers now.
The new ministry has the levers to make this happen – to move beyond a focus on low-skilled, minimum-wage employment and invest in upskilling and reskilling for better-paid, future-proof jobs.
Apprenticeships could also benefit from a joined-up approach, with anything that brings consistent standards and delivery across our four nations likely to be welcomed by employers.
As with any reshuffle, there is much still to become clear, not least the finer details of skills policy will change in the months and years ahead. The conversations starting now much take place across all the nations of the UK, and the still-new Skills England must be given the teeth to make decisions and drive change around the country.
What’s clear is that this change is bold and it won’t be without its challenges. But if implemented well it could finally align Britain’s skills engine with its growth ambitions — and that’s a change long overdue.
