Is a Tertiary Ecosystem on the Horizon?

The recent flurry of activity from Whitehall has begun to provide some of the clarity the skills sector has been seeking. Between the Chancellor’s Spring Forecast and the Department for Work and Pensions' unveiling of the first “apprenticeship units”, the Government has signalled a more decisive - if still contested - shift in its approach to skills and productivity. The Lifelong Education Institute (LEI), was established to promote a more agile, integrated and place-based education and skills system. These announcements offer useful building blocks towards that goal, but they also prompt an important question: are we creating a coherent ladder of opportunity, or simply adding new rungs without a clear route upwards?

A (small) win for flexibility

The headline-grabber is undoubtedly the launch of the first seven apprenticeship units. From AI Leadership to Solar PV installation, these modular, short-form courses represent a fundamental shift in how we think about workplace training. For years, the LEI has advocated for ‘bite-sized’ learning to accommodate the realities of modern work, particularly for adults who cannot commit to full, multi-year qualifications.

By allowing employers to use the Growth and Skills Levy to fill specific skill gaps, ranging from 30 to 140 hours of training, the Government appears to acknowledge that skills move faster than traditional qualification cycles. This is a crucial step toward the tertiary ecosystem we have argued for. If these units are successfully integrated with the upcoming Lifelong Learning Entitlement (LLE), they could become the building blocks of a truly flexible system where learners stack credits over a lifetime.

However, a word of caution is necessary. Modularity must not lead to fragmentation. We must ensure these units are not dead-end credentials but are mapped clearly onto national standards and higher-level pathways. Without a 'coordinating strategic mind’  - a role we hope Skills England will inhabit - there is a risk that these units become reactive sticking plasters for immediate industry gaps, rather than a strategic investment in long-term capability.

Job Entry versus Career Progression?

The decision to significantly restrict funding for Level 7 (Master's level) apprenticeships in England, to those aged 21 and below, will rebalance the budget towards younger learners and lower-level training redirecting £200 million into youth employment and SME subsidies. The logic is clear: with nearly one million young people currently Not in Education, Employment, or Training (NEET), the moral and economic urgency to support the 16-24 cohort is undeniable. The new £3,000 Youth Jobs Grant and the full funding for apprentices in SMEs are precisely the kind of lever the LEI has called for to support skills cold spots across the UK.

Yet, we must ask if this is a false dichotomy. Effectively defunding higher-level management training will limit opportunities for continued learning among adults in work potentially widening the leaky pipeline at Level 4 and above. All research shows that adult participation at these levels has plummeted over the last decade. Leadership is not a luxury skill; it is one of the primary drivers of productivity. If we lose the ability to upskill our existing workforce into management roles, we may find that the 200,000 young people entering the workforce via the new Jobs Guarantee find themselves in stalled careers with no clear path to progression.

Our position remains that the Growth and Skills Levy should be an integral part of a co-investment system. Rather than simply cutting programmes, the Government should incentivise businesses in strategic sectors - like Clean Energy and Digital - to contribute alongside student finance and public funding, to maintain a broad and continuous spectrum of training from entry-level to post-graduate.

Strengthening the FE-HE Bond

One of the most encouraging aspects of the recent announcements is the requirement for strong providers to lead the rollout of new units. This presents a golden opportunity for Further Education (FE) colleges to cement their role as the engines of regional growth.

As we argued in our Partners in Progress and Taking Higher Education Further papers with the Mixed Economy Group (MEG), the divide between academic and vocational will soon be indistinguishable. The new AI Leadership unit, for instance, sits at the intersection of technical mastery and strategic thinking. It requires the deep community reach of an FE college and the high-level expertise often found in Higher Education (HE).

We continue to call for a more formalised tertiary ecosystem. This should include:

• Greater modularity: An expansion of flexible modules, allowing learners to 'jump' between providers to stack credits and gain the skills they need

• Enhanced university participation in skills development: Making universities active participants in Local Skills Improvement Plans (LSIPs) and regional pathways, leading to a resurface of their civic role

• A Higher Education Commissioner: To work alongside the FE Commissioner, ensuring that interventions in the sector are focused on widening access and regional productivity rather than just financial monitoring

The Path to 2030

The Chancellor’s Spring Forecast suggests a return to growth, but sustainable growth is impossible without a workforce that is continually learning. The recent reforms are a bold start, but they feel like a series of tactical manoeuvres rather than a singular, grand strategy.

We need to move beyond the reactive mindset of tackling youth unemployment and toward a vision of a Lifelong Learning Society. This means ensuring that the 12-month levy expiry window does not drive rushed or low-quality training, while also making sure that the withdrawal of funding for management apprenticeships is matched by credible alternative pathways for adult learners and career changers.

The Lifelong Education Institute will continue to act as a bridge between policymakers, providers, and employers, helping turn reform into a more coherent system. We welcome the shift towards greater flexibility and the renewed focus on young people. But as the 2026/27 rollout of the LLE approaches, the priority must be to build a ladder of opportunity that is complete and connected - one that supports progression from the foundational skills of a 16-year-old apprentice to the advanced technical expertise of a learner retraining or progressing later in life.