Fuelling the Core: Apprenticeships, Industrial Strategy, and the Derby Nuclear Skills Academy
Fuelling the Core: Apprenticeships, Industrial Strategy, and the Derby Nuclear Skills Academy
This report examines the Derby Nuclear Skills Academy (NSA), a landmark partnership between Rolls-Royce and the University of Derby. Established in 2022 to secure the talent pipeline for Britain’s nuclear submarine fleet, the NSA has become a vital model within the UK’s 2026 industrial landscape. As the Government implements a new Industrial Strategy and transitions to a Growth and Skills Levy, this report evaluates how such place-based initiatives can address national skills shortages.
Published:
29 January 2026
Key recommendations include:
Recommendations for Government:
Continue to support Higher and Degree Apprenticeships as a key component of England’s apprenticeship system.
Prioritise apprenticeship funding to address recruitment and skills shortages and consider alternative ways to incentivise employers to invest more in workforce development and in-house training to raise productivity.
To widen access for young people and alleviate pressure on the apprenticeship budget, progressively take apprenticeship funding for 16–19-year-olds out of the apprenticeship levy system, starting by directly funding all intermediate (Level 2) young apprentices.
Mandate Skills England to simplify the administrative and regulatory framework around higher and degree apprenticeships, through streamlining the apprenticeship design and approval process and reducing Ofsted’s role in inspecting apprenticeship provision.
Develop mechanisms to match the classification of apprenticeship subject areas to priority industry sectors to enable effective evaluation of the scope, relevance and impact of apprenticeships in each sector.
Through the Growth and Skills Levy, develop a toolkit of shorter, more flexible workforce training strategies, including shorter courses, modular programmes, and online delivery.
Move away from LSIPs by supporting Skills England, in partnership with Mayoral Combined Authorities, to develop Regional Education Partnerships that include universities.
As part of Higher Education reform, introduce tangible financial incentives for universities to engage actively in local and regional skills partnerships.