The Surprisingly Easy Solutions to the UK’s Skills Shortage

Funding and government support often grab headlines when it comes to fixing the UK’s skills shortage. However, there are some quicker remedies available to employers, providers, colleges, and others. Partners Paul Aristides and Justin Rix share their views and ideas that will go some way to help fix the problem.

It’s old news: the UK has a skills shortage, and it’s getting worse. One in three vacancies are now due to skill gaps, up from 25% a decade ago. Employers’ spending on training has declined, squeezed by inflation, increasing National Insurance costs, and tighter labour laws.

But there’s good news: solutions exist that are not grand, expensive overhauls. Here are the steps that can make a big difference, across the entire education and training sector, from universities and Further Education (FE) colleges to private training providers. 

A Sector Under Pressure 

The challenge affects all levels of the education system. FE colleges have long felt underfunded and overlooked by government, yet they are critical to the skills ecosystem. Universities, meanwhile, face pressure to balance academic excellence with employability-focused courses. Private training providers often bridge gaps but must navigate a competitive, underfunded landscape. 

At the same time, the labour market’s rapid evolution demands more than just technical skills. Workers need to be resilient, adaptable, and ready to learn throughout their careers. The education sector must find a way to meet these challenges while responding to the needs of industries ranging from healthcare and construction to AI and green technologies. 

Better Collaboration, Smarter Solutions 

The solution isn’t about reinventing the wheel, but about recalibrating how education providers, employers, and sector bodies collaborate. Right now, the system doesn’t always work effectively, with supply and demand often misaligned. Bridging that gap means tweaking how existing frameworks operate and ensuring the entire sector works as a cohesive whole. 

For example, there’s an urgent need to focus on improving partnerships between education providers and businesses. These partnerships shouldn’t just be the responsibility of colleges or universities; employers must take a more active role in shaping and supporting training pathways. 

Trade bodies, sector Skills Councils and Associations are well-placed to help here. Acting as aggregators for small and medium-sized enterprises (SMEs)—which make up 99% of UK businesses—they can provide collective training resources, connect employers with education providers, and drive initiatives that address skill shortages at scale. Their role and position within the skills environment and impact should be reviewed in light of the creation of Skills England.

The Role of Employers 

Employers, particularly large organisations, have significant power to drive change. Many already use apprenticeships and training mandates as part of their supply chain agreements, creating ripple effects across industries. However, more can be done to encourage SMEs to engage in these schemes. 

SMEs often lack the resources or infrastructure to independently invest in training. This is where sector bodies and larger employers can help by creating shared resources and systems that smaller businesses can access. Collaboration is key. Large employers, education providers, and sector councils must work together to make workforce planning straightforward and accessible.

And colleges must also engage with employers. If you have a relationship with a large employer, ask them how you can help them with upskilling their supply chain. Ask them and any other businesses in your area how you can help them engage with your regional competitive advantage. Use others’ success cases. Employers will love it, and it will create a ripple effect, providing compelling case studies for other employers. Go beyond your one large employer relationship.

Strategic Workforce Planning 

A major barrier to solving the skills shortage is the lack of strategic workforce planning. HR and Learning & Development teams often work reactively, focused on immediate needs rather than long-term goals. This is particularly challenging for SMEs, which may be too occupied with putting out fires for planning beyond the next recruitment cycle. People in L&D roles need to fully engage with FE, and those in FE need to seek out those who hold those roles.

Education providers, including colleges, who understand the challenges for employers around their skills agenda can also help organisations to align their skills needs with training opportunities in a very practical and immediate way. Workforce planning doesn’t have to be complicated—it’s about setting clear goals, identifying gaps, and creating pathways to fill them. 

For example, infrastructure and construction companies working on major government contracts are often required to include minimum numbers of apprenticeships as part of their bid. In many cases this means that there needs to be enough apprentices throughout that company’s supply chain working on that project to meet this requirement. This provides an opportunity for providers to step in, offering tailored training solutions that meet both immediate needs and long-term goals. 

Adapting to Change 

The pace of change in the labour market is another challenge. Rapid advancements in technology, automation, and AI are reshaping industries, creating demand for new skill sets. At the same time, there’s a shift toward teaching “learning agility”—the ability to adapt and acquire new skills quickly—rather than focusing solely on specific technical competencies. 

Universities, colleges, and private trainers must adapt their learning content and delivery to reflect this reality. Reskilling and upskilling the current workforce are just as important as training new entrants. Providers that can offer flexible, modular courses tailored to industry needs will be best placed to succeed. Other options include greater collaboration between other colleges and universities.

For example, while AI skills are in high demand, many organisations struggle to integrate them effectively. Education providers can fill this gap by training both technical staff and leadership teams to build organisational capacity for change. They could also partner with providers who are already proficient.

Leadership and Governance 

Leadership within education institutions is critical to addressing the skills shortage. Governing boards must include members with a strong understanding of local and national labour market needs. A CFO from a local business or a senior HR professional can offer valuable insights and help shape strategies that align with industry demands from a local perspective but also, importantly, nationally. FE leaders should also be encouraged to try and get onto university boards, and vice versa.

Colleges must also prioritise roles like apprenticeship directors or heads of employer engagement, ensuring they are equipped to navigate the complexities of public-private partnerships. While these roles are notoriously difficult to fill, they are essential for fostering collaboration and driving progress. 

This leads to an important point: don’t wait for Skills England. If you can as a college develop your own talent, such as a current head of construction, into those positions, take the lead and make them a leader.

A Call to Action 

The entire education sector has a role to play in solving the skills crisis, but it cannot do it alone. Employers must step up as active partners, investing in training and engaging with providers. Sector bodies must act as connectors, ensuring that SMEs have access to the resources they need. 

Policymakers, too, must recognise the urgency of the situation and provide the funding and flexibility education providers need to thrive.

Above all, the sector must focus on pragmatic, collaborative solutions. By working together, education providers, employers, and sector bodies can unlock the potential of learners help businesses thrive, and secure the UK’s economic future at the same time helping to create a more level playing field for everyone.

The solutions are there. They’re not complicated. They’re not expensive. But they require immediate action. Let’s not wait until it’s too late.

By Paul Aristides, Partner, Anderson Quigley and Justin Rix, Partner at Grant Thornton UK and Deputy Chair of the board of Trustees, WorldSkills UK