Cambridgeshire Chamber of Commerce welcomes the Government’s latest measures to strengthen technical education, expand post-16 provision and reduce barriers to apprenticeships.
Employers across Cambridgeshire and Peterborough consistently tell us that access to people with the right technical and transferable skills is one of the biggest constraints on growth. These announcements could help address that challenge, provided national investment is shaped by local employer demand.
Greater recognition of work readiness
The decision for Ofsted to place greater emphasis on work readiness and technical pathways is an important step.
Employers need more than qualifications. They need recruits who can communicate, solve problems, work effectively with others and understand workplace expectations.
Recognising schools that provide high-quality technical education and meaningful employer engagement should encourage stronger links between education and business. Assessment should focus on whether young people gain genuine workplace understanding, rather than simply counting careers talks or visits.
Through the Local Skills Improvement Plan, the Chamber will continue to provide a route for employers to influence technical education, careers provision and curriculum development.
More post-16 places
The £287 million investment to create more than 22,000 additional places across colleges and post-16 providers is also welcome.
For employers, increased capacity could mean a larger pool of people developing the technical skills needed by the economy. However, the places must be created in the subjects and locations where demand is strongest.
Nick Frank, LSIP Project Manager at Cambridgeshire Chamber of Commerce, said:
“Additional investment in post-16 education is welcome, but its impact will depend on whether it responds to genuine local skills needs. Employers are best placed to identify the roles, technologies and capabilities that will drive future growth.
“Through the Local Skills Improvement Plan, we will continue working with businesses and providers to ensure investment strengthens the talent pipelines employers need, particularly in sectors facing persistent recruitment challenges.”
Using local employer intelligence will help ensure that public investment expands the provision businesses actually need.
Investment in learner places must also be matched by investment in the people and facilities needed to deliver high-quality technical training. Colleges and training providers face significant challenges in attracting and retaining technical tutors, particularly where experienced industry professionals can earn substantially more outside education.
Greater recognition of the value of technical teaching, alongside competitive pay and clearer routes for industry experts to enter the sector, will be essential. Some local facilities are also already operating at or close to capacity. A review of the condition and capacity of facilities, followed by targeted investment in the equipment and learning environments required by employers, should form part of the Government’s approach.
Removing barriers to apprenticeships
The new apprenticeship bursary of up to £4,500 per year per household should help widen access to apprenticeships.
It is intended to support families receiving Universal Credit who may otherwise be financially disadvantaged when a 16- or 17-year-old begins an apprenticeship.
Although the payment supports young people and their families, employers will benefit too. Businesses need to recruit from the widest possible talent pool, and no young person should have to reject an apprenticeship because their household could become worse off financially.
The scheme could help employers attract talented young people from a wider range of backgrounds and fill vacancies that might otherwise remain open. Eligibility and application arrangements must be simple and clearly communicated.
Lower training costs for under-25s
From 1 August 2026, eligible apprenticeship training for people aged under 25 will be fully funded for all employers.
This will include levy-paying employers once the funds in their apprenticeship account have been exhausted, removing the 25% co-investment requirement for eligible apprentices under 25.
This could make a significant difference to employers considering whether to recruit an apprentice. It reduces the direct cost of training and gives businesses greater confidence to include apprenticeships in their workforce plans.
Charlotte Horobin, Chief Executive Officer of Cambridgeshire Chamber of Commerce, said:
“Employers want to invest in young talent, but rising costs and the complexity of the apprenticeship system can make that decision harder, particularly for smaller businesses.
“Removing training costs for eligible apprentices under 25 and addressing the financial barriers faced by some families are positive steps. These measures should help more employers recruit, develop and retain the skilled people they need to grow.”
Apprenticeships will still require investment from employers through wages, supervision, mentoring and time for learning. For many smaller businesses, this internal capacity can be as significant a barrier as the price of training, so clear guidance and practical support will remain essential.
Local delivery will determine success
Taken together, these measures move the skills system in the right direction. They recognise the importance of technical education, increase post-16 capacity and remove some of the financial barriers affecting apprenticeships.
Their success will depend on local delivery.
Cambridgeshire Chamber of Commerce will continue working with employers, education providers, the Combined Authority and local partners through the Local Skills Improvement Plan.
By aligning national investment with local employer evidence, and ensuring providers have the tutors, facilities and equipment needed to deliver, these reforms can help create stronger businesses, better career opportunities and sustainable growth across Cambridgeshire and Peterborough.