Higher education has pivotal role in supporting the UK’s Plan for Change

Higher education must position itself as a leader in developing the skills that industry needs in a rapidly changing world of work by deepening its collaboration with the Institutes of Technology (IoTs) and further education. 

In a Higher Education Policy Institute (HEPI) article published last month, Dr Ismini Vasileiou, the Director and Co-Chair of the UKC3 programme, emphasised the importance and urgent need for the sector to increase its collaboration with these partners and to deliver the UK’s workforce with the competencies and skills that industry requires as developments in artificial intelligence (AI), cybersecurity and automation reshape the economy.   

Her comments come only months before the Department for Education (DfE) is due to launch a major reform of the higher education sector with significant policy changes and revised funding structures anticipated. 

It is expected that the reform will also place a greater emphasis on employability and skills-based education as well as provide stronger incentives for industry partnerships, particularly in Science, Technology, Engineering and Mathematics (STEM) and digital sectors. 

Through mechanisms such as Degree Apprenticeships, AI conversion courses and the Lifelong Learning Entitlement, the government has already emphasised the growing importance of employability and applied learning within universities, argued Vasileiou. 

She added that the new administration’s Plan for Change, announced by the Prime Minister in December, will accelerate this momentum through the funding of more than 30 regional projects that are designed to enhance cyber resilience and workforce readiness.

Vasileiou argued the higher education sector can support the government’s ambitions at the regional level by collaborating with the 19 IoTs that are now operational across England and Wales. Set up under the previous government’s watch, the IoTs focus on providing high-quality, higher-level technical digital and cyber education and training across a range of STEM occupations and industries, aligning them with local skill needs and economic strategies. 

"Strengthening collaboration between higher education and IoTs could enable universities to support regionally tailored workforce development," she said.
In her HEPI article, she cites the East Midlands Freeport, the Leicester and Leicestershire Local Skills Observatory and CyberLocal as examples of projects that demonstrate the power of localised approaches.

Vasileiou, who is also Associate Professor at De Montfort University in Leicester, also highlighted the Collective Skills Observatory. 

A joint initiative between her university and the East Midlands Chamber, she argued this collaboration uses real-time workforce data to make sure that the training provided matches the demands from employers.

"[All of] the initiatives could provide a blueprint for future higher education collaboration with regional skills networks, particularly as the UK government reviews post-2025 skills policy," she said.  

Vasileiou, who is calling on the sector to position itself as a leader in skills development, pointed to the Universities UK (UKK) blueprint and says she supports its call for a deeper collaboration between the further and higher education sectors.

"Further education offers agility and vocational expertise, while higher education provides advanced research and higher-level skills training – together, they can create a seamless learner journey," she argued.

At the same time, she added, there is an opportunity through national initiatives such as Skills England, the Digital Skills Partnerships and Degree Apprenticeships for higher education to do some long-term skills planning.

"The integration of Lifelong Learning Entitlement loans will further support continuous upskilling and career transitions, reinforcing the role of higher education in lifelong workforce development," she said.

Vasileiou, however, warned that the rapid development of AI-driven industries presents a major challenge for higher education because the sector’s development of curriculum cannot keep pace with technological breakthroughs, which are happening on a monthly rather than yearly basis. 

With this in mind, she argued: "Universities must explore faster, more flexible course design models, such as shorter accreditation cycles, modular learning pathways and micro-credentials."

She pointed to government-backed initiatives such as the Institute of Coding, which offers alternative models for responsive skills learning, adding that as the summer reform of higher education unfolds, "universities will need to consider how existing governance structures can adapt to the demands of an AI-driven economy".