Skills England has released new statutory guidance to support the development of the second round of Local Skills Improvement Plans, marking the next stage in England’s long-term approach to aligning training with workforce needs.
The new guidance positions local partners as the primary drivers of future skills provision. Minister for Skills, Baroness Jacqui Smith, said: “Local businesses and communities know best what skills they need to succeed. New Local Skills Improvement Plans will put employers, educators and authorities at the heart of identifying skills gaps and delivering the training that matters most to their area. By tailoring skills training to local needs, we will break down barriers to opportunity and help businesses and communities across England thrive.”
Across all 39 LSIP areas, employer bodies, Strategic Authorities, colleges, universities, and training providers will now begin shaping three-year plans scheduled for approval in summer 2026. These plans, running until 2029, are expected to set out detailed local skill needs, from workforce entry routes to advanced and postgraduate requirements. Engagement with organisations such as Jobcentre Plus will form part of the evidence base.
Employer Representative Bodies will continue to lead LSIP development. In devolved areas, Strategic Authorities will work alongside them to ensure training priorities reflect local economic ambitions. In non-devolved regions, local authorities will play a key role in coordinating activity. Higher and further education providers are expected to align programmes with labour market demand across sectors and skill levels.
Skills England, established to make the national skills system more responsive to economic change, will oversee the programme. The organisation aims to strengthen the consistency of LSIPs by maintaining a flow of data and intelligence between national and local partners. Phil Smith, chair of Skills England, said: “Delivering meaningful change must be driven at a local level by the people who know their communities best. Local Skills Improvement Plans are central to making this a reality – uniting employers, strategic authorities, HE and FE providers and all those involved in solving local skills challenges together. This new guidance sets the roadmap for making that happen.”
The guidance replaces the 2022 version used for the first round of LSIPs and incorporates feedback from employers, councils and regional bodies. It sits within the wider direction set by government policy on post-16 education, which aims to expand higher-level learning and strengthen the link between training provision and long-term economic growth.
