- Development of second round of Local Skills Improvement Plans (LSIPs) is now underway.
- New guidance to steer the process has been launched by Skills England.
- This follows the publication of the government’s landmark Post-16 Education and Skills White Paper last month.
New guidance published today will empower local leaders, employers, colleges, independent training providers, and universities to transform skills training across England – driving national economic renewal from the ground up.
Local areas know best how to tackle local skills needs. LSIPs are vital for making this a reality and Employer Representative Bodies, working with Strategic Authorities where they are in place, will lead on development.
These local plans provide in-depth insight on skill needs across a given area – from supporting people to enter work and progress in employment, through to post graduate level 8 – and the actions required to meet them. The work will involve many key local stakeholders including Job Centre Plus.
The statutory guidance sets out how key players for all 39 LSIP areas must work together to develop three-year plans that will be approved in summer 2026 and run up to 2029.
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.”
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.”
Minister Smith is meeting representatives involved in the West Midlands LSIP during a visit today to PWC’s offices, in Birmingham, to celebrate the start of the second round of LSIPs and launch of the new statutory guidance.
Reflecting the greater role for Strategic Authorities set out in the English Devolution White Paper, this guidance gives them an enhanced partnership role in LSIP development and implementation alongside designated Employer Representative Bodies.
In devolved areas, Strategic Authorities will work jointly with Employer Representative Bodies, combining employer and sector insight with local economic expertise to ensure skills provision aligns with local growth priorities. In non-devolved areas, local authorities will be closely involved.
The guidance recognises the critical role of higher and further education in the skills system. Universities will work alongside colleges and independent training providers to ensure provision meets local labour market needs and supports people at all levels – from entry into work through to postgraduate qualifications.
Further to this, it focuses on how this cannot happen in isolation. Getting local skills provision right, through successful LSIPs, is important for unlocking national economic growth and the earning potential of millions of people across the country.
LSIPs will be a key part of helping deliver the Government’s ambition for two-thirds of young people to participate in higher level learning – either academic, technical, or an apprenticeship – by age 25 – as set out in the Post-16 Education and Skills White Paper
Skills England has been set up to make sure that the skills system is more responsive to changing economic demands at a local and national level, using data and intelligence to help shape provision.
It has responsibility for the LSIP programme and will work closely with Employer Representative Bodies and Strategic Authorities to develop its analysis of national and local skills needs, via a regular two-way flow of information.
The second round of LSIPs are due to be approved and published by Summer 2026.
The new statutory guidance replaces what was previously issued in October 2022, to guide the first round of LSIPs. It has taken on board constructive feedback from local employers, strategic authorities and other key stakeholders.
Shevaun Haviland, Director General of the British Chambers of Commerce (BCC) , said: “Solving the skills crisis afflicting the UK is crucial to growing the economy faster. BCC research shows that 75% of employers are struggling to find staff with the skills they need. LSIPs are a key tool in addressing this problem. With a strong focus on employer engagement, they can match skills provision to local economic needs in the medium and long term future. In the first few months alone, over 65,500 businesses engaged with Chamber-led LSIPs, many of them getting involved in the skills system for the very first time. We are already seeing the positive, practical impact of LSIPs on the ground, and it is hugely encouraging that the government has committed to developing them further.”
David Hughes CBE, Chief Executive of the Association of Colleges , said: “The Post 16 white paper rightly sets out the need for a more coherent, better co-ordinated education and skills system which can meet the government’s opportunity and economic growth ambitions. That system has to be national as well as local and that’s where LSIPs have a critical role to play. It’s good to see in this new guidance how the vision for LSIPs and DfE thinking has developed, learning from the first round of plans – with a much stronger connection to elected Mayors, and recognition of the role colleges have to play as strategic partners in the development, as well as delivery of the plans. Crucially, there’s a big role for Skills England and elected mayors in bringing this all together nationally and locally. We want the system to be able to identify where things are working well and where there are challenges in delivering on skills priorities, and thus ensure that the plans add value and make for a more coherent whole, across regions and across the country.”
Vivienne Stern, Chief Executive, Universities UK, said: “Universities are engines of local growth and this new guidance rightly places them at the heart of local skills planning. Working with employers and FE providers, universities are building our future workforce and providing local people with new opportunities. From higher technical qualifications through to PhD level study, graduate skills are crucial to the UK’s prosperity. Over the next decade, demand for high level skills will grow significantly, with government forecasting that more than 11 million extra graduates will be needed by 2035. Collaboration at a local level will ensure local communities have access to the talent pipeline needed to drive innovation, productivity, and economic growth.”
