This week, the government released its long-awaited Post 16 Education and Skills Strategy. Outlined below are the key changes and reforms announced in the White Paper and what they mean for the rail sector.
The Key Takeaway
The Post 16 Education and Skills White Paper set out many laudable goals: it aims to upskill the UK workforce, better meet employer needs, and simplify a fragmented qualifications system, all of which are key challenges that need to be addressed.
However, it must be said that the strategy is currently just a statement of intent. It critically lacks the detail and delivery roadmap necessary to gain the sector’s confidence.
Summary of Key Announcements for the Rail Sector
V Levels Qualification
A new Level 3 vocational qualification, V Levels, will be introduced as a flexible option alongside A Levels and T Levels. V Levels aim to replace the alphabet soup of level 3 programmes, with approximately 900 existing vocational qualifications currently being used. Students will be able to combine V-levels with A-levels.
English and Maths Support
A new stepping stone qualification will be launched for students who do not achieve a pass in GCSE English and Maths. This is intended to better prepare them for resits and address persistent attainment gaps.
Level 2 Pathways
Two new pathways for 16 to 18-year-olds have been announced:
• Occupational Pathway: A two-year, employment-focused programme for students aiming to move directly into a skilled job or apprenticeship.
• Further Study Pathway: A route for young people wishing to progress to Level 3 qualifications (A Levels, T Levels, or V Levels), providing additional preparation time.
Growth and Skills Levy
The first courses under the new Growth and Skills Levy system will launch in April 2026. These initial “apprenticeship units” in critical skill areas such as digital and AI are intended to complement existing apprenticeships.
NEET Strategy
To address the number of young people Not in Education, Employment or Training (NEET), the government announced:
• Youth Guarantee: Automatic allocation of post-16 places for young people without a study plan, and a guaranteed job offer for those on Universal Credit unemployed for over 18 months.
• Data Driven Tracking: New Risk of NEET indicators using AI, supported by stronger local authority oversight for early intervention.
• Enhanced Careers Support: At least two weeks of work experience during secondary education, with improved careers advice aligned to labour market needs.
Reducing Reliance on Migrant Workers
The government has also committed to reducing reliance on migrant workers by strengthening the training of the domestic workforce. Measures include:
• Raising the Immigration Skills Charge by 32%, with revenue directed towards upskilling the domestic workforce.
• Restricting migration access for employers in sectors that fail to support domestic skills development. Access to the Temporary Shortage List will be tied to sectors having robust Jobs Plans in place.
Skills England
The White Paper pledges that Skills England will work with employers and skills bodies through partnerships, using industry data to identify skills gaps, which is a welcome reconfirmation of a previous commitment.
Other Announcements
• Investment: An additional £800 million will be allocated to 16–19 education for the 2026/27 academic year.
• New Infrastructure: The government plans to establish 14 new Technical Excellence Colleges in key sectors.
• Funding Formula Review: The 16–19 funding formula will be reviewed to better support priority sector courses, with a revised model expected by 2027/28.
• ‘Unsuitable’ People Barred from FE Leadership: Legislation will be introduced to prevent unsuitable individuals from holding management positions within further education providers. This is due to happen “when parliamentary time allows”, indicating it is not an imminent priority.
Analysis
V Levels
V Levels aim to simplify vocational qualifications, but their introduction carries significant risks. While consolidating the existing 900 qualifications has clear merit, delivery will be complex. There is a real risk that V Levels, sharing features with both T Levels and BTECs, will create additional bureaucracy and confusion rather than simplification. It is also arguable that V Levels represent simply an iterative rebrand of either T Levels, BTECs, or both, and are unlikely to gain employer confidence without clear evidence of differentiation.
Growth and Skills Levy
While the announcement of an April 2026 start date offers a bit more clarity on the timeline, key operational details remain absent. It is unclear which courses will qualify for funding, what proportion of levy contributions employers can claim for non-apprenticeship training, or whether sectors like rail, outside the ten priority areas, will have access, and if so, to what extent. This uncertainty could undermine workforce planning for rail employers seeking to expand training provision.
NEET Initiatives
The number of young people who are NEET is a pressing issue and one that must be addressed in tandem with tackling workforce shortages across a range of sectors, so the government’s recognition of this is clearly a step in the right direction. However, today’s White Paper largely repackages previous announcements on the government’s intent and again lacks the detailed information needed to move towards actionable policy.
Sector Prioritisation
We had hoped that the post-16 strategy would also expand on the government’s plans for sectors outside of the ten priority sectors outlined in the Industrial Strategy. Instead, the strategy explicitly restates the prioritisation of the IS8 sectors, indicating that many measures within the white paper will be primarily or exclusively aimed at these priority areas, or that they will have earlier access than other sectors.
Foundation Apprenticeships
As with the broader issue of non-priority sectors, we had also expected and hoped for greater clarity in the strategy on Foundation Apprenticeships, particularly on whether and when they will be launched beyond the priority sectors and for what skills they can be used to deliver. However, this was surprisingly not forthcoming.
Conclusion
The White Paper correctly identifies many of the major challenges in the skills, training, and further education space. However, it cannot be denied that there is still a significant lack of detail on most of the major reforms, particularly the Growth and Skills Levy, Foundation Apprenticeships, and the government’s plans for non-priority sectors. This lack of clarity on these reforms is already causing uncertainty for the rail and many other sectors, and the announcements in the white paper, unfortunately, will do little to abate this.
Moreover, some reforms could have unintended consequences. V Levels, for instance, constitute another major change to the already highly protean Level 3 qualification landscape. We urge the government to consider carefully the steps needed to avoid V Levels inadvertently leading to further fragmentation and instability, thereby undermining the core goal of simplifying the system.
As stated, there is much to welcome in the government’s intent, and they are on the right track, but after years of persistent policy changes, these statements of intent are no longer sufficient. What is urgently needed is a detailed delivery roadmap to give employers and training providers a clear view of how the proposed skills system will work.
If you would like to discuss this further, get in touch with NSAR Head of Policy and Engagement, Edward Hughes – edward.hughes@nsar.co.uk