Headlines

UK's Starmer replaces Blair-era university target with broader skills ambition

Published by Global Banking & Finance Review

Posted on September 30, 2025

2 min read

· Last updated: January 21, 2026

Add as preferred source on Google
UK's Starmer replaces Blair-era university target with broader skills ambition
Global Banking & Finance Awards 2026 — Call for Entries

LIVERPOOL (Reuters) -The British government said on Tuesday it would scrap a target of getting 50% of young people going to university, and would instead aim to have two-thirds obtain "higher-level

UK Government Shifts Focus from University Targets to Skills Development

UK's Shift in Education Policy

LIVERPOOL (Reuters) -The British government said on Tuesday it would scrap a target of getting 50% of young people going to university, and would instead aim to have two-thirds obtain "higher-level skills" by the age of 25 with increased use of apprenticeships.

Background on University Targets

The goal is part of a wider effort to align education with labour market needs as part of Prime Minister Keir Starmer's government's promise of tackling youth unemployment.

Government's New Strategy

"I don't think the way we currently measure success in education - that ambition to get 50% of kids to uni - I don't think that's right for our times," Starmer said on Tuesday during his speech at his Labour party's annual conference in Liverpool.

Impact on Youth Employment

A target of sending half of young people to university or higher education in Britain was set by former Labour Prime minister Tony Blair in 1999, and it was hit 20 years later.

Blair had argued it could expand the life chances of people from poorer households and boost the national skillset. But critics argued it saddled students with debt and that trainee schemes and employment would have been better for some.

To reach the target of two-thirds of young people going to university, further education, or to a "gold standard apprenticeship", the government said it would allocate 800 million pounds ($1 billion) in funding for 16 to 19-year-olds in 2026-27, supporting an additional 20,000 students.

On Monday, finance minister Rachel Reeves announced that every young people who received Universal Credit benefit payments for 18 months "without earning or learning" would be guaranteed an offer of unspecified paid work.

($1 = 0.7438 pounds)

(Reporting by Alistair Smout and Andrew MacAskill in Liverpool, writing by Sam Tabahriti in London; editing by Michael Holden)

Key Takeaways

  • UK government shifts focus from university attendance to skills development.
  • New target for two-thirds of youth to gain higher-level skills by 25.
  • Increased funding for apprenticeships and further education.
  • Policy aims to tackle youth unemployment and align with labor market needs.
  • Previous university target set by Tony Blair in 1999.

Frequently Asked Questions

What is youth unemployment?
Youth unemployment refers to the situation where individuals aged 15-24 are unable to find work despite actively seeking employment. It is a significant issue affecting economic growth and social stability.
What are higher-level skills?
Higher-level skills are advanced competencies that go beyond basic education, often including specialized knowledge and practical abilities required for skilled jobs, particularly in technical and professional fields.
What is an apprenticeship?
An apprenticeship is a training program that combines on-the-job training with classroom instruction, allowing individuals to gain practical experience while earning a wage, often leading to a recognized qualification.

Tags

Related Articles

More from Headlines

Explore more articles in the Headlines category