Councils and mayors are to be handed a central role in developing skills pipelines for local industries, as the Government unveils what it calls a ‘fundamental change’ to the education system aimed at tackling youth unemployment. Here's what council leaders and officers need to know.
What's being announced
From age 14 (Year 10), students will be able to combine core academic subjects with new technical education pathways linked to the jobs available in their area, gaining real-world experience through employer contact. Mayors, local leaders, schools, colleges and employers will work together to shape the pathways, which can be tailored to local industries such as advanced manufacturing, AI, digital technology, clean energy, life sciences, construction, health and care, or the creative industries.
Prime Minister Andy Burnham said: ‘For too long in this country, students have been told that you must take the academic path to do well and to be respected... From today, Britain will value the hard hat every bit as much as the graduation cap.’ The Government will prioritise funding for high-quality technical education and change how school performance is measured, so Ofsted recognises schools that deliver strong technical provision.
The changes form part of the Government's wider devolution programme, giving local leaders greater influence over education for 14 to 16-year-olds, with pathways due to roll out from September 2028.
Why now — the Milburn warning
The announcement responds directly to Alan Milburn's interim report into youth inactivity, which warned Britain risks a ‘lost generation,’ with over a million 16 to 24-year-olds currently not in education, employment or training (NEET). Milburn said: ‘A million young people are being failed by a system that isn't creating the opportunities for them to progress in life,’ welcoming the announcement as ‘a big step in the right direction’ while signalling that his final report will call for a ‘whole system reset’ across education, health, welfare and labour market policy.
Responding to Milburn's interim report in May, LGA chair Cllr Louise Gittins said councils are already working with schools, health services, employers and colleges, and called for a stronger post-16 role for local government: ‘Councils know their residents and communities and understand the needs of the local economy.’
The Greater Manchester template
The approach builds on Greater Manchester's MBacc, piloted under Burnham's mayoralty, where oversight of post-16 technical skills was devolved to the combined authority.
The MBacc Award offers a working model: aimed at 14- to 19-year-olds, it combines technical learning, work experience, employer encounters, digital enrichment and careers conversations, structured around local growth sectors known as ‘MBacc gateways’ and drawing on labour market data to steer students toward subjects valued by local employers.
Mayor of West Yorkshire Tracy Brabin welcomed the national rollout, saying devolution had already allowed her to promise ‘that no one will leave education without having first set foot in a workplace,’ while Mayor of London Sadiq Khan pointed to £18m of City Hall funding already supporting young Londoners into work and training.
What it means for councils
Business groups have broadly welcomed the plans, with the CBI's Rain Newton-Smith saying that tackling youth unemployment is ‘an economic and moral imperative’ and the British Chambers of Commerce noting 75% of firms report difficulty recruiting. But unions have stressed delivery will depend on resourcing: TUC general secretary Paul Nowak called the place-based approach ‘welcome’ but said it's ‘vital this is met with adequate funding for both FE (further education) and schools.’
For councils and mayors, the task now is building the employer partnerships, labour market data capability and delivery infrastructure to match the ambition – much of which Greater Manchester has already spent several years putting in place.
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