A new report by the Learning and Work Institute warns of a widening skills divide across the UK, with London and the South-East continuing to dominate educational attainment while other regions struggle to keep pace.
The gap in qualifications is becoming a barrier to balanced economic growth, with stark disparities in degree-level education across the country.
In London, 66 percent of the population hold degrees, compared to just 33 percent in rural areas like Greater Lincolnshire. By 2035, projections estimate that 71 percent of Londoners will hold a degree, while regions such as East Yorkshire (29%) and Norfolk (39%) are likely to remain far behind.
The disparity extends to lower levels of qualification as well. In the West Midlands, 27 percent of adults lack qualifications beyond GCSE level, compared to only 9 percent in West London. This gap surpasses the differences observed in countries like Ireland, Norway, and Finland.
Bridging the Divide
Laura Lodwick, Chief of Hub Operations for Talent at AND Digital, warned of the need for coordinated efforts among government, councils, and local businesses to address this divide – as well as the need for strategies that prioritise investment in education and training alongside initiatives to retain local talent.
Lodwick added, “UK growth will be fuelled by a policy of people AND innovation, equipping individuals across the country with expertise in fast-growing areas such as AI, which will drive productivity and efficiency.
“Technology has no boundaries, so making all regions a more attractive option for the UK’s digital nomads can play an important role in bridging the digital skills gap.”
Regional Growth and Skills Development
Sheila Flavell CBE, COO of FDM Group, pointed to the critical role of digital and technology skills in driving regional economic growth.
“For the UK to expect significant growth in crucial sectors such as technology, the UK workforce needs to be equipped with core skills including data and analytics, software engineering, and IT operations in order to drive that growth across all regions,” Flavell said.
Flavell called on regional businesses to collaborate with Skills England, the body responsible for overseeing training and education in England, to identify high-growth disciplines and align workforce development with future industry needs.
“Training programmes incorporating experiential learning can instil continuous learning of core skills, simulating real-world scenarios to give people industry-standard experience and expertise,” she said. “This will help foster a UK-wide workforce ready to lead global innovation.”
Focus on Digital Skills
Efforts to close the skills gap are expected to play a central role in Prime Minister Keir Starmer’s Plan for Change, announced in December. The plan aims to deliver higher living standards, better job opportunities, and productivity growth across all parts of the UK. Achieving these goals will require addressing the skills imbalance between London and other regions, with the report estimating that an additional 4 million people outside London will need to attain higher education qualifications to close the gap.
Elizabeth Anderson, CEO of the Digital Poverty Alliance, said, “There are upwards of 19 million people in the UK who are digitally excluded according to our research with Deloitte, many of which lack the essential digital skills to get online, let alone obtain a degree. While the focus is on higher education, it is vital that the government, local councils and education bodies also recognise the extent of the skills gap for those without digital access.”
Anderson added, “Digital sits at the heart of education, with a move towards examinations taking place online rather than written, and with nine in 10 students surveyed expected to complete homework or coursework online. Skills on social media do not translate to using a keyboard or more complex computerised platforms, and one in five children do not have access to a device suitable for learning at home in the first place.”