Applicants are invited to access the funding to address what the DfE is calling “skills black holes”. Successful applicants will be able to revamp facilities, provide equipment, and offer courses in subjects critical to today’s economy such as green construction, carbon capture, and cyber security. 

The DfE says the support will reach thousands of people in the UK, giving them access to rewarding careers in close proximity to their homes. 

“This funding will revolutionise how we plug local skills gaps and provide a boost to the economy. Supporting colleges to better meet the needs of local employers not only boosts businesses,” said Robert Halfon, Minister for Skills, Apprenticeships and Higher Education.

With 43% of STEM vacancies proving challenging to fill, there is a growing need to upskill workers in these fields. Last year in Scotland, out of the 13,000 new digital jobs, only 5,000 were filled through apprenticeships and new graduates, highlighting a pressing training gap issue that the industry must address.

The fund aims to take a back-door approach to address the record high 1.2m job vacancies in the UK according to a report. The job vacancies are fueled by the fact 80% of employers believe new graduates are lacking the skills they need to be work ready. 

These figures contribute to the issue the UK job market is facing: there is a shortfall of 2.5m highly skilled workers, and a surplus of 8.1m workers with traditionally intermediate or low skills, according to the Learning and Work Institute. 

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The initiative builds on the Strategic Development Fund (SDF) which also focused on reshaping training and teaching as part of a local skills improvement plan. The SDF saw £157 allocated to various projects which have already made significant progress in skills gaps throughout the nation. 

Sir Paul Phillips CBE, principal and chief executive of Weston College, who received funding from the SDF said: “We have been able to use the funds to tailor provision to employer needs but also to ensure it fits with the regions we serve. It is absolutely important that this ground breaking work continues to advance with the flexibility to match each area’s priorities and the specialist skills needed for the industries that are so key to both our regional and national economic growth.”