Skills, Vocational Training, and Further and Higher Education

Lord Nagaraju Excerpts

Thursday 3rd September 2026 Lords Chamber

[Lord Nagaraju (Lab)]

My Lords, I also thank my noble friend Lady Morgan for securing this important debate. I declare my interests as set out in the register, particularly as a director, adviser and shareholder in AI and tech companies.

If we are serious about social mobility, education cannot be a one-off event at the beginning of life. Disadvantage does not end at 18. Technology is now changing faster than any single qualification can keep pace with. Lifelong learning is, therefore, not an optional extra. It is part of the economic infrastructure. The challenge is already stark. Young people from lower working-class backgrounds are more than twice as likely not to be in education, employment or training as those from professional backgrounds—it is 22%, compared with 9%. At the same time, Skills England says that demand for key occupations in priority sectors is expected to rise by nearly a quarter over the next decade, with particularly strong growth in the digital and engineering professions. Critically, it says that the education pipeline alone will not be enough. Significant reskilling of the existing workforce will be essential.

Artificial intelligence brings these two challenges together. The Government’s AI labour market research found that 35% of surveyed organisations struggled to fill AI roles. Government-commissioned vacancy analysis also found significant advertised salary premiums for AI skills. Yet in 2023, 60% of expert AI vacancies were advertised in London and the south-east. If the skills, opportunities and higher-value jobs remain concentrated in the same places, AI risks widening regional inequality rather than reducing it.

I welcome the Government’s building blocks—the AI skills boost, the level 4 AI and automation practitioner apprenticeship and the lifelong learning entitlement, supporting eligible courses and modular studies from January 2027. However, flexibility on paper does not necessarily mean access in practice. A learner in a deprived community may need a pathway from essential digital skills through applied training to an apprenticeship or modular higher education alongside meaningful work experience, careers advice and support with practical barriers. This is where FE colleges, employers and regional leaders can be powerful partners.

I welcome the Government’s commitment to reach disadvantaged young people through programmes such as TechFirst. Will the Minister ensure that this opportunity extends beyond schools into lifelong learning and that local skills improvement plans and devolved skills funding will open pathways into AI and emerging technology careers for disadvantaged communities? Will the Government publish the participation, completion and employment outcomes by deprivation and by region? If we do this, lifelong learning can be both a ladder of opportunity and an engine of regional growth.