The following is an open letter from Professional Academy to the Prime Minister, Sir Keir Starmer, setting out a series of practical recommendations for how the Government can accelerate workforce upskilling, boost productivity, and reduce the barriers that currently prevent individuals from retraining and advancing their careers.
An Open Letter to Sir Keir Starmer, Prime Minister
Dear Prime Minister,
Congratulations on becoming Prime Minister. The challenge now is to deliver on the enormous potential that this moment represents — and few levers will prove more powerful in that effort than investing seriously in the skills of the UK workforce.
Upskill the Workforce to Boost Productivity
If the Government is serious about growing the economy, tackling the productivity gap must be a central priority — and one of the most effective ways to achieve that is to upskill the existing workforce. However, this needs to happen at pace. The country cannot afford to wait three years for a new set of graduates, or even 18 months for apprentices to qualify, when professionals who are already in work need the tools and knowledge to perform better right now.
The case for this is not abstract. Professionals who completed their qualifications over 30 years ago in further education colleges — in classes of 30, learning the principles that underpinned their careers — now find themselves in a landscape where professional qualifications are predominantly delivered by private providers, and where VAT of 20% is charged on the very training that would help them retrain or improve. That is a structural barrier that the Government has the power to remove.
Recommendations
| Recommendation | Action |
|---|---|
| Scrap VAT on training courses | Remove the 20% VAT on professional training courses to encourage more people to retrain and upskill. |
| Part-fund professional qualifications | Provide partial funding for short courses, allowing individuals to claim back half the cost upon certification. |
| Scrap the equal or lesser qualifications rule | Allow funding for lower-level qualifications than those an individual already possesses, to facilitate career changes. |
| Allow employers to use the levy for Professional Qualifications | Permit the use of the levy to fund Ofqual-recognised qualifications, spreading best practices across industries. |
Detailed Recommendations
Scrap VAT on Training Courses
The simplest and most immediate action available is to scrap VAT on professional training courses. At present, the 20% VAT applied to private training provision acts as a significant disincentive for individuals who wish to upskill or retrain. Why would someone not be encouraged to complete a short course — such as the CIM Award in AI Marketing — that would quickly and directly improve their performance at work? Allowing individuals to reclaim half the cost upon certification would create a meaningful financial incentive and signal that the Government values and rewards personal investment in professional development.
Part-Fund Professional Qualifications
Very few people remain in the same career throughout their entire working lives. When individuals wish to change direction, however, the funding system often works against them. The current block on funding for lower-level qualifications — applied to those who already hold a qualification at the same or higher level — prevents many people from retraining into a new field entirely. If the Government is serious about creating a flexible, adaptive workforce, removing this barrier is essential. Allowing individuals to access funding for qualifications below their current level, when those qualifications support a genuine career change, would open up retraining pathways for a significant proportion of the working population.
Scrap the Equal or Lesser Qualifications Rule
The equal or lesser qualifications rule is one of the most counterproductive elements of the current funding landscape. It assumes that a person who holds a degree in one field has no legitimate need for a Level 3 or Level 4 qualification in a different field — even if they are looking to change careers entirely. This assumption is flawed. Removing this rule and allowing funding for lower-level qualifications where they support career transitions would be a straightforward change with a substantial impact on workforce mobility and productivity.
Allow Employers to Use the Levy for Professional Qualifications
The Apprenticeship Levy, as currently constituted, restricts employer spending to apprenticeship programmes. Extending its use to cover Ofqual-recognised professional qualifications would significantly broaden the impact of the levy, enabling employers to invest in the development of their existing workforce in ways that are targeted, efficient, and directly aligned with business needs. Professional qualifications are a recognised measure of competence and quality. Allowing the levy to fund them would spread best practice across industries and unlock a substantial pool of employer investment that is currently constrained by narrow eligibility rules.
These changes can be implemented quickly, and the improvements in workforce capability and productivity will be seen in months, not years. The skills infrastructure already exists — what is needed is the policy will to remove the barriers that currently prevent it from being fully utilised.
How Professional Academy Supports Your Journey
At Professional Academy, we have been delivering professional qualifications and apprenticeships for over 27 years. We work with individuals and organisations across the UK to build the skills and capabilities that drive both personal career success and wider economic growth.
Whether you are looking to upskill in marketing, sales, or management, or explore an apprenticeship programme, we offer a range of flexible, recognised pathways to help you achieve your goals. To find out more, get in touch with our team today.
