The future of hiring just got funded

The UK just dropped £1.2 billion on skills – here’s why it matters to employers right now

With Glastonbury pumping out sound last weekend and the British & Irish Lions gearing up for kick-off, the UK is firmly in its summer stride. But while the nation dances in fields or shouts at the telly, something much quieter (and potentially game-changing) just happened. The government has launched a new industrial strategy – and at the centre of it is a commitment to spend £1.2 billion every year on skills.

This isn’t just a policy update. It’s a sign that the UK is trying to get serious about its workforce – and for employers, it signals a wave of change that’s going to hit recruitment, retention and how we define talent itself.

A shift from qualifications to capabilities

At the heart of the strategy is a shift in mindset. We’re moving away from old-school hiring criteria – the right degree, the right connections, the “ideal background” – and moving towards something much more real: skills. Whether it’s someone retraining in AI through a short course, a construction worker learning sustainable building methods, or a former oil and gas engineer switching to offshore wind, the focus is now on what people can do, not how they got there.

This is where employers need to catch up – fast. The talent pipeline of the next decade will look very different. People will come through alternative routes, non-linear careers and training providers you might never have worked with before. But they’ll have the goods. The question is: will your hiring process be ready to spot that?

A talent surge is coming – are you ready?

The government’s goal is to generate 1.1 million new, well-paid jobs over the next ten years. That’s a serious injection of human potential. And it’s not vague, either. Investment is being targeted into five specific sectors: digital and tech, advanced manufacturing, clean energy, creative industries, and professional and business services.

In other words, sectors that are already hungry for people. If you’re recruiting in any of these spaces, you’ll know the pain of skills shortages, rising salaries and teams stretched too thin. This strategy won’t magic up talent overnight, but it will start building a stronger, broader pipeline. The opportunity for employers is to get in early – to be the ones welcoming this new talent, not scrambling to catch up once everyone else is doing it.

Skills-based hiring isn’t coming. It’s here.

This new strategy doesn’t just support the idea of skills-based hiring. It accelerates it. Because once thousands of people have been retrained or upskilled through these government-funded programmes, the talent pool is going to look very different.

If you’re still filtering candidates by education over ability, or prioritising “industry experience” over transferable skill sets, you’ll miss out – plain and simple. This is the moment to reassess what you’re really hiring for. Can they do the job? Will they grow with your team? Do they bring fresh thinking, not just familiar habits? That’s the future. And it’s already knocking.

Your employer brand just became even more important

Here’s the thing: people have options. If someone’s just completed a course in clean energy tech or quantum computing, they’re not short of suitors. So how will you stand out? The businesses that win in this new world won’t just be the ones with a decent salary package. They’ll be the ones offering growth, purpose and a chance to use new skills in a meaningful way.

That means your employer brand needs to be crystal clear about what you stand for. Why should someone pick you over the hundreds of other employers trying to do the same thing? What’s your commitment to learning and development? How are you helping people apply the new skills they’ve gained?

If you’re in a sector being backed by this strategy, shout about it. Show candidates you’re invested, future-focused, and building a business where their talent won’t just be seen – it’ll be valued.

Don’t wait for the wave. Ride it.

This isn’t just a government plan. It’s a signal. One that says the world of work is changing, and employers who keep hiring like it’s 2015 are going to be left behind.

So here’s the challenge: get ahead of it. Start rethinking how you hire, how you train, and how you tell your story. Because while the money flows into skills, and the talent reshapes itself, there’s a massive opportunity for employers to lead the way.

Just don’t wait until everyone else is doing it first.