The government’s new Post-16 Education and Skills White Paper is the most significant overhaul of the skills system in a generation. For warehousing and logistics, it presents both significant opportunities and potential challenges.
Released in October, the paper sets the skills agenda for the next parliamentary term with impressive ambition: two-thirds of young people into higher-level learning by age 25, nearly one million young people currently not in education, employment or training (NEET) brought back into the system, and 900,000 skilled workers needed in priority sectors by 2030.
The headline change is the replacement of the apprenticeship levy with the Growth and Skills Levy from April 2026, introducing flexibility through new short courses called “apprenticeship units.” These employer-designed training modules will allow businesses to respond quickly to evolving skills needs without committing to full apprenticeships. However, the initial roll-out will be limited to “Industrial Strategy-focused priority areas, such as artificial intelligence, digital, and engineering,” with expansion over time based on advice from the newly established Skills England.
Warehousing and logistics – despite underpinning almost every Industrial Strategy sector – hasn’t made the priority list, but rest assured, UKWA will be making the case that as the Growth and Skills Levy expands, flexibility must extend to warehousing-focused training.
In addition, the Lifelong Learning Entitlement, launching in 2026-27, has transformative potential for workforce development across the country, but particularly within the warehousing sector. The LLE gives individuals four years’ worth of tuition loan funding for higher-level education that can be used in small amounts throughout their working lives, to pay for short modular courses that can “stack” into larger qualifications, including degrees. For warehousing, where short, targeted courses are crucial for both entry-level recruitment and workforce upskilling, being able to fund this through individual student loan entitlement should broaden audiences and address current and future skills gaps.
The investment promised is substantial – an additional £1.2 billion per year by 2028-29, supporting 1.3 million learners annually. For the warehousing sector, which employs over 400,000 people, success will depend on active engagement with the new system through Strategic Authorities and Local Skills Improvement Plans, to ensure warehousing is visible in regional skills planning. The sector must also be ready to capitalise on the Lifelong Learning Entitlement by working with education providers to develop appropriate modular qualifications and promote them to potential learners.
UKWA continues to work with government on the development of skills policy through the Department for Transport Freight Workforce Group, Department for Work and Pensions, and Skills England. We’re partnering with Skills England on revising warehousing-focused apprenticeships, pushing for levy access reforms and development of new qualifications.
To find out more about our 2026 Warehouse Manager CPC Courses in January and February, contact UKWA or visit our website, ukwa.org.uk.
Clare Bottle
UKWA, CEO
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