UK skills inequalities wider than in most of Europe, warns new report

A new report from the Learning and Work Institute (L&W) highlights the extent of regional disparities in workforce skills across the UK, revealing significantly larger gaps than in most European countries.

According to the findings, two-thirds of adults in London hold higher education qualifications, compared to just one-third in Greater Lincolnshire. In the West Midlands, where the qualification profile is the weakest, 27% of the population is qualified below GCSE level—three times the rate in West London, the area with the best qualification profile.

The report warns that these gaps are far wider than those seen in neighbouring countries. If the UK had a more balanced skills distribution, akin to Denmark, France, or Sweden, an additional 290,000 people in the West Midlands alone would possess GCSE-equivalent qualifications.

Looking ahead, L&W projects that without intervention, the skills divide will worsen. By 2035, 71% of Londoners could hold higher education qualifications, compared to only 29% in Hull and East Yorkshire. This divergence would leave parts of the UK lagging behind internationally, with areas outside London at risk of falling further in global rankings while regions in the south rival leading countries like Japan and Canada.

Addressing this disparity would require 4.1 million more people outside London to gain higher education qualifications. The report stresses that closing the skills gap is crucial for driving productivity, business success, and employment opportunities across the UK. However, L&W notes that improving skills alone will not be sufficient. Many areas currently experience a brain drain, with graduates migrating to cities like London, Leeds, and Bristol for better job prospects. The organisation argues that any effort to boost skills must be coupled with strategies to create better local job opportunities and economic infrastructure.

This research is part of L&W’s Ambition Skills project, which seeks to explore ways to enhance the UK’s skills base. The programme, supported by City & Guilds and NOCN, calls for a coordinated national approach to skills improvement.

Stephen Evans, chief executive of Learning and Work Institute, commented: “This report shows a tale of two countries, with the magnetic pull of London drawing in talent from around the country. This has created a skills chasm between areas and has become a self-reinforcing cycle, with employers more likely to create high-skilled jobs in the south of England. To break out of this cycle, we must combine investment in jobs and infrastructure with more efforts to improve skills by the Government and employers. Otherwise, the Government’s ambitions for broad-based growth will fall flat.”

Graham Hasting-Evans, chief executive of NOCN, echoed these sentiments, stating: “This is an excellent report which brings out the inequalities across the various parts of the UK. If we are to drive economic growth and social justice, then we need an ambition to drive everyone’s skills up to international standards through an efficient skills system.”