London Councils and the Mayor of London have launched a new inclusive Talent Strategy, with £147.2m committed to funding a skills drive in the capital.
The aim is to help Londoners get the skills they need, break down barriers to good work, and support at least 150,000 quality jobs.
The strategy was developed with London boroughs, businesses, trade unions and others as part of the London Growth Plan.
There will be a direct link between the skills businesses need and the training on offer.
The funding builds on previous schemes including the connect to work programme and the £60m get London working trailblazers.
The approach puts employers at the centre of the skills system to create a stronger pipeline of talent.
The focus includes getting Londoners ready for changes in the economy, such as the shift to net zero and the rise of artificial intelligence (AI).
The Mayor said Londoners need to be prepared for the AI revolution, with the right skills to access new, higher paid jobs.
Sadiq Khan said: “London’s economy cannot achieve its potential until all Londoners are achieving their potential.
“That’s why I’m proud to be announcing this funding to radically reform and transform our skills system in the face of a fast-changing economy, ensuring all Londoners are equipped for the AI revolution.
“Londoners will either be left behind by AI or seize its huge potential.”
Khan added: “That is why I have launched my Inclusive Talent Strategy in partnership with London Councils to ensure Londoners are equipped with the skills to harness the benefits of AI for higher-paid jobs.
“I know closing the skills gap is a generational challenge and this strategy is an important start, creating a truly diverse pipeline of talent across the capital.
“Businesses will be able to recruit the talented people they need, because investment will be targeted at the courses which produce them.”
He said: “Ensuring Londoners, no matter their background, have the opportunity to get the skills they need to get a good job and a secure career.
“The principle of inclusive growth set out in the London Growth Plan isn’t just a statement of values; it’s also the only route to long-term prosperity for our city and the people who call it home.
“Every one of our goals – getting our productivity growth back on track, helping to create 150,000 good jobs, and raising the income of the poorest Londoners by 20 per cent – is anchored in our commitment to building a fairer economy that works for everyone. No Londoner can be left behind.”
Research from City Hall found that giving black and minority ethnic Londoners better access to good jobs could put 290,000 more people into work and unlock £17.4bn for the capital through higher salaries.
The plan aims to join up skills and employment services with health and other support, to help young people and people with disabilities or long-term health conditions into work or training.
There is also a focus on affordable childcare, housing and transport, so more Londoners can find and stay in work.
Councillor Claire Holland, Chair of London Councils, said: “The Inclusive Talent Strategy sets out our ambition for how partners across London will work together in new ways to create real opportunities for Londoners facing the biggest barriers to work – including young people starting out, disabled residents, and those with long-term health conditions.
“Boroughs and sub-regional partnerships play a crucial role in providing skills, careers and employment support, and we’re proud to integrate this with health services in our communities.
“The new strategy also better aligns skills training with employer needs and supports more inclusive recruitment – ultimately boosting incomes and helping make London a fairer place to live and work.”
REACTION:
Muniya Barua, deputy CEO at BusinessLDN:
“This new strategy rightly focuses on unlocking the full potential of more Londoners so that the capital can fire on all cylinders as an engine of growth for the whole UK.
“The emphasis on working in partnership with employers to develop, recruit and retain talent is particularly welcome – aligning closely with the approach set out in the London Local Skills Improvement Plan.
“The commitment to launching a new London jobs and careers service – something we have long called for – will also help more people access the advice they need to find a path that is right for them.
“This strategy has a vital role to play at a time when London’s unemployment rate is above the national average, skills gaps are holding businesses back and the number of young people not in education, employment or training is on the rise.
“We look forward to working closely with the Greater London Authority to ensure it delivers for Londoners and the capital’s businesses.”
Michael Morley, group director – London, jobs and careers service, operations at DWP:
“Our Inclusive Talent Strategy and the Get London Working Plan provides us with a unique and powerful opportunity to unite as a whole system to integrate employment, skills, and health support for Londoners.
“Unleashing the untapped talent across our city and enabling all Londoners, irrespective of background and circumstance benefits from the city’s growth and prosperity and we in DWP, are committed to play our active part to deliver real change for Londoners.”
Stephen Evans, chief executive of Learning and Work Institute:
“It is right to focus on how to better support employers to grow London’s economy and ensure Londoners can access those opportunities.
“Getting there will require a laser like focus on joining up services like health, skills and work, making help easy to access, and extending support to those that too often miss out today.
“That will require concerted action from London’s government, the UK government, employers and civil society, and this strategy provides a valuable route map and set of priorities for doing this.
“The prize from delivering it is a win-win for London’s people, employers and economy.”
Elly Hoult, chief operating officer and deputy CEO of Peabody:
“This is a positive step towards making sure training meets the real needs of employers, especially in sectors like housing and construction where skills shortages are a real challenge.
“At Peabody, we’ve seen how important it is to give people the right skills and support to get into good jobs.
“There is a wealth of untapped talent in our communities, and by helping more people from different backgrounds access training and real opportunities, we can unlock that potential.
“This not only changes lives but helps build a stronger, more diverse and resilient workforce for the future.
“We look forward to seeing the difference it makes for Londoners, our sector, and the wider industry.”
Duro Oye, CEO of 20/20 Levels:
“It’s vital that underrepresented communities are not just seen but fully included in the world of good work because economic empowerment and social mobility go hand in hand.
“When young people from diverse backgrounds are given the right support, networks, and belief, they don’t just transform their own lives, they strengthen the communities and industries around them.
“Schemes like this are powerful because they bridge the gap between untapped potential and meaningful opportunity.
“By working with the Mayor of London and City Hall, we’re able to connect local ambition with systemic change, aligning community-led solutions with institutional backing to create pathways that last.
“At 20/20 Levels, we’ve seen first-hand what happens when inclusion becomes action.
“Many of our young people have gone from facing barriers to thriving in roles at global companies, launching ventures, and mentoring others.
“That’s what inclusive talent really means to us; unlocking potential, changing trajectories, and proving that talent is everywhere, but opportunity is not.
“The Inclusive Talent Strategy is helping to change that.”
Janet Gardner, chief executive of Waltham Forest College:
“Further Education Colleges play a vital role in delivering London’s Inclusive Talent Strategy, supporting Londoners to ensure no one is left behind.
“By working closely with employers, healthcare providers and community partners, colleges provide high quality skills and training to meet local and regional workforce needs.
“This inclusive approach supports growth and productivity, driving London’s economy whilst helping Londoners build better lives and futures through fair pay, opportunity and good work.”