Work begins on second round of LSIPs to continue work meeting local skills gaps

Skills England has kicked off the process to develop the second round of Local Skills Improvement Plans (LSIPs), publishing new guidance for local leaders, employers, colleges, independent training providers, and universities.

LSIPs give local employers a voice in tackling skills needs alongside local authorities and education and training provider, and enable them to lead development through Employer Representative Bodies. Plans provide in-depth insight on skill needs across a given area – from supporting people to enter work and progress in employment, through to post graduate level 8 – and the actions required to meet them.

Phil Smith, chair of Skills England, said:

“Delivering meaningful change must be driven at a local level by the people who know their communities best. Local Skills Improvement Plans are central to making this a reality – uniting employers, strategic authorities, HE and FE providers and all those involved in solving local skills challenges together. This new guidance sets the roadmap for making that happen.

“This second round of LSIPs presents an outstanding opportunity to shape the skills agenda in your area. I would like to encourage local organisations, who care about training-up local people and supporting businesses to succeed, to take it.”

In devolved areas such as Greater Manchester, Strategic Authorities will work jointly with Employer Representative Bodies, combining employer and sector insight with local economic expertise to ensure skills provision aligns with local growth priorities. In non-devolved areas, local authorities will be closely involved. 

The guidance recognises the critical role of higher and further education in the skills system. Universities will work alongside colleges and independent training providers to ensure provision meets local labour market needs and supports people at all levels

The second round of LSIPs are due to be approved and published by Summer 2026.   

The new statutory guidance replaces what was previously issued in October 2022, to guide the first round of LSIPs, which in Greater Manchester was conducted by the Greater Manchester Chamber of Commerce and focused on key growth areas facing skills shortages, including healthcare and the digital and technology sectors.