Jacqui Smith Delivers Keynote Address at 2026 Universities UK Conference

Good morning.

It is a pleasure to be here once again, addressing universities across the United Kingdom. I would like to begin by expressing my genuine delight at being reappointed as the Skills Minister. I return to this role invigorated and committed to supporting your efforts in serving students, communities, and the economy.

Universities occupy a vital position within the fabric of this nation, and the government is determined to enhance the uniquely positive influence you have. There are numerous areas where I am eager to continue our collaboration: ensuring your financial stability; facilitating access to university education for all who can benefit; elevating quality standards; and eliminating practices that may tarnish the reputation of your sector or squander public funds. However, today, I wish to concentrate on your capacity to anchor both our economy and the communities you serve.

Celebrating Academic Excellence and Economic Contribution

UK universities have much to celebrate in 2026, with four institutions ranking within the global top ten and sixteen within the top one hundred. Higher education stands as one of the country’s most significant exports, projected to generate over £26 billion in 2024.

This month, I will be visiting Saudi Arabia, China, and Vietnam, where I anticipate meeting Ministers eager to share their experiences of UK higher education. Each of these visits will highlight the strong ties and partnerships forged with UK universities.

Moreover, universities serve as one of our most valuable domestic assets, contributing approximately £265 billion to the economy each year through teaching, research, and innovation. Your institutions play a crucial role in local communities, fostering growth through job creation, partnerships with employers, innovation, public service provision, and skills development.

Your programmes are tailored to deliver the high-quality skills that employers require. Through world-class teaching, research, and commercialisation, you stimulate innovation and investment across the nation, simultaneously strengthening the social and civic fabric of local areas by uniting employers, local leaders, and communities to enrich lives and broaden opportunities.

Emphasising Local and National Growth

The Prime Minister has a keen interest in higher education, having advocated for Manchester’s universities during his time as Mayor. He now aims to empower the sector to thrive across the UK, underscoring a place-based approach that seeks to foster growth in every postcode and ensure that policies are tailored to local economic needs and circumstances. Universities must be, and I believe are eager to be, integral to this vision.

It is imperative that the growth we so desperately need does not simply enhance already prosperous areas. Instead, it should create widespread opportunity and prosperity, ensuring that no region is left behind. This overarching vision for inclusive growth amplifies the importance of universities’ local connections and contributions alongside their national and international acclaim. Your institutions act as a network of economic engines throughout the country, and we aim to build upon those strengths to distribute opportunity and drive national renewal.

Urgent Need for Diverse Educational Pathways

We have set an ambitious target for two-thirds of young people to engage in higher-level learning by the age of 25. This encompasses degrees, higher technical qualifications, and apprenticeships. Universities play a critical role in facilitating these pathways, in collaboration with further education colleges and employers. It is crucial to note that under this government, further education and technical pathways will no longer be synonymous with low standards.

To clarify, I do not wish to deter anyone from pursuing university education; rather, I aspire for more young people to attend university and to undertake apprenticeships. We cannot opt for one pathway over the other when nearly one million young individuals are currently not engaged in education, training, or employment, while a quarter of job vacancies are attributable to skills shortages.

With the vision for post-16 education outlined in last year’s White Paper, we are now working towards a more flexible and accessible system that provides multiple routes to secure employment and higher-level learning. We recognise that universities impart skills alongside academic education; approximately one in three full-time undergraduates are already engaged in technical and vocational courses, ranging from nursing to engineering.

Expanding Opportunities for Lifelong Learning

Our goal is to increase this participation and broaden the levels of learning available at universities. Most of our future skills requirements will be at Level 4 and above, which is why our reforms must encourage the uptake of Level 4 and 5 qualifications.

Recently announced technical education pathways for 14-year-olds will integrate core academic subjects with technical education aligned with local industries. The new V Levels introduced in the White Paper will allow students to combine vocational studies with A Levels or other Level 3 courses. Importantly, these levels present an additional vocational path for 16 to 19-year-olds to progress to Levels 4 and 5.

Additionally, the Lifelong Learning Entitlement courses will commence in January, enabling individuals to learn, upskill, and retrain throughout their working lives. This flexible study approach will allow learners to adapt to the evolving demands of the labour market, whether by advancing or specialising within their current industry or transitioning to another at a highly-skilled level.

Collaboration for Local Prosperity

The Lifelong Learning Entitlement also offers the flexibility needed to accommodate modern lifestyles, whether it involves balancing childcare or existing work commitments. We are already witnessing higher and further education institutions embracing the opportunities presented by the LLE, with 130 providers approved for modular provision from the outset. A subsequent round of expressions of interest will open in October.

There is considerable interest in the potential evolution of degree structures in the coming years, and we are planning to consult on how to enable flexible degree reform. This initiative aims to develop arrangements that allow students to thoroughly explore their options even while studying. Any modifications must facilitate partnerships between higher and further education, fulfil employer needs, and yield positive economic returns.

As previously mentioned, the Prime Minister has championed place-based policies that carefully consider the unique circumstances of communities. This necessitates collaboration among universities, colleges, local leaders, and employers to comprehend the opportunities within their areas, whilst equipping local residents with the skills and experience necessary to seize those opportunities.

Maximising Local Impact through Data

I am referring to employers assisting in shaping courses, students acquiring valuable work experience, and workers being afforded the chance to develop new skills as industries evolve. The government has provided you with the necessary tools: modular student funding, higher technical qualifications, and flexible degree reform.

I encourage universities to engage locally in partnerships to effectively utilise these tools. Numerous exemplary and effective projects across the country already illustrate what this collaboration can achieve.

For instance, in West Yorkshire, Leeds Beckett University and FinTech North are connecting graduates with local FinTech employers through workplace visits, business projects, and mentoring. In conjunction with Graduates West Yorkshire, this programme also assists smaller enterprises in accessing new graduate talent.

Moreover, Keele and Staffordshire universities are collaborating with the Newcastle-under-Lyme and Stafford Colleges Group on degree programmes, higher technical qualifications, and apprenticeships, including biomedical science and engineering courses that broaden progression routes throughout the region, drawing individuals into education, training, and employment.

In the West, UWE Bristol and University Centre Weston are partnering with employers such as Airbus, Rolls-Royce, and GKN Aerospace to deliver engineering degree apprenticeships. Learners engage in paid work while pursuing degree-level study, with employers tailoring their training to cultivate the skills necessary for aerospace and advanced manufacturing.

Future Aspirations for Higher Education

Different regions will make varied choices based on their unique strengths and aspirations. Nevertheless, the underlying principle remains consistent: universities should be at the core of local partnerships that convert economic opportunities into courses, student workplace experiences, and meaningful employment for local residents.

This is why I am particularly pleased to see the strong emphasis on outcomes and employability in your Future Jobs Roadmap, published today. This includes the commitment that all undergraduates will have the opportunity to access work-based learning by 2035. Every student engaged in higher-level learning is investing in their future earnings, and the roadmap represents a significant step towards universal recognition of this essential outcome.

With numerous valuable and enriching projects already underway, how can we determine the next steps? It is essential for universities to assess their local impact in order to maximise it. This is why the Office for Students has been collaborating closely with the Department for Business, Innovation, Science, and Trade, along with Skills England and other stakeholders, to develop a new market monitoring tool.

This tool will offer a comprehensive overview of higher education supply and demand, consolidating data on local teaching provision and research strengths. Universities and local decision-makers will gain insight into all the subjects available at higher levels in their area, providing a panoramic view that highlights gaps in supply and demand, thereby empowering your decisions to foster skills, innovation, and growth.

Addressing Challenges in Higher Education

The Office for Students will soon reach out to trial this tool and gather feedback to ensure it adds genuine value to local decision-making processes. I acknowledge that higher education faces a multitude of challenges. Economic uncertainty, demographic shifts, rapid technological advancements, and financial pressures have compelled some institutions to make difficult decisions in recent years.

Consequently, it has been challenging for universities to maintain a long-term strategic perspective on their business models. You have requested clarity regarding future income, and