Investment in student skills to boost UK defence industry

Image courtesy MoD

Britain’s defence industry will benefit from an £80 million skills boost to help students gain the skills they need to build the fighter jets of the future and protect the UK at the frontline of our cyber defences.

Universities, colleges and other higher education providers in England will be able to bid for funding to increase opportunities for students on defence related courses vital to national security and defence industry requirements, with work ongoing with devolved governments to assess specific skills needs and funding options across the rest of the UK.

This is the largest single investment within the £182 million Defence Industrial Strategy skills package, demonstrating the Government’s commitment to ensuring the defence sector has the workforce it needs for the future.

Visiting the University of Portsmouth, Defence Minister Luke Pollard MP (above, right) announced £50 million will fund around 2,400 new student places over six years. A further £30 million investment is being directed at improving university facilities, including building brand new teaching facilities to increase capacity over the next decade.

Minister for Defence Readiness and Industry, Luke Pollard MP said: "We know our outstanding Armed Forces are only as strong as the industry that stands behind them and through our Defence Industrial Strategy we’re determined to create more opportunities for young people to learn new skills and secure good, well-paid, jobs in defence.

"I’m calling on universities and colleges across England to apply for this funding to create more opportunities for students to learn the skills of the future, strengthening our national security and helping drive defence as an engine for growth."

Courses in engineering and computer science will be the primary focus of the investment, given their critical importance to national security and the defence industry.

This funding is part of the Strategic Priorities Grant and will boost places for students from across England, Scotland, Wales and Northern Ireland, helping to build skills and drive growth across the country.

This delivers on the Strategic Defence Review’s recommendation to boost the pipeline of skilled workers who can contribute to the UK’s national security. The MoD is the largest provider of apprenticeships in the UK, supporting over 24,000 apprenticeships last year.

The Government has committed to the largest sustained increase in defence spending since the end of the Cold War – hitting 2.6% of GDP from 2027, three years earlier than the previous Government promised.

The funding will help the Government to build towards the Prime Minister’s target for two thirds of young people to be heading to university or taking a gold standard apprenticeship by the age of 25 through the government’s Plan for Change.

A Defence Universities Alliance is being established, creating a UK-wide network of universities working in partnership with the MoD, Armed Forces and defence sector to support defence innovation and to encourage graduates to take up careers in defence related industries.

Intent to join the Alliance will be a key factor in grant decisions to ensure funded courses lead to real jobs for graduates. The DUA will build on the 60 partnerships already in place between the MoD and universities across the country.

Skills Minister Jacqui Smith said: "From computing and AI to engineering, we are supporting young people into a variety of jobs in the defence sector that are not only good for their future security but also for our country’s.

"This cash boost will help by ensuring more students can learn and train with the most up-to-date tech and facilities, restoring colleges and universities as engines of opportunity and growth."

Applications for this funding competition, run by the Office for Students (OfS), are expected to open 10th February 2026 and close 20th March 2026. Successful bidders will likely be confirmed in May 2026, allowing for activities and student places to be taken up from the start of the academic year 2026-27. Further details will be provided by the OfS when the competition opens.

The Government’s comprehensive defence skills package also includes establishing five Defence Technical Excellence Colleges, training people in the skills needed to secure new defence jobs in this growing industry, with applications currently open.

Kevin Craven, CEO of ADS Group, said: "Demand for apprenticeships and graduate roles across the defence industry continues to outstrip supply, yet skills funding has historically fallen short. The government’s commitment to provide an £80 million skills boost is therefore hugely welcome.

"We see this as an important step in a series of essential reforms needed to sustain our highly skilled workforce and deliver on the ambitions set out in the Strategic Defence Review."

This follows the government’s Post-16 Education and Skills White Paper which set out bold plans to break down barriers to opportunity, put universities on a firmer financial footing and boost the skills that will take our country forward. 

It also included the government’s plans to protect the long-term future of our world-leading higher education institutions by increasing tuition fees in line with inflation – but only if they deliver the excellent teaching and strong graduate outcomes students expect.  

Vivienne Stern, MBE, Chief Executive of Universities UK, said: "Universities have a crucial role to play in the nation’s defence, and have been identified as a critical part of the security and defence infrastructure of the UK by the Defence Industrial Strategy. The contribution spans research, the development of innovative technology and applications and providing the skilled graduates needed to protect the UK in a more challenging and changing world. The announcement of this funding from the MoD alongside the development of the Defence Universities Alliance will support the university sector to play its part in this vital work."

Professor Graham Galbraith, Vice-Chancellor of the University of Portsmouth, said: "We are immensely proud that the Minister chose Portsmouth to announce this vital investment in our nation’s defence capabilities. Home to HM Naval Base Portsmouth, the city has a strong relationship with the sector and the University builds on this legacy through world-leading research and by developing the skilled workforce that supports defence and drives economic growth.

"This £80 million package represents an exciting opportunity for universities across England. By creating thousands of new student places and enhancing facilities, we can ensure the next generation has the skills needed to drive innovation in this strategically important sector."