EPC’s Director of Policy and Research, Stella Fowler, outlines on what’s on EPC’s radar this year; part observation, part reflection, and part crystal ball gazing…
The Post-16 Education and Skills White Paper concluded 2025 but signals the start of an ongoing programme of reform. It spans V Levels, the Lifelong Learning Entitlement (LLE), quality, access and participation, and the alignment between higher education and labour market needs, with policy developments expected to unfold across 2026 and beyond.
The year ahead may therefore be less defined by major new legislation and more by the translation of policy into practice through consultations, regulatory frameworks and implementation planning. In that sense, it is likely to be a system-shaping year. The central dilemma may be not simply how the sector responds to individual policy changes, but whether the overall architecture of engineering higher education — its shape, provision, regulation and funding — is capable of sustaining the UK’s long-term engineering capability, innovation capacity and global competitiveness.
Strategic issues likely to warrant attention in 2026
Skills England priorities are increasingly shaping the policy landscape. Higher education is now being framed as part of the UK’s national economic infrastructure, and Local Skills Improvement Plans (LSIPs) are expected to exert greater influence over expectations of both HE and FE provision. Engineering is explicitly identified as a priority sector, with targeted investment including funding to expand engineering skills training, T Levels and higher-level (Levels 4–5) provision in areas such as clean energy. The White Paper also signals a stronger emphasis on higher technical education (HTE), rather than a focus on traditional degrees alone, which is particularly relevant to engineering and digital disciplines. Expectations are therefore likely to increase that the education system should demonstrate a clearer contribution to productivity, innovation and regional growth.
This direction of travel reinforces a focus on upskilling and greater responsiveness to labour market need. The continued emphasis on linking graduate skills to labour market value is likely to increase pressure on universities to support local economic development through provision aligned to regional and national priorities, alongside demonstrable employability outcomes. This aligns closely with the intentions set out in the White Paper and is likely to remain a prominent feature of policy implementation through 2026 and beyond.
The signalling is clear, even if the levers beyond QR funding are not. Following a pause, REF will now also more fully support HE research capacity across disciplines relevant to government priorities on innovation, productivity and industrial strategy, leveraged through the allocation of quality-related (QR) research funding. The next exercise has been confirmed as REF 2029, with 2026 expected to focus on sector engagement for criteria development, guidance refinement.
The discourse of coherence between industrial strategy, skills policy and the design of engineering education pathways will focus on collaboration and specialisation. The demand of the sector at policy level is to do more with less; we have the recommendations of the Universities UK Taskforce on Efficiency to support this and have seen the first of what may be a number of provider mergers. Strategic questions over the future size and shape of the HE sector and operational considerations around specialisation and collaboration are likely to be rife, with implicit pressure on providers to rethink broad-based offers, to focus on their strengths and collaborate regionally or thematically. This raises questions about how national engineering capacity should be distributed and supported, especially if research and teaching excellence metrics are used more strategically.
Which brings us to regulation, autonomy and academic standards. Can we get on board with the refreshed OfS? Does the current regulatory approach support enhancement of quality in engineering education, or does it risk unintended consequences for innovation and academic autonomy? Alongside likely continued strengthening of Office for Students (OfS) scrutiny relating to quality, governance and financial sustainability, regulatory duties to protect public money may be strengthened – when legislative time allows – in response to attention from the National Audit Office and elsewhere on quality and risk in franchise provision. This links with broader trust and quality agendas in higher education policy thinking for 2026. In relation to the OfS, free speech also keeps popping up and duties will move from legislative debate to operational enforcement in 2026.Thus far, this hasn’t really been a significant priority for EPC/EES engagement.
Meanwhile, the Lifelong Learning Entitlement (LLE) will become a reality in 2026 with implementation resting with the sector amid unresolved issues around modular provision, credit transfer and learner mobility in engineering. Pressure on infrastructure changes to support the funding model for short, employer-relevant modules rather than long degrees only represents both a challenge and a significant opportunity to support mid-career upskilling and reskilling in engineering and technology-intensive sectors. LLE is one of the biggest shifts in UK skills policy for decades.
So, how can engineering HE be supported to produce enough well-prepared engineers for priority sectors (e.g. net zero, digital infrastructure, advanced manufacturing, defence)? Increasing fragility in parts of the sector and risks to the continuity of strategically important provision, including high-cost engineering programmes should be high on EES priorities. This speaks directly to national engineering capacity versus Engineering HE circumstances and the implications for its future. HE finances will feature (a review of the Strategic Priorities Grant has been mooted). Is there a need for a more explicit national strategy to safeguard strategically important disciplines such as engineering?
Finally, a theme, not necessarily a policy – the Artificial intelligence dial appears to be moving from academic integrity policy towards pedagogy, curriculum, learning design, graduate capability and skills, innovation and efficiency. How should expectations of engineering knowledge, competence and professional judgement evolve in response to widespread AI capability? There is a lot here to unpack and critically appraise; very likely a role for engineering HE.
Current policy activities
There are a few live consultation and open sector policy activities:
- The Engineering Council continues to engage with EPC and the wider sector ahead of the scheduled Standards review.
- The International levy. To support better maintenance support for disadvantaged learners — loans increase with inflation, targeted grants reintroduced. The EPC has written to Jacqui Smith, with follow-up response due by 18th February currently in draft form.
- Scotland is currently in the middle of a very quick ramp-up into their new tertiary quality enhancement review, with 10 institutions having completed SFC review thus far. This is a new combined review method for both HE and FE in Scotland.
A cross-party review of the financial sustainability of Scotland’s universities is now underway, ahead of the elections due in May (according to the THES) with widespread, but so far minority support for something closer to the English system of fees backed by income-contingent loans. We are watching this space.
- In Wales, MEDR have now been in place for 18 months and they are taking longer to consult on their regulatory approach than OfS did. We are expecting outcomes the from their consultation on a tertiary approach to their quality framework (this is an integrated tertiary approach, but Wales is regulating FE and HE separately). Meanwhile, The SENNED has just launched an evidence paper and call for submissions on the future of tertiary education in Wales. The deadline is 27th March
- In Northern Ireland, quality has been on an ‘extended hiatus’ due to political challenge resulting from no functioning Minister in the Department for Economy (who oversee HE). However, this is now getting traction, and we can expect statements on quality regulation in early 2026.
Consultations expected in 2026
- Degree breakpoints and flexible pathways
A consultation on degree breakpoints and flexible pathways was promised in the white paper, to include potential recognition of Level 4/5 exit and re-entry points.
- Higher Education reform
Even though comprehensive funding reform was not delivered in the White Paper, consultations on how funding models interact with quality outcomes and labour-market needs are expected.
- Strategic Priorities Grant
A possible consultation on the SPG and its relationship to national skills priorities has been mooted. Links to the Industrial Strategy are likely to drive engagement with ongoing development of Skills England and Local Skills Improvement Plans (LSIPs) as cross-sector mechanisms connecting HE with employer needs.
- LLE implementation pathways
Discussion rather than consultation possibly, on precisely how modular provision will operate in higher education and further education.
- OfS quality assurance and conditions of registration
With greater powers for OfS expected – particularly around quality investigations – the sector may be invited to comment on interventions over poor performance and student outcomes and restrictions on growth if standards aren’t met. This may not be a formal consultation but expect more activity on quality thresholds for HE providers, especially where fee uprating and regulatory conditions come together (e.g., teaching quality frameworks).
- OfS financial sustainability frameworks
In light of projected deficits in many institutions and calls for governance reform we might expect to feedback on incentives for specialisation and employer linkage to support competitiveness through the above (sustainable) funding and greater accountability frameworks for universities.
- OfS’ duties to protect public money
This is in relation to franchising and may be deferred to when legislative time allows. We should at least expect discussion and possible consultations on strengthening governance conditions as part of OfS’ registration requirements.
- Other OfS consultations may be forthcoming on risk-based approaches to access and participation monitoring and post legislative OfS free speech and academic freedom compliance around complaints and reporting duties.
EPC’s committees will be heavy lifting in this space, in consultation with our members in accordance with the EPC consultations policy. You can read about open consultations here and read previous EPC responses here. I look forward to working with you!
