Announced by the Prime Minister last month, the potential reforms would see schools deliver locally designed technical routes, aligned to regional industry demands, from September 2028.
With specialist teaching, equipment and employer engagement central to delivery, many schools may need to buy in external provision, creating more opportunities for independent training providers, awarding organisations and specialist curriculum businesses.
Callum Leslie, corporate finance manager at PKF Smith Cooper, warns that the changes will coincide with the defunding of legacy Level 2 and Level 3 qualifications in 2027 and 2028, resulting in a dual pressure point for education and training operators.
“Two waves of reform are landing at once,” said Callum.
“Businesses that can demonstrate resilience through defunding and relevance to priority skills sectors will be best placed to attract investment.”
Callum says demand for external teaching, workshops, curriculum content and employer engagement could widen the market for specialist providers.
Additionally, independent training providers with accreditation, delivery capacity and employer relationships may attract heightened interest from trade buyers and private equity.
Callim adds a new learner population at 14 could drive qualification development and strategic acquisitions.
And, he says, locally designed pathways may favour regionally strong operators, prompting targeted acquisitions.
Callum advises owners and investors to assess the business’ exposure to defunded qualifications, commissioning risk, investment requirements and the strength of employer relationships.
“This is a window of time where education and training businesses can sharpen their strategic positioning,” he added.
“The market could look very different by 2028.”
