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Student skills investment to boost UK defence industry

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Britain’s defence industry is set to benefit from an £80 million investment aimed at expanding student places on courses critical to national security and future defence capability.

Announced by the Ministry of Defence, the funding will allow universities, colleges and higher education providers in England to increase capacity on strategically important defence-related courses, particularly in engineering and computer science. Work is also ongoing with devolved governments to assess skills needs and funding options across Scotland, Wales and Northern Ireland.

The £80 million allocation is the largest single element of the £182 million skills package set out in the Government’s Defence Industrial Strategy. It is intended to strengthen the long-term pipeline of skilled workers needed by the defence sector, supporting roles ranging from advanced manufacturing and aerospace to cyber security.

Speaking during a visit to the University of Portsmouth, Luke Pollard confirmed that £50 million of the funding will support around 2,400 additional student places over six years. A further £30 million will be used to upgrade university facilities, including the development of new teaching spaces to expand capacity over the next decade.

Courses linked to engineering, computing and related STEM disciplines will be prioritised, reflecting their central role in modern defence capability. The funding forms part of the Strategic Priorities Grant and will be open to students from across the UK, helping to drive skills growth nationwide.

The investment delivers on recommendations in the Strategic Defence Review to strengthen the UK’s defence skills base. It also aligns with the Government’s wider ambition to increase defence spending to 2.6% of GDP from 2027 and to ensure two-thirds of young people are studying for a degree or completing a gold-standard apprenticeship by the age of 25.

As part of the initiative, a new Defence Universities Alliance will be established. The alliance will bring together universities working in partnership with the MOD, the Armed Forces and the defence sector to support innovation and encourage graduates into defence-related careers. An institution’s intention to join the alliance will be a key factor in funding decisions, ensuring courses supported by the programme lead to clear employment pathways.

The funding competition will be run by the Office for Students. Applications are expected to open on 10 February 2026 and close on 20 March 2026, with successful bids likely to be confirmed in May. New student places and associated activity are expected to begin from the 2026–27 academic year.

The wider defence skills package also includes plans to establish five Defence Technical Excellence Colleges, designed to train people in specialist skills needed across the defence sector, with applications for those programmes already open.

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