On Saturday 24 October, HM Treasury published the Chancellor's plan for AI, a package of investment he is set to make part of Wednesday's Budget. techUK's chief executive, Julian David, called it "a strong £600m+ package focused on AI adoption, trust and security, investment and AI's impact on jobs and society."
Much of the money goes on security and homegrown capability, such as the AI Security Institute and the Sovereign AI Fund. But a few lines speak directly to people who run teams. If you are wondering what AI skills funding for employers in the UK looks like right now, the short answer is that you do not need to wait for the Budget to act.
What the announcement actually says about jobs and skills
Three parts of the package stood out to me as an employer.
£10 million per year to understand how AI will change work. The Treasury says this is "to lead the UK's work in understanding how AI will reshape jobs and industry, and how Britain needs to prepare for it, addressing concerns about AI's replacement of jobs from workers across the country."
An extra £23 million over the next three years for the AI Economics Institute. The Institute researches "how AI is affecting productivity, growth, jobs and living standards."
£30m for local AI partnerships with Mayoral Strategic Authorities. These partnerships bring together councils, businesses, universities and colleges to "support local businesses, including SMEs, and provide workers with AI skills."
"I understand and share the concerns of working people, so I am setting out a distinctively British approach to AI."
John Healey, Chancellor of the Exchequer, 24 October 2026
What it means for your workforce
It is a welcome signal. Government is saying out loud what most employers I speak to already feel: AI is changing jobs, people are worried, and skills are part of the answer.
It is worth being clear about what the package is, though. The £10m a year and the £23m are mainly about research, understanding the impact on jobs. The £30m for mayoral partnerships includes AI skills for workers, but it will be shaped locally, and we do not yet know how it will work in each area or when it will reach businesses.
The Budget itself is on Wednesday 28 October, with the Chancellor due to speak at about 12.30pm, straight after Prime Minister's Questions. There may be more detail then, and I won't guess at it here.
What I would say is this. Research tells you where the change is happening. It does not give your finance team, your HR team or your operations team the skills to work with AI on Monday morning. That part is still down to employers.
You don't need to wait: upskill now through the levy
Funding for AI skills already exists, and you can use it today.
If you pay the apprenticeship levy, now the Growth and Skills Levy, you can use it to fund AI training through apprenticeships. The government also funds training and assessment up to the funding band maximum for apprentices aged 16 to 24, with levy payers drawing on their account first. For apprentices aged 25 and over, co-investment applies on new starts the levy does not cover. It depends on your levy status and the apprentice's age, so check before you plan.
Also, for levy funds entering your account from August 2026, any you do not use expire after 12 months. Unused funds are skills your people are not getting.
A sensible first step, before Wednesday or after it:
- List the repetitive work. Ask each team where they lose hours each week to manual, rules-based tasks.
- Pick your doers. Identify one or two people in each team who would relish building better ways of working.
- Check your levy position. Find out what is in your account and when it expires.
- Start small and real. One process, automated and tested, will teach you more than any strategy paper.
How TESS can help
At TESS we specialise in AI apprenticeships, and most teams start with the AI & Automation Practitioner Level 4 apprenticeship (ST1512). It is built for non-technical people in every department, with no coding required. It runs for 12 months of live online learning, 15 months in all, and it can be funded from your levy, or by the government for apprentices aged 16 to 24. Apprentices build real automations and AI agents for your business, with up to five qualifications, including the BCS Foundation Certificate in AI, and Coachy, our AI tutor, available 24/7. Our next cohorts start on 20 November and 14 December 2026.
For senior leaders who set the direction, our three Level 5 AI Leadership Units (AU0009 to AU0011) cover strategy, governance and delivery in 30 hours each, with no end-point assessment, and can be funded through the Growth and Skills Levy for eligible employers.
Whatever the Chancellor says on Wednesday, your people can start building AI skills now. If you would like to talk through your levy position and which programme suits your team, book a 30-minute call with me. No deck, no hard sell, just a straight conversation.
Rod Doyle, Director, The TESS Group
Sources
Checked 26 October 2026.
