Capstone believes 2026 will be a pivotal year for the UK Labour government’s education policy agenda. Secretary of State for Education Bridget Phillipson has outlined significant policy reforms, but must also grapple with ongoing financial challenges. Capstone Managing Director and European Practice Lead, Mathew Gilbert, recently sat down with Ruth Kelly, Capstone Senior Adviser and former Labour Party Secretary of State for Education and Skills, to discuss the outlook for UK education policy. The discussion covered Special Educational Needs and Disabilities (SEND) reform, academisation trends, AI and EdTech in schools, and the private sector’s role in higher education and vocational training.
Mathew Gilbert (MG): In February, the government published its long-awaited Schools White Paper, setting out proposals for reforming the SEND system. SEND provision remains a highly contentious policy issue. What is your take on the proposals?
Ruth Kelly (RK): SEND reform has been at the top of Bridget Phillipson’s agenda. It is a significant issue not only for the Labour backbenches but also financially, as the system is under severe strain. I believe the white paper sets out a thoughtful package of reforms. The Education Secretary and her team have clearly spent considerable time consulting with stakeholders to produce a plan that aims to meet the concerns raised by parents. A central objective is to reduce reliance on Education, Health and Care Plans (EHCPs) by intervening earlier. The thrust of the reforms is to shift from a system that has become highly tribunal-driven and linked to legal obligations towards one that is more proactive. There is strong emphasis on raising standards and increasing capital investment so that schools can develop their own specialist provision—for example, by bringing expertise such as speech and language therapy directly into schools, rather than relying on costly independent provision. This represents a potential paradigm shift towards greater inclusivity within the state school system. The government has announced c.£4 billion national investment to expand and strengthen SEND provision in the state sector. In addition, national price bands are to be introduced for private SEND schools to curb escalating costs.
MG: Aside from SEND reforms, in the first 18 months of the Labour government, Bridget Phillipson has focused on issues ranging from Ofsted reform to technology and AI in schools. We have seen progress on the Children’s Wellbeing and Schools Bill. What are the key education priorities for the rest of this parliament?
RK: Curriculum reform is also central: the government has launched a major review of the national curriculum in England, led by Professor Becky Francis, with a stronger focus on skills for life and work alongside academic knowledge. Implementation of the new vocational post-16 qualification—the V Level—will be another priority. It is designed to sit between A-levels and T Levels, offering a more flexible vocational pathway that can be combined with one or two A-levels. Teacher recruitment and retention will also remain a priority.
MG: Academies were introduced under Tony Blair’s Labour government and expanded by subsequent Conservative governments. Has academisation been successful, and what are the pros and cons of further expansion?
RK: Overall, I view it as a significant policy success. Originally targeted at failing schools in disadvantaged areas, it has evolved into a broader standards-raising reform. Around 80% of secondary schools and nearly half of primary schools are now academies or free schools. Performance improvements, particularly for disadvantaged pupils, and stronger international comparisons suggest the model has delivered.
However, I was disappointed to see elements of the Children’s Wellbeing and Schools Bill constrain academy freedoms, including around curriculum, pay, and teacher training. This risks a retreat from what has been a cross-party consensus on how to improve schools over the past couple of decades. On the positive side, it was interesting to see the Education Secretary promote the idea that all schools should join a trust in future. Introducing the inspection of multi-academy trusts (MATs) at the trust level is a necessary and overdue reform.
MG: Bridget Phillipson has set out ambitions for AI and EdTech in schools. Where do you see the key opportunities?
RK: There is considerable enthusiasm, but basic foundational gaps remain—including uneven access to devices such as laptops. While some teachers are already using AI for tasks such as lesson planning, a more systematic approach is needed. An important opportunity is reducing teacher workload by streamlining administration and bureaucracy, which could help recruitment and retention. AI could enable genuinely personalised learning and individualised programs that adapt to student strengths and give real-time feedback—something that I used to talk about when I was Education Secretary, and we didn’t have the tools to do it properly then. Success will depend on infrastructure, AI-literate teachers, strong data governance, and a clear ethical framework. We are at the beginning of this journey, but the potential is significant.
MG: Many universities in the UK face financial pressures, while the government aims to promote vocational education. How do you see the role of the private for-profit higher education sector evolving under a Labour government?
RK: There are significant opportunities in post-16 education and beyond. Universities and further education (FE) colleges are not the nimblest in the UK, and there’ll be increasing demand from government and employers for modular, flexible, short courses designed to address specific skill gaps, which can be taken at different points in a person’s career. I see a big opportunity for the private sector. It’s difficult for the established universities with high, fixed costs, significant emphasis on research, and other pressures of accountability, to evolve rapidly enough to meet these needs.
Private providers that can adapt rapidly to employer and local needs are well-positioned. The transition from the apprenticeship levy to the new growth and skills levy, and the removal of the 5% co-investment requirement for SMEs hiring apprentices under 25, will create further openings. This means training for these apprentices will be fully funded by the government. Nimble, employer-focused private sector providers could play an important role in meeting future demand.
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