- More than 20 major financial services firms sign ‘once in a generation’ skills agreement between government and the sector
- Signatories agree to upskilling staff, new talent development, and annual reporting on progress
- Firms collectively employing more than 250,000 people have committed to the agreement
The Chancellor of the Exchequer will today announce that more than 20 financial services organisations have signed a pledge to invest in their own people, develop talent pipelines and collaborate to close the sector’s skills gaps.
As part of her annual Mansion House speech, the Chancellor will formally launch the Financial Services Skills Compact; a landmark, shared agreement between government, the Financial Services Skills Commission, and firms in the sector to work together to close skills gaps.
Twenty-two firms have formally signed the Skills Compact. They include high street banks, major insurers, building societies, investment managers, digital banks, and trade bodies, collectively employing more than 250,000 people.
The financial services sector employs around one million people across the UK and plays a vital role in driving economic growth. However, the sector is at a pivotal moment, amidst a rapidly evolving business environment.
Organisations face significant challenges driven by technological advancements, demographic change, and shifting customer expectations, all of which have been accelerated by the rapid adoption of artificial intelligence and other disruptive technologies.
In response to these challenges, the Skills Compact was announced by HM Treasury alongside the 2025 Financial Services Growth and Competitiveness Strategy. Its development has been led by the Financial Services Skills Commission and supported by City of London Corporation and TheCityUK.
Signatories to the Skills Compact have agreed to a range of commitments, including upskilling employees in AI and other critical skills, and growing structured routes for new talent. They will make a senior executive responsible for closing skills gaps and commit to publish annual updates on progress against their commitments.
Rachel Blake MP, Economic Secretary to the Treasury, said: “The Skills Compact is a central part of our ambitious plans to address skills gaps, including more investment in critical skills and getting more people into financial services. The backing of more than 20 organisations is a significant opportunity to deliver the workforce skills that are fundamental to the UK sector’s competitiveness, innovation and global leadership.”
Mark Hoban, Chair of the Financial Services Skills Commission, said:
“Financial services is facing unprecedented disruption from AI and other technologies. Firms and the Government need to respond positively to this if the UK is to remain a world leading financial centre. We welcomed HM Treasury’s commitment last year to putting skills at the heart of the Competitiveness and Growth Strategy and today’s successful launch of the Skills Compact is the industry’s response to this challenge.”
Claire Tunley, Chief Executive of the Financial Services Skills Commission, said:
“The Financial Services Skills Compact is the most significant agreement on skills between government and employers in a generation. Its timing couldn’t be more important. The sector is at a pivotal moment; it needs to close skills gaps by focussing on upskilling and reskilling its own people, building a pipeline of new talent, and promoting a culture of continuous learning.
“These early signatories are taking the lead, embracing highly ambitious commitments that will benefit at least a quarter of a million employees. The fact that more than 25 organisations have already signed the Skills Compact, including some of the largest firms in the UK, signals the importance of skills to productivity and economic growth.”
Kate Bell, Assistant General Secretary at the TUC, said: “We welcome the launch of the Financial Services Skills Compact. The UK has long suffered from underinvestment in skills and training, so it is encouraging to see employers in financial services committing to invest in their workforce.
“AI is set to transform jobs across the economy, bringing huge opportunities but also significant challenges. Workers must be supported through this transition with access to high-quality training and opportunities to develop new skills.
“The most successful workplace training starts with listening to workers to understand their needs and co-design learning programmes. By working together, employers, government and unions can ensure that technological change improves jobs, boosts productivity and raises wages.”
