UK & Ireland Companies Prioritise In-House L&D for Upskilling

Across the United Kingdom and Ireland, businesses are significantly ramping up their investment in in-house Learning and Development (L&D) programmes. This strategic pivot is driven by a confluence of factors, including rapid technological advancements, evolving regulatory landscapes, and a persistent skills gap. Rather than solely relying on external providers, many organisations are now building robust internal capabilities to foster continuous upskilling and reskilling of their workforces.

The imperative for corporate upskilling has never been more pronounced. A recent report by the CIPD highlighted that 75% of UK organisations believe that automation and AI will significantly change skill requirements within the next five years. This sentiment is echoed in Ireland, where the National Skills Council's latest forecast identifies critical skills shortages in areas such as digital transformation, green skills, and advanced manufacturing. This evolving landscape necessitates a proactive approach to talent development. In-house training offers several distinct advantages, including tailored content that aligns precisely with specific organisational goals, internal systems, and unique cultural nuances.

In the UK, the corporate training market reached USD 16.3 billion in 2025 and is projected to reach USD 29.1 billion by 2034, exhibiting a compound annual growth rate (CAGR) of 6.34% during 2026-2034. This growth is largely influenced by the rising demand for employee upskilling, significant technological improvements, and the increasing need for compliance and regulatory training.

The Drivers Behind Increased L&D Investment

Several key factors are contributing to this surge in in-house L&D investment:

  • Addressing Skills Gaps: The World Economic Forum's Future of Jobs Report 2025 predicts that 50% of employees will need reskilling by 2027 due to changes from automation and AI integration alone. In the UK, skill gaps and reskilling have emerged as the top HR challenge for employers in 2025. Similarly, an Ibec 2025 Skills Survey found 82% of Irish firms reporting significant skills gaps.
  • Technological Advancements, particularly AI: AI is reshaping work, with 43% of Irish workers having used AI in the last 12 months, and 67% reporting increased productivity as a result. Over 90% of organisations in Ireland plan to implement AI programmes, and 86% plan higher levels of investment in reskilling and upskilling their existing workforce to better work alongside AI. In the UK, AI capabilities are improving rapidly in domains such as coding, cybersecurity, and research, with potential for significant productivity improvements.
  • Cost-Effectiveness and Customisation: In-house training allows companies to tailor learning experiences specifically to their unique operational needs and strategic objectives, ensuring greater relevance and immediate applicability. This can also be more cost-effective than extensive external training initiatives, especially when considering travel costs and individual course placements.
  • Employee Retention and Engagement: Investing in employee development signals to staff that their personal growth is valued, leading to higher engagement, job satisfaction, and improved retention rates. Employees who feel supported in their upskilling journey report a 73% boost in motivation.
  • Regulatory Compliance: Health and safety training, while often mandated, is increasingly integrated into broader L&D strategies. In the UK, the Health and Safety Executive (HSE) statistics for 2024/25 reveal 1.9 million working people suffering from work-related ill health, including 964,000 cases of stress, depression, or anxiety, and 511,000 cases of musculoskeletal disorders. These figures underscore the ongoing need for robust and up-to-date health and safety training. In Ireland, the Health and Safety Authority (HSA) reported 61 workplace fatalities in 2025, a significant increase from 36 in 2024, highlighting the critical importance of effective safety training and management. Manual handling alone accounted for 3,474 reported incidents in Ireland in 2023-2024, representing about 33% of all workplace injuries.

Challenges and the Path Forward

Despite the clear benefits, L&D professionals still face challenges. A 2025 report found that 40% of L&D professionals in the UK say less than half of their initiatives are approved by senior management, and many face shrinking budgets. However, perceptions of L&D's strategic importance are growing, with 48% now stating it is central to their business strategy, up 7% from 2024.

Related training: If you are looking to qualify as a trainer in this area, see health and safety training Ireland or explore train the trainer quiz for nationally recognised UK and Ireland qualifications.

The Quality and Qualifications Ireland (QQI) provides a framework for quality assurance in education and training, which can serve as a valuable benchmark for organisations designing internal programmes to ensure they meet recognised standards. In Ireland, Budget 2025 includes a funding package of €1.485 billion over six years (2025-2030) for the tertiary sector, with €20 million specifically released from the National Training Fund for a skills package to increase investment in employment-focused skills and training. Skillnet Ireland's 2025 Annual Report highlighted that almost two-thirds of businesses view upskilling as a strategic priority, with 12,655 workers and 2,412 companies benefiting from digital skills programmes in 2025.

The integration of Artificial Intelligence (AI) is also a significant trend in L&D. AI can deliver hyper-personalised learning, analyse skill levels, and recommend relevant courses, boosting engagement and return on investment. While challenges exist, such as a lack of knowledge (62%) and skills (55%) regarding AI, at least 75% of L&D professionals surveyed are open to using AI in their strategies for 2025.

The shift towards in-house training and corporate upskilling is not merely a reactive measure but a proactive strategy to foster resilience and innovation within organisations. As the economic landscape continues to evolve, the ability to adapt and develop new competencies internally is proving to be a critical differentiator for businesses across various sectors. This commitment to continuous learning and development is essential for navigating the complexities of the modern workplace.

For organisations looking to enhance their in-house training capabilities and stay ahead of industry trends, Abertay Training offers comprehensive solutions. Further information can be found at https://www.abertaytraining.co.uk.