The Role of Microcredentials and Flexible Learning in Meeting the Needs of London’s Growth Plan

Addressing London’s Evolving Skills Needs

London’s economy is in a state of continuous transformation, driven by technological advancements, policy shifts, and global market trends. The recently published London Growth Plan highlights key ambitions, including raising productivity, fostering inclusion, supporting green growth, and enhancing London’s position as a global capital. At the heart of these ambitions is the need for a highly skilled, adaptable workforce capable of meeting the demands of emerging industries.

Microcredentials and flexible learning are increasingly recognised as critical tools in bridging skills gaps and preparing both current workers and new entrants for the future job market. With sectors such as artificial intelligence, life sciences, digital innovation, and green industries at the forefront of London’s economic strategy, short, targeted qualifications offer a rapid and responsive way to upskill and reskill London’s workforce.

OCN London’s Award-Winning Innovation

OCN London has been recognised for its pioneering work in microcredentials, winning the LCCI SME Business Gold Award for Business Innovation. This prestigious accolade highlights OCN London’s commitment to developing flexible, sector-specific accreditation that address critical skills shortages and support economic growth. Following this achievement, OCN London has now been invited to compete in the national awards, further cementing its role as a leader in innovative skills provision.

The Strategic Importance of Microcredentials

Unlike traditional qualifications, microcredentials provide bite-sized, competency-based learning that aligns closely with industry needs. They allow learners to develop specific skills within a shorter timeframe, making them an agile solution for both individuals and employers.

According to the London Local Skills Improvement Plans (LSIPs) for various sub-regions, priority sectors such as health and social care, construction, creative industries, and digital technologies face significant skills shortages. Employers in these sectors report difficulties in finding workers with the right technical and transferable skills, creating a strong case for the expansion of microcredentials.

By offering industry-validated, modular learning, microcredentials can help address the following challenges:

· Filling critical skills gaps in industries where vacancies remain persistently high.

· Providing accessible learning pathways for underrepresented groups in employment.

· Enhancing workforce flexibility, allowing employees to gain new skills without leaving their current jobs.

· Supporting career progression, helping workers to build stackable qualifications that lead to further education or professional advancement.

Meeting the Needs of Employers and Learners

London’s LSIP reports indicate that many businesses are eager to invest in training but struggle with cost, time constraints, and a lack of awareness about relevant learning opportunities. Microcredentials offer a solution by allowing for on-the-job learning, online delivery, and modular certification, enabling businesses to upskill their workforce with minimal disruption.

OCN London has been a pioneer in microcredential development, working closely with industry stakeholders to create flexible, sector-specific accreditation. For example, its recent Local Skills Improvement Fund (LSIF) projects have resulted in the development of microcredentials in Green Construction, Cybersecurity, AI, and Digital Productivity. These programmes directly address employer needs and ensure that London’s workforce remains competitive in a rapidly evolving economy.

The Role of Flexible Learning in Economic Growth

Flexible learning models, including blended and online learning, play a crucial role in making education accessible to adult learners, career changers, and those in low-income jobs. This is particularly important in addressing labour market inequalities, a key concern highlighted in the London Growth Plan.

With London’s ambition to create 150,000 new high-quality jobs, investing in flexible education pathways ensures that individuals from diverse backgrounds can participate in and benefit from economic growth. By embedding microcredentials into further education and vocational training, FE colleges and training providers can build more inclusive, employer-responsive curricula.

Overcoming Funding Barriers to Innovation

One of the critical challenges in scaling microcredentials and flexible learning is funding. While tailored learning funding is available to support innovation, much of it is already allocated to existing college provision, leaving limited scope to support truly innovative programmes. This restricts the ability of training providers to develop new, future-facing courses that align with London’s growth ambitions.

To overcome this challenge, policymakers, funders, and FE institutions must work together to:

· Create dedicated funding streams for microcredentials and short courses, ensuring that funding is not entirely absorbed by traditional qualifications.

· Enable greater flexibility in existing funding structures, allowing institutions to allocate funds towards emerging skills needs rather than being locked into legacy provision.

· Establish industry-led co-funding models, where employers contribute to the development and delivery of microcredentials that directly benefit their workforce.

· Ensure rapid-response funding for skills innovation, allowing providers to adapt quickly to emerging labour market demands.

Without a shift in funding approaches, London risks falling behind in its ability to deliver agile, industry-responsive skills training. Addressing this issue should be a priority for education policymakers and industry stakeholders alike.

Strengthening the Microcredential Ecosystem

For microcredentials to have maximum impact, greater collaboration between educational institutions, employers, and policymakers is essential. Key actions to strengthen this ecosystem include:

· Ensuring industry recognition of microcredentials through employer engagement.

· Integrating microcredentials into existing qualification frameworks, allowing for progression into higher education.

· Providing funding and incentives to encourage uptake among learners and businesses.

· Promoting awareness and accessibility, particularly among underrepresented groups.

A Call to Action for FE Leaders

As London’s Further Education (FE) sector responds to the changing skills landscape, microcredentials offer a future-proof approach to workforce development. We encourage Senior leaders in FE colleges to:

· Embed microcredentials into curriculum planning.

· Work with employers to co-design industry-relevant qualifications.

· Leverage digital learning technologies to increase accessibility and engagement.

· Advocate for policy support and funding mechanisms to scale up microcredential delivery.

With a clear alignment between London’s Growth Plan, LSIP priorities, and the demand for flexible learning, microcredentials are poised to play a vital role in shaping a resilient, inclusive, and high-performing workforce. By embracing these innovations and addressing funding constraints, London’s education and training providers can ensure that the capital remains at the forefront of global skills development and economic prosperity.