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Digital Skills Deficit in UK Government & Defence: A National Security Concern?

Posted June 23, 2025

The UK is facing a significant digital skills gap, with implications for economic competitiveness and national security. This gap is particularly acute in sectors requiring high levels of security clearance, such as Government & Defence.

However, could a ‘Skills First’ agenda offer a new approach to workforce development, by focusing on aptitude and potential rather than traditional credentials?

In this blog I explore why the digital skills shortage is a concern, the particular challenges faced by UK government, as well as why a ‘Skills First’ agenda can help.

The Digital Skills Challenge in the UK

The UK is facing a growing digital skills crisis that extends beyond economic productivity, it’s becoming a matter of national security. As digital transformation accelerates, the shortage of skilled professionals in data, cybersecurity, software engineering, and AI is leaving critical industries like Defence vulnerable.

The Strategic Defence Review (SDR) outlines a vision for a digitally enabled force, but without the talent to support it, this vision is at risk. The UK lags behind global leaders in STEM education, and the requirement for UK nationals with security clearance further narrows the talent pool. The clearance process itself, taking up to 52 weeks, creates a bottleneck that reduces agility and responsiveness.

This deficit impacts operational effectiveness. Projects stall, legacy systems persist, and innovation is stifled. The Defence sector struggles to compete with Big Tech for talent, and without a coordinated national strategy, the gap will only widen.

To address this, I believe that digital skills must be treated as critical infrastructure. Investment in education, training, and inclusive hiring practices is essential to reduce the impact on our national security.

What is the ‘Skills First’ Agenda and Why It Matters

The “Skills First” agenda is a transformative approach to workforce development that prioritises capability over credentials. Instead of focusing solely on degrees or past job titles, it emphasises what individuals can do, their aptitude, potential, and transferable skills.

This model is particularly relevant in sectors like Defence and Government, where traditional hiring practices often exclude capable candidates. The “recruit, train, deploy” model and “skills accelerators” offer scalable solutions. They identify talent from diverse backgrounds, provide targeted training, and deploy individuals into roles where they can make an immediate impact. This is a topic I’ve recently discussed on a podcast with WYWM, you can check this out here!

By adopting a skills-first mindset, organisations can tap into underutilised talent pools, including career changers, veterans, and individuals from underrepresented communities. It also supports agility, enabling faster onboarding and adaptability in rapidly evolving digital environments.

The UK has an opportunity to lead in this space. By embedding skills-first principles into procurement, education, and workforce planning, we can build a more inclusive, resilient, and future-ready digital workforce.

SMEs vs. Primes – Who Can Solve the Skills Crisis in Defence?

Both large firms (primes) and small-to-medium enterprises (SMEs) play critical roles in Defence, but they face different challenges when it comes to digital skills.

Primes have the scale, frameworks, and bid teams to win contracts, but they struggle with agility. They can’t afford large benches of unassigned staff, often rely on offshore delivery, and face challenges in rapidly reallocating skilled workers.

SMEs, on the other hand, are nimble and often possess deep technical expertise. But they lack the scale and financial resilience to navigate long procurement cycles. They’re frequently dependent on primes for access to contracts and struggle to invest in skills development at scale.

I believe the solution lies in collaboration. By fostering ecosystems that combine the strengths of both, and by reforming procurement to support innovation and inclusion, the Defence sector can build a more resilient and capable digital workforce.

Skills development must be a shared responsibility, embedded in contracts and supported by government policy.

Making Defence Tech Cool – Attracting the Next Generation

Defence faces unique challenges: long procurement cycles, legacy systems, and an ageing workforce. The Strategic Defence Review outlines ambitious digital goals, but without the right talent, these are at risk. The sector must address cultural and structural barriers to attract and retain digital professionals.

To compete with Big Tech for digital talent, the Defence sector must transform its image. While Defence offers purpose-driven work and cutting-edge technology, it often fails to communicate this effectively to younger generations.

Branding matters. Big Tech is seen as innovative, flexible, and exciting. Defence must adopt similar messaging, highlighting its mission, impact, and opportunities for growth. Outreach programs targeting schools, universities, and underrepresented communities are essential.

Initiatives like STEM engagement, early careers programs, and partnerships with tech hubs can help build awareness and interest. Showcasing real-world applications of Defence tech like AI, cyber, autonomous systems, can inspire the next generation.

Making Defence tech “cool” isn’t about gimmicks. It’s about telling a compelling story, creating inclusive pathways, and offering meaningful careers.

Central Government and the Skills First Opportunity

But the digital skills challenge isn’t limited to Defence. Central Government departments face similar issues like rigid hiring practices, pay disparities, and a lack of digital fluency.

The civil service often struggles to compete with the private sector for talent. Roles are narrowly defined, and hiring processes are slow. This limits the ability to respond to emerging challenges and deliver digital transformation.

A “Skills First” approach can help here as well. By focusing on aptitude and potential, government departments can access a broader talent pool. Training programs, secondments, and cross-sector partnerships can accelerate capability building.

The Government Digital Service (GDS) has made progress, but I think more is needed. A unified strategy that aligns Defence and Civil Service efforts can create shared talent pipelines and improve interoperability.

Digital transformation in government isn’t just about technology, it’s about people. Embracing skills-first principles is key to building a modern, responsive, and inclusive public sector.

Conclusion

The digital skills crisis really is a strategic risk for the UK. To address this crisis the UK Government & Defence sector needs a coordinated, long-term strategy with collaboration between government, industry, and education.

But by adopting a ‘Skills First’ approach and investing in inclusive, long-term solutions, I believe the UK can build a resilient digital workforce capable of leading our industry through this transformation and that supports both national security and the public service.

The time to act is now.

Would you like to discuss this more? I’m always keen to chat with anyone who has queries on the digital skills gap or how they can ensure their organisation can use talent to remain resilient against these challenges. So please do reach out on [email protected]