AI skills fund launches in Barnsley

The government has launched its AI Upskilling Challenge Fund, aiming to come up with a plan on how to best equip people with skills to benefit from artificial intelligence (AI).

The £800,000 fund will be based in Barnsley, as part of the government’s Barnsley Tech Town initiative.

The aim is to support local businesses and residents in how to use AI, particularly those who might otherwise miss out on new innovations, such as elderly residents, young people and small manufacturers.

The government is looking for organisations with innovative ideas on how to deliver this training.

AI and online safety minister Kanishka Narayan said that when the government launched the Barnsley Tech Town initiative, it promised “that the opportunities created by AI would be felt by workers and communities across the town, not just those already ahead”.

“Now we’re throwing down a challenge to the country’s most ambitious and creative training providers, businesses, colleges and charities – bring us your boldest ideas for helping the people of Barnsley build the skills they need to take advantage of AI,” he said.

“Whether it’s helping manufacturers boost productivity, supporting small businesses to grow, or giving workers the confidence to embrace new technology, we want ideas that can make a real difference. The best solutions won’t just help people in Barnsley – they could become a blueprint for how Britain equips a generation with the skills of the future.”

The government is looking for applications from a range of organisations, including charities, colleges, employers and tech companies, who have “ambitious, high-impact” ideas that can be replicated elsewhere and scaled up across the UK.

Barnsley Council’s Cabinet Spokesperson for Regeneration and Assets, Andy Cudworth, said the investment “is another important step in delivering our vision for Barnsley’s future”.

“It supports Barnsley Council’s ambition to become the UK’s leading digital town, helps future-proof our world-class logistics and manufacturing sectors, and ensures that communities across the borough can benefit from the opportunities that growth brings,” he said.

“By investing in innovation, skills and infrastructure, we are creating the conditions for businesses and residents to thrive.” 

Technology secretary Liz Kendall launched the tech town initiative in February 2026, with the aim to mark out Barnsley as the UK’s trailblazer, acting as a national blueprint for how AI can improve everyday life across education, health and adult training.

This is part of the government’s plans to ensure 10 million UK workers are equipped with AI skills by 2030. Earlier this year, the government also promised to make AI tutoring tools available for free in schools by the end of 2027.

The government also recently launched an AI Assurance Stakeholder Consortium, together with BCS, The Chartered Institute for IT, to spearhead AI adoption across the country.

The consortium, which brings together leading figures from the UK’s existing AI assurance ecosystem, aims to measure and evaluate the trustworthiness of AI systems.