On 28th October 2026, the Chancellor confirmed the final £4.7bn needed to fully fund the Defence Investment Plan. For an industry facing ongoing challenges and uncertainty, this is a step forward in being able to make solid plans for implementation of the programme.
But money is not the only constraint in defence. The challange now is whether the UK defence sector has enough qualified people to fill the defence jobs this investment creates.
Where the funding is going?
The plan sets out £298bn of MoD spending over four years, including £15bn of new investment. Around 370 contracts worth over £2.7bn have been signed since June. Capital spending rises 18% in 2027-28, tilting the funds towards equipment, platforms and manufacturing. The government expects around 60,000 additional direct and indirect jobs by 2029-30.
Demand is already outpacing supply
Skills England and the MoD project demand across 14 priority defence occupations is estimated to grow by 58% by 2035. Including replacements for leavers, that's around 82,000 workers over the next 10 years, against a sector that was directly employing about 181,500 workers as of 2025. Those projections predate the fully funded plan, and recent figures showed that 24.1% of the workforce is already aged 50 to 59.
Skills investment
Each funded programme maps onto a skills need. £5bn for uncrewed systems and £300m for StormFighter needs systems, avionics and software engineers. The Energetic Materials programme needs chemical and process engineers, while £400m for Army drones calls for electronics, test and evaluation specialists. The common thread is highly skilled, often cleared, technical talent.
The defence roles employers are struggling to fill
Demand sits at the top end: 87% of projected additional roles need level 4 qualifications or above.
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Digital and secure technology: software developers (around 17,200 more by 2035), systems architects, cyber security and AI assurance specialists, with the MoD running over 400 AI projects.
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High-end engineering: systems, electrical, electronics and mechanical engineers, plus production engineers to scale manufacturing.
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Technical leadership: senior engineers and programme leads who can take work from contract award to delivery.
The need for security clearance narrows every shortlist, experienced engineers are retiring as programmes ramp up, and new contracts need people in seat to deliver on time.
Carbon60: Defence recruitment specialist
This is where aerospace and defence specialist recruitment earns its place. Carbon60 sits between demand and talent: mapping hard-to-fill roles, and finding security cleared and clearance-ready candidates.
Where talent pools are small, we find new ones. Converting transferable engineering capability from other sectors into defence-ready talent where needed.
Our 2026 research of 300+ technology and engineering professionals showed that 78% of professionals are actively exploring a change of industry and 49% of those exploring a move would consider Aerospace & Defence.
Concerns about clearance and lack of knowledge is currently holding them back, but with the right messaging and communications, the obstacles can be overcome finding fresh new talent that would otherwise have gone undiscovered.
Next steps for defence employers
Funding certainty makes this the moment to rethink defence recruitment. We recommend these next steps:
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Plan against the contract pipeline, not today's vacancies.
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Start vetting early so clearance doesn't stall hires at the offer stage.
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Widen the talent pool to service leavers and apprenticeships, where digital technology achievements have grown by up to 82% from 2021-22 to 2023-24 for level 4/5 digital technology apprenticeships.
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Hire for capability, not just a CV match.
Funding is the starting gun
The detail on reaching 3% of GDP by 2030 is due at next year's Spending Review, but the skills question is already here. The organisations that win the next decade of UK defence work won't just hold the contracts. They'll be the ones who can staff them.
Close your defence skills gaps with Carbon60 powered by Vertage
Complete the form on our Contact us page, and talk to Carbon60’s aerospace and defence recruitment team about finding the talent your programmes need.
