Dr. Hanley Signals Major STEP Reform While Defending It’s Impact

Deputy Prime Minister and Minister with responsibility for the Skills Training Empowerment Programme (STEP), Dr. Geoffrey Hanley, used his contribution to the 2026 Budget Debate to signal forthcoming reforms to the programme, describing its current structure as unsustainable while reaffirming its original purpose as a vehicle for skills development and upward mobility.

Addressing the National Assembly, Dr. Hanley spoke candidly about the challenges facing STEP, noting that while the programme was created to provide training and pathways into employment, it had gradually evolved into a system of long-term placement without adequate cost-sharing or transition mechanisms. “STEP, in its current form, is not sustainable,” he told Parliament, adding that the programme had drifted away from its core mandate of skills training.

Central to the proposed reform, Dr. Hanley explained, is the need for greater accountability from private sector entities that have benefitted extensively from STEP labour over the years. He disclosed that some businesses had effectively received hundreds of thousands of dollars’ worth of labour at the State’s expense, a situation he described as unfair and financially untenable. “There are businesses who have been benefiting from free labour for years,” he said, making the case for shared responsibility going forward.

Under the revised approach he outlined, businesses will be required to contribute toward the wages of STEP participants, ensuring that the programme remains viable while continuing to support employment. Dr. Hanley was careful to reassure participants and the wider public that reform would not come at the expense of workers. “No one will be sent home. No one will be losing their jobs,” he emphasised, underscoring that the intent is correction, not punishment.

He further framed the reform as consistent with the broader fiscal approach outlined in the 2026 Budget, which prioritises improved revenue recovery and shared responsibility over the introduction of new taxes. By requiring businesses that benefit from STEP labour to contribute financially, he said the Government is ensuring that resources already due to the State are collected and recycled into sustainable programmes, rather than placing additional burdens on the public.

While acknowledging its shortcomings, the Deputy Prime Minister mounted a robust defence of STEP’s achievements when properly aligned with training and certification. He pointed to successful graduates in areas such as office administration, cosmetology, data operations, motor vehicle repairs and electrical work, noting that the programme has produced both valedictorians and salutatorians. He also highlighted the transition of teacher assistants from STEP into fully certified teaching positions, describing these outcomes as evidence of the programme’s potential when executed as intended.

Dr. Hanley framed the planned reforms as part of a broader commitment to responsible governance under the Labour administration, where programmes are not only created to meet immediate needs but are periodically assessed and strengthened to ensure long-term effectiveness. His remarks positioned the 2026 Budget as a turning point for STEP — one that preserves its social value while addressing fiscal realities.

The Deputy Prime Minister’s contribution reinforced the Government’s broader narrative of people-centred reform, signalling that while the administration remains committed to supporting workers and skills development, it will also insist on sustainability, accountability, and shared responsibility across the public and private sectors.

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