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Recent government publications, speeches, conferences, statements and task forces all reinforce the message that UK's skill levels are lower than that of its competitors. Improving the skill levels will improve productivity and reduce social exclusion. The skills issue does not only concern education and training, but also involves getting businesses to invest in people and help them to move from welfare to work. In this article, the author discusses how the Department of Trade and Industry (DTI) is addressing the skills issue. Its approach has been through business and productivity, with demand for skill being one of the main themes of its current work.