Higher education which focuses on the limited value of education as knowledge and intellectual skills is rapidly becoming a thing of the past. The new focus is on developing the individual’s capability. This work looks at the changes in the context of improving skills, lifelong learning and welfare-to-work. These changes all relate to improving capability and quality learning, and the authors debate the issues within the setting of institutional strategies, work-based learning, skills development and assessment. Real-life case studies are used as examples.