Former lecturer and industry technologist
Commenting not specifically programming, but technical jobs in general:
I was a lecturer and the biggest problems I have seen are related to motivation. I have countless stories of students who "can't be bothered", they aren't self-motivated to work hard and get results. Yes, it is the duty of a lecturer to inspire, but when good students aren't even bothering to go for decent qualifications in the first place, or drop out within the first week because it is a bit difficult getting up in the morning, then what are you to do?
Yes, you could blame funding, but funding will always be tight and you have to make do with what you have to hand. In my experience senior academic administration doesn't help, being administratively disorganised and unappreciative of industry requirements. A great many of the "employability" courses that are added to the curriculum are useful, however sometimes a course leader will end up putting things in there to meet some obtuse requirement that made it into the validation documents and also to avoid the hard grind of teaching to depth on any one subject.
Mainly though I think we need to look more at family and the messages that society brings than the courses themselves. British society doesn't tell you to aspire and to work hard, it tells you to win something and/or become a 'famous' 's'leb'. Betterment is seen as discriminatory and deprivation is a right for individuals as much as a burden on society. People shouldn't be forced to be better, they should be allowed to be squalled. The everyone shouldn't have to actually do anything for the money they *deserve*, they should just turn up for a few hours, surf facebook and get paid an executive rate. *Of course* the poor *deserve* their iPhones, designer trainers and lifetime supply of JJB sportswear!??
I highlight the bottom of the market because that also reflects all the way up to the middle-class and beyond. The British *CBA* attitude needs to be tackled as much as anything else. Then perhaps students would be self-motivated to tackle the big challenges and to make more with the wealth of opportunity that being in Britain has to offer.