Adult skills and lifelong learning

The benefits of adult skills and lifelong learning are well-evidenced and include benefits for productivity and the economy, for health and wellbeing, and for social justice and communities. To respond to the significant challenges posed by the Fourth Industrial Revolution, an ageing workforce, the skills gap, and the devastating impact of Covid-19, we need to make sure adults can upskill and retrain throughout their lives. Now more than ever there is a pressing need to ensure adult learners are equipped with the necessary skills and education to aid our economic recovery.

The Government must commission analysis to identify where the nation’s immediate and longer-term skills needs lie. This should be regularly updated, as real-time labour markets data is essential for ensuring that reforms to adult skills and lifelong learning are properly linked to skills needs. (Paragraph 10) The need for a national strategy

Government policy on adult skills and lifelong learning has tended to be short- term, piecemeal, and initiative-led. The result has been a substantial churn of adult education initiatives which has worked against the implementation of a coherent, long-term strategic vision for adult education. Adult skills and lifelong learning is a clear strategic priority, yet participation in adult education is at its lowest rate for 23 years.

The Department must set out an ambitious, long-term strategy for adult skills and lifelong learning. This must be a comprehensive and holistic vision for ASALL in its entirety—piecemeal adjustments and one-off initiatives will not deliver the reform needed. These reforms must be underpinned by a shift to more flexible, modular learning so that adults can ‘hop on and hop off’ learning pathways. And we will need much better careers advice to help adults find the best learning opportunities for them. We identify four key pillars to this strategy: i. First, the Department must ensure there is a community learning centre in every town to ensure the first rung of the ladder is there for adults furthest from qualifications and employment. ii. Second, the Department must kickstart participation by introducing Individual Learning Accounts, so that every adult has choice and agency over their learning. iii. Third, the Government must restore part-time higher education by instating fee grants for part-time learners from the most disadvantaged backgrounds who study courses that meet the skills needs of the nation, and extend maintenance support to disadvantaged learners. 48 A plan for an adult skills and lifelong learning revolution iv. Fourth, the Government must tackle the decline in employer-led training through the introduction of a skills tax credit for employers who invest in training for their workforce.

Adults need clear and impartial advice and support on learning and funding. The National Careers Service is limited and overly centralised, particularly given the extent to which ASALL provision is now devolved. A far more proactive approach to promoting and communicating statutory entitlements and local offers is needed. 38% of adults have not participated in any learning since leaving full-time education— simply waiting and hoping that this group will decide to engage with the National Careers Service is clearly not the basis of an effective strategy.

The Department must devolve National Careers Service funding to enable local and combined authorities and local enterprise partnerships to co-design and promote locally relevant information, advice and guidance. The National Careers Service should provide more robust data on employment and learning outcomes to enable adults to make more informed decisions about their learning and development. The Department must also fund an advertising campaign to promote awareness of statutory entitlements.

The ability to study bite-size modules rather than commit to full qualifications is a much-needed reform that will make it easier for adults to upskill and retrain. Developing qualifications that can be taken in modules will enable adults with busy working lives and caring responsibilities to build up qualifications over time and ensure their skills stay relevant in a changing job market.

We recommend the Department work with the relevant sector bodies to develop a modular offer for skills qualifications at all levels. This should be linked to those qualifications and courses which meet the skills needs of the nation. The Department must also work with the sector to devise a funding approach that makes it economically viable for colleges and other providers to offer module-based learning. (Paragraph 27) Funding for adult education

Adult skills funding has fallen by 45% in real terms between 2009–10 and 2017–18. The consequence of this decline is that the nation’s adult skills and lifelong learning system is in poor shape to tackle the pressing challenges of the Fourth Industrial Revolution, an ageing workforce, skills gaps and the aftermath of the Covid-19 pandemic.

For its 2021 Spending Review bid, the Department must properly cost what level of Adult Education Budget increase is needed to meet the urgent and overdue reforms we set out in this report. An ambitious, long-term strategy for adult education will require an ambitious funding settlement. The Department must prepare a case for a three-year funding settlement for adult education.

The Department must review funding for adult skills and lifelong learning to see how the various funding streams can be consolidated and made more streamlined and less bureaucratic for providers. (Paragraph 34) A plan for an adult skills and lifelong learning revolution 49

We believe that there is a place for a rigorously designed and independently overseen Individual Learning Accounts scheme funded through the new National Skills Fund. This would put purchasing power into the hands of the individual, enabling adults to take control over their learning and skills pathways. The pilot or first iteration of the scheme should be targeted at groups who have historically low engagement rates with lifelong learning, such as those on low incomes. Ultimately, however, we would like to see the scheme take on a truly lifelong emphasis, moving beyond a one-off grant, to a system where adults receive 2–3 further top-up investments throughout their working lives to revitalise training and upskilling.

We recommend that the Government develop Individual Learning Accounts, drawing on the lessons learnt previously. These should be funded through the National Skills Fund, and initially should be aimed at unemployed adults and adults in work earning a low wage.

The Department should provide additional funding for the digital skills entitlement, and should ensure that any future statutory entitlements coming out of the Adult Education Budget are properly costed and funded. This should be clearly linked to forecast participation levels.

Adult enrolments on full level 2 courses have fallen by 87% between 2012–13 and 2017–18. Over six million working adults do not have a level 2 qualification. Without the foundation provided by level 2 qualifications, higher level skills and higher pay will be out of reach for many.

The Department should remove funding restrictions for first full level 2 qualifications, restoring funding for adults who are over 24 and employed. The Department must fund a promotional campaign to ensure no adult remains unaware of what qualifications and funding they are entitled to.

Qualifications at level 3 have economic and labour market benefits for adults. Level 3 qualifications are also a key stepping-stone to higher level study. We are pleased that the Department has announced an expansion to the level 3 entitlement, so that from April, adults of any age without a level 3 will be fully funded to study certain courses. But, given that unemployment is expected to rise to a peak of 2.6 million people by the second quarter of 2021, we do not believe this commitment goes far enough. Limiting the guarantee to adults who have not yet achieved a level 3 qualification does not fully address the retraining issue.

The Department should extend the entitlement to a free level 3 qualification further, so that unemployed adults who already have a level 3 are fully funded to retrain at level 3 in priority skills sectors.

Local enterprise partnerships, working with local and combined authorities, should be able to add to the Department’s list of fully funded level 3 qualifications, where that qualification meets local or regional labour market needs. The range of adult education courses should take into account local and regional adult education needs and the regional industrial strategy, where it exists.

We are concerned that the ambition of the Lifetime Skills Guarantee could be thwarted if take-up of the expanded level 3 entitlement is poor. (Paragraph 54) 50 A plan for an adult skills and lifelong learning revolution

We recommend the Department fund a national promotional campaign to ensure all eligible adults are aware of the free learning they are entitled to. The Department should work with the sector to identify innovative ways to support adults to take up the new entitlement, such as incorporating accreditation of prior learning, or developing shorter qualifications that can be achieved over one academic year. The Department should work with the Department for Work and Pensions (DWP) to ensure the DWP are providing appropriate guidance and support for unemployed adults to take up advanced skills qualifications, including the expanded level 3 entitlement. (Paragraph 55) Adult community learning

English for Speakers of Other Languages (ESOL) provision can be transformational for adults. Unfortunately, we heard evidence of long waiting lists and demand outstripping supply. And despite the critical importance of ESOL, Adult Education Budget funding for ESOL fell by 56% between 2009–10 and 2016–17, with participation following a similar trend. 2019 research commissioned by the Department for Education also found that 64% of providers stated their current level of funding was insufficient to meet demands for ESOL provision.

The Department’s lifelong learning strategy must include an ESOL element. The Department should take a lead role for adult ESOL strategy to ensure a more joined up approach to cross-Department ESOL funding and objectives. The Department must undertake analysis to assess current and longer-term demand for adult ESOL provision. Additional funding should then be allocated to areas with highest demand for ESOL provision.

More needs to be done to support adult learners with special educational needs and disabilities (SEND). There are opportunities including supported internships and apprenticeships, and community learning provision. But these opportunities are limited, and support funding is insufficient.

The Department should work with the sector to assess what additional funding is needed to better support adult learners with SEND. The Department should then introduce a funding premium for adult learners with SEND to ensure there is fully inclusive, accessible provision at all levels.

Childcare poses a barrier for parents and carers aspiring to upskill and retrain. More needs to be done to support parents and carers to participate in adult education.

We recommend that childcare grants and Parents’ Learning Allowance are made available to part-time learners studying for a Higher Education qualification. The Government should look at where childcare might be a barrier and extend the 30 hour per week universal offer to unemployed or low-income adult learners, where the lack of such provision would prove to be a barrier towards training and employment.

Community learning appears to have been largely overlooked by the Department. The Department does not have sufficient oversight of what data is available on A plan for an adult skills and lifelong learning revolution 51 community learning. Nor are we confident that the Department has a good understanding of what provision exists nationally. The Department’s lack of strategic vision for community learning is concerning and suggests an underlying lack of insight into the benefits and value of community learning. An ambitious, long-term strategy for community learning provision and funding is needed.

The Department must work with the adult education sector to develop a better understanding of what data exists on community learning and where any gaps might be. This should include mapping and regularly publishing data on how many community learning centres exist nationally and where they are located. The Department must then set out an ambitious plan for community learning provision in every town, which should seek to make use of existing buildings. The Department should work with the Ministry for Housing, Communities and Local Government (MHCLG) to align its community learning strategy with MHCLG funding to rejuvenate town centres and high streets.

The community learning budget has been capped at an arbitrary level for ten years. Community learning funding is overly bureaucratic; an average community learning provider may have to negotiate up to ten different funding streams, all with different rules and outcomes. This places unnecessary strain on providers, and takes up time and resources that should be spent on delivery.

The Department must make the case for a three-year funding settlement for community learning at the next spending review. The Department should review and consolidate the many community learning funding streams to reduce unnecessary bureaucracy for providers. (Paragraph 83) Employer-led training

Employer investment in training is in decline, with low paid, low skilled workers hardest hit by the decline. A skills tax credit to incentivise employers to invest in training for workers with no or low qualifications will help to revitalise employer- led training.

The Government must support employers to invest in the development of their workforces. The Government should introduce a skills tax credit, for employers who invest in training for workers. This should be tapered so that the tax credit is more generous to employers who provide training for employees with lower prior qualifications.

The Union Learning Fund is a crucial programme for delivering workplace training. It has a strong track record of proven effectiveness and should be treated in line with other training providers in both the public and private spheres. It has a vital focus on tackling disadvantage, upskilling low-skilled workers, and offers excellent value for money. The Department has not explained its rationale behind its decision to stop funding the Union Learning Fund. Unless this decision is reversed, we will see the brakes put on workplace learning which will harm workers, employers and productivity. (Paragraph 95) 52 A plan for an adult skills and lifelong learning revolution

We recommend that the Department reverse its decision to cease funding for the Union Learning Fund. To ensure public money is spent as equitably as possible, participation targets should be set mandating that Union Learning funds are split 50/50 between union members and non-union members. (Paragraph 96) Higher education

Part-time higher education student numbers have been decimated, and numbers of part-time learners from the most disadvantaged backgrounds fell by 42% between 2010 and 2015. Flexible part-time university study is a key route for delivering a highly skilled workforce and the Department needs to prioritise reforms that will restore the part-time higher education sector.

The Department must act to stem the decline in part-time higher education. Promoting access for part-time students from the most disadvantaged backgrounds must be a priority. Means-tested fee grants should be instated for part-time students from the most disadvantaged backgrounds who study courses in priority skill areas. Maintenance support should be extended to all part-time students whether face-to- face or distance.

Degree apprenticeships are crucial to boosting the productivity of this country, providing an important route to higher education qualifications and bringing more students from disadvantaged backgrounds into higher education.

All higher education institutions should offer degree apprenticeships. The Department and the Institute for Apprenticeships and Technical Education should set out a plan for speeding up the expansion of degree apprenticeship provision in priority skill sectors.

Current Equivalent or Lower Qualification (ELQ) funding restrictions are a barrier for adults seeking to reskill. Higher level skills at levels 4, 5 and 6 are key to unlocking productivity, and a relaxation of ELQ rules is a fundamental strand of a lifelong right to retrain.

We recommend that the Department identify courses at levels 4, 5 and 6 which meet the skills needs of the UK economy. Equivalent or Lower Qualification funding restrictions must then be removed for those courses. (Paragraph 108) Combined and local authorities

The new UK Shared Prosperity Fund offers an opportunity to improve on the design and administration of European Structural Investment Funds in relation to the funding of adult skills. Cross-government working will be critical to delivering the cross-cutting agenda this funding supports. We expect the Department to take a far more proactive stance in inter-Departmental discussions on the successor funds for both the ESF and the ERDF, and to ensure that local and combined authorities feed into those discussions.

Funding for the education and skills and employability strands of the new UK Shared Prosperity Fund must at least match those of their predecessor funds, and no region A plan for an adult skills and lifelong learning revolution 53 should be worse off. Government must involve local and combined authorities on the design of the UKSPF. Funding must be devolved to combined authorities who are best placed to make decisions about how to allocate funding in the most effective way for their communities.

Devolution of the Adult Education Budget has enabled Mayoral Combined Authorities to develop locally responsive adult skills strategies. We heard that devolution should go further. The benefits of skills devolution should not be confined purely to those areas that happen to have a Mayoral Combined Authority. Devolution of adult skills should be considered for upper-tier authorities. With their knowledge of local communities, skills gaps and employer needs, local authorities are ideally placed to take on responsibility for mapping and commissioning adult skills and lifelong learning provision. With greater powers and sufficient funding, they could play a transformative role in ensuring every community has a truly local, place-based ASALL offer.

We recommend that local authorities are awarded powers and funding to take on an enhanced statutory role for mapping, commissioning and delivering adult skills and lifelong learning. The Department must carry out a comprehensive review of the powers and funding needed for local authorities to take on this role. (Paragraph 123) 54 A plan for an adult skills and lifelong learning revolution