Source · Select Committees · Education Committee

Recommendation 9

9 Paragraph: 32

Adult skills funding has fallen by 45% in real terms between 2009–10 and 2017–18.

Conclusion
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.
Paragraph Reference: 32
Government Response Acknowledged
HM Government Acknowledged
35. We are continuing to invest in education and skills training for adults through the AEB (£1.34bn in 2020/21). 36. Currently, approximately 50% of the AEB is devolved to 7 Mayoral Combined Authorities (MCAs) and the Mayor of London, acting where appropriate through the Greater London Authority (GLA). These authorities are now responsible for the provision of AEB-funded adult education for their residents and allocation of the AEB to providers. The ESFA will continue to be responsible for the remaining AEB in non-devolved regions. 37. Colleges and training providers continue to have the freedom and flexibility to determine how they use their AEB, working with stakeholders including Local Enterprise Partnerships and their Skills Advisory Panels to determine what the appropriate distribution of funding should be to best meet local needs. 38. The Skills for Jobs White Paper outlines our long-term strategy for adult education. See paragraphs 16–20 for information on this and on the National Skills Fund which represents a substantial investment into FE. 39. We are also providing £95m for year one of the Level 3 Adult Offer, which is part of the Lifetime Skills Guarantee. This includes a per-qualification funding uplift to support providers to rapidly scale up their level 3 provision. 40. The government appreciates the importance of adult education to improving people’s life chances. Funding beyond 2021–22 will be considered as part of a wider Spending Review later this year which will include full costings.