Source · Select Committees · Education Committee

Recommendation 15

15 Acknowledged

Devolved adult education funding creates a disparate and uncoordinated skills landscape.

Conclusion
Funding for adult education programmes has largely been devolved over the last decade which has provided local areas with more control, but it has also led to a disparate and uneven adult skills landscape. Some authorities have more powers than others, co-ordination between areas is not always smooth, and employers can find it difficult to get 92 involved. On top of this, differences in funding rules and course approvals make it difficult for providers to run consistent, scalable programmes. (Conclusion, Paragraph 63)
Government Response Summary
The government acknowledges the committee's observations and highlights Skills England, Local Skills Improvement Plans (LSIPs), and ongoing devolution efforts as key drivers in creating a coherent skills system, improving employer involvement, and addressing skills gaps to meet workforce needs.
Government Response Acknowledged
HM Government Acknowledged
The Government welcomes the Committee’s recognition of Skills England as a key driver of a high-functioning skills system that supports economic growth. Skills England supports the integration of skills development and employment support to better meet national and local workforce needs. As an executive agency, Skills England plays a central role in delivering the Government’s Plan for Change and industrial strategy. Its ambition is to create a world-class skills system that leaves no person or place behind. Skills England’s vision is to build world-class skills that underpin the Government’s growth and opportunity missions through ‘better skills for better jobs’. Skills England is already established as the authoritative voice on skills needs, informing the Post-16 Education and Skills White Paper, the Industrial Strategy sector plans and packages, and the Labour Market Evidence Group’s work on migration. The Government prioritises devolution and empowerment of Strategic Authorities, as outlined in the English Devolution White Paper, to boost economic growth. The Department welcomes the Committee’s support for expanding skills devolution so Strategic Authorities can tailor education and training to local needs. In 2025/26, the Department devolved 67% of the £1.44 billion Adult Skills Fund to 13 Strategic Authorities, enabling local leaders to align provision with demand. This is expected to rise to around 76% in 2026/27 with further devolution to seven more areas. The Government will continue working with Strategic Authorities to advance adult skills and deliver priorities in the Skills White Paper, creating a coherent system with clear pathways to employment. Local Skills Improvement Plans (LSIPs) have engaged thousands of businesses with local leaders and providers to address skills gaps and drive growth. LSIPs are central to Skills England’s analysis of skills needs, supported by timely intelligence from these plans. The English Devolution White Paper committed to strengthening Strategic Authorities’ role in LSIPs through joint ownership with Employer Representative Bodies (ERBs), requiring legislative change. For the next LSIP cycle, ERBs and Strategic Authorities will collaborate on development and review, with LSIP geographies aligned to Strategic Authority boundaries where possible.