Recommendation 66

HM Government Acknowledged

UNDER REVIEW Skills England will play a key role in supporting informed decisions on funding priorities by providing timely, relevant and high-quality data and analysis. As outlined in Skills England’s recently updated remit letter, this will include labour market intelligence, stakeholder engagement insights, and performance metrics. Skills England’s evidence will help ensure that funding allocations are responsive to economic needs, skills gaps, and employer demand. Skills England’s role in funding decisions aligns with the government’s position on the purpose of arm’s-length bodies. This makes clear that there is a role for arm’s length bodies in providing independent advice. However, major decisions that affect the country and the public should be taken by government ministers accountable to Parliament. PLANS ALREADY IN PLACE The Adult Skills Fund (ASF) is targeted at adults aged 19 and over. It is designed to support provision which will provide opportunities that enable learners to: • Catch up on their learning (via the legal entitlements). • Attain good jobs. • Progress within their careers. • Achieve wider outcomes of learning such as improved health. Government recognises the transformative impact that adult education and skills development have on individual’s lives and what it means for driving economic growth. Each year, we spend approximately £1.4 billion through the ASF. Of this budget, 68% is devolved to 12 Strategic Authorities and the Greater London Authority to meet local needs, and the devolve portion is expected to increase to 75% in Academic Year (AY) 2026/27 and to reach its steady state of a projected circa 85% devolved by AY2027/28. The ASF fully funds or co-funds courses for eligible adults aged 19 and over from pre-entry to level 3, and in AY 2023/24 helped over 1 million learners gain the skills they need to thrive in work and life. It also supports four statutory entitlements enabling eligible learners to be fully funded for essential, maths, and digital skills, or their first level 2 or 3 qualification and they apply across England in devolved and non-devolved areas. Beyond qualification-based core skills, the ASF includes Tailored Learning provision which has a primary purpose to support learners into employment and/or progress onto further learning via the offer of funding flexibility which gives learning organizations the ability to respond to specific local needs. It also serves as a vital tool for social inclusion, personal fulfilment, and lifelong learning by supporting wider outcomes, including: • Using Tailored Learning to improve health and wellbeing. • Equip parents and carers to support their child’s wellbeing. • Developing stronger and more integrated communities. The recent Machinery of Government change has moved responsibility for the ASF from the Department for Education to the Department for Work and Pensions. However, the Government’s commitment remains unchanged: ensuring education is accessible to those who need it most. That is why in recent years, we have increased the Earnings Threshold to ensure that the low-waged can continue to access fully funded education.