The government should spend some of its £2.1 billion revenue from the immigration skills charge to boost declining levels of ESOL funding over the last seven years, a new report has recommended.
Research from the Association of Colleges and the Bell Foundation published today shows funding for English for Speakers of Other Languages (ESOL) more than halved (56 per cent) from 2009-10 to 2016-17 and is estimated to have seen even further cuts in the years since.
The report’s authors have called for a national strategy for ESOL after finding “a recipe for muddle and confusion” in duplicated funding streams, a postcode lottery for learners and workforce challenges.
Both organisations said the national framework for ESOL should be co-developed with mayoral combined authorities (MCAs). The MCAs have devolved adult education budgets and, therefore, the majority of ESOL funding.
They advised that income from the immigration skills charge, which taxes employers for hiring migrants, should be used to fund ESOL courses to support British citizens and people with settled status in the UK.
“Harnessing the significant qualifications, skills and experience of these communities supports the government’s initiatives to focus on the domestic workforce and move towards a high-skilled economy,” the report said.
The government has reaped increasing revenue from the immigration skills charge every year. In 2023/24, it received £667 million, 14 per cent more than the previous year, and has cashed in £2.1 billion in total over the last seven years.
‘Stark underinvestment’ in ESOL
There is no recent official data showing the amount of funding for adult ESOL, but a House of Commons library briefing from 2018 showed ESOL funding was at its highest in 2009/10, at at £203 million, and had more than halved to £99 million in 2016-17, even before inflation was accounted for.
Additionally, the Lifelong Education Commission estimated three years ago that ESOL expenditure in adult education in England was around 4 per cent (in 2020/21), around £56 million of the £1.4 billion from the adult skills fund. The Bell Foundation estimated in a recent research paper that with 134,000 learners, the funding equates to around £418 per learner.
“Ultimately, the stark underinvestment in adult education must be addressed to enable increased investment in ESOL and unlock the economic rewards it can bring,” today’s report said.
Meanwhile, the demand for ESOL courses has been gradually increasing every year. According to Department for Education data, participation in entry-level, level 1, and level 2 courses has risen by one-quarter since 2019/20. The latest census data from 2021 indicate that 20 percent adults in England and Wales cannot speak English well, totalling over one million adults.
The report also recommended the framework should deploy an additional marker on the individualised learner record to monitor demand and provision and inform policy.
The report added that while devolving ESOL provision “brings opportunities to be both responsive and innovative”, it is still hampered by the complexity of funding.
The report said: “At a regional level, a strategic approach is hampered by the complexity of funding. Each initiative has separate eligibility criteria related to factors such as nationality and status and different outcomes linked to integration and employment.”
“The fact that there are funding streams and small-scale initiatives from multiple government departments, and other sources, the absence of a framework is a recipe for muddle and confusion. This also means that for people who need to learn English, this is a postcode lottery,” it added.
David Hughes, chief executive at the Association of Colleges, said that ESOL must be “seriously considered” as part of the government’s five missions, Get Britain Working and devolution plans.
“People who do not speak English as a main language are more likely to be out of work, but they have good skills, experience and a high motivation to have successful careers,” he said. “They want to work, and should be supported too, because they can help meet the local labour market needs for skilled people and support economic growth. With the right opportunities to learn better English they can utilise their skills, benefiting the community, their families and themselves.”
Diana Sutton, director of The Bell Foundation, added: “The creation of Skills England also provides an opportunity to ensure that second language speakers are able to access ESOL and help fill the skills shortages and labour needs of the future.”
Sue Pember, policy director at HOLEX, said: “We agree with both these recommendations and would like to see a national ESOL strategy that covers all Government departments. The present situation is untenable; there are too many schemes coming from different departments with different entry criteria, funding methodology and required outcomes – making it very difficult for learners and colleges and services to delivery.”
Immigration skills charge revenue:
| Year | Income paid to the Home Office (£ million) |
| 2017/18 | 91,372,000 |
| 2018/19 | 128,083,000 |
| 2019/20 | 171,867,000 |
| 2020/21 | 139,325,000 |
| 2021/22 | 349,062,000 |
| 2022/23 | 586,029,000 |
| 2023/24 | 667,798,000 |
| Total | 2,133,536,000 |
Source: Home Office
Meanwhile, on the ground if you actually speak to teachers, there is a significant increase in ESOL learners being put in English functional skills classes.
Worth thinking about reasons, impact and eventual consequences…
In the Midlands WMCA give 98% of its ESOL funding if £17 million to colleges and the Council. There is 4% progression . It’s a disgrace that ESOL is not in the community where it’s needed.