Devolution of adult skills funding is set to “go further” with plans to “un-ringfence” funding pots for skills bootcamps and the free courses for jobs offer.
The government’s English Devolution white paper, published today, also confirms that mayors will be given “joint ownership” of local skills improvement plans alongside employer representative bodies.
Deputy prime minister and secretary of state for housing, communities and local government, Angela Rayner, said the plans announced through the white paper will “rewire England” and devolved powers from central government to “those with skin in the game”.
Here’re the key bits about skills you need to know.
Strategic authorities
Further devolution will be underpinned by a “consistent” framework that creates a new legal definition: the ‘strategic authority’.
Under the plans, England will eventually be covered by strategic authorities – preferably run by directly elected mayors – who are responsible several “areas of competence” including ‘skills and employment support’.
The idea is that directly elected mayors “cannot be blocked” by a single council in their area, ensuring they can take “tough decisions”.
Authorities with devolution deals but no mayoral system, such as Cornwall, will be kept at the lower ‘foundation strategic authority’ level, with less flexible funding rules.
All of England’s existing mayoral authorities, mayoral combined county authorities and the Greater London Authority (GLA) will be classed as ‘mayoral strategic authorities’.
These will have the right to “unlock further devolution” by becoming ‘established strategic authorities’ which have greater spending flexibility known as ‘integrated settlements’.
Adult skills spending
The government will “remove ringfences” for adult skills funding to give “much more flexibility” over spending on education from 2026.
England has ten devolved authorities – the Greater London Authority and nine mayoral combined authorities – with devolved control of their adult education and skills spending for people aged 19 or over. Four more authorities are due to take control from August next year.
However, the funding is split into three main pots including the adult skills fund, free courses for jobs and skills bootcamps.
The government said today that for mayoral strategic authorities, it will combine and un-ringfence funding for the three funds from 2026/27 onwards.
For Established mayoral strategic authorities, this will form part of their “integrated settlements” (see below) from 2025/26 onwards.
Foundation authorities will however continue to receive devolved adult skills fund alongside ringfenced funding for free courses for jobs and skills bootcamps.
Integrated settlements
From March next year the Greater Manchester Combined Authority and West Midlands Combined Authority will be handed a single funding pot that for all of their services including skills.
They will have flexibility to move some of this funding between service areas and between years that their budget has been confirmed for.
16-19
Hopes from some mayors that more power over education funding for 16- to- 19-year-olds have not come to fruition.
Despite criticisms of a political system that “hoards power” in Westminster, the government says it will continue to “ensure that there is a national and consistent” approach to education and training for that age group.
However, mayors will be given “regular, structured opportunities” to participate in annual Department for Education conversations with colleges.
They can also use their “convening powers and influence” to secure work placements for young people.
Local skills improvement plans
Strategic authorities will be handed “joint ownership” of local skills improvement plans (LSIP), which until now have been produced and monitored by employer representative bodies, usually local chambers of commerce.
The white paper confirms that strategic authorities will establish “skills priorities” that will inform development of the plans.
LSIPs will be joined by a number of other national and regional plans already announced by the government.
These include local growth plans, focusing on economic development, and Get Britain Working plans, trialling different approaches to reducing economic inactivity.
National plans include the industrial strategy and post-16 skills strategy, which are both expected next year.
Today’s white paper does not mention whether LSIPs will be handed any further funding or how often they will need to be refreshed.
Employment and jobs
The white paper says the government will devolve funding for employment support to established strategic authorities, so they can “tackle inactivity”.
Mayoral strategic authorities will have a role in “co-designing” any future employment support that is outside of Jobcentre Plus.
The government will also “work in close partnership” with them in designing and developing the National Jobs and Careers Service, which is a planned merger of Jobcentre Plus and the National Careers Service.
Several areas have already been designated trailblazers to test different youth guarantee approaches and Get Britain Working plans.
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