Adult education funding will see a six per cent “affordability” cut next year, the Department for Education has told providers.
Department for Education guidance issued today saying it will apply the reduction to adult skills fund (ASF) allocations “across all organisations and providers” in non-devolved areas for academic year 2025-26.
It will do this “to ensure that the allocations are affordable within the overall budget”.
This will apply to both core ASF provision and tailored learning, but not to free courses for jobs.
It follows the news that devolved areas are to see cuts of two to three per cent, and the scrapping in-year growth for adult education providers in non-devolved areas.
However, the new national ASF funding rates, which “recognise delivery” in subjects such as engineering and construction, will apply in the same way as last year.
Funding allocations are due to be released to providers next month.
ASF funds training for adults aged 19 or over to develop their essential skills for employment, further education or personal growth.
Those who access it often have lower levels of basic skills such as English, maths or digital literacy.
‘Unfair and shortsighted’
Other changes for next year include removing a 10 per cent uplift buffer when reducing funding allocations for under-delivery in 2022-23 and 2023-24, and reducing baseline allocations to actual delivery for providers under-delivering by 97 to 100 per cent.
Explaining ongoing reductions to adult education funding, the guidance said: “In previous academic years, there has been under-delivery against the budget, and we could afford to over-allocate. Now that delivery has improved, we cannot over-allocate the budget for academic year 2025 to 2026.”
Aside from the six per cent affordability factor, DfE’s overall budget will also be less than this year as three new areas – Cornwall, York and North Yorkshire and East Midlands – will receive a share of England’s approximate £1.4 billion annual pot.
A Department for Education spokesperson said: “Adult education is key to our mission to grow the economy under our Plan for Change.
“That’s why, despite the challenging fiscal environment we have inherited, we are spending over £1.4bn next financial year on the adult skills fund.
“Our new methodology will prioritise funding for providers in essential sectors like construction and engineering, breaking down barriers to opportunity and enabling people to develop the skills this country needs.”
Holex policy director Sue Pember disagreed.
She said: This new methodology and resulting 6 per cent cut seems unfair compared to the 2.5 cut given to combined authorities.
“It also feels shortsighted – funding that goes into adult education and skills actually reduces spend in other departments such as health and work and pensions.
“If we are serious about getting the 9 million inactive back to work we actually need to spend more.”
Ironic, don’t you think?
In recent years the available funding for adult education in non-devolved areas has gradually decreased as more mayoral authorities take local control – they now oversee about 60 per cent of the budget.
The total budget distributed by the Department for Education reduced from £1.36 billion in 2018-19 to £589 million in 2022-23.
In the three years up to 2022-23, underspends averaged 15 per cent, or about £100 million per year.
The Education and Skills Funding Agency’s published allocations for this academic year show £65 million in ASF was procured, while £467 million was grant funded to colleges and local authorities.
David Hughes, chief executive of the Association of Colleges, said: “Colleges in the areas of England not covered by devolution deals have responded over recent years to government encouragement by shifting their adult skills funding into courses which support key sectors of the economy and helping people get into work, so it is ironic that instead of a budget increase, there is a 6 per cent slice to allocations to keep Department for Education spending within a budget that has not increased in cash terms since 2016.
“Adult skills funding delivers exactly what the Work and Pensions Secretary of State has said is needed – helping people get the skills and confidence to gain productive work as well as supporting the government’s economic growth objectives but cuts like this make it harder and harder to reach the adults who want that support.”
Simon Ashworth, deputy chief executive at the Assocation of Employment and Learning Providers, added: “ASF is a key mechanism in which people can access the support they need to retrain or re-engage with the labour market throughout their lives.
“Overall cuts to this funding limit the sector’s ability to deliver the vital skills needed to grow the everyday economy in a wide range of sectors.
Short sighted thinking. This just sees
Education and training as a cost rather than an investment. An investment in growth and economic sustainability.
Even if you follow the logic ‘there’s no money’ and it should all be directed toward employment training.
Prioritising funding is one thing.
Prioritising funding to provision that doesn’t result in people joining skills shortage occupations is another.
As for applying a 6% cut to only non-devolved areas… Good luck to the person who gets wheeled out to defend that logic.