DfE announce 6% cut to national adult skills budgets

Funding will prioritise ‘essential sectors’ when allocations are released next month

Funding will prioritise ‘essential sectors’ when allocations are released next month

18 Mar 2025, 17:55

More from this author

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.

Latest education roles from

Principal & Chief Executive – Bath College

Principal & Chief Executive – Bath College

Dodd Partners

IT Technician

IT Technician

Harris Academy Morden

Teacher of Geography

Teacher of Geography

Harris Academy Orpington

Lecturer/Assessor in Electrical

Lecturer/Assessor in Electrical

South Gloucestershire and Stroud College

Director of Management Information Systems (MIS)

Director of Management Information Systems (MIS)

South Gloucestershire and Stroud College

Exams Assistant

Exams Assistant

Richmond and Hillcroft Adult & Community College

Sponsored posts

Sponsored post

Screening for the cognitive needs of apprentices is essential – does it matter if the process is engaging?

Engagement should be the first priority in cognitive assessment. An engaging assessment is an inclusive assessment — when cognitive...

Advertorial
Sponsored post

Skills Bootcamps Are Changing – What FE Colleges Must Know 

Skills Bootcamps are evolving as funding moves to local control and digital skills trends shift. Code Institute, an Ofsted...

Code Institute
Sponsored post

Building Strong Leadership for Effective T Level Implementation

Are you struggling with T Level curriculum and implementation, or building strong employer relationships? Do you want to develop...

Advertorial
Sponsored post

Derby College Group DIRT and TOES: A Story of Enhanced Learning and Reduced Workload

"Feedback is one of the most powerful influences on learning and achievement" - Hattie and Timperley 2007. This powerful...

Advertorial

More from this theme

Adult education

Historic adult education centre in intervention after emergency bailout

Mary Ward Settlement had 'serious' cash problems and has been ordered to improve

Shane Chowen
Adult education, Devolution

‘Back door devolution’ as 11 councils get extra procurement powers

But not all councils are aware of the DfE's plans

Josh Mellor
Adult education, ITPs

Mayors dump adult education cuts on independent training providers

Up to two-thirds axed from devolved procured budgets

Josh Mellor
Adult education, Budget

Providers denied in-year adult ed growth cash

The government claims devolution and high delivery rates this year mean it has less funding to spare

Josh Mellor

Your thoughts

Leave a Reply

Your email address will not be published. Required fields are marked *

2 Comments

  1. 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.