Councils are scrambling to spend extra adult education funding that was previously delivered by independent training providers and overseen by Whitehall officials.
At the start of this academic year, the Department for Work and Pensions handed Adult Skills Fund grant increases of up to 60 per cent to 19 local authorities chosen for the government’s ‘pathway to devolution’ programme.
Officials say the scheme, now in its second year, is designed to test whether local authorities are “better placed” to address their local skills needs than central government by using funding that was previously spent in their areas via the nationally procured adult education contract launched in 2023.
But in September, several of the councils involved told FE Week they were still deciding how they would distribute the funding, and some contracts had not yet been awarded.
One council said it declined to join the programme due to the “limited timeframe” offered by DWP officials.
The uncertainty around how extra adult education and skills funding will reach learners this academic year has raised questions about whether councils on the programme are sufficiently resourced to manage larger budgets at short notice.
Last week, the government confirmed 29 more councils would join the programme as its nationally managed ASF contract, which funds ITP delivery in non-devolved areas, will expire at the end of this academic year.
Procurement delays
This week, Leicester City Council, where allocation grew 39 per cent to £5.8 million, said it was still “currently reviewing applications” from potential subcontractors.
In response to a freedom of information request, the East Midlands council said it could not launch a procurement exercise until it had received the funding in August – a claim the DWP contests.
West Sussex County Council told FE Week it recently completed tender evaluations for the additional £700,000 it received from the DWP but that contracts had not yet been awarded by its legal team.
In June, East Sussex County Council said it was still “determining how best” to use the funding and issued a call for expressions of interest from independent training providers in late July. A spokesperson said they were unable to provide any update when approached this week.
Essex County Council, whose grant grew £1.8 million to £9.9 million, said “no formal decision” had been made on the funding as of June and its strategy was “still in early discussions” internally. Its media team did not respond to requests for comment.
‘Very real commercial impact’
A leader of an established training provider, who asked not to be named, said that while they supported the move towards greater local control of adult skills, “the delays and uncertainty” during the transition were having “a very real commercial and operational impact”.
They added: “In the majority of cases we have experienced, procurement processes have not delivered against the original timescales.
“There have been repeated delays to tender outcomes, changes to anticipated start dates and, in some cases, opportunities being withdrawn altogether after providers have already invested significant time and resource in preparing bids.”
The delays have impacted decisions about staffing, premises and recruitment, and “contributed directly to restructuring and redundancies”, they told FE Week.
Simon Ashworth, deputy CEO and director of policy at the Association of Employment and Learning Providers, said: “In adult skills funding, access to provision highly depends on commissioners’ capacity and expertise, which has been inconsistent in the first two years.
“Local authorities need resources, guidance, support and realistic lead-in times, with a mechanism to draw on areas already managing devolved adult skills funding. Rewiring responsibilities must deliver opportunities wherever people live.”
Some councils on track
Portsmouth City Council, which received an extra £171,000 through the programme, said it signed a contract with an external provider starting in mid-September.
A spokesperson for Hampshire County Council, which joined Portsmouth, Southampton and the Isle of Wight councils in a combined authority this summer, said it decided not to join the pilot “due to the limited delivery timeframe”.
The new combined authority is due to receive devolved skills funding from the 2027-28 academic year, they added.
The pathway to devolution does not require the same level of preparation for local authorities as full adult skills devolution.
Full adult skills devolution usually requires authorities to submit detailed plans to central government officials showing their “readiness”, including a strategic skills plan with supporting evidence and an implementation plan for commissioning.
Meanwhile, several local authorities, including Cheshire East, Brighton and Hove, Milton Keynes and Westmorland and Furness, all told FE Week they had direct delivery and contract or grant agreements in place with local providers by the start of the academic year in August.
Thurrock Council, which decided to directly deliver its £1.6 million budget, which increased 24 per cent this year, said the additional money was “long overdue” since funding had been frozen for “at least” 15 years.
Milena Bingley, Thurrock’s cabinet member for education, skills and children’s services, said: “Thanks to this funding, more residents of Thurrock will be able to take up the opportunity to gain skills and achieve qualifications that will help them get jobs, better paid jobs and improve their and their families’ health, wellbeing, and daily lives.”
Councils’ decision to make
DfE officials first approached the pathway to devolution authorities in November last year and confirmed allocations in April.
In their initial email in November, they told councils the funding could not be spent on tailored learning. It could be managed by single local authorities, or by one on behalf of a group.
The government also allowed up to 15 per cent to be used for “preparatory funding”, to be released between April and August, covering costs such as staff recruitment and procurement expenses.
Decisions on how to spend the funding, such as grants to local colleges, direct delivery or contracts with ITPs, were “entirely [the council’s] decision to make”, officials said.
However, they recommended that local ITPs “could be a useful partner” for the pilot and in future.
Councils can choose whether to directly deliver their ASF grant, deliver it in partnership, award a grant to another provider such as a college, or to subcontract.
Sue Pember, director of policy and external relations at adult education provider body Holex, warned against “criticising councils” for failing to have commissioning infrastructure in place when many councils will soon see some of their grants transferred to strategic authorities.
She added: “The pilots are a rehearsal for devolution: the real test is whether we learn from them and transfer that knowledge and capacity so the new strategic authorities are ready to commission effectively without destabilising successful existing provision.
“Readiness isn’t simply about whether a council can spend an allocation.
“It is about having the commissioning, provider-management and assurance arrangements in place to get money to the right provision quickly, transparently and without disrupting learners.
“The fact that councils are at different stages should not automatically be interpreted as evidence that local government isn’t ready for devolution.”
A DWP spokesperson said: “This government recognises that local leaders are best placed to understand the skills needs of their area, and that is why where possible we are continuing to move decision making powers away from Westminster.
“The pathways to devolution programme is part of this wider work, and its purpose remains improving local training opportunities based on informed decision-making and local need.
“We are continuing to work with local authorities on this pilot alongside reforms to the skills system to build a skilled workforce ready for the demands of today, and the future.”
The DWP did not respond when asked whether it was carrying out an evaluation of the programme.