Local authorities face cuts of up to 75 per cent to their skills bootcamp budgets under a new government funding model that is based on historic delivery rather than forecast demand.
FE Week has learned that at least 19 of the mayoral combined authorities (MCAs) and local authorities that were handed funding for the short courses in 2025-26 will see their allocations cut by 20 per cent or more for the financial year 2026-27.
One authority will receive an increase, and the remaining 16 areas either haven’t received their allocations yet or did not respond to FE Week at the time of going to press.
The Department for Work and Pensions (DWP), which took over the skills brief from the Department for Education (DfE) in September, said it was switching from a “demand-led” to “budget-led” approach, meaning local and combined authorities are receiving allocations for 2026-27 based on their “historical spend” in 2024-25.
A spokesperson for the DWP claimed the department was “increasing investment” for skills bootcamps in 2026-27, but refused to explain how.
Some local authorities have complained this “perverse” new approach fails to recognise that their training programmes had not yet reached “maturity” in the year they were judged on.
But the government argues that using the previous demand-led approach, which allocated funding based on maximum potential uptake, has become unsustainable as the programme has evolved.
The “payment-by-results” model of the courses, which splits payments to training providers into three milestones, one of which is a “positive” job outcome, means local areas have historically only spent 50 to 60 per cent of their maximum allocations.
The DWP spokesperson said the move would ensure the programme “remains fit for purpose” and insisted the government was “committed” to continuing the courses, launched by the Conservatives in 2020.
‘Perverse’ and ‘concerning’
Only one of the 20 areas that confirmed their allocations with FE Week will receive an increase.
The West Midlands Combined Authority’s allocation will increase by 7 per cent to £12,854,658 for 2026-27. But this is still less than half the £26.7 million it had at its disposal in 2023-24.
While many areas gave muted responses when approached for comment, others said the “disappointing” reduction will mean fewer learners benefit from the courses.
Alan Amos, cabinet member for skills at Worcestershire County Council, told FE Week he expects a 42 per cent cut to his authority’s £2.6 million bootcamps pot, despite it being a “great success” in the county.
He described the government’s explanation for the funding cut “convoluted”.
He added: “They gave us a complicated formula for calculating the allocation, which I didn’t understand.
“On demand alone you can see we should be getting more money, not less”.
Somerset County Council, which also manages skills bootcamp delivery for neighbouring Dorset, Bournemouth and Christchurch, called the new funding model “perverse”.
The council said its budget would drop 68 per cent, or £3.2 million, to £1.5 million based on its delivery in 2024-25, before the local training programme had “reached full maturity” of delivery.
Somerset said it is expecting to exceed its target of 1,190 learners this year, and that 95.5 per cent of learners in 2024-25 achieved a positive outcome such as a new job or progression in their career.
Suffolk County Council, which also manages skills bootcamps for neighbouring Norfolk, said its 75 per cent funding cut from £4.9 million to £1.2 million was “deeply concerning” given the number of significant national infrastructure projects in its region, including the Sizewell C nuclear power plant, which is expected to require 7,900 jobs at its peak.
The county council’s deputy leader, Richard Smith, said: “Skills bootcamps have been a proven success in Suffolk and Norfolk, but this cut is a real setback. It means around 1,000 fewer local people will benefit compared to the previous round.
“Government must recognise the long-term benefits – for individuals, employers and the wider economy – and keep investing in skills.”
Stephen Evans, chief executive at the Learning and Work Institute, argued that the DWP’s new funding approach “makes sense” as it avoids returning underspend funding to the Treasury.
However, he echoed Somerset County Council’s concerns that the system “bakes in” patterns of provision based on “historical experience rather than future need”.
Evans added: “In any case, a programme where early data shows more than half of participants already have a degree-level qualification is one that is not helping those that public funding should be focused on.
“Rather than looking at programmes in isolation, we need a more rounded approach to thinking about skills investment by government, people and employers and the outcomes we want to achieve.”
‘Increasing investment’?
The government told FE Week it was “increasing investment” in skills bootcamps in the next financial year, but declined to confirm the size of the national budget or how many areas would be allocated funding.
Its commissioning has undergone several changes since the courses were launched five years ago, with responsibility split between central government, MCAs, local authorities and now-abolished local enterprise partnerships.
In the last financial year, Labour chose to restrict its £100 million national contract to construction-related courses and handed up to £250 million – the largest budget so far – for direct commissioning by 36 MCAs and local authorities.
Earlier this month, FE Week revealed that two MCAs have chosen to reduce funding for skills bootcamps after gaining more independence over their skills funding policies through devolution.
Skills bootcamps typically last up to 16 weeks, usually providing level 2 to 5 training for priority skills such as digital, construction or engineering, followed by a “guaranteed” job interview.
Data for the 2023-24 financial year, the most recent available, suggests that about 47 per cent of the 66,000 learners who started a course completed it and recorded a positive outcome, such as a new or better job.




