Adult Skills Fund: Major Overhaul of Adult Education Funding for 24/25
The Department for Education has announced significant changes to adult education funding in England, with the current Adult Education Budget (AEB) transitioning to a new Adult Skills Fund (ASF) for the 2024/25 academic year. These reforms aim to simplify access to adult education and better target support to those who need it most.
Key Changes
In perhaps the most significant shift, prior educational attainment will no longer determine eligibility for funding outside of legal entitlements. Instead, circumstances and income will become the primary factors, with a new earnings threshold of £25,000 per annum determining whether learners qualify for full funding.
Introduction of Tailored Learning
The reforms also introduce a new “Tailored Learning” element, which combines previous community learning, non-regulated learning, and new employer-facing innovative provision. This non-formula funded approach gives learning providers more flexibility to respond to local needs and support harder-to-reach learners.
Providers will be able to calculate their own costs for Tailored Learning provision, including expenses such as outreach, engagement, learning support, staff, venues, and materials.
Legal Entitlements Preserved
The existing legal entitlements for adult education remain unchanged.
These include:
- Free English and maths courses up to Level 2 for adults lacking GCSE-level qualifications
- First full Level 2 qualifications for individuals aged 19-23
- First full Level 3 qualifications for individuals aged 19-23
- Essential digital skills qualifications up to Level 1
HGV Training Made Permanent
The previously temporary HGV driver training flexibility has been made permanent under the new framework, allowing providers to fund HGV and medical licenses for adults who complete approved qualifications.
Impact on Providers
Grant-funded public bodies will be able to use a portion of their ASF allocation for Tailored Learning, with the maximum amount based on historical funding levels. Providers new to non-qualification provision will be permitted to use up to 5% of their grant-funded ASF allocation for this purpose.
Looking Ahead
These changes represent a significant shift in how adult education is funded in England, with a clear focus on supporting those on lower incomes to upskill or reskill. The Department believes this will help meet the goals set out in the Skills for Jobs White Paper, supporting productivity and growth while ensuring better access to education for those who need it most.
The reforms will be implemented alongside the transfer of ESFA duties into the Department for Education by March 2025, marking a period of substantial change in the adult education landscape.
Responses