What Will The new Devolution White Paper Mean for Local Skills and Jobs?
Deputy PM Angela Rayner launched the new Devolution White Paper today.
- Devolution Revolution to be set out in landmark English Devolution White Paper – unleashing power from Whitehall back into local communities that know their areas best
- Mayors will be equipped to drive growth and improve living standards as part of government’s Plan for Change
- Greater devolution is a key way to kickstart economic growth, put more money in people’s pockets and put politics back in the service of working people
Significant plans to make devolution the default setting across a range of government policy areas, as part of the English Devolution White Paper, which was announced today (16 December) by the Deputy Prime Minister.
In a speech to an audience of regional mayors, local government and business leaders, the Deputy Prime Minister said that the proposals in the English Devolution White Paper will put England’s regions centre stage and deliver on the government’s mission to grow the economy and our milestone of building 1.5 million homes and will boost opportunity across the country.
Measures expected to be announced later today include plans for new powers for mayors across strategic planning – giving them the ability to guide infrastructure and development projects across areas, housing, transport and skills.
This is part of the government’s longstanding commitment to devolution – pushing more powers out of Westminster and into the hands of people with skin in the game, who know their areas best.
At a launch event later today Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government Angela Rayner, said:
“Our English Devolution White Paper will be a turning point when we finally see communities, people and places across England begin to take back control over the things that matter to them.
“When our proud towns and cities are once again given the powers they need to drive growth and raise living standards as part of our Plan for Change.
“It’s a plan for putting more money in people’s pockets, putting politics back in the service of working people and a plan for stability, investment and reform, not chaos, austerity and decline, that will deliver a decade of national renewal.
“Devolution will no longer be agreed at the whim of a Minister in Whitehall, but embedded in the fabric of the country, becoming the default position of government.”
The measures are expected to include proposals to create ‘strategic authorities’ across England, bringing together councils over areas that people live and work in, to avoid duplication and give our cities and regions a bigger voice.
The English Devolution White Paper has been anticipated following the government’s clear intentions to transfer power out of Whitehall. Since being in office, the government has already approved devolution deals in Greater Lincolnshire, Hull & East Yorkshire, Devon & Torbay, and Lancashire.
What does the Devolution White Paper mean for Skills, Jobs and Employability?
The White paper has a section on Skills and employment provision that is more relevant to local jobs because Strategic Authorities will have joint ownership of the Local Skills Improvement Plan model (alongside Employers Representative Bodies), have devolved control of non-apprenticeship adult skills funding, ensuring there are clear pathways of progression from education into further education or higher education and employment for 16-19 year olds in their areas, devolution of supported employment funding for the first time in England, and a commitment for Mayoral Strategic Authorities to co-design the future landscape of non-Jobcentre Plus employment support more widely.
Skills and employment support
Devolution means skills and employment provision that is more relevant to local jobs. The government will therefore go further than ever before in devolving adult skills and employment support to support local leaders to develop integrated plans and delivery.
Adult skills and post-16 education
Central to the government’s approach is to provide Strategic Authorities the devolution of non-apprenticeship adults skills funding. For Mayoral Strategic Authorities, this will combine and un-ringfence funding for the Adult Skills Fund, Free Courses for Jobs, and Skills Bootcamps from 2026/27 onwards[footnote 38]. For Established Mayoral Strategic Authorities, this will form part of their Integrated Settlements from 2025/26 onwards. Foundation Authorities will continue to receive devolved Adult Skills Fund alongside ringfenced funding for Free Courses for Jobs and Skills Bootcamps.
Local Skills Improvement Plans
Recognising the central role of employers to develop Local Skills Improvement Plans and the vital role of Strategic Authorities where they exist, we will establish joint ownership of the Local Skills Improvement Plans model involving Strategic Authorities and the designated Employer Representative Bodies.
Under this model, and subject to any necessary legislation and statutory guidance needed to implement these changes:
- Employer Representative Body designation: When designating a new Employer Representative Body, Strategic Authorities will be involved in the process, with their comments informing the Secretary of State’s decision to designate. Going further the Secretary of State for Education would not designate (without good reason) an Employer Representative Body unless the Strategic Authority was satisfied in the choice.
- Local Skills Improvement Plan development: In Strategic Authority areas, Local Skills Improvement Plan development will commence with the Strategic Authority establishing the sector skills priorities and sharing relevant data with the designated Employer Representative Body. These will inform the development of the plan and provide the framework within which it exists, alongside Local Growth Plans, the Industrial Strategy, Skills England’s assessment of skills needs, and employer input. We will ensure Strategic Authorities and Employer Representative Bodies work together on all stages of the Local Skills Improvement Plan and its governance, with local discretion on the arrangements to deliver this.
- Local Skills Improvement Plan approval: Strategic Authorities and Employer Representative Bodies will be required to confirm they are both content with the plan before it is sent to the Secretary of State for Education (through Skills England) for approval. In the rare instances where the Employer Representative Body and Strategic Authority cannot agree a Local Skills Improvement Plan, and recognising the vital importance of all parts of the country having up-to-date Local Skills Improvement Plans, it may be escalated to the Secretary of State for Education. However, even in these cases, the new requirement to include the Strategic Authority’s sector skills priorities within the Local Skills Improvement Plans would remain. A Local Skills Improvement Plan could not be approved if this was not the case.
We expect Local Skills Improvement Plans to be clearly linked to Local Growth Plans, relevant parts of the Industrial Strategy and Skills England’s assessment of skills needs.
To ensure the policy is implemented effectively, we will align Local Skills Improvement Plan geographies with Strategic Authority geographies wherever possible. Strategic Authorities and Employer Representative Bodies will work with Skills England to ensure insights from Local Skills Improvement Plans are fed into the national picture.
16-19 skills
We will continue to ensure that there is a national and consistent approach to education and training for 16–19-year-olds. However, Mayoral Strategic Authorities have a crucial role in ensuring there are clear pathways of progression from education into both further and higher education and local employment opportunities and the government will work with Mayoral Strategic Authorities to develop the tools needed to support them in delivering this. Initial steps include:
- Ensuring Mayoral Strategic Authorities have regular, structured opportunities to feed their priorities into the Department for Education’s annual strategic conversations with colleges to inform and help the further education sector in shaping provision that includes clear pathways of progression from education into further/higher education or local employment opportunities.
- Working with Mayoral Strategic Authorities to use their convening powers and influence to secure work and industry placements with local employers that relate to 16-19 education, training and career paths.
- Providing joint ownership of the Local Skills Improvement Plan model (see above) will also give Strategic Authorities a clear mechanism to help inform the skills offer locally. As part of these new joint ownership arrangements for the Local Skills Improvement Plans model, Strategic Authorities and Employer Representative Bodies can ensure the Local Skills Improvement Plan facilitates opportunities for 16–19-year-olds to undertake apprenticeships, education and training that lead to good quality employment opportunities.
Employment and careers
The UK is the only country in the G7 whose employment rate has not returned to pre-pandemic levels [footnote 40]. 2.8 million people are out of work due to long-term sickness[footnote 41]. 946,000 young people (aged 16-24-years-old) are currently not in work or education[footnote 42]. This is a major constraint on the government’s ambition to grow the economy. Strategic Authorities should be at the forefront of our response to these challenges in England.
As announced in the Get Britain Working White Paper, Strategic Authorities will be responsible for producing a local Get Britain Working Plan, focused on reducing economic inactivity. To support these plans, the government will devolve funding for supported employment provision to tackle inactivity to Strategic Authorities via grant funding, so they can design and deliver an offer that is shaped around local priorities and provision. For Established Mayoral Strategic Authorities, this funding will form part of their Integrated Settlement.
To accelerate a more locally-led and joined-up approach to tackling economic inactivity, and as set out in the Get Britain Working White Paper, we will launch a set of place-based trailblazers in Greater Manchester, the North East, South Yorkshire, West Yorkshire, London, and York and North Yorkshire to run during 2025/26.
We will also launch a set of place-based Trailblazers in West Midlands, Liverpool City Region, Tees Valley, East Midlands, West of England, London, and Cambridgeshire and Peterborough to design and test how different elements of the Youth Guarantee can be brought together into a coherent offer for young people.
All Mayoral Strategic Authorities will have a role in co-designing any future non-Jobcentre Plus employment support. Their subsequent role in commissioning or delivery will be determined as part of agreeing the policy objectives, design and funding parameters of any future programme. The government remains committed to ensuring that support remains evidence-based, represents value for money, and is aligned with Department for Work and Pensions delivered support.
Established Mayoral Strategic Authorities will play an integral role in the design and delivery of this support, subject to evaluation and readiness conditions being met, with a clear outcomes and accountability framework. We will also explore ahead of the next Spending Review whether there is scope for devolution of relevant funding as part of Integrated Settlements, subject to a transition period enabling authorities to demonstrate readiness and build capacity locally.
To create a holistic, joined-up employment, skills, and health offer, the government will work in close partnership with Strategic Authorities to design, develop, and test the National Jobs and Careers Service. These tests will be designed to help us discover how we can locally shape services, whilst the government maintains overall accountability for them. As a first step towards developing a more locally responsive and engaged organisation, we will more closely align Jobcentre Plus geographies with existing Mayoral Strategic Authorities.
The framework also gives Mayoral Strategic Authorities a central role in convening local youth careers provision within the national context. For example, it provides greater flexibility for Mayoral Strategic Authorities to support the work of Careers hubs, which support schools and colleges to deliver careers information, advice, and guidance to their pupils and students.
Sector Reaction to the Devolution White Paper
Adult education can fuel communities to access and embrace devolved powers.
Simon Parkinson, General Secretary & CEO of the WEA said:
“Today’s Devolution White Paper aims to put power in the hands of communities. Communities understand their own needs best, so this is a hugely welcome development. However, engaging with local levers of power is not easy. We see poor turnout at elections, low recognition rates for local leaders, a drop off in community activities such as volunteering and worrying trends in division fuelled by disinformation.
“Resources must be directed to communities if they are to access and embrace devolved powers fully. Investment in community adult education is one powerful way to encourage active citizens – it is shown to increase a sense of belonging and raise participation in community activities.
“Mayors can choose to use their education budgets to fund courses which could help communities understand their rights and opportunities as citizens and tackle the causes of division like misinformation. We call on them to use these budgets flexibly to support the skills and knowledge citizens need to make the most of devolved powers.”
David Hughes, Chief Executive, Association of Colleges, said:
“It’s good to see the government publish the English Devolution White Paper today, offering local leaders and communities the powers and tools they need to deliver inclusive growth for their area. As anchor institutions colleges will be at the heart of unlocking this vision and we hope that in a more devolved system they can be trusted more to deliver what’s needed in their areas.
“A ‘devolved by default’ approach means we can look forward to joining up a fragmented system of post-16 education and skills, with schools, universities and independent training providers all part of the same system, with expectations on their respective roles. The Department for Education has already signalled that its post-16 vision includes more coordinated delivery for employers and pathways for learners – if that is to happen, then devolved authorities are the obvious local coordinators.
“Colleges operate in increasingly complex environments and therefore the move to combining adult skills funding into one pot is a good step forward towards aligning transport with skills for instance, and skills with mental health and other support. However, we know that there is more that authorities can do to get funding to the front line. This needs to be aligned with funding from central government: the value of the adult skills budget, for example, has fallen by more than 50% since 2010. The government’s ambitious economic growth mission will only be realised when adult education funding matches need and it a long way from that now.”
Zoë Billingham, director of IPPR North said:
“Today the Deputy Prime Minister has shown that this government is taking devolution seriously as a tool to improve living standards and strengthen democracy and accountability.
“The new devolution framework paired with additional powers for mayors on strategic planning, housing, transport and skills moves more power out of Westminster, and this is to be welcomed.
“With local government reorganisation looming large today, we stand ready to work with the local and central government to work out how large local authorities can stay close and get closer to their communities.
“Next we would like to see commitments to exploring fiscal devolution, to mature the model of devolution and allow regional leaders to make more big calls for their areas. All in all, today’s tough calls represent a leap ahead for pushing power out of Westminster”.
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