The Future Of Funding For Adult Education | Adult Education Budget

Posted: 1st August 2023

Government funding for adult education has suffered significant cuts over the last decade. According to the Institute of Fiscal Studies, government spending on adult education and apprenticeships has fallen by 38% between 2010-11 and 2020-21.

In the last six months, we’ve seen several major players in the adult education and skills sector go out of business as a result of cuts to the Adult Education Budget. With larger adult education providers struggling to cope, and smaller ones looking to specialise, what is the future for adult education in the UK?

The Current Landscape

Training provider Go Train filed for liquidation in February, citing an unsuccessful acquisition attempt and low learner numbers. Not far behind was Qube Learning, which ceased trading in March, stating ‘increased competition in the apprenticeship market, challenges regarding stagnant funding bands and uncertainty around Adult Education Budget contracts’ were to blame. This was later followed by Charity Wise Ability, who ceased trading in the UK in June and have been a great loss to the sector and to those they provided invaluable support to.

The latest casualties of this depressing trend is Vocational Skills Solutions (VSS), which closed for business in June and Award-winning training provider Skills Training who have taken steps to appoint liquidators in July, both organisations reporting struggles to bounce back from Covid and a decline in income as the culprits for its demise.

Over the last ten years, participation in adult education has halved. In the UK today, many adults don’t engage with any form of education. A survey carried out by the Learning and Work Institute found that a third of respondents hadn’t participated in any form of education since they left school.

The Adult Education Budget is meant to be shared between training providers and colleges across the country. However, regional inequalities mean that mature students from these areas have fewer training opportunities compared to younger students.

Vice chair of the Centenary Commission on adult education Sir Alan Tuckett felt that government funding had been too focused on pre-18 education for decades, leaving adult education out in the cold.

He argued: “We are overwhelmingly obsessed with initial education – the clockwork model that starts with early years and ends with labour market entry – at the expense of learning through the life course.”

The Future of Adult Education

The government has made it clear that the policy of adult education and skills is vital to helping the UK achieve long-term economic growth. But overcoming the scale of cuts and decline in participation over the past ten years is a massive challenge.

The government has promised to partially reverse the cuts that the Adult Education Budget has endured for the past decade. An additional £900 million in government funding in 2024–25 has been promised, which includes funds for a restoration of public funding for adults’ first full Level 3 qualifications.

Government funding for training, adult education and apprenticeships in England will still be 25% lower in 2025 compared to 2010, so we might not want to celebrate just yet.

Shaking Up Adult Education

We are also just two years away from the biggest shake-up in the funding for training and adult education in recent years – the Lifelong Loan Entitlement (LLE).

The LLE, which will come into force in 2025, will offer people a loan worth £37,000 in today’s tuition fees, which can be used flexibly until the age of 60 to pay for short courses, modules or full courses. This approach acknowledges that flexibility is fundamental for adult education.

Covid caused widespread disruption across education, but it could also be seen as a blessing in disguise as it forced education providers to innovate and adapt. Education is no longer just confined to the classroom and training providers will need to bolster their online offering to stay in the market.

We’re also likely to see more providers relying on their existing and new partnerships with employers, as funding for training will likely be geared towards vocational schemes that will see more people learn on the job.

Final Thoughts

Government funding for adult education and skills has been lacking in recent years, leading to a drop in participation and opportunities. Attitudes are changing in the UK as we start to recognise the value of lifelong learning and the government looks to reverse spending cuts and get more adults into education and back into work.

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