Combined Authorities (Adult Education Functions) (Amendment) Order 2025

Considered in Grand Committee

16:23:00

Moved by

That the Grand Committee do consider the Combined Authorities (Adult Education Functions) (Amendment) Order 2025.

My Lords, I thank the Secondary Legislation Scrutiny Committee and the Joint Committee on Statutory Instruments for the scrutiny provided on this draft statutory instrument, which was laid in Parliament on 19 May 2025. If this order is approved, the Department for Education will transfer an additional funding power to nine existing combined authorities to enable them to use their adult skills fund allocation to fund new technical qualifications that have been approved for adults from the academic year on 1 August 2025. The function being transferred to these combined authorities is under Section 100(1B) of the Apprenticeships, Skills, Children and Learning Act 2009—namely, the power to “secure the provision of financial resources … in connection with approved technical education qualifications or approved steps towards occupational competence”. This power will be carried out by each of the combined authorities, in respect of their area, concurrently with the Secretary of State. This will enable combined authorities to fund new technical qualifications for adults approved for funding at level 2 and level 3 from 1 August 2025. The new technical qualifications are of high quality, are aligned with occupational standards and offer learners clear routes into skilled employment. One hundred and ten reformed technical qualifications at levels 2 and 3 have been approved to be first taught in the next academic year. These qualifications have been co-designed with employers to ensure that the skills needs of business and industry are better served and that clear progression pathways are created, delivering the outcomes that learners need, either to enter a skilled job or progress within a skilled career. Learners deserve high-quality qualifications that meet their needs. If this order is approved, these nine combined authorities with existing adult education powers will have the freedom to fund these qualifications in order to meet the local needs of learners and employers. Transferring this power is key to reducing regional disparities, by ensuring that all authorities have access to reformed, high-quality qualifications. If this draft order is approved, the nine combined authorities can choose to fund new technical qualifications available for delivery from August 2025 onwards, if they wish. It is a statutory requirement for public consultation to take place before changes are made to a combined authority’s existing arrangements. The Department for Education carried out a public consultation in November last year, and 85% of respondents agreed that the Secretary of State should transfer this additional power to the existing combined authorities. Each of the combined authorities affected, and all their constituent councils, have consented to the transfer of this power and the making of this order. An order can be made only if the appropriate consent is given and the Secretary of State considers that the statutory tests are met. Those tests are that making the order is: first, “likely to improve the economic, social and environmental well-being of … the people who live or work in the areas to which this Order relates”; and, secondly, is “appropriate having regard to the need to secure effective and convenient local government, and to reflect the identities and interests of local communities”. These combined authorities have already demonstrated effective administration of the adult skills fund allocated to them. They have a detailed understanding of the skills challenges facing their areas, and their strategic plans reflect the interests and identities of their local communities. Making the order will enable the combined authorities to provide the full range of technical qualifications that have been approved for adults. Therefore, I confirm that we have concluded that the statutory tests are met. I take this opportunity to thank all our partner organisations and colleagues and the relevant combined authorities for their time, expertise and input. To conclude, this order will give nine combined authorities the ability to fund new technical qualifications delivery from August 2025 onwards, to meet local skills needs, to enhance economic growth and to bring greater prosperity to their regions. I beg to move.

My Lords, I thank the Minister for introducing this order. The adult skills fund plays a vital role in helping adult learners gain the practical skills and qualifications needed for meaningful employment across key sectors. The fund was introduced by the previous Government to support adult learners. Tailored learning helps to equip them with essential vocational skills such as English, maths and digital literacy, as well as covering a range of sectors from business management to health and social care.

16:30:00

It is essential that we recognise the value that this fund provides to local communities across the country. For some, it is an incredibly important part of their life. It offers some of the most vulnerable individuals an alternative pathway to employment and success, giving many people the opportunity to throw down the anchor for a better life.

This statutory instrument will provide combined authorities with additional funding powers to provide new technical qualifications at levels 2 and 3 through their adult skills fund allocation for the 2026 academic year. The instrument will transfer adult education functions from the Secretary of State to nine combined authorities. Currently, while combined authorities manage 62% of adult skills funding, they do not have the power to fund level 2 and 3 technical qualifications through their adult skills fund allocation.

It is worth highlighting that, when in government, we had to make difficult decisions on the adult skills budget which the current Government were critical of, but they have themselves now cut the adult skills budget by 6%. Notwithstanding that, His Majesty’s Official Opposition obviously support today’s proposals, which are in line with our own principle of devolving the adult skills budget. While we welcome the proposals set out, we take this opportunity to challenge the Government on the adult skills fund.

First, earlier this year, the Government cut the adult skills budget by 6%. This followed news that devolved areas would receive cuts of 2% to 3%. We must recognise that the adult skills fund is a lifeline of support for the most vulnerable people in our society. Simon Ashworth, deputy chief executive at the Association of Employment and Learning Providers, has described the adult skills fund as

“a key mechanism in which people can access the support they need to retrain or re-engage with the labour market throughout their lives”.

His concerns have been echoed by Jamie Stevenson, Lewisham College principal, who said:

“These cuts threaten the delivery of adult education in local communities on a national scale”,

which will have a great impact on everything that colleges do. The experts have spoken. This is clearly not a good move, so will the Government reconsider these cuts and explore reforms to improve the allocation of funding and the availability of training for adults?

Secondly, we know little about the outcomes of adult skills funded provision. Will the Government analyse and track data more efficiently so that we can improve adult skills training and ensure that educational resources are creating positive outcomes for adults across the country? Can we take away any lessons from devolved authorities achieving higher success rates than others?

In conclusion, we support this statutory instrument but urge the Government to review the adult skills fund and ensure that funding is protected for those who need it most.

My Lords, I thank the noble Earl, Lord Effingham, for his comments and his overall support of the direction of travel. I will pick up a couple of the points that he raised, in particular his comments about the reduction in adult skills funding allocations. I have to say that our analysis is that we have made a small reduction of 3%. The noble Earl referred to a reduction of 6%, but the overall reduction is in fact 3%. I emphasise that devolution is about giving freedom to those who best understand local needs, so that resources can be managed more effectively.

16:35:00

Sitting suspended for a Division in the House.

16:45:00

My Lords, I feel almost as though I should resume from the top for completeness. I thank the noble Earl, Lord Effingham, for his comments and questions and, underlying those, for his welcome for the provisions through the adult skills fund. The important thing to remember is that devolution is about giving freedom to those who best understand local needs. We are looking for resources to be managed effectively and, in particular, to deliver greater positive impacts for local people. I do not think I need to remind the Committee that this Government inherited a very challenging fiscal context. We know that adult skills play a vital role in driving economic growth, and we must make sure that we fix the foundations of the economy in the meantime. We acknowledge that there has been a small reduction of 3% to the overall adult skills fund for the next year. However, the Government will invest more than £1.4 billion in the adult skills fund next year, which is a significant amount of funding. The budget has been reduced nationally for all devolved areas. However, the context in each area of the country is different. Each area will assess how it is managing its overall budget, and will make choices and priorities within that. Of course, the Government will continue to work closely with the devolved areas to make sure that they have the support to make the best use of the funding. I can speak from personal experience, as a former member of the West Yorkshire Combined Authority, when I say that all of the constituent local authorities take this responsibility very seriously and want to make sure that they are delivering the best outcomes for both the people who live in their areas and the businesses that perform in them. On that basis, I completely agree that it is very important that we look at outcomes and that we always look for ways to learn and to improve from the devolved areas. Of course, because of local circumstances, each devolved area will come up with a slightly different approach to the opportunities and challenges that it faces. The Government hold areas to account through the English devolution framework; accountability is absolutely key for the significant amounts of public money that are now being devolved to those areas. In conclusion, I reiterate that our priority is to build a skills system that will drive forward opportunity and deliver growth for our economy needs. Again, determination at the local level is absolutely fundamental to understanding where the economy needs the skills and how they should be co-produced. It is a really important aspect of the new qualifications that will be at their disposal, from the powers they will get, that employers have been very closely involved in the design of these qualifications. Making sure that adults can access these high-quality qualifications, no matter where they live, is an absolutely fundamental principle.

Motion agreed.