Adult Education Budget FUNDING RULES 2021/2022 - August 2021 - July 2022

It is key that we build the right skills in our workforce to deliver improved productivity and prosperity - enabling all groups to access jobs. While qualifications levels are improving, significant shortfalls remain at level 3 impacting on productivity, competitiveness and inward investment which hold back growth of the regional economy. In addition, low skills also impact on earnings and household income for residents in securing sustainable employment in higher skilled job roles.

At present the offer of level 3 courses across all provider types is not sufficient to meet the skills demands of the economy with too few places offered and a lack of availability to access the learning flexibly.

In 2019/20 approximately £5m is projected to be spent on level 3 delivery representing 4% of the overall AEB budget, this is 1% up on 2018/19. However, we often see low priority provision offering little in terms of upskilling at the expense of what could be delivered at level 3. It is also apparent that where some providers committed to deliver to level 3 through planned activity, this has not materialised, and funds have been spent at lower levels at scale to meet allocation.

Moving forward our approach will be firmer to ensure that we have the capacity to meet the needs of our residents against our priorities and entitlement qualifications. To prevent AEB funding committed to level 3 being spent at other levels the funding line for this provision will be ringfenced within allocations based on the agreed delivery plan at provider level. Failure to meet level 3 plans will impact on future growth levels across all investment lines.

For 2020/21 we will continue testing of partial or full funding of some Level 3 qualifications where they support progression in work and/or career changes. During 2019/20, WMCA introduced funding flexibilities to test the impact of partly or fully subsidising level 3 qualifications, in key sectors, to encourage more individuals to access this provision.

The Offer

We are clear that we want to establish an adult offer at level 3 to meet our regional skills plan priorities. We expect to see entitlement qualifications and our priorities reflected in course portfolios at level 3 and will continue to use our funding flexibilities to support residents. These flexibilities include the use of funding subsidies similar to those tested in the Career Learning Pilots – tested by DfE in 18/19 where subsidies of 25%, 50% or 75% were offered.

We are also keen to explore providers putting together an adult offer of learning at Level 3 where qualifications don’t exist e.g. new emerging sectors to meet the needs of residents. This can be used following an activity matrix based on delivery of GLH (funding band hours).

We want an offer that people can access independent of their employer similar to the old ‘night school’ concept but offered in flexible ways – modes, times and locations. It’s also important to us that individuals are clear on what they can move onto and progress to following successful completion of their learning, whether that is with the same provider or another provider at level 4 and above.