The Government has confirmed it will transfer additional funding powers to certain combined authorities and combined county authorities, enabling them to support newly approved technical qualifications from August 2025. This follows a public consultation launched in November 2024, which strongly supports devolving more control over adult education. The move aims to tackle regional skills shortages and boost economic growth by allowing local decision-makers to direct resources towards these qualifications.
Purpose of the transfer
The new power, introduced under section 100(1B) of the Apprenticeships, Skills, Children and Learning Act 2009, will be added to the existing adult education functions already devolved to these authorities. The intention is to help local leaders respond more effectively to their communities' skills demands. This means funding for technical programmes can be targeted where it will have the most impact, allowing residents to acquire the expertise needed in key industries such as engineering, construction, and motor vehicle maintenance.
Consultation findings
Most respondents endorsed extending funding responsibilities to local areas, pointing out that devolved authorities are best placed to understand and address specific gaps in their local labour markets. Some participants wanted further clarity on resources and the timing of the transfer, suggesting it might be preferable to wait until the forthcoming Industrial Strategy was published. However, the overall view was that greater devolution would support economic development and encourage closer ties between education providers and employers.
Viki Bell, Director of Operations at the CEA (Construction Equipment Association), highlighted the potential benefits for employers: “The shift in funding to local authorities presents a real opportunity for our members to work more closely with local colleges, ensuring that training aligns with industry needs and supports the development of a skilled workforce.” Viki’s comments reflect a broader consensus that devolved powers can strengthen collaboration between businesses and education providers, helping to build a pipeline of talent ready to fill key regional roles.
Outcome and next steps
Citing positive feedback from both within and outside the affected regions, the Secretary of State has confirmed that statutory instruments will be laid in Parliament in spring 2025. This timeframe ensures the new power takes effect by August, which is time for the next academic year. The Department for Education will work closely with local authorities and the wider sector to minimise additional burdens and ensure providers can successfully roll out these new technical qualifications. By aligning skills training with local needs, the Government hopes to drive productivity, improve employment prospects and support overall economic growth in each region.
