Skills for jobs: implementing a new further education funding and accountability system consultation response summary
Published 13 July 2023
Applies to England
The formal government response to our Implementing a new FE funding and accountability system consultation is the next milestone in our funding and accountability reforms.
Our milestones
Date | Milestone |
---|---|
January 2021 | Published the Skills for Jobs White Paper |
July 2021 | Launched the Reforms to further education (FE) funding and accountability consultation |
July 2022 | Published our response to Reforms to further education (FE) funding and accountability and launched Implementing a new FE funding and accountability system consultation |
July 2023 | Responded to Implementing a new FE funding and accountability system consultation |
What we asked
We asked 26 questions, covering 14 topics including:
- funding
- accountability
- equality impact assessment
Who responded
We received 249 responses to the consultation, of which:
- 240 were made online
- 100 were from local authorities (or other local government)
Responses by organisation type
Organisation type | Number of responses |
---|---|
Local authority (or other local government) | 100 |
Learner | 49 |
General further education college | 22 |
Independent training provider | 13 |
Designated institution | 10 |
Mayoral combined authority | 9 |
Representative body | 9 |
Specialist post-16 institution | 1 |
Other | 46 |
Results
We’ve summarised the responses to the consultation. You can read all of the responses in the Implementing a new FE funding and accountability system response.
Respondents liked | So we are |
---|---|
Our overall approach to our reforms and the aim to make Further Education funding and accountability more effective and outcome focused | Introducing the Adult Skills Fund, introducing accountability agreements and setting national skills priorities |
Our proposal to increase funding rates for courses in high priority skills | Introducing 5 adult skills funding bands for qualifications that reflect the relative economic benefit of courses as well as their relative cost |
Our proposal to encourage innovation by allowing providers to use a proportion of their allocations to develop new innovative provision | Allowing eligible providers to earn up to 3% of the adult skills funding allocation for the development of new innovative provision |
Respondents agreed with | So we are |
---|---|
Our proposed approach to multi-year funding - 68% agreed with this proposal | Moving to a multi-year funding approach within each spending review period |
A dashboard that holds providers to account for the outcomes they deliver | Measuring and sharing high-level outcomes for FE providers through a performance dashboard |
Respondents were concerned about | So we are |
---|---|
The proposed objectives for non-qualification provision and the loss of wider benefits such as improved mental health and well-being | Ensuring the Adult Skills Fund is primarily focused on progression into employment, but it can also support wider outcomes such as social-well-being and improved mental health |
That our proposal to allocate a fixed sum to grant funded providers for learner and learning support wouldn’t simplify the system - 85% disagreed or were not sure about this proposal | Maintaining the existing system of funding for disadvantage, learner and learning support |
That the reforms were being introduced too quickly without sufficient lead-in time | Updating the implementation timeline of our reforms to give providers sufficient lead in times |
Respondents wanted to hear more about | So we are |
---|---|
How our reforms impact areas with devolved responsibilities for adult skills | Clarifying that for all our reforms, authorities with devolution deals will continue to be responsible for both what they fund and how they fund it and can use our reforms as a basis for their funding if they wish. We are also introducing a national model for funding and strengthening accountability for devolved skills funding through new annual skill stocktakes, improved data transparency and a new non-statutory diagnostic review |
Which types of providers are in scope for our accountability reforms | Articulating that all statutory FE providers are in scope for our accountability reforms and local authority providers will be in scope for some elements, on a proportionate basis |
How we assessed the equality impacts of our reforms | Publishing our Equality Impact Assessment |
Timeline of our reforms
Accountability reforms
Academic year 2022 to 2023 | Academic year 2023 to 2024 | Academic year 2024 to 2025 | |
---|---|---|---|
Enhanced Ofsted inspections | Implemented | Implemented | Implemented |
Single improvement plans | Implemented | Implemented | Implemented |
Accountability agreements | Developing | Implemented | Implemented |
Performance dashboard | Developing | Implemented | Implemented |
Funding reforms
Academic year 2022 to 2023 | Academic year 2023 to 2024 | Academic year 2024 to 2025 | |
---|---|---|---|
Innovative provision | Developing | Implemented | Implemented |
Funding framework | Consulting | Developing | Implemented |
Adult Skills Fund | Consulting | Developing | Implemented |
New funding rates | Consulting | Developing | Implemented |
Reforming non-qualification provision | Consulting | Developing | Implemented |
Next steps
We recognise that we still have further to go to simplify the system, in the next phase of our reforms we will:
- continue to review the Individualised Learner Record to test how we can ease the reporting burden on providers by reducing the number of fields
- simplify enrolments and reduce administrative burdens by introducing a digital wallet for learners, supporting learner identification and enabling data sharing between learners and providers
- reduce administrative burdens on the sector by reviewing opportunities to simplify current financial and non-financial oversight
- use a Single Development Fund to deliver funding for improvement and new investment purposes, rather than multiple separate funds
- develop and consult on a needs-based formula to distribute funding between authorities with devolution deals and ensure public funding is distributed fairly and effectively