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DD2827 Skills Bootcamps 2026-27 Additional Funding Allocation

Key information

Decision type: Director

Directorate: Communities and Skills

Reference code: DD2827

Date signed:

Date published:

Decision by: Tunde Olayinka, Executive Director, Communities and Skills

Executive summary

This decision seeks approval to receive and expend an additional £4,083,338 allocated to the GLA by the Department for Work and Pensions for Skills Bootcamps in 2026-27. The funding will be provided to the GLA via the Integrated Settlement through the Ministry for Housing, Communities and Local Government. The funding will expand Skills Bootcamp delivery in line with the approach approved under DD2786 and the additional funding will be allocated primarily through direct awards to high-performing existing providers.


The Skills Bootcamps workstream forms a core element of Project 1.2 – Establish sector focused talent pipelines within the Supporting Londoners to Benefit from Growth (SLBG) programme approved in Mayoral Decision (MD)3395, contributing to the development of an employer led Inclusive Talent System.
 

Decision

That the Executive Director of Communities and Skills approves the:


1.    receipt of £4,083,338 additional Skills Bootcamps funding from the Ministry for Housing, Communities and Local Government (MHCLG) for 2026-27, to be provided to the GLA via the integrated settlement


2.    expenditure of this funding on Skills Bootcamps delivery in accordance with the Skills Bootcamps Funding Approach 2026-27 to 2028-29 approved in Director Decision (DD)2786 (as more particularly described in this decision form). 
 

Part 1: Non-confidential facts and advice

1.1.    The Skills Bootcamps for Londoners workstream delivers flexible training programmes lasting up to 16 weeks, based on employer/sector ‘in demand’ skills needs and may be either regulated (qualification-based) or non-regulated (for example, based on alignment with industry standards). The workstream will deliver Level 3-5 (and Level 2 by exception) skills required by key sectors of London’s economy to adults and young people aged 19-24. These Londoners will then be provided with wraparound support to help them gain a job or progress within in that sector. Skills Bootcamps were rolled out from Autumn 2020 onwards and were initially managed centrally by the Department for Education (DfE). From 2026-27 to 2028-29 the GLA will receive funding linked to Skills Bootcamps from the UK Government via the integrated settlement.


1.2.    Mayoral Decision (MD)3395 delegates authority to the Executive Director – Communities and Skills to approve expenditure related to projects contained within the Supporting Londoners to Benefit from Growth (SLBG) Delivery plan and to approve the receipt of any additional funding to expand or extend existing approved projects contained in the SLBG delivery plan. The Executive Director – Communities and Skills subsequently approved (under cover of Director Decision (DD)2786) the three-year Skills Bootcamps funding approach for 2026-27 to 2028-29 and authorised the receipt and expenditure of £11.757m per annum funding that was received via the GLA’s core integrated settlement allocation. 


1.3.    On 10 August 2026, the Department for Work and Pensions (DWP) confirmed to GLA an additional allocation in 2026-27 of £4,083,338, of which £168,745 is ringfenced for construction provision only. Whilst this additional funding is linked to the DWP’s 2026-27 Skills Bootcamps budget, under the integrated settlement the GLA does not have to use this funding for Skills Bootcamps delivery exclusively. The DWP subsequently confirmed that this funding would be provided to the GLA via the integrated settlement from the Ministry of Housing, Communities and Local Government (MHCLG).  This decision enables the GLA to formally receive and spend that additional allocation. 


1.4.    Officers recommend the expenditure of the £4.083m funding on additional Skills Bootcamps delivery, across a range of methods consistent with the employer-led commissioning principles approved through DD2786. Approval for this funding commitment is sought through a Director’s Decision, under the delegated authority granted by the Mayor in MD3395 to the Executive Director of Communities and Skills to authorise the use of resources for named projects in the SLBG delivery plan including approving the receipt of any additional funding from central government or other sources for approved projects contained in the SLBG delivery plan. It is proposed that all commissioning documentation; grant and contract recommendations; and further programme level decisions will be approved in line with the GLA’s Contracts and Funding Code.


1.5.    The Mayor also approved (under cover of MD3510 ) the receipt of an additional £3.8m of ASF funding allocated to the GLA for 2026-27 exclusively for Engineering related provision via the Integrated Settlement, of which £1m will be used to fund additional Skills Bootcamp delivery. Including this funding for Engineering, the total funding available to the workstream will total £16.841m.

1.6.    Details of the proposed expenditure are set out, in summary, in section two below. Demand for and take-up of the additional funding (under each of the proposed award proposals) cannot be predicated with absolute certainty before engaging with the prospective recipients, hence the reference to the expenditure levels in each to being anticipated. Accordingly, it is proposed, that to the extent that amounts remain uncommitted within any of the award proposal workstreams (direct awards – see paragraph 2.4, new bootcamp commissioning – see paragraphs 2.6 to 2.8 and testing new commissioning approach – see section 2.6) they may be used, where considered appropriate, to supplement awards in the other award proposal workstreams.           
 

2.1.    The additional funding will increase the scale of Skills Bootcamp delivery in 2026-27, support more Londoners into good work and progression opportunities, address sector-specific skills shortages, and maximise utilisation of integrated settlement funding. 


2.2.    As approved under cover of DD2786 the additional funding will be allocated to providers to fund delivery via one of the following three methods:
•    direct awards of grant funding to existing providers on a previous Wave who have previously been selected via a competitive process and have met required performance levels on a preceding years’ delivery
•    commissioning new bootcamps in response to skill needs identified by the sector talent boards or where a need has been clearly identified by a member of the GLA group for its own organisation
•    utilising available funding in-year as directly awarded growth funding to high performing delivery.


2.3.    As approved under cover of DD2786, officers will aim to maximise utilisation of the available £16.841m funding available. Allocations will be based on the payment by results model and informed by financial modelling and historic delivery trends. To ensure full budget use, officers may over allocate funding above the nominal annual budget, based on modelled assumptions about typical levels of provider under performance. The maximum overallocation rate anticipated is 25 per cent in line with practice introduced in the last two years which have enabled the GLA to meet its DfE targets, excluding a portion of the funding which will be used for management and administration of the workstream, this maximum overallocation rate would allow up to £19.604m to be allocated to delivery in 2026-27. 


2.4.    The majority of this funding, including the additional funding outlined at paragraph 1.2 above, is recommended to be allocated via direct awards of grant funding to existing providers who have demonstrated strong performance on the preceding year’s delivery. It is anticipated that the initial awards of additional funding will total £18.354m. If these initial awards do not exhaust the £18.354m available, the remainder will be allocated via directly awarding growth funding to providers demonstrating high performing delivery in year. This is to maximise the number of positive economic outcomes achieved by learners by focusing the funding on provision that has proven its ability to support Londoners into and within work. In so doing, we are able to guarantee having provisions in place that give assurance of achieving the Integrated Settlement Outcomes. 


2.5.    The rationale to primarily allocate available funding as direct awards to fund provision delivered by existing providers on the workstream is laid out below.
•    Officers propose to award continuation funding to a cohort of existing Skills Bootcamps providers that have demonstrated exceptional performance against objectively defined programme performance criteria. The proposed approach is consistent with the programme design and published Wave Six prospectus, which outlined the possibility of additional growth funding and future grant extensions for providers that demonstrate strong delivery performance, specifically high achievement of learner outcomes. Furthermore, the prospectus provided that any future grant award would be based upon the costings and plans submitted through the original application process.
•    Officers consider that this represents an appropriate and proportionate use of public funds. Evidence from previous waves of the programme indicates that newly established Bootcamp provision carries a higher delivery risk than established provision, including a greater likelihood of underperformance and an increased risk of ineligible delivery with corresponding high staff management and monitoring time. Continuing a proportion of proven, high-performing provision therefore reduces delivery risk, protects learner outcomes, maintains established employer relationships and supports continuity of delivery within priority sectors. This approach helps maximise the likelihood of achieving programme objectives whilst ensuring public funding is directed towards provision with a demonstrated track record of success.
•    Continuation of funding will be offered on a cost-per-learner basis directly linked to the amount agreed via the competitive award process in which they originally awarded. Providers will therefore not receive enhanced funding rates or more favourable commercial terms as a result of the continuation award. Officers consider that the approach secures continuity of successful provision whilst maintaining value for money and ensuring that funding remains aligned with the rates established through the original competition.
•    The late notification of additional funding from the DWP leaves insufficient time for officers to deliver a large-scale competitive funding opportunity within the remaining delivery window for Wave Seven where training must finish by 31 March 2027. Officers anticipate delivering further competitive funding opportunities in 2027.


2.6.    In addition to direct awards to existing providers, up to £1.25m of the Bootcamps funding will be used in 2026-27 to commission new bootcamps. A portion of this £1.25m funding (anticipated to be £825k) will focused on competitions for proposals addressing specific skills priorities already identified by the Creative Sector Talent board and proposals related to Engineering, linked to the additional funding allocated to this workstream for that sector. 


2.7.    A further portion of the £1.25m (anticipated to be £350k) will be used to test a new commissioning approach for the Skills Bootcamps workstream. This will allow for proposals for new employer co-funded bootcamps to be received in-year from existing Wave Seven (2026-27) providers as part of the drive for agility in responding to employer demands and increasing employer partnerships.


2.8.    The final portion of the £1.25m funding (anticipated to be £75k) will be used to commission training provision to address an identified skills need at Transport for London (TfL) relating to commercial procurement roles which would be within the Finance and Professional Services sector. TfL are conducting a competitive exercise to identify a preferred skills delivery partner. Once this process is complete, TfL will submit a joint proposal (with the successful skills delivery partner) for the GLA’s consideration for bootcamp funding The submission will be assessed for compliance with our quality and value for money thresholds in line with Bootcamps bid assessment criteria.


2.9.    The rationale for commissioning new skills bootcamps as outlined in 2.5-2.7 is as follows:
•    Competitive funding opportunities will be launched relating to priorities identified by the Creative sector talent boards. This aligns with the proposed approach outlined in DD2786. A competitive funding opportunity limited to proposals in Engineering will also be launched linked to the additional funding provided to the GLA by the DWP approved via MD3510. It is considered necessary to identify and fund new Skills Bootcamps proposals in order to diversify the range of Engineering provision delivered via this workstream.
•    The proposed approach to fund provision addressing skills needs at TfL aligns with the approach outlined in DD2786 as TfL is a member of the GLA group. Officers consider that TfL are best placed to identify a training provider that meets their quality requirements for the proposed provision, for which they are conducting a scored process. The GLA will conduct its own value for money and quality assessment upon receipt of the final joint proposal from TfL and their preferred partner. If the proposal passes the GLA’s assessment the provider will be directly awarded the requested funding.
•    The proposed testing of a new commissioning approach to fund co-funded bootcamps proposals in-year from existing Wave Seven providers aligns with an approach approved for Wave Six in MD3344 which officers were unable to deliver due to capacity constraints. The approach will set minimum quality and cost benchmarks and allow for proposals on a rolling basis until the funding is exhausted. Officers intend to pilot test this approach in Wave Seven with existing providers and any learning will inform the anticipated launch in 2027 of a similar opportunity open to the wider market for proposals responding to upskilling priorities identified by the sector talent boards. Separate approval will be sought prior to the launch of this anticipated opportunity in 2027.


2.10.    The integrated settlement outcomes framework targets apportioned to the Skills Bootcamps workstream currently requires that in 2026-27 at least 3000 Londoners must be trained to progress in or towards work as a result of Skills Bootcamps delivery, with at least 2098 completing their course. 


2.11.    Based on the current average cost per learner for Wave Seven funding already allocated to providers and the expected maximum overallocation rate, officers expect to fund at least 5500 Londoners to participate in a Skills Bootcamp in 2026-27, of which the majority will be level 3-5. Based on an 80 per cent achievement rate this would result in at least 4400 learners passing the required assessments and gaining related qualifications.  Whilst the DWP are yet to confirm the specific targets attached to the additional funding offered, officers expect any increase in targets will be a proportionate increase to those targets currently agreed in the integrated settlement outcomes framework. If this is the case, the forecast number of learner places to be delivered will provides a strong foundation to achieve any such updated target.
 

3.1.    Under section 149 of the Equality Act 2010, as a public authority, the GLA (including the Mayor of London) must comply with the Public Sector Equality Duty (PSED) when exercising its functions. The PSED is a duty to have due regard to: 
•    the need to eliminate unlawful discrimination, harassment and victimisation, and any conduct that is prohibited by or under the Equality Act 2010 
•    advance equality of opportunity, and foster good relations, between people who share a ‘protected characteristic’ as defined in the Equality Act 2010 and those who do not. 


3.2.    The protected characteristics under section 149 of the Equality Act are: age, disability, gender reassignment, pregnancy and maternity, marital or civil partnership status, race, religion or belief, sex, and sexual orientation. Compliance with the duty may involve ensuring people with a protected characteristic are provided with all the opportunities that those without the characteristic would have. 


3.3.    This involves having due regard to the need to remove or minimise any disadvantage suffered by those who share a relevant protected characteristic that is connected to that characteristic; taking steps to meet the different needs of such people; and encouraging them to participate in public life or in any other activity where their participation is disproportionately low. 


3.4.    Skills Bootcamps are open to all adults aged 19 or over who are full-time or part-time employed, self-employed or unemployed, as well as adults returning to work after a break. Skills Bootcamps are designed to encourage the participation of underrepresented groups, such as those with protected characteristics and those who might face barriers to employment e.g. veterans or serving prisoners due to be released within six months of completion of the Skills Bootcamp and those on temporary release. The commissioning processes will therefore focus on ensuring individual Bootcamps make a commitment towards these groups and include appropriate targets in the signed grant agreement.


3.5.    An Equality Impact Assessment for the workstream’s 2026-27 delivery has been published on the Skills Bootcamps for Londoners funding page on the london.gov.uk website. Data analysis undertaken over Waves Three to Five indicates the workstream is effective at engaging Londoners with protected characteristics. Wave Five end of wave data demonstrates that bootcamp learners are very diverse, with only 25 per cent from White backgrounds, 15 per cent reporting a learning difficulty, disability or health problem and a relatively even age profile, with 54 per cent of learners aged under 34. More than half of learners in Wave Five were unemployed at enrolment, with a growing share of long term unemployed.
 

4.1.    Officers have considered whether the proposed funding awards constitute a subsidy within the meaning of the Subsidy Control Act 2022 and concluded that it does not. Paragraphs 15.27 to 15.29 of Annex One to the Subsidy Control Statutory Guidance provide that publicly funded education services forming part of the state's education system are generally not regarded as economic activities. The Skills Bootcamps programme is funded by the Department for Work and pensions and delivered in accordance with a detailed public policy framework established by the DfE and the GLA. Providers are funded to deliver a prescribed skills intervention designed to address identified skills shortages and employment objectives, rather than to support their wider commercial activities. 


4.2.    Funding is subject to detailed delivery requirements, performance management arrangements and audit controls, and any continuation funding will be awarded on the same cost-per-learner basis established through the original competitive process. Officers therefore consider that providers are not undertaking an economic activity in relation to the funded provision and that the funding does not confer an economic advantage on an enterprise. Accordingly, the proposed funding does not constitute a subsidy for the purposes of the Subsidy Control Act 2022.


Links to Mayoral strategies & priorities
4.3.    The Skills Bootcamps for Londoners workstream falls under the Talent Pipelines project of the SLBG programme delivery plan which aims to realise the Mayor’s vision outlined in his Inclusive Talent Strategy by, in part, creating an employer-led Inclusive Talent System and building talent pipelines. The 2026-27 Skills Bootcamps for Londoners programme is a key delivery element of the following SLBG delivery plan project: ‘Establish sector-focused talent pipelines to align training with sector needs and support Londoners into good jobs’. Across the three-year period, the workstream will also contribute towards the development of the employer-led Inclusive Talent System by piloting new commissioning approaches which will be directed by the new Sector Talent Boards.


4.4.    Under cover of MD3401 the Mayor approved the creation of an employer-led careers, employment, and skills ecosystem. This includes supporting sectors such as the Creative Industries, Visitor Experience and Financial, professional and business services which are highlighted as key strengths for London’s economy. The Skills Bootcamp workstream will directly support skills development in these key industries, as well as frontier innovation sectors such as Life Sciences and Artificial Intelligence.


4.5.    The Supporting Londoners to Benefit from Growth Delivery Plan approved in MD3395 outlines the strategic ambition to embed good work across the capital. The Mayor's Good Work Standard is integrated into the delivery of the Skills Bootcamp programme, alongside our ambition to strengthen inclusive employment. Providers will be incentivised to secure employment outcomes and in-work progressions that meet the minimum standard by offering at least the London Living Wage, utilizing skills acquired through the Bootcamp, and not involving the use of zero-hour contracts.


Risks arising/mitigation
4.6.    The following risks and proposed mitigations have been identified in relation to this proposal:

Risk Description

Planned Mitigations

RAG Rating

Risk of overspend against funding available due to overallocation approach

The maximum planned overallocation percentage of 25 per cent has been based on modelling informed by allocations and spend achieved on previous waves. Providers proposed to be funded in Wave Seven utilised 74 per cent of their grant allocations in Wave Six. Should this utilisation rate be repeated in Wave Seven an overallocation rate of 25 per cent would still result in an underspend position.

The actual overallocation percentage and grant utilisation will be carefully reviewed at regular intervals during delivery year and officers will ensure grant agreements include the ability to suspend new starts for providers should the risk of overspend increase in the year. 

Officers consider that the overall risk of overspend remains low. Historical usage of overallocations in Waves Five and Six have resulted in considerable underspends on the funding available, which suggests the greater risk is of underspend.

Should overspend occur, funding can be moved between financial years under the integrated settlement model. Payments owed to providers could be delayed until the following financial year. Alternatively underspend on other elements of the integrated settlement could be utilised if available.

A

Delivery partners are unable to deliver eligible activity to a level which uses the full funding allocation within each financial year

Using the experience of Waves Three-Six delivery, and related performance tracking tools, underperformance can be effectively monitored and addressed at key milestones during the 2026-27 delivery period, with funding being reallocated if necessary utilising the methods outlined at paragraph 2.2.

This is supported by the GLA’s planned approach to primarily award funding to the highest performing providers on Waves Five and Six. Where funding becomes available due to provider withdrawal or poor performance, the programme team will award in year growth funding those providers who are delivering well or to new bootcamps selected in collaboration with the sector talent boards. This will enable the programme to direct funding to providers who can deliver and support strong programme performance.

Should underspend occur, funding can be moved between financial years under integrated settlement model.

A

Conflicts of interest
4.7.    No one involved in the drafting or clearance of this decision form has any conflict of interest.
 


 

5.1.    Approval is sought to receive £4,083,338 additional Skills Bootcamps funding from the Ministry for Housing, Communities and Local Government (MHCLG) for 2026-27 and the expenditure of this funding on Skills Bootcamps delivery in accordance with the Skills Bootcamps Funding Approach 2026-27 to 2028-29 approved in DD2786. 


5.2.    The Executive Director – Communities and Skills approved (under cover of Director Decision (DD)2786) the three-year Skills Bootcamps funding approach for 2026-27 to 2028-29 and authorised the receipt and expenditure of £11.757m per annum funding that was received via the GLA’s core integrated settlement allocation. 


5.3.    On 10 August 2026, the Department for Work and Pensions (DWP) confirmed to GLA an additional allocation in 2026-27 of £4,083,338. They subsequently confirmed that this funding would be provided to the GLA via the integrated settlement from the Ministry of Housing, Communities and Local Government (MHCLG).  


5.4.    As per paragraph 2.3 and as approved under cover of DD2786, the aim is to maximise utilisation of the available budget and allocations will be based on the payment by results model and informed by financial modelling and historic delivery trends. To ensure full budget use, officers may over allocate funding above the nominal annual budget, based on modelled assumptions about typical levels of provider under performance. The maximum overallocation rate anticipated is 25 per cent in line with practice introduced in the last two years which have enabled the GLA to meet its DfE targets.


5.5.    This proposed spending is financed by external funding from MHCLG and is part of the Integrated Settlement. The GLA 2026-27 Income and Expenditure budget will be updated to reflect this additional Skills Bootcamps funding.
 

6.1    The foregoing sections of this report indicate that certain of the decisions requested of the Director (pursuant to the Mayor’s delegation of powers under MD3395) concern the exercise of the GLA’s general powers, falling within the GLA’s statutory powers to do such things considered to further or which are facilitative of, conducive or incidental to the promotion of economic development and wealth creation in Greater London and in formulating the proposals in respect of which a decision is sought officers have complied with the GLA’s related statutory duties to: 
•    pay due regard to the principle that there should be equality of opportunity for all people
•    consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom
•    consult with appropriate bodies


6.2    In taking the decisions requested, the Director must have due regard to the Public Sector Equality Duty; namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity and foster good relations between persons who share a relevant protected characteristic (age; disability; gender reassignment; marriage and civil partnership; pregnancy and maternity; race; religion or belief; sex; sexual orientation) and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Director should have particular regard to section 3 (above) of this report.


6.3    The Subsidy Control Act 2022 requires that grant funding be assessed in relation to its four-limbed test. GLA officers have made this assessment at paragraphs 4.1 and 4.2 and have a concluded that the proposed funding does not amount to an unlawful subsidy.


6.4    If the Director makes the decisions sought, officers must ensure that:
•    no reliance is placed, nor commitments made which rely upon the availability of future years budgets, or any third-party funding (whether Integrated Settlement funding or otherwise) which is not yet secured either by definitive GLA approval or in the case of third-party funding, binding legal commitments from the funders
•    the proposed award of grant funding is made fairly, transparently, in accordance with the GLA’s equalities requirements and with the requirements of GLA’s Contracts and Funding Code and funding agreements are put in place between and/or varied (as applicable) and executed by the GLA and recipients before any commitment to fund is made.


6.5    To the extent that the proposals in respect of which decisions are sought involve the making of commitments which extend beyond the current Mayoral term, officers must ensure that the terms of all agreements entered into in respect of the commitments do not fetter the discretion of any successor administration, considering in particular the London elections taking place in May 2028. Accordingly, officers must ensure that all agreements which involve the making of such commitments include a GLA right to terminate at any point for convenience and all such agreements are managed in such a manner, and any services, supplies, works deliverables, milestones and/or output requirements are structured so as to mitigate risks of the GLA incurring abortive expenditure (which might be reasonably be taken to fetter, practically, the exercise of such discretion).

 

7.1.    The next steps are set out below:

Activity

Timeline

Additional funding awards made to existing providers demonstrating strong performance by the end of the previous Wave (Wave Six)

August-October 2026

Competitive funding opportunities for new bootcamps launched 

September 2026

Successful applicants to competitive funding opportunities enter delivery

October/November 2026

End of 2026-27 programme training delivery

March 2027

End of 2026-27 programme outcome reporting

31 July 2027

 

None

Signed decision document

DD2827 Skills Bootcamps 2026-27 Additional Funding Allocation

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