MD3344 Skills Bootcamps Wave Six Funding Approach

1.1.    The government’s Skills Bootcamps were rolled out from Autumn 2020 onwards and were initially managed centrally by the Department for Education (DfE). These aim to deliver 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). They enable adults to do their training around work and other commitments and are targeted at those looking to gain work, additional responsibilities or to access new opportunities. They offer a guaranteed job interview to individual participants on completion of the courses.
1.2.    Local areas were invited by the DfE to join a national programme of delivery of Bootcamps in Wave Three (financial year 2022-23) and the GLA received £18.9m to expand delivery in Digital, Construction and Technical Skills Bootcamps for London, as approved by the Mayor under cover of Mayoral Decision (MD)2960. The GLA received £19m for Wave Four, as approved by the Mayor under cover of MD3088 and £21.62m for Wave Five, as approved by the Mayor under cover of MD3222.
1.3.    Since the GLA started delivery of Skills Bootcamps in Wave Three, it has commissioned providers via a combination of approaches. In Wave Three this included direct awards to existing GLA contract holders for delivery of employer responsive skills provision leading to job outcomes, and an open competitive bidding process. Wave Four was commissioned via allocating funding to existing Wave Three providers who met performance criteria. Wave Five was commissioned via a combination of direct award to existing training providers and an open competition commissioning process. 
1.4.    It is proposed that Wave Six of the Skills Bootcamps programme continues to support the development of in-demand skills needs required by key sectors of London’s economy, in alignment with the London Growth Plan. As with Wave Five, this will include Technical (engineering and manufacturing), Construction, Accelerated Apprenticeships, Logistics, Creative, Early Years, Hospitality and Experience Economy, Health and Social Care (including Life Sciences), and Professional Services (Financial, Leadership & Management). Green skills will also be included within Technical, Construction and Green Other sectors to acknowledge cross-cutting skills. The Retail sector will be introduced in Wave Six as a new priority sector in response to its identification as a priority within the London Skills and Improvement Plan (LSIP) and as part of the experience economy identified in the London Growth Plan. 
1.5.    The 12 Skills Bootcamp priority sectors have been developed to align in part with the DfE’s national priority sectors, as it is a condition of the DfE’s grant offer that at least 50 per cent of training delivery funded in Wave Six must be within their priority sectors. However, the Skills Bootcamp priority sectors align extensively with the sectors highlighted in the London Growth Plan (see Appendix B).
1.6.    Expenditure on management and administration (M&A) programme costs of £2.662m for which approval is sought under this MD includes cover for salaries for a team of dedicated provider managers who manage the Bootcamps grants, including the programme management roles; support officers responsible for data management, commissioning, and performance reporting back to the DfE; and contributions to the salaries of management staff who also contribute to the successful delivery of the programme. This will also support extra staffing resource to account for the approximate 25 per cent increase in the size of the Wave Six programme relative to Wave Five whilst continuing to manage the Wave Five delivery following the timeline extension granted by the DfE into the next financial year. 
1.7.    The remaining M&A costs includes revenue for programme evaluation, data and systems support, commissioning external scoring resource, marketing and engagement (including events and business engagement), and auditing costs. M&A spend will be managed in line with business needs and to support programme delivery. Commissioning of any external resources will be approved by the Assistant Director - Skills & Employment Delivery via a contract award recommendation. 
1.8.    Procurement of services will be completed competitively in line with GLA Contracts and Funding Code. Wave Six grants will be disbursed using a combination of: direct awards to existing Wave Five providers who have previously been selected via a competitive process and are meeting and/or exceeding required performance levels; and an open competitive application process. It is also proposed, to maximise the efficient administration of the programme that the commissioning documentation, grant and contract recommendations be approved by the Assistant Director - Skills and Employment Delivery and as part of the local management arrangements without a further decision form. Similarly, management costs (excluding salaries and GLA overhead costs which are fixed as part of GLA processes) will require the approval in the same way.
 

Wave Six funding priorities 
2.1.    Skills Bootcamps are intended to support London regions and employers to fill skills shortages in the sectors set out in this MD (see paragraph 1.4) by bringing participating individuals closer to good jobs through training that meets the skills needs of local employers, followed by guaranteed job interviews. The overarching objectives are to ensure participating employers commit to interviewing from the pool of trained individuals for their identified skills shortage vacancies.
2.2.    The main outcomes required to meet the conditions of the DfE Wave Six funding are:
•    a minimum of 7,704 learner starts in total between 1 April 2025 and 31 March 2026 at an average cost per learner of no more than £3,152
•    at least 80 per cent of those who start training will complete the course, of which 100 per cent of relevant learners must be offered a guaranteed interview with an employer with appropriate vacancies
•    at least 75 per cent of learners who complete their course will have a positive outcome (including: a new job providing continuous employment for at least 12 weeks; an apprenticeship; increased responsibilities; a new role with an existing employer; or increased opportunities for the self-employed) within six months of completion of the course.
2.3.    The DfE provides the GLA with the authority to decide payment weightings between the three key learner milestones. The payment milestones per learner were amended slightly for Wave Four, with an increased weighting for the final payment to providers to further incentivise progression into positive learner outcomes. These payment milestones are set out below and were continued for Wave Five. Officers will review the payment milestones weighting for Wave Six, considering insights from other regions delivering Skills Bootcamps with different payment milestone weightings. 

2.4.    Programme performance has improved wave-on-wave, with an increased numbers of starts and improved conversion rates achieved between Waves Three and Four. Early indications suggest this positive trajectory will be maintained in Wave Five’s performance. 
2.5.    Learning that has been identified from the programme team’s experience delivering Waves Three, Four and Five will be applied to Wave Six, with the aim to improve the programmes performance. As a result of this learning, the following principles will be implemented for Wave Six: 
A.    Combined Approach of direct award and open competition: As used for Wave Three and Wave Five, Wave Six will employ both a direct award process to continue bootcamps which have proven successful in Wave Six and an open competition process to select new bootcamps. This approach ensures the GLA can meet DFE’s targets within the delivery window whilst ensuring the programme is able to respond to emerging employer skills needs (see paragraphs 2.6-2.7).
B.    Sectoral focus: Wave Six of the Skills Bootcamps programme will continue to focus on funding Skills Providers who are delivering a locally relevant training offer aligned with Mayoral priority sectors. In Wave Five approximately 54 per cent of the total funds allocated to providers were for provision in the Digital and Green sectors. This represented a large increase in Green sector provision from the previous wave, which was achieved through ringfencing a minimum of £4m for Green in the Wave Five open competition.
In Wave Six, to ensure all target sectors receive support through the programme, a minimum level of funding may be ringfenced within the open competition for each sector. Any minimum levels set will be developed following evaluation of the Mayoral priorities and latest labour market evidence, alongside consideration of the initial allocations made per sector through a direct award process for successful Wave Five providers who will continue into Wave Six.
C.    Level 2 bootcamps: In Waves Three, Four and Five the DfE specified that Skills Bootcamps should be Levels 3 to 5, with exceptions for Construction and Logistics HGV which could be delivered at Level 2. 
For Wave Six, the DfE have indicated that local areas can propose other sectors to be delivered at Level 2, where analysis shows a specific London skills gap at Level 2. Agreement to extend delivery to Level 2 for priority sectors will be sought from the Assistant Director - Skills and Employment Delivery under the delegated approval.
D.    Prioritising funding to bootcamps (and delivery providers) with a proven track record: Skills Bootcamps waves last for a minimum of 18 months. As funding is awarded by the DfE in alignment with the financial year cycle, the GLA is required to make decisions on whether to fund existing bootcamps for another wave after 12 months of delivery, when final performance data is not available. Similarly, new bootcamps selected through the open competition are unproven and can fail to deliver high performance despite the strength of the application.

To mitigate this risk the GLA will limit the amount of funding awarded to new providers or bootcamps until final performance data for a full wave of delivery is available. At this point, the GLA will seek to either grow bootcamps with proven successful performance or cease/reduce funding. This includes the potential to allocate growth funding during Wave Six as final Wave Five performance data becomes available in line with the approvals outlined in paragraph 2.14.
E.    Providing flexibility to help providers respond to employer up-skilling needs as they arise: Skills Bootcamps include provision that support employers to up-skill their existing staff and requires them to provide co-payments for that training, 30 per cent contribution for large employers and 10 per cent for SMEs. This provides an opportunity to increase employer investment into the skills system in line with the London Growth Plan and the mandate for the proposed Supporting Londoners to Benefit from Growth programme. Approximately £1.6m of funding was allocated to co-funded bootcamps in Wave Five and the ambition is to grow this portion in Wave Six.
Successful Skills Bootcamps directly respond to employer needs and are underpinned by providers who build strong partnerships with employers. To support providers to meet employers’ ongoing needs for up-skilling of their own staff, the GLA will enhance the flexibility of Wave Six funding to encourage in-year proposals from providers selected via the direct award or open competition processes. This will allow providers either a re-allocation of existing grant funding or provide additional funding to them for employer co-funded bootcamps where there is proven employer interest and commitment to providing an employer contribution payment. An amount of funding will be ring-fenced and held back from allocation via direct award or open competition for this purpose and thereby increase employer responsiveness.
F.    Implementing funding measures to ensure delivery of KPIs: Delivery of job outcomes has improved between waves but overall is lower than expected. Greater scrutiny of employer engagement and the plan for delivery of job outcomes set out in the Wave Six funding applications will be applied prior to award of funding, as well as increased performance assurance and control measures. Employer letters of endorsement will be required for all proposed bootcamps across direct award and open competition and will be verified by officers. A business engagement function within the Skills and Employment Unit has also been established which will support providers to engage with employers and facilitate the achievement of interviews and job outcomes.
G.    Supporting Further Education Colleges to engage in the programme: The DfE’s grant encourages the GLA to engage with FE colleges regarding delivery of Skills Bootcamps, recognising their importance to local communities. Officers are considering the best approach to increase the involvement of FE colleges with the programme’s delivery, including a possible ring-fenced grant from the open competition. 
Wave Six funding: combined approach
2.6.    As a condition of DfE’s award to the GLA of Wave Six funding, that funding must be spent on Bootcamp delivery which takes place in FY 2025-26 and 20 per cent of learner starts must be achieved by July 2025. To ensure delivery of Wave Six can therefore commence as quickly as possible and meet DfE’s delivery requirements within the tight window, it is recommended that funding is allocated via a combination of two approaches, using direct award and open competition processes to allocate the available funds. 
2.7.    This combined approach will enable the highest delivery and outcomes within the short delivery time frame, on the basis that the existing providers are already experienced in delivering the bootcamp model and have established relationships with employers to ensure interviews and job outcomes. Furthermore, the existing Bootcamps providers could begin delivery on 1 April 2025, with the successful applicants selected through the open commissioning process beginning delivery from June/July 2025.
Direct award process
2.8.    Wave Five providers that are demonstrating strong performance in line with their delivery profile and contracted milestones will be offered funding to continue delivery of existing bootcamps via a direct award process. Prospective Wave Six direct award providers will be required to submit proposals against an initial indicative allocation which will be linked to their prior performance. Grant awards will be made based on providers’ proposals meeting defined criteria, including value for money. Officers will also consider the volume of funding remaining for open competition when determining direct award allocations. 
2.9.    Financial due diligence will be carried out on existing providers by the GLA before awarding further funding.
2.10.    To ensure direct-award bootcamps remain in line with the market rate for equivalent services, officers will only consider proportionate increases in current costs per learner in line with inflation. Requests to increase costs per learner above this threshold will only be considered on an exceptional basis. When reviewing bootcamps in scope for direct award officers will also use as a benchmark average costs per learner per sector achieved on previous waves following competitive processes.
2.11.    Using this benchmark GLA officers will take steps to ensure that Wave Six direct awards will not involve the payment of sums which exceed the market rate for equivalent services. To meet DfE’s funding conditions those steps will include taking all relevant professional advice and taking into consideration any regional differences, the scale of services being funded and any resulting efficiencies of scale. Records will be kept in each case on the basis on which the appropriate level of payments has been determined.
 Open competition process
2.12.    Following the agreement of indicative allocations for direct award bootcamps, an open competition process will be launched to allocate remaining funding. The open competition will include a new Wave Six funding prospectus as well as application form to complete. Both will be made available on the GLA’s website. All prospective applicants will be required to submit their application by a pre-set deadline. As outlined in paragraph 2.5 G, officers will consider streamlining application processes for London-based FE colleges.
2.13.    Proposals submitted to the open commissioning process will be scored by the Skills and Employment Unit’s contracted external scoring consultants. Once moderated, any award of funding will be agreed only once officers are content with the value for money they provide and the GLA has carried out due diligence on the Providers’ financial health. Grant awards will be made based on providers’ proposals meeting defined criteria.
2.14.    In the event there is any remaining unallocated funding from Wave Six, under the delegation set out in this MD, the Assistant Director - Skills and Employment Delivery will decide how to allocate this funding, including via open competition, providing growth for current providers, or a combination of both. The delegation supports the decision made due to the quick turnaround required to deliver the DfE targets in year 2025-26 financial year. 
2.15.    Approval for grant awards through the direct award and open competition process will be made by the Assistant Director - Skills & Employment Delivery in line with the delegations outlined in this decision form.
 

3.1.    Section 149(1) of the Equality Act 2010 provides that, in the exercise of their functions, public authorities – of whom the Mayor is one – must have due regard to the need to: eliminate discrimination, harassment, victimisation and any other conduct that is prohibited by or under the Equality Act 2010; advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it; and foster good relations between persons who share a relevant protected characteristic and persons who do not share it.
3.2.    The relevant protected characteristics are age, disability, gender re-assignment, pregnancy and maternity, race, religion or belief, sex and sexual orientation. The Mayor is required to comply with the duty to have due regard detailed above in making any decisions relating to the Skills Bootcamps programme.
3.3.    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. The grant offer requires Skills Bootcamps to be 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 application process will therefore focus on ensuring individual Bootcamps make a commitment towards these groups and include appropriate targets in the signed grant agreement.
3.4.    Data analysis undertaken over Wave 3 and 4 continues to indicate positive trends in engagement of those with protected characteristics. The data has largely remained stable, with the Bootcamps programme having significantly increased the numbers of learners engaging with the programme from the over 50’s and learners with learning difficulties and disabilities. This is a good indicator that the design and delivery of this year’s Bootcamps has supported improvement in access to the programme.
3.5.    An Equalities Impact Assessment will be produced prior to any funds being allocated and the approach to allocate funding will be amended accordingly, subject to approval by Assistant Directors - Skills and Employment under the recommended delegation. The Equalities Impact Assessment will also be used to inform the approach to the open competition process.
 

Compliance with DfE funding conditions in use of direct award 
4.1.    One of DfE’s express funding conditions is the award of contracts for services or grants follow the seeking and evaluation of competitive tenders/grant applications, in the latter case approximating as closely as possible to a competition for the award of a public contract subject to the provisions of section seven of the Public Contracts Regulations 2015 (light-touch regime).
4.2.    The conditions also provide, however, that where the GLA reasonably considers that it would not be appropriate for providers to be selected using a competitive process (whether in accordance with the Public Contracts Regulations 2015 or under a single tender action), the grant recipient may, using its sectoral knowledge and existing relationships, award funding by way of grant on the basis of objective criteria without any prior competitive process. The adoption of this approach is subject to the GLA taking steps (for example, by relevant benchmarking as is proposed in paragraph 2.8) to ensure that none of the funding awarded to recipients represents more than the market rate for equivalent services, taking relevant professional advice in this regard and taking into consideration any regional differences, the scale of service provided and any resulting efficiencies of scale. 
4.3.    Officers are satisfied that the approach to grant fund existing providers by way of direct award aligns with the conditions noted in paragraph 4.2. This is because:
•    those providers were all previously selected via a competitive process, including conducting financial due diligence on the organisations, have shown an understanding of the Skills Bootcamps programme and can quickly turn around onboarding of learners whilst establishing the required employer relationships as quickly as possible
•    the previous competitive process was conducted and awarded using objective criteria and took account of GLA officers’ sectoral knowledge and the existing relationships with providers
•    application materials for previous waves (including Wave Five) allowed for future funding awards and related grant agreement extensions (at the GLA’s discretion)
•    such extensions (here by way of Wave Six direct awards) will be based on the costings and plans submitted in their initial applications, with allowance for inflation.
     Links to Mayoral strategies 
4.4.    The Skills Bootcamp programme in London, as set out in this Decision, is designed to align with and advance key Mayoral strategic objectives. The programme addresses key areas of focus as set out in the recently published London Growth Plan, alongside other key Mayoral ambitions such as hitting net zero by 2030 and the integration of the Good Work Standard.
4.5.    The Skills Bootcamp programme aligns with London government’s objectives for an inclusive talent system, as set out in the London Growth Plan, addressing skills gaps and industry needs to support growth. In addition, Bootcamps integrate industry-relevant skills training, careers and employment support to help Londoners develop their talents, join new industries and achieve in-work progression. The programme uses a collaborative employer-led approach and is designed to directly support sectors that are key to London’s economy.
4.6.    Alongside this, the programme continues to ensure GLA-funded providers are working with us to deliver a fairer, more equal, integrated society where Londoners can reach their full potential. Providers are continuously challenged to drive towards meeting these ambitions through the delivery and performance management of their Bootcamps.
4.7.    The Mayor is focused on delivering an employer-led careers, employment, and skills ecosystem. This includes supporting high-growth sectors, such as, technology, creative, retail, health and social care and the green economy. The Skills Bootcamp programme will directly support these growth industries.
4.8.    The Mayor’s priorities for skills and employment aim to address and embed good work practices across the capital, meeting Equality, Diversity, and Inclusion standards. 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.
4.9.    The Skills Bootcamp programme will support the Mayor’s Net Zero ambitions around building a fairer, greener and more prosperous London for everyone. One of the key delivery outcomes for the Skills Bootcamps programme is to continue to integrate funding for Green Skills Bootcamps through the technical and construction sectors. 
4.10.    In the design of the programme, we are continuing to set high performance demands on the Bootcamps to meet sustainability targets, reduce environmental impact, and support the industry’s transition to net zero. By continuing to align training with industry needs, the programme ensures businesses remain competitive while contributing to a more sustainable built environment.
Risks arising/mitigation
4.11.    The key risks and mitigation measures are outlined below:

Conflicts of interest
4.12.    There are no conflicts of interest to note from those involved in the drafting or clearance of this decision form.
 

5.1.    Approval is sought for the receipt of £27.028m funding from the DfE, and expenditure of the £27.028m on delivery of Wave Six of the Skills Bootcamps programme (including expenditure of up to £2.662m to cover the management and administration costs of the programme). 
5.2.    The DfE invited the GLA to apply for funding to deliver Wave Six of the Skills Bootcamps programme in London from 1 April 2025 to 31 March 2026. The GLA applied for £27.028m and has been awarded the full amount. 
5.3.    This receipt and expenditure of £27.028m would be managed through the Skills Bootcamps programme budget in 2025-26 financial year. 
 

6.1.    The foregoing sections of this report indicate that:
•    the decisions requested of the Mayor 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
•    in formulating the proposals in respect of which a decision is sought, officers have complied with the Authority’s related statutory duties to: 
o    pay due regard to the principle that there should be equality of opportunity for all people
o    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
o    consult with appropriate bodies.
6.2.    In taking the decisions requested, the Mayor 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 (race, disability, gender, age, sexual orientation, religion) and persons who do not (section 149 of the Equality Act 2010). To this end, the Mayor should have particular regard to section 3 (above) of this report.
6.3.    The Mayor may delegate the exercise of the GLA’s functions to the Assistant Director - Skills and Employment Delivery as proposed.
6.4.    If the Mayor makes the decisions sought, officers must ensure that:
•    they are satisfied that their proposed delivery of Wave Six of the Skills Bootcamps programme remains compliant with the DfE funding conditions (including, should any direct award of funding be proposed, the existence of a robust rationale of why to do so is better than competing the funding opportunities based clearly upon the GLA’s “…sectoral knowledge and existing relationships…” and by reference to “…objective criteria…”), taking all necessary advice on market rates for the funded services and professional advice in this regard and taking into consideration any regional differences, the scale of service provided and any resulting efficiencies of scale 
•    the competitive award of grant funding is conducted fairly, transparently, in manner which affords value for money and in accordance with the requirements of DfE and the GLA’s Contracts and Funding Code and grant funding agreements are put in place between and executed by the GLA and recipients before any commitment to fund is made
•    payment for services, those services are procured in liaison with TfL Procurement and in accordance with the GLA’s Contracts and Funding Code and contracts are put in place between and executed by the GLA and contractors before commencement of such services 
•    payment for staffing resourcing at the GLA, if such staffing is to be covered by establishing any new roles, they comply fully with the GLA’s “establishment control” procedures. 
 

7.1    Planned activity is set out in the table below:

Appendix A - Wave Six (2025-26) DfE Offer letter
Appendix B - Skills Bootcamps priority sectors and London Growth Plan