Adult Skills Budget Reduction (1)

MQT on 2015-06-17
Session date: 
June 17, 2015
Question By: 
Stephen Knight
Liberal Democrats
Asked Of: 
The Mayor


As referred to in agenda item 4 of the London Enterprise Panel’s meeting on Tuesday 2 June 2015, please outline the adult skills budgets for London in the current and previous financial years.


Answer for Adult Skills Budget Reduction (1)

Answer for Adult Skills Budget Reduction (1)

Answered By: 
The Mayor

The skills system in England is national. Consequently there is not a London adult skills budget. The Adult Skills Budget (ASB) in England for the academic year 2015/2016 is just over £2billion. This compares with £2.2billion in 14/15.

It is difficult to estimate the total spend on skills in London as many non-London based providers operate in the capital. However, in its December 2012 report "Right Skills for the Right Jobs", the Centre for Economic and Social Inclusion estimated the total public sector annual spend on adult skills in London is around £700 million, including:

       £577 million (est) on adults skills via the Skills Funding Agency, with approximately £381 million going to London's Colleges. The majority of this budget is concentrated in the adult skills budget; (this figure has been reducing since 2012 including a further 11% reduction in 14/15)

       £69 million (est) on employment programmes via the Department for Work and Pensions. This includes investment in the Work Programme, Jobcentre Plus support and ESF funding;

       £55 million on locally commissioned programmes via Local Authorities, the Greater London Authority and third sector organisations.

I am working with Government and the Boroughs to develop a proposition for how a devolved skills system in London might operate.

I support learning loans for adults over 24 years of age wishing to undertake learning at level 3, community learning, employer ownership of skills, offender learning, learner support and the National Careers Service. The total spend on these for England amounts to some £700 million. This compares with £660 million in 14/15.