MD3100 Adult Education Budget: 2023-24 Financial Forecast and 2021-22 Annual Report to the Department for Education

That the Mayor approves:
1.    AEB expenditure of £342,930,255 for the 2023-24 academic year (AY), including up to £7,441,491 for management and administration (M&A) costs for the 2023-24 financial year (FY) noting that any future reprofiles will be agreed by the Mayor at the AEB Mayoral Board meetings and via the GLA’s budget management processes
2.    the Mayor’s Annual Report at Appendix A for submission to the Department for Education (DfE) by 31 March 2023.
 

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
    • foster good relations between persons who share a relevant protected characteristic and persons who do not share it.
  • 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 set out above in making the decisions set out in this report and any future decisions relating to the AEB made pursuant to those arrangements which will be subject to separate decision forms.
  • The aim of the AEB and European Social Fund (ESF) is to improve opportunities for people who are disadvantaged in the labour market. Many potential AEB participants have the protected characteristics listed above. The GLA’s AEB provision will support a range of groups, particularly the most disadvantaged people not currently receiving sufficient support into employment or education. These include young adults who are not in employment, education or training, people without basic skills and people who are workless. It will also support Londoners in low‑paid/low‑skilled jobs. The AEB Procured provision is used as match funding for ESF which also means the provision forms part of the total ESF programme.
  • The publicity and the community engagement proposed for the new year, whilst directed at Londoners, will target hard-to-reach groups to ensure they have access to the training and education opportunities provided by the AEB. Following successfully introducing the community grant programme in the 2022-23 FY, the programme is proposed to be increased to further reach more Londoners, especially the hard-to-reach in 2023-24. The GLA has established an inclusive commissioning protocol which provides guidance for commissioning and procurement in such a way that avoids discriminating against any suppliers or education providers.

Risks arising/mitigations

1. 1. There is a risk, as stated in the Memorandum of Understanding with the DfE, that underspends are recovered by the Secretary of State in circumstances where the Secretary of State considers funds have not sufficiently been committed to be spent. There is also a reputational risk for the GLA not being able to discharge its responsibility for the benefit of Londoners.
   2. Officers are regularly reviewing the underspend profiles, identifying new ways to use the funding, and recommending this to the Mayor. The 2023-24 DfE allocation has been fully allocated as presented in table at section 2.8 above. The previous underspends have also all been allocated as considered by the AEB Mayoral Board of 8 March 2023 including the funds to support the in-year growth request for performing providers (Included as part of MD3099 approving in year growth requests).

Links to Mayoral strategies

1. 3. The successful delivery of the AEB is a commitment made in the Mayor’s Skills for Londoners Strategy to:
      • empower all Londoners to access the education and skills to participate in society and progress in education and work
      • meet the needs of London’s economy and employers, now and in the future
      • deliver a strategy city-wide technical skills and adult education offer.
   4. The objectives set out in this MD also align with the expectations of the Skills Roadmap which sets out the overarching ambition of the Mayor for the skills and adult education in the capital delivered through three pillars – locally relevant skills, making an impact and access to skills.

Consultation

1. 5. Officers are regularly consulting with key stakeholders on new policies to be developed. The Skills for Londoners (SfL) Board which also acts as the Skills Advisory Panel (SAP) for London and the Skills for Londoners Business Partnership are two key stakeholder boards that are regularly consulted.
   6. The public consultation on the draft Adult Education Roadmap for London (now known as the Skills Roadmap for London) was concluded in Summer 2021 with strong representation from local authorities, colleges and independent training providers. In addition, there were roundtable discussions targeting specific stakeholder groups including businesses and employers, unions, colleges, and special educational needs and disabilities (SEND) practitioners.
   7. As part of the consultation, Londoners and learners have also been engaged directly through a new ‘Community Conversations’ approach, where discussions were facilitated by providers, volunteer and community services or other organisations within the community, and responses submitted to the GLA. Funding has been set aside for further consultation in the 2023-24 FY.

Others

1. 8. Budget reprofile: Future reprofiling will generally be agreed through the GLA’s budget management processes and presented to the AEB Mayoral Board. Any transfers between the top‑level AEB budget lines (see table at paragraph 2.8 above) or matters reserved within the AEB Assurance Framework for the Mayor, will be approved as per the GLA’s decision-making process.
   9. There are no conflicts of interest to declare from those involved in the drafting or clearance of this decision.
   10. Procurement of services and grant commissioning will be completed competitively in line with the GLA Contracts and Funding Code. Grant and Contract recommendations will be signed off by the Assistant Director, Skills and Employment as part of the local management arrangements.

1. 1. Approval is sought for the AEB expenditure of £342,930,255 for the 2023-24 AY covering August 2023 to July 2024. In addition to the remaining payment for the ongoing AY (April to July 2023) previously approved under cover of MD2953 and MD3016,  taking the total the expenditure in the 2023-24 financial year (FY) to £356,829,647 as set out in the table at section 2.9 of this MD. This figure includes up to £7,441,491 to cover M&A costs.
   2. Any future reprofiles will be agreed by the Mayor at the AEB Mayoral Board meetings and via the GLA’s budget setting and management processes.
   3. Approval is also sought of the Annual Report to HM Government on the delivery of delegated adult education functions (see Appendix A) as required under  ‘The exercise of delegated adult education functions: Guidance for the Mayor of London and Greater London Authority’ for submission to the Department for Education (DfE) by 31 March 2023.
   4. The total expenditure for 2023-24 AY will be funded from the confirmed 2022-23 AY allocation set out in the 9 February 2023 AEB funding letter from the DfE.
   5. The Mayor’s Annual Report as set out in Appendix A shows circa £2.2m AEB overspend for 2021-22 Academic Year (AY) which will be contained within the AEB budget underspend in the current financial year 2022-23.

Section 39A of the Greater London Authority Act 1999 permits the delegation of ministerial functions to the Mayor, subject to certain limitations and conditions. This forms the basis of the delegation to the Mayor of AEB functions from the Secretary of State for Education. A particular limitation of the delegation is that the usual power of delegation by the Mayor is not available in respect of s39A delegated functions.

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, sex, age, sexual orientation, religion or belief, pregnancy and maternity and gender reassignment) and persons who do not share it (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     Should the Mayor be minded to make the decisions sought officers must ensure that:

6.3.1 no commitment is made to any of the expenditure proposed unless and until DfE have made a legally binding commitment to the provision of the AEB funding to the GLA and funding agreements have been entered into between and signed by the GLA and recipients

6.3.2 funding is distributed fairly, transparently, in accordance with the GLA’s Contracts and Funding Code

6.3.3 any AEB M&A services are procured in liaison with Transport for London (TfL) Procurement, in accordance with the requirements of the GLA’s Contracts and Funding Code contracts, and are entered into between and executed by the GLA and the service provider(s) before the commencement of the services

6.3.4 the GLA continues to comply with the London Guidance and Delegation of certain adult education functions to the Mayor of London: Memorandum of Understanding liaising with the DfE and Education and Skills Funding Agency(ESFA) as necessary from time to time.  

1. 1. The profiles will be reflected in the GLA Budget.
   2. The Mayor’s Annual Report to the DfE (Appendix A) will be submitted to the DfE by 31 March 2023.