What is the Adult Skills Fund?

Andrew Barton Product Manager - Learning for Work, NCFE

The 1 August 2024 proved a landmark day for adult education with the all-new, Education and Skills Funded Agency (ESFA) funded, Adult Skills Fund (ASF) replacing the former Adult Education Budget.

Following the Department for Education’s 2023 consultation, the purpose of the ASF is to support adult learners in gaining the skills needed to gain meaningful employment while providing a more tailored approach bespoke to each learner.

As a training provider, understanding the rules around the Adult Skills Fund is crucial for effectively serving adult learners during the 24/25 academic year and beyond. Here’s how to best leverage the funding to maximise your adult learning opportunities.

What is the Adult Skills Fund?

The ASF is a government-backed programme providing financial support for adults aged 19 and over to develop essential skills for employment, further education and personal growth.

ASF supports a wide range of programmes from basic literacy and numeracy to advanced vocational training. It spans many delivery methods including classroom learning, hands-on workshops and online courses.

How does it differ from the Adult Education Budget?

From August 2024, the ASF replaced the AEB which was initially introduced in 2015. Its successor aims to simplify the adult education funding model, consolidating separating funding lines into a single skills fund.

The aim of this ‘one pot’ approach is to enable training providers to be more responsive to local needs: allowing them to address skills gaps head-on while better supporting those in low-paying jobs or with fewer qualifications.

What has changed for 24/25?

Beginning in the 2024/25 academic year, the ASF is undergoing significant changes to its funding formula. Changes are designed to create a more equitable distribution of resources which better align with the actual needs of learners.

Funding will be split up across bands – base, low, medium, high and specialist – which will each be allocated a new hourly skills funding rate. The funding formula has also been updated to account for fluctuating geographical differences in delivery costs and to provide extra support for learners in disadvantaged areas.

Who is eligible for adult skills funding?

The ASF funds the delivery and education for learners aged 19+ in non-devolved regions of the UK. Funding is eligible for any local training providers or colleges that have won an ASF contract.

Further guidance on eligibility criteria can be found here.

What types of courses does the ASF cover?

The ASF aims to support individuals with tailored learning and equips learners with essential vocational skills such as English, maths and digital literacy. Funding also spans a range of sectors from Business Management to Health & Social Care and Public Services. For a full list of funded courses for 24/25, check out our funding tracker.

The most up-to-date information on eligible courses can also be found on the EFSA website.

What are the benefits of ASF training?

The adult skills fund brings many benefits including:

Employment opportunities: The goal of ASF is to help adults gain skills that lead to meaningful, sustained and relevant employment which benefits individuals and the economy. It can be particularly beneficial for those re-entering the workforce or changing careers.

Tailored learning: ASF provides tailored learning models with an emphasis on health and wellbeing. Providers have some flexibility in how they deliver training, allowing them to better meet local and national labour market needs.

Accessibility: The fund has been designed to be accessible to a wide range of learners, including those who are unemployed, earning below a certain threshold or living with disability.

Social impact: Funding reforms aim to ensure that training is of high quality and fully meets the needs of learners and employers. This will help drive productivity and economic growth while helping to build stronger communities.

Can the ASF help with employment?

Yes, the ASF has been specifically designed with employment in mind and provides funding for those looking to improve their job prospects, whether they’re looking to enter a new field, advance in their current career or gain essential skills for the job market.

Additionally, the ASF takes a more holistic view that supports broader outcomes such as improved health and wellbeing, and stronger local communities.

How can training providers leverage ASF effectively?

To really maximise your use of the Adult Skills Fund, start by assessing the specific needs of your learners and aligning your programmes with the new funding priorities.

It’s important to remember that while funding for many qualifications is increasing, the overall ASF pot is not. This means your delivery methods will need to be aligned to new funding rules.

Key to this will involve education providers correctly evidencing guided learning hours which directly ties to how much funding is allocated.

Looking to empower adults through education? Learn more about the Adult Skills Fund by downloading our brochure or watching our latest webinar series.

While funding for many qualifications is increasing, the overall ASF pot is not. This means your delivery methods will need to be aligned to new funding rules."

Andrew Barton, NCFE