1. Stuart Hollis CSR Implications for FE & adult skills 10 th November 2010

2. The Bad News Total BIS budget cut by 7.1% over period Savings to come from following ratio: reform of FE/HE funding 65%, efficiencies 25% scrapping low-priority activities 10% £1.1b cuts to FE over 4 years No funding entitlement for 25+ yr olds for First Full Level 2 Fee system at Level 3 for those over 24

3. Good news ACL remains a priority and the adult safeguard is protected –reform of budget allocations Continued support for basic skills Unionlearn is safe Development of all age Careers £250m pa for adult apprenticeships by 21014/15 Additional £0.5m into Regional Growth Fund £200m pa by 2014/15 to support key sector growth with elite R/D centres

4. Opportunities Train to Gain replaced Work Programme coming Part-time students (with an FTE of one third or more) offered the same deal as full time students New skills strategy Simplification of funding system Provide additional places for participation in16-19 learning

5. Concerns Funding uncertainty for ESOL Raise the participation age to 18 by 2015 - EMA to be retargeted £250m pa for adult apprenticeships by 21014/15 Potential introduction of new loans and fees system? Rationalising and ending centrally directed programmes for children, young people and families - could impact on extended schools,

6. Headlines for HE Massive shift from public to private funding Teaching budget cut for HE from £7.1 billion to £4.2 billion HE fees system to be revised -Browne review BIS will continue to fund teaching for STEM subjects A new £150m National Scholarship Fund to support students from disadvantaged backgrounds will be set up by 2014-15

7. Overall If you look at the money-the settlement involves a major shift in funding from the state to the individual. If, however, you listen to ministerial aspirations, adult learning faces sunnier prospects. But as so often employers are left alone – free to take part or to remain on the sidelines, as they choose.

8. Freedom and decentralisation It reminds me of the old Whitehall saying, Governments with money centralise and claim the credit; those without decentralise and spread the blame. Pearson Centre for Policy and Learning team www.pearsoncpl.com