Skills Funding Statement reveals Adult Skills Budget to be cut 19%

The recently released Skills Funding Statement has revealed that the government’s Adult Skills Budget is facing a cut of 19% by 2016.

The Adult Skills Budget will fall from its current rate of £2.467bn to £2.004bn by 2016. As a result of the failed application of FE loans, government funding will be extended to all apprenticeships. Apprentices over 24 would be taken off  the scheme, and loans already issued will not have to be repaid.

Additionally, traineeships will be extended to 24 year olds.

Skills Minister Matthew Hancock said: “The newly-available loans for FE have seen a high level of demand, however, loans for apprenticeships have not seen the same uptake. We will therefore remove apprenticeships from loans and offer a government contribution for all apprenticeships while continuing to expand the loans budget to deliver training on the ground.

“We are working hard to make sure that the skills system is both rigorous and challenging, meeting the needs of individuals, employers and the wider economy. Our continued focus on high quality provision will support learners to give them the skills they need to succeed in a modern workforce.”