Why Are We Leaving Skills Funding on the Table?

March 26, 2026Posted by: Charlotte

Why Are We Leaving Skills Funding on the Table?

As we approach the start of a new financial year, many training providers and colleges will already be planning delivery, allocating budgets, and setting targets.

But there’s an uncomfortable truth we need to address: a significant portion of adult skills funding goes unused every year.

At a time when employers are struggling to recruit, sectors are facing persistent skills shortages, and thousands of people remain out of work, this gap represents a missed opportunity we can’t afford to ignore.

The Disconnect: Funding vs Outcomes

The UK has a well-established ecosystem of adult education funding, from Adult Skills Fund allocations to Skills Bootcamps and sector-based programmes.

Yet despite this:

• Employers still report talent shortages
• Providers struggle to consistently fill courses
• Learners complete training without clear job outcomes

The issue isn’t always a lack of funding. It’s a lack of alignment.

Too often, training is delivered without a direct line of sight to real vacancies. Courses are planned in isolation from employer demand, and engagement with industry can be complex, time-consuming, or inconsistent.

The result? Funding is spent but not always maximised for impact.

Understanding Adult Skills Funding and How to Access It

Adult skills funding is designed to support education and training, helping people gain the skills they need to move into work, progress in their careers, or retrain.

The main routes include:

Adult Skills Fund (ASF): Typically allocated to colleges, training providers, and mayoral combined authorities to deliver accredited courses and qualifications

Skills Bootcamps: Flexible, short courses linked to specific sectors, often co-designed with employers and focused on job outcomes

Sector-based Work Academy Programmes (SWAPs): Pre-employment training linked to guaranteed interviews

Devolved funding streams: Managed by local authorities or combined authorities, often aligned to regional skills priorities

Accessing this funding usually involves:

• Securing a contract or allocation through a funding body such as the ESFA or a devolved authority
• Delivering provision aligned to funding rules and priorities
• Demonstrating clear outcomes, particularly progression into employment or further learning

However, while access routes are well established, maximising the impact of that funding is where many providers face challenges.

Funding is available. The opportunity is there.

The question is how effectively it is being used to create real outcomes.

A Shift in Approach

If we want to fully utilise available funding, we need to move towards a more connected approach where training, employers and individuals are aligned to create real, sustainable routes into work.

This means:

• Designing provision around live vacancies
• Building direct relationships with employers who are actively recruiting
• Ensuring learners are prepared for specific roles before they start

This is where collaboration becomes critical.

Navigating a Complex System

For many providers and colleges, the challenge isn’t just access to funding. It is navigating the complexity that comes with it.

Multiple funding streams, differing regional priorities, evolving rules, and the need to engage with employers all at once can make the system feel fragmented and difficult to align.

At the same time, expectations are increasing. There is a growing focus on:

• Demonstrating clear employment outcomes
• Supporting individuals with varying levels of need
• Aligning provision to real labour market demand

For many, this creates a balancing act between delivery, compliance, and impact.

This is where more joined-up approaches can make a real difference.

Frameworks such as the Social Recruitment Framework (SRF) aim to bring greater coordination between employers, providers and commissioners, helping simplify engagement and strengthen the link between training and real job opportunities.

By creating clearer connections between provision and demand, approaches like this can help reduce duplication, improve outcomes, and make better use of the funding already available.

Unlocking Underutilised Funding

So how can providers and colleges better access and utilise the funding available to them?

1. Start with employer demand

Before designing provision, identify where the vacancies are, not just where funding sits.

2. Build consistent employer pipelines

Ad-hoc employer engagement leads to inconsistent delivery. Structured partnerships create sustained demand.

3. Align provision to real roles

Ensure course content reflects what employers actually need, not just qualification frameworks.

4. Focus on outcomes, not just start

Funding shouldn’t just be measured by enrolments, but by job outcomes and sustained employment.

5. Collaborate, don’t duplicate

Working within a coordinated approach can reduce duplication and increase reach.

A Missed Opportunity or a Moment to Reset?

With a new financial year ahead, there is a real opportunity to rethink how adult skills funding is used.

This isn’t about doing more; it’s about doing things differently.

By aligning funding with real job opportunities, strengthening employer partnerships, and focusing on outcomes, we can:

• Increase training and education uptake
• Improve completion and progression rates
• Deliver stronger employment outcomes

And ultimately, ensure funding is fully utilised.

Final Thought

We don’t have a funding problem.

We have an alignment problem.

If you'd like to know more about this or what support the Social Recruitment Framework team can offer email [email protected]

March 26, 2026Posted by: Charlotte