North Yorkshire Council

 

Executive

 

15th July 2025

 

Adult Skills Fund Grant acceptance 2025/26

 

Report of the Corporate Director Children and Young Peoples Service

 

1.0       PURPOSE OF REPORT

 

1.1       The reports’ purpose is to seek acceptance of Adult Skills Fund from the Combined Authority to enable the Adult Learning and Skills Service to meet the needs of North Yorkshire Residents

 

 

2.0       BACKGROUND

 

2.1       The Adult Learning and Skills Service of North Yorkshire Council offers adult and tailored learning, mainly funded by the Education and Skills Funding Agency. This funding through the Adult Skills Fund will move from the Department for Education to the York and North Yorkshire Combined Authority from August 1st, 2025.

 

2.2       This funding as detailed in the enclosed grant agreement documentation is for circa £2.7m

 

3.0       Substantive Issue

 

3.1       Whilst the DfE have devolved the funding to the York and North Yorkshire Mayoral Combined Authority, it is not an absolute statutory function that North Yorkshire Council delivers adult learning. As per the Council’s constitution, grant acceptance for discretionary grants that exceed £1m must be formally accepted by the Council’s Executive.

 

 

4.0       CONTRIBUTION TO COUNCIL PRIORITIES

 

4.1       Through our agreed accountability statement we have detailed how we will use these funds to support adults across the region

 

4.2       The service faces significant challenges, yet we have managed to address declining participation rates in adult learning and increasing pressures on core council budgets. The accountability statement detailed how the curriculum is aligned with this preventative approach, how the added social value of learning will be maximised and how additional funding may be leveraged to support engagement and progression goals. This alignment is believed to be consistent with MCA plans and demonstrates the value provided by ASF funding.

 

4.3       Our service, helps residents achieve their potential and benefit from the economy. We deliver face-to-face at community centres, libraries, council buildings, and hubs like foodbanks. Since the pandemic, online delivery increased, but we aim to enhance face-to-face and blended options.

 

4.4       Our commitment to adult learning drives us to deliver effective educational programmes to a diverse range of adults, with a particular emphasis on those from disadvantaged and marginalised communities. We aim to offer inclusive services with high-quality educational provisions and support that cater to varying needs while aligning with the local economy's requirements. Consistent with the Council Plan, we aspire to enhance opportunities for all North Yorkshire residents to lead healthy and fulfilling lives.

 

 

5.0       ALTERNATIVE OPTIONS CONSIDERED

 

5.1       The Adult Learning Service, as detailed within the accountability statement, aims to meet council objectives and demonstrates an effective way to utilise ring-fenced funding to support the outcomes of the council plan. It does so at no cost to the council through the use of the Adult Skills Fund and other funding streams.

 

5.2       These additional funding streams would be insufficient to meet operating costs on their own with the Adult Skills Fund being the largest aspect of the adult learning related income.

 

5.3       Failure to approve would impact the receipt of vital funds that are due from August 1st 2025

 

 

6.0       IMPACT ON OTHER SERVICES/ORGANISATIONS

 

6.1       Strategic utilisation of the allocated budget can support a range of wider measures that meet the preventative agenda, reducing costs on already stretched central statutory and non-statutory functions. Specifically, the £1.9m Tailored Learning fund can be applied in seven key areas:

·         Engaging and/or building confidence

·         Preparation for further learning

·         Preparation for employment

·         Improving essential skills (English, ESOL, mathematics, digital)

·         Equipping parents/carers to support children's learning

·         Health and well-being

·         Developing stronger communities

 

6.2       These initiatives provide an opportunity to alleviate pressure on core funding through targeted efforts by ALSS, thus extending budgets within local communities, Health & Adult services, and Training and Learning programmes.

 

6.3       The potential for utilising internal funding for upskilling and reskilling remains underdeveloped, especially since deficiencies in mathematics, English, and digital skills often hinder internal progression and apprenticeship uptake and success. Planned use of these funds could enhance workforce capabilities.

 

 

 

7.0       FINANCIAL IMPLICATIONS

 

7.1       The accountability statement detailed the principal methods of fund utilisation. It details our intended expenditure of the grant to be provided by the Combined Authority, totalling approximately £2.7m for adult learners.

 

7.2       While the grant funding cannot generate savings or significant surplus, maximizing engagement opportunities for our residents (including staff) can improve health outcomes, remove barriers to achieving potential, and support families to withstand challenges such as the cost-of-living crisis. This could potentially reduce the demand for council statutory services.

 

7.3       Whilst it has been detailed that the implication of not agreeing funding would be for the service to no longer operate in its current form, any delay to funding agreement would impact service income profiles in order for the service to meet its obligations.

 

7.4       The Adult Learning and Skills Service have operated for many years and discontinuation of the service would impact on service delivery, customer expectations/enrolments as well as implications for a staff team of 126 permanent staff

 

7.5       The funding rules and performance rules for this funding are exactly in line with current arrangements with the DfE / ESFA with reporting in the same way through the Individualised Learner Return (ILR) that will be submitted to the DFE in the same way as previous. The arrangement with the Combined Authority for monitoring are more direct with monthly monitoring in place this academic year as the MCA team become familiar with patterns and modes of delivery. This approach will allow for in-year re-profiling if performance is significantly behind projections, however these are based on planned growth and precious performance. Whilst the Combined Authority have removed the ability to underperform by 3% from contract, the service has been working to a 100% utilisation model for the last two years. Opportunity for growth in 2026/27 financial year is possible and will be a more dynamic process that the lagged model seen with DfE / ESFA.

 

 

8.0       LEGAL IMPLICATIONS

 

8.1       Approval of funding acceptance is a requirement before the grant funding agreement can be signed, sealed and logged by the Combined Authority.

 

9.0 EQUALITIES IMPLICATIONS

 

9.1 The equalities impact assessment shows no implications.

 

10.0 CLIMATE CHANGE IMPLICATIONS

 

10.1 The climate change impact assessment shows no implications.

 

11.0 RISK MANAGEMENT IMPLICATIONS

 

11.1     No known risks are associated with this document's agreement, but failure to agree would result in loss of funding.

 

11.2     Future risks include failing to demonstrate full grant use, with performance being monitored by the MCA

 

 

12.0 HUMAN RESOURCES IMPLICATIONS

 

12.1     Supporting the acceptance poses no human resources implications, however failure to do so would require significant work to transfer functions to other institutions

 

13.0 REASONS FOR RECOMMENDATIONS

 

13.1     Accepting the grant ensures funding for service delivery and provides a framework for accountability. It will also guide internal discussions to maximize learning opportunities for residents.

 

 

14.0

RECOMMENDATION (MANDATORY)

 

 

i)              That Executive agree to accept the Adult Skills Fund Grant from the ESFA

 

 

 

 

 

            APPENDICES:

 

            Appendix A – Draft agreement documentation from the Combined Authority

            Appendix B – Equality Impact Assessment

Appendix C – Climate Change Impact Assessment

 

 

BACKGROUND DOCUMENTS:

 

North Yorkshire Adult Learning and Skills Service Final Accountability Statement 2025-26

 

 

Sir Stuart Carlton

Corporate Director – Children and Young Peoples Service

County Hall

Northallerton

9th July 2025

 

Report Author – Paul Cliff – Shared Head of Adult Learning and Skills (York and North Yorkshire)

Presenter of Report – Paul Cliff as above

 

 

Note: Members are invited to contact the author in advance of the meeting with any detailed queries or questions.