‘Two-track’ English skills funding system ‘lacks coherence’

Two of the government’s headline policies designed to address skills needs and encourage adult learning in England risk complicating an already confusing landscape unless more thought is given to how they can work together, according to a report.

Labour has promised to expand the apprenticeship levy to become a new Growth and Skills Levy and has also maintained a commitment of the previous government to create a Lifelong Learning Entitlement (LLE) to fund modular study.

Both have the potential to “support a more flexible, inclusive and relevant education system that empowers learners throughout their working lives”, says a policy note from the Higher Education Policy Institute (Hepi) and technology firm Instructure, published on 28 November.

But, it adds, “if the policies are not implemented holistically, there is a risk of a two-track system developing, with learners unaware of the opportunity to gain full qualifications”.

The paper recommends that a mechanism be developed that would allow a person to “stack” credits achieved under both the LLE – which are self-funded via loans – and the levy, which is a tax on employers’ payrolls to fund training opportunities, enabling them to build a qualification using both.

It also calls on the regulator, the Office for Students, to encourage the awarding of “exit” qualifications below degree level and to develop a new regulatory framework that better encourages modular learning.

There is a risk that existing regulatory metrics that place much weight on continuation and progression could “impede provision at the modular level”, the report warns.

“Our report highlights a critical need for coherence between the Lifelong Learning Entitlement and the Growth and Skills Levy,” said Rose Stephenson, director of policy and advocacy at Hepi.

“By aligning these policies, we can create a more flexible and unified pathway for lifelong learning that responds to both individual career aspirations and the evolving needs of the UK workforce. This is an opportunity to ensure that funding and training truly support growth, resilience and inclusivity in the labour market.”

Labour announced last month that the introduction of the LLE has been postponed again, until January 2027, with experts urging ministers to use the time to revise the system so that it better meets its aims.

Instead of waiting for the policy to come to fruition, universities including Imperial College London and the universities of Manchester and Cardiff have committed to making lifelong learning central to their overall strategies and are analysing how structures will need to change to meet this aim.

A project funded by 18 UK universities and the European Association of Lifelong Learning has just launched to consider what universities and employers need to do to make this a reality.

Education consultancy Carrington Crisp has polled learners and employers globally on their views, and early results indicate a recognition that education should be seen as a lifelong endeavour and that universities do have a role to play, but that they will need to change to achieve this better.

“If we do want universities to move in this direction, it does need a lot of work; it is not simple or quick,” said Jonathan Michie, professor of innovation and knowledge exchange at the University of Oxford, and one of the organisers of the project.

tom.williams@timeshighereducation.com