The Northern Ledger

Amplifying Northern Voices Since 2018

Adult Skills Fund 2026-27 confirmed for northern authorities

On 19 March, York and North Yorkshire Mayor David Skaith described the Adult Skills Fund as "a key part" of widening access to training in the region. On 21 April, Whitehall put hard numbers behind that message, publishing the 2026-27 grant letters covering the period from 1 April 2026 to 31 March 2027. (yorknorthyorks-ca.gov.uk) The Department for Work and Pensions says this year’s package covers non-ring-fenced Adult Skills Fund money, non-ring-fenced Skills Bootcamps payments and Free Courses for Jobs funding, with the cash transferred to local authorities under section 31 of the Local Government Act 2003. (gov.uk)

For the North, the standout names in this set of letters are Tees Valley, Lancashire, Hull and East Yorkshire, and York and North Yorkshire. Together, those four areas are due just over £89.8 million through the main 2026-27 allocations, rising to just over £92 million once Lancashire’s separate ring-fenced Free Courses for Jobs award is added in. (gov.uk) Tees Valley has the biggest northern total in the main letter at £35.6 million for the 2026-27 financial year. Lancashire is set for £27.3 million in core Adult Skills Fund money plus a separate £2.27 million for Free Courses for Jobs, while Hull and East Yorkshire receives £13.5 million and York and North Yorkshire £13.4 million. (gov.uk)

There is a wrinkle in the numbers, and it matters. The main grant letter says Mayoral Strategic Authorities receive totals that roll together core Adult Skills Fund cash with Skills Bootcamps and Free Courses for Jobs, while Foundation Strategic Authorities such as Lancashire receive core Adult Skills Fund money in the main letter and separate Free Courses for Jobs funding through another grant agreement. (gov.uk) That helps explain why local claims about the size of the fund can look different depending on whether they are talking about the financial year or the academic year. Lancashire’s financial-year allocation in the main letter is £27.3 million, but its academic-year total is £41.2 million, which broadly matches the county authority’s earlier description of taking on an Adult Skills Fund worth around £40 million. (gov.uk)

Northern leaders have been making the local case for months. In York and North Yorkshire, Skaith has said the fund is "a key part" of helping residents access the training they need. Hull and East Yorkshire’s mayoral team has said adult education should reflect "the needs of our economy", while Tees Valley Mayor Ben Houchen has argued that training must meet local workforce needs if the region is to back sectors from clean energy to digital. (yorknorthyorks-ca.gov.uk) The published paperwork and those local statements point in the same direction: strategic authorities want the freedom to shape provision around local employers, colleges and growth sectors rather than rely on a single Whitehall template. That is an inference from the documents, but it is plainly the standard these settlements are likely to be judged against in northern communities. (yorknorthyorks-ca.gov.uk)

There is wider policy context behind these letters as well. The GOV.UK collection says responsibility for this grant series moved to the Department for Work and Pensions on 1 April 2026, that the Adult Skills Fund replaced the old Adult Education Budget in August 2024, and that Free Courses for Jobs was expanded in August 2025 to include some level 2 construction qualifications. (gov.uk) For northern areas trying to match training to jobs in construction, manufacturing, logistics, clean energy and other growth sectors, that scope matters. It suggests the fund is not simply an education line in a spreadsheet, but part of a bigger local argument about who gets to decide how retraining, recruitment and economic growth fit together. This is an inference drawn from the published scope of the fund and the authorities’ own statements about local labour-market needs. (gov.uk)

Readers may notice that some familiar devolved areas are missing from these particular letters. The annex notes that integrated settlement deals are published separately, so this is not a complete map of every devolved skills arrangement in England. (gov.uk) Even so, the direction of travel is clear. More adult learning cash is being channelled through strategic authorities rather than held tightly in Whitehall, although the grant letters also make clear that councils and combined authorities must work within national accountability and assurance frameworks. For the North, the next question is no longer whether local leaders should have a say on skills funding, but how much room they will really have to turn these settlements into courses, confidence and decent work close to home. (gov.uk)

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