Transfer of Funding Powers For New Technical Qualifications

The Secretary of State has power under s105A Local Democracy, Economic Development and Construction Act 2009 to transfer functions to Combined Authorities. The Secretary has exercised these powers to transfer certain adult education functions of the Secretary of State under the Apprenticeships, Skills, Children and Learning Act 2009 (“the 2009 Act”) on the Tees Valley, Liverpool City Region, West Midlands, Greater Manchester, Cambridgeshire & Peterborough, West of England, North East, South Yorkshire, and West Yorkshire Combined Authorities in relation to the area of the relevant authority. Similar powers apply under s19 of the Levelling-Up and Regeneration Act 2023 in relation to Combined County Authorities.  

In 2024, new technical qualifications at levels 2 and 3 were approved by the Institute for Apprenticeships and Technical Education (IfATE), to support the government’s ambition to raise the quality of post-16 education. The new reformed qualifications are high quality and are aligned to IFATE occupational standards to ensure they deliver the skills that employers need. Devolving this funding power will make sure that adults in devolved areas have full access to these high-quality qualifications.  

The first qualifications will be available from 1st August 2025 and will be funded nationally under section 100(1B) of the Apprenticeships, Skills, Children and Learning Act 2009 (ASCLA).  To enable Combined Authorities and Combined County Authorities to fund the new technical qualifications from 2025, the Government is considering transferring the funding power under Section 100(1B) of Apprenticeships, Skills, Children and Learning Act 2009 (ASCLA) to them. A list of the new technical qualifications approved for funding can be found here: 

• for level 2 qualifications- New qualifications approved for funding at level 2 in England from 1 August 2025 – T Levels support for schools and colleges,  

• for level 3 qualifications - New qualifications Approved for funding at level 3 in England from 1 August 2025 – T Levels support for schools and colleges 

Any new devolved administrations will automatically have this funding power transferred to them as part of their devolution deal. However, the Combined Authorities mentioned above already have devolution arrangements in place or, in the case of York and North Yorkshire Combined Authority and the East Midlands Combined County Authority, have already started the process of devolution of adult skills functions. These Combined Authorities do not currently have the power to fund the newly reformed Level 2 and Level 3 technical qualifications, which means they won’t be able to use their Adult Skills Fund for these qualifications from the 2025/26 academic year. To ensure adult learners across England can access these qualifications, it is proposed that the Secretary of State uses powers under the Local Democracy, Economic Development and Construction Act 2009 and the Levelling Up and Regeneration Act 2023 to transfer Section 100(1B) of the Apprenticeships, Skills, Children and Learning Act 2009 (ASCLA) to these authorities and to the York and North Yorkshire Combined Authority and the East Midlands Combined County Authority. This will ensure that adult learners in these regions have access to the same high-quality qualifications as those in other devolved areas. The Secretary of State must be satisfied that the transfer will improve the economic, social, and environmental well-being of people in these areas. 

Without this transfer, there could be significant regional differences in access to these qualifications, which could undermine national policy and limit opportunities for adult learners in certain areas. If the powers are not delegated, Combined Authorities may not be able to fund these qualifications, or they could still be funded by central government. However, this could create a lack of cohesion in the local adult education offer, as these qualifications wouldn’t be part of the broader regional strategy. 

Who this is for 

This consultation is aimed at residents and members of the public in the following areas:  

• Greater Manchester  

• South Yorkshire 

• West Yorkshire 

• Liverpool City Region 

• North East 

• Tees Valley 

• West Midlands 

• West of England 

• Cambridgeshire and Peterborough 

• York and North Yorkshire  

• East Midlands  

We would also welcome feedback from other interested parties including: 

• colleges 

• apprenticeship and training providers 

• local businesses and employers 

• special educational needs and disability organisations 

• local authority chief executives and skills lead