Devolution in England: A new skills system

The Devolution of England: A new skills system report by North West-based consultancy Think, commissioned by AoC, sets out a national and local skills strategy, and says strategic authorities should have greater control over skills funding and policy decisions, moving away from the ‘Whitehall knows best’ model.

With targeted devolved funding, the report says, colleges can tailor their adult skills programmes to meet the specific needs of their local labour markets, empowering them and the communities they serve. For instance, a college in a region with a growing tech industry could develop specialised IT and coding courses, directly aligning education with local job opportunities.

Key recommendations:

• Shift to a plan-based skills system
• Move from a competitive to a collaborative funding model.
• Devolve funding while maintaining current programme structures (adult 19+, apprenticeships, 16-19, higher education).
• Strengthen local collaboration and accountability
• Implement a plan-led approach to adult skills, 16-19 education, and apprenticeships.
• Require accountability statements approved by strategic authorities to shape curriculum offers.
• Develop a national and local skills strategy
• Establish a national vision for technical education linked to local ‘actionable’ skills plans.
• Ensure alignment with the Industrial Strategy, national skills strategy, local growth plans, and LSIPs.
• Improve funding and oversight mechanisms
• Introduce three-year local skills plans informed by national priorities.
• Implement three-year funding settlements for providers based on accountability statements.
• Reduce bureaucracy and compliance burdens
• Use Skills England to streamline funding rules and audits.
• Minimise overlapping local skills strategies that create confusion for employers and providers.
• Enhance system leadership capacity
• Support strategic authorities, employer representative bodies, and college leaders in managing a plan-led system.
• Provide data and occupational tracking for better-informed decision-making.

Read the report Read the AoC press release