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The skills funding letter is published annually and sets out the government’s funding priorities for the skills system. It includes information for the Skills Funding Agency (SFA) to set provider allocations for 2017 to 2018, and shows indicative budgets up to 2020.

The letter shows the government’s commitment to investing in and strengthening the further education (FE) sector. They are in the process of exploring opportunities to further build upon the important reforms already in progress.

The government is planning to fund high-quality provision that gives good value for money and concentrates on young adults, the low-skilled and those who are unemployed.

Key points for 2017- 18:

  • £1.9bn to fund participation in apprenticeship training for all ages;
  • £1.5bn to support participation in adult further education through the Adult Education Budget;
  • £325m available for provision at Levels 3 to 6 through Advanced Learner Loans.

In October 2016 the budget for the Offender Learning and Skills Service was transferred to the Ministry of Justice. It is encouraging that both departments intend to continue close cooperation between the adult skills system and the prison education system.

Click here to read the full letter.

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