Three asks for the Autumn Budget: The Budget must mend the skills system for adults

by Caroline McDonald

HOLEX welcomes the Government’s recognition of the importance of skills and the recent announcement targeting young adult NEETs.  

But adult education is too often the missing piece of the skills jigsaw. It is a spend-to-save programme, each pound invested pays back in reduced welfare costs, increased productivity, and stronger communities. 

Our three asks address three weaknesses in the current system. By adopting these proposals in the Budget, the adult skills system will become more agile, responsive to the nation’s growth needs, and better able to meet the expectations of residents and learners through a sustainable, place-based skills system. 

Adult skills acquisition and education have a significant impact on individuals, communities, and the economy. Investing in adult skills produces benefits beyond the learner and business, contributing to societal goals such as improved health and wellbeing, stronger community integration, and enhanced life chances.  

Adult education plays a key role in reducing structural inequalities and underpins the Government’s five missions. To achieve this, barriers to opportunity must be broken down, and the system rebuilt around supporting and incentivising learners to acquire new skills. 
 

Ask 1: Fair and increased funding 

Over the lifetime of this Parliament, the Government should increase the adult skills budget by £5 billion and create a fair funding system.  

We recognise that the Chancellor increased spending on post-16 skills by £900m in 2026/27, with nearly £800m going to 16-19 education and £130m to the construction skills package, both young people and adults. But other than funding for adult construction skills, there is nothing for adult education more generally. 

In 2027/28, the post-16 budget is due to rise by £1.2bn, although with £800m again going to 16-19 education and £150m to construction, perhaps £250m might remain. Given that apprenticeship funding is bound to be the priority, especially for under 25s, adult education and skills could well lose out yet again. 

Funding must enable adults with the lowest skills to benefit from investment currently concentrated in tertiary education, and it should be channelled locally to strengthen civic infrastructure and meet community needs.  

With the Department for Work and Pensions now taking ownership of the adult skills budget, it is vital that existing provision is not destabilised or duplicated. Government must build on what works rather than reinvent the wheel. 

And, of course, fair and sufficient funding matters. Without it, millions of adults will be locked out of opportunity, employers will face persistent skills shortages, and communities will be weakened. Strategic investment ensures money is spent efficiently and delivers real returns for the economy and society. 


Ask 2: Equity of educational experience 

Government must prioritise education equity, ensuring adults who are most distant from learning, employment, and community participation have access to high-quality opportunities that lead to meaningful qualifications and progression.  

Provision must be consistently available across the country, removing barriers and enabling all adults to benefit from learning that improves their lives and communities. 

As the Government expands access to Level 4 programmes, a move we fully support, it is essential that this opportunity is made available to adults as well as young people. Achieving this requires meaningful investment in the pipeline of qualifications at Levels 1 and 2, alongside the development of clear and supported pathways through education and into professional roles.  

While the Lifelong Learning Entitlement offers a flexible financing mechanism, it cannot deliver on its promise unless adults and young people alike have viable progression routes. Without these, the long-term ambition of equipping people for high-level, well-paid jobs will remain out of reach for many. 

Again, we appeal to the Treasury to reflect on why this matters. 

Adult education is often the first step into work, training, or civic engagement for those excluded from mainstream opportunities. A fair system reduces inequality, boosts social mobility, and strengthens local economies by bringing untapped talent into play.  

Short courses that don’t lead to qualification or a “Trade for Life” may lead to a job, but that job is often short-lived. Without a qualification, finding a new role is near impossible, and the person ends up back on benefits. This revolving door has to stop. 


Ask 3: Recognition and a cross-government strategy 

Government should recognise the power of adult education in building skills, communities, and civic life. Skills England should lead the creation of a cross-government lifelong learning strategy covering all ages and levels (pre-entry to level 7).

This requires DWP and Mayoral Combined Authorities to work in partnership with Local Authorities, ensuring residents’ voices shape provision and local growth plans are supported rather than bypassed. 

Although we are only weeks away from Budget day on 26 November, the Treasury still has time to take on board evidence from report after report, that demonstrates adult education delivers positive outcomes in terms of health, employment, justice and community cohesion.  

A joined-up strategy prevents waste, aligns policy goals, and maximises the wider social, civic, and economic benefits of learning. 


Caroline McDonald is CEO, HOLEX 

Our regular guest policy views are written by senior leaders and thinkers. They aim to stimulate discussion, identify issues and contribute to debate on post-16 education, skills and employment policy. The opinions expressed are the authors' own and do not necessarily express the views of the Campaign for Learning.