Report

City skills: Strengthening London’s further education offer

Developing London

This report explores the extent to which London's further education system is enabling all Londoners to thrive in the city's competitive job market at a time of profound economic change.

Further education plays a vital role in the capital: it helps Londoners into better paid and more fulfilling work, and provides employers with the skilled workforce they need.

In the face of a looming recession, and social and economic disruption from coronavirus, Brexit and technological change, it is more crucial than ever.

But London is entering the recession with a weakened further education system…

  • It is underfunded: spending on adult education, apprenticeships and other work-based learning for over 18s has fallen by 37 per cent since 2009/10.
  • There are not enough learners: the proportion of working age Londoners in further education has fallen by 40 per cent since 2014.
  • There are not enough new apprentices: London has half as many apprenticeship starts as the rest of the UK.
  • It has not responded to employers’ needs: the number of learners and apprentices in areas with persistent skills shortages has not increased in line with employer demand.

Principles for reform

Without investment and strategic long-term thinking, the further education sector will not be able to support London’s recovery. The government can no longer afford to neglect it.

To respond to this, the government must:

  • Introduce a support package for the further education sector, bringing funding closer to the higher education offer. This should include boosting teaching grants for subjects relevant to skills shortages.
  • Make learning more affordable by offering free tuition for students studying for their first level 2 or level 3 qualification and a lifelong learning allowance for higher-level courses, available for adults without a publicly funded degree.
  • Devolve the further education budget in full to London government, including funding for apprenticeships and 16-18 learning, to enable strategic oversight of the city’s skills provision and allow City Hall to set priorities that match London’s economic needs.

Funder

This project has been generously supported by

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