Spending Review 2002:
Public Spending and Adult Learning 

A NIACE Commentary
Published August 2002

Introduction

1. This commentary sets out NIACE’s initial response to the Government’s spending plans for adult learning in England as announced by the Chancellor of the Exchequer on 15 July 2002 when introducing the results of the spending review (SR2002). The review, detailed in the white paper “Opportunity and Security for All: Investing in an Enterprising, Fairer Britain “ (HM Treasury, Cm 5570) covers the three year period from 2003/04 to 2005/06. More detailed information is also drawn from the Department for Education and Skills document “Education and Skills: investment for reform” (DfES, July 2002). This commentary paper is intended to complement a companion NIACE Briefing with the same title (Public Spending and Adult Learning) which provides a summary of the contents of the government documents.

Much to welcome

2. There are very many items to welcome in the Spending Review and it is undeniable that the education budget is one of the greatest beneficiaries of the announcements (see Briefing, paragraph 9).

3. Particularly welcome are:

4. NIACE concurs with these priorities and is convinced of the Government’s commitment to raising the general educational level of the adult population by focusing upon those who benefited least from their initial schooling. We look forward to working with the Government in order that these commitments are met.

5. While welcoming the plans to raise levels of capital investment in education substantially from £3.7 billion in 2002/03 to £7 billion in 2005/06, NIACE calls upon government to ensure that adult and community learning (ACL) is not forgotten in the drive to transform schools colleges and universities. There is also a need for capital investment in community based learning in both the local authority and voluntary sectors within the capital investment collar.

6. NIACE has argued in the past that a low-fee economy for learning may not necessarily be in the interests of adult learners as it limits the volume of accessible provision to that subsidized by the state. For this reason, we welcome the announcement of a fundamental review of adult learning and skills. We are, however, concerned that the apparent remit (“to encourage institutions to be more responsive to employer needs”) should not be achieved by making institutions any less responsive to the needs of individual learners and the wider communities of which those institutions are part. Learners must remain at the heart of the system. In an ageing society, the social and cultural benefits of learning should not be overlooked in the desire to better serve employer needs. In particular, we look forward to employers contributing funding to a more responsive system especially through paid time off for training or paid educational leave.

7. The decision to strengthen the regional dimension to skills development through pilots, from 2003, to pool adult learning budgets between local Learning and Skills Councils and Regional Development Agencies is an interesting one. We would, however, remind RDAs and the Department of Trade and Industry of the LSC’s statutory duty to encourage learning of all kinds. The pilots must recognize and acknowledge that adult learning extends far beyond a narrow skills agenda and that it encompasses more than the Public Service Agreements concerning the acquisition of qualifications. NIACE would argue strongly against any piloting that sought to narrow or overtly ration the publicly-supported curriculum.

8. NIACE also welcomes HM Treasury’s decision to give departments three-year budgets with 100% end of year flexibility - and the intention to devolve these. We look forward to discussing with the DfES and other Departments how our own funding arrangements can also be developed to ensure best value.

9. In addition, NIACE welcomes the additional resources identified in SR2002 or promised in Education and Skills: Investment for Reform for:

10. Beyond the DfES, there are also several developments that are encouraging for adult learning including:

Missed opportunities?

11. Given so many positive messages, it is almost churlish to highlight areas of disappointment - yet for many concerned with the education and training of adults in colleges and universities, as well as in training (where the advent of Sector Skills Councils is effectively ignored), SR2002 and the DfES’s own paper will not have dispelled a nagging feeling that the Government’s commitment to a wide conception of lifelong learning has narrowed since the last election.

12. While very welcome, the 1% real terms growth in core funding each year to further education colleges can only be compared unfavourably to the 3.4% increase in Education Standard Spending - and it comes with strings attached - requiring commitment to performance targets. More is needed.

13. Again, in higher education, the Chancellor’s commitments to “encourage a third role for universities beyond teaching and research” and an increase in the HE innovation Fund to £90 million a year by 2005/06 are welcome, as will be HE’s share of increased capital spending. Nevertheless, a number of difficult decisions in the HE area, especially around student finance, are still awaited. While Government remains committed to widening access to higher education and to a target of 50% HE participation among 18-30 year-olds by 2010, the means by which this will be achieved are unclear and NIACE remains concerned that this should not be at the expense of adult learners over the age of 30.

14. So many important decisions concerning adult further and higher education and training are missing from SR2002 and Education and Skills: Investment for Reform, that it is not yet possible for NIACE to judge whether the Government is able to offer the leadership needed to carry through its vision of a learning society. We await with interest details of more detailed spending allocations and developments this autumn such as:

15. NIACE remains fully committed to working with the Government in order to ensure the widest discussion of policy options and to ensure that as the system of lifelong learning develops, it can be delivered in ways that offer more and better opportunities to learners which develop their potential.

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