Around 60% of adult skills funding in England is devolved to MCAs and the GLA. This guide explains how devolution affects funding rules, commissioning, and compliance for training providers.
Adult education devolution began in the 2019-2020 academic year when the first Mayoral Combined Authorities took responsibility for commissioning and funding adult education for learners resident in their areas. The devolution program has expanded progressively, with additional areas gaining devolved powers through 2025 and beyond.
For training providers, devolution creates both complexity and opportunity. Complexity arises from the need to work within multiple funding frameworks if serving learners across devolved and non-devolved areas. Opportunity comes from working more closely with regional bodies that understand local skills needs and labor market conditions.
This article covers the devolution landscape as it applies to adult skills funding in England. For the broader compliance context, see England Training Provider Compliance: Funding, Reporting, and Audit Readiness.
Adult education functions have been transferred to Mayoral Combined Authorities through devolution orders made under the Local Democracy, Economic Development and Construction Act 2009. For Greater London, functions are delegated to the Mayor of London under the Greater London Authority Act 1999.
Adult skills funding is devolved to MCAs under the 2009 Act, with London governed separately under the GLA Act. Providers must identify each learner’s funding authority, as regional rules and priorities vary and continue expanding.
The following authorities currently have devolved adult skills funding responsibility:
Additional areas have been granted or are receiving devolved adult education functions:
Further devolution is expected as the government extends devolution across England. Providers should monitor announcements for areas that may gain devolved powers.
Devolution changes several aspects of how providers operate.
Learners are funded based on where they live, not where they study. A learner resident in Greater Manchester is funded by GMCA even if they study at a provider located in a non-devolved area. Similarly, a learner resident in a non-devolved area is funded by DfE even if they study at a provider in a devolved region.
Providers must check each learner's home postcode against the devolution postcode dataset to determine funding responsibility. The Source of Funding (SOF) code in the ILR must match the appropriate authority.
Each devolved authority is responsible for commissioning adult education provision in its area. This means providers need contracts or grant agreements with each authority whose learners they wish to serve.
A provider operating nationally may need agreements with DfE (for non-devolved areas) plus multiple MCAs. Each authority has its own procurement processes, contract terms, and performance management arrangements.
While many devolved authorities adopt DfE national funding rates and rules, they are not required to do so. Each authority publishes its own funding and performance management rules, which may include different funding rates for certain provision, different eligibility criteria within statutory requirements, different priorities aligned with local skills needs, and different performance management thresholds.
Providers must be aware of variations in funding rules across the authorities they work with.
DfE retains authority to specify which qualifications are statutory entitlements. The four statutory entitlements (English and maths, first full level 2 and level 3 for 19-23 year olds, essential digital skills) apply in both devolved and non-devolved areas.
Devolved authorities must ensure statutory entitlements are available to eligible learners in their areas, but they commission the provision to deliver these entitlements.
Providers serving learners across multiple areas need systems to manage complexity.
Verify postcodes using the quarterly DfE dataset, track funding codes accurately, manage contracts separately, and monitor continuing learners to ensure correct funding rules across devolved and non-devolved areas.
Accurate postcode verification at enrollment is essential. Providers should use the current devolution postcode dataset (updated quarterly by DfE based on ONS postcode data) to determine funding responsibility, record the correct Source of Funding code in the ILR, verify postcodes at the start of each learning aim (not just at initial enrollment), and update records if learners move during their program.
The devolution postcode dataset is published on GOV.UK and maps postcodes to funding bodies.
Providers with multiple authority contracts need robust contract management including tracking allocation levels and delivery against each contract, understanding different reporting requirements, meeting different performance management thresholds, and responding to different commissioning priorities.
Each authority may have different systems for allocation management, delivery reporting, and performance review.
Learners who started provision before an area became devolved may have different funding arrangements. "Continuing learner" rules allow learners to complete their existing program under their original funding arrangement even if their area subsequently devolved.
Providers should track continuing learners separately and understand the applicable rules for each cohort.
Devolved authorities set funding priorities based on local skills needs. Understanding these priorities helps providers align their offer.
Local Skills Improvement Plans (LSIPs) set out employer-identified skills priorities for each area. Devolved authorities reference LSIPs in their commissioning, favoring provision that addresses identified skills gaps.
Providers should review the relevant LSIP for areas they serve and consider how their provision aligns with identified priorities.
Each combined authority has broader economic development strategies that inform adult skills funding priorities. These may emphasize particular sectors (such as digital, green skills, or health and social care), particular learner groups (such as unemployed residents or those in low-paid work), or particular progression pathways (such as routes into identified growth sectors).
Providers whose offer aligns with regional priorities may have stronger positioning in commissioning processes.
Devolved authorities may combine adult skills funding with other funding streams including UK Shared Prosperity Fund, Skills Bootcamps, and local economic development funding. This integration can create opportunities for providers to offer more comprehensive programs.
Managing compliance across multiple funding relationships requires systematic approaches.
Maintain documentation standards that meet the most stringent requirements across all authorities. This avoids situations where evidence is sufficient for one authority but not another.
Core documentation should cover all learner eligibility verification, learning delivery records, outcome documentation, and evidence of funding rate application.
Accurate ILR recording is essential when working with multiple authorities. Errors in Source of Funding codes can result in funding being claimed from the wrong authority, creating problems for both the provider and the authorities involved.
Use systematic postcode verification processes and regular data quality checks to ensure SOF accuracy.
Different authorities may have different audit cycles and approaches. Providers should maintain audit-ready documentation continuously rather than preparing for specific audit events, track audit requirements from each authority, and respond promptly to audit queries from any authority.
Information sharing between DfE and devolved authorities means compliance issues with one authority may affect relationships with others.
Each authority has its own performance management approach, though many align with DfE frameworks.
Authorities monitor provider delivery against allocated funding. Under-delivery may result in allocation reductions; over-delivery beyond agreed thresholds may not be funded.
Performance management thresholds may vary by authority. Some may tolerate higher variance from allocation than others.
All publicly funded provision is subject to Ofsted inspection regardless of funding source. Inspection outcomes affect relationships with all funding bodies.
Some authorities may impose additional quality requirements beyond Ofsted, such as minimum satisfaction scores or destination rate thresholds.
Contract renewal depends on delivery performance, compliance record, and alignment with authority priorities. Strong performance with one authority does not guarantee success with others if priorities differ.
The government's devolution agenda indicates further expansion of devolved adult skills funding. Providers should monitor devolution announcements for areas they serve, understand the timeline for new devolution (typically one to two years from announcement to go-live), plan for changes to funding relationships as new areas devolve, and consider how to position for commissioning in newly devolved areas.
Areas currently in discussion or recently announced for devolution may affect providers with significant learner populations in those regions.
Training providers use Yotru to support learner outcomes across funding streams.
Consistent learner support across devolved and non-devolved provision benefits from standardized approaches. Yotru's platform for training providers helps ensure all learners receive equivalent employability support regardless of their funding source.
Outcomes evidence matters across all funding relationships. Providers using Yotru can evidence learner progression in ways that support both DfE and MCA performance monitoring.
Regional skills alignment benefits from practical employability focus. Providers demonstrating effective learner outcomes support their positioning in MCA commissioning that emphasizes progression to employment.
Team Yotru
Employability Systems & Applied Research
Team Yotru
Employability Systems & Applied Research
We build career tools informed by years working in workforce development, employability programs, and education technology. We work with training providers and workforce organizations to create practical tools for employment and retraining programs—combining labor market insights with real-world application to support effective career development. Follow us on LinkedIn.
Devolved adult skills funding means that Mayoral Combined Authorities (MCAs) and the Greater London Authority are responsible for commissioning and funding adult education for learners resident in their areas. Approximately 60% of the Adult Skills Fund is now devolved. Learners are funded based on where they live, not where they study. Providers must check each learner's home postcode against the devolution postcode dataset to determine which body funds their provision.
This article is written for training providers, FE colleges, and compliance professionals delivering publicly funded adult education in England. It provides practical guidance on regulatory requirements and audit readiness.
Yotru content prioritizes accuracy, neutrality, and practical application. All regulatory references are verified against official sources. Articles are updated as frameworks change.
This article is for informational purposes only and does not constitute legal or regulatory advice. Providers should verify current requirements with relevant funding bodies. Individual circumstances may vary.
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