Devolution and the Post-16 Skills White Paper: Opportunity and Challenge Ahead

The recent Post-16 Education and Skills White Paper outlines how England’s skills system is being reshaped and aims to make it fit for a future that is different and more complex than before. At its core lies a clear message that in some areas, power, funding, and decision-making should move closer to the people and places they affect most. This is the case with Adult Skills funding; the white paper outlines the continuation of a journey that has already begun. Alongside this, there is a distinct commitment to continue with Skills Bootcamps and Sector-based Work Academy Programmes (SWAPs), but rather than being nationally administered, they will be more focused on regional priorities.

Devolution is no longer just a political idea — it’s becoming a practical framework for administering adult education and employment support, deepening the alignment of skills with local economies. It aims to build stronger partnerships between central and regional government, employers, and providers.

The Promise of Devolution

The white paper outlines how, under the new approach, Strategic Authorities such as mayoral combined authorities will take on a stronger role in shaping how the skills and employment system works locally.

It is expected that they will:

Lead local skills planning, taking joint ownership of Local Skills Improvement Plans (LSIPs) alongside employer representative bodies.
Direct skills funding, with more flexibility through “Integrated Settlements” allowing local areas to move funding between skills (ASF and bootcamps), transport, and employment programmes and enabling providers to use allocations more flexibly to meet local demand.
Use labour-market data (supported by Skills England) to make evidence-based decisions about where training investment is most needed.
Collaborate with employers and providers to design skills offers that directly match local labour-market needs.

The ambition is clear: a skills system that feels local, responsive, and relevant and one that better supports people to gain skills that lead to real jobs and progression opportunities within their community.

The Challenges for Devolved Authorities

However, with big ambitions come challenges, new complexities and responsibilities.

Capacity and capability
The level of experience within devolved authorities can differ, especially while newer devolved authorities build the capacity to administer adult skills budgets effectively. Building this capacity while ensuring strong governance and accountability is essential. The introduction of multi-year integrated settlements will enable longer-term planning for the authorities and providers alike.
Balancing flexibility with consistency
Understandably, local priorities vary, but national employers and learners still expect a coherent national offer, particularly when skills shortage areas can be similar over a wide geographical area. Devolved regions must walk a fine line between tailoring solutions and maintaining alignment with national frameworks (e.g., qualifications reform, apprenticeship standards). Something which can be challenging to balance due to the restrictions on new regulated qualification approvals and existing qualifications having had limited revisions over the last couple of years.
Data and collaboration
Access to real-time labour-market intelligence is vital, but integrating national data (from Skills England) with local insight is a technical and organisational challenge. For example, combined authorities need access to accurate 16-24 NEET data for their areas to effectively engage with those who are 19+ and furthest away from the jobs market. Ensuring consistent quality and comparability across regions will require ongoing coordination and communication between the regions and central government.
Managing expectations
With new powers come high expectations from government, employers, providers and communities. Delivering visible results in skills outcomes, particularly in the short term, may prove difficult amid tight budgets and complex regional economies. However, it is important to give providers and strategic authorities time, as some outcomes may take time to be tangibly felt.

The Challenges for Training Providers

For providers of all types, devolution reshapes how relationships and funding work.

Multiple funding relationships
Providers operating across regions will need to manage multiple contracts, performance frameworks, and local priorities, increasing administrative complexity.
Variable priorities and approaches
A course that is funded in one region might not be in another. Providers will need to stay agile, monitoring changing local strategies to ensure their offer remains relevant and viable.
Increased demand for local engagement
Localism means deeper engagement with local employer networks, chambers of commerce, and LSIP boards. This can strengthen relationships, but adds to the workload of already stretched leadership teams.
Pressure to demonstrate impact
As devolved authorities seek to prove the value of their decisions, providers will be under growing pressure to deliver measurable outcomes — employment gains, progression, and productivity impact — backed by strong evidence.

Moving Forward Together

Devolution is both an opportunity and a test. The white paper shows us the ambition but doesn’t provide the detail on the implementation, and if we’re honest, it provides limited information on the direction of adult skills provision, other than a continued appetite that it is delivered through devolved channels.

It promises a smarter, more adaptive skills system, rooted in local needs, but success will depend on how well central government, Strategic Authorities, and providers work together in practice.

For devolved authorities, this means investing in strong partnerships, data capabilities, and long-term planning.

For providers, it means being proactive, outward-looking, and ready to collaborate in shaping local skills ecosystems.

Ultimately, devolution should not fragment the system (though time will tell), it should make it more human, more connected, and more effective in giving every learner and employer the skills they truly need.

The Association of Employment and Learning Providers (AELP) is a national membership body, proudly representing organisations operating in the skills sector. AELP members deliver a range of training and vocational learning – including the majority of apprenticeships as well as Skills Bootcamps, 16-19 Study Programme, Adult Education Budget and more.

For further information or interviews please contact Matt Strong, Communications Manager, AELP, on 07920 161685 or [email protected]