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Investing in the right skills - Government publishes Skills Investment Strategy


BIS Department for Business Innovation and Skills - Expert Author

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Issued 17 Nov 2009

The Government yesterday set out how it will invest in the skills critical to the recovery and long-term success of the UK economy. The Skills Investment Strategy 2010 -11 underpins the priorities announced in the recently published national skills strategy, Skills for Growth.

Total Government investment in further education and skills for 2010-11 will be £4.4 billion.

We plan to spend over £3.5 billion in 2010-11 on adult training places, an increase of nearly 3% compared with 2009-10.  This will ensure that the Government is able to deliver on its plan to increase Advanced Apprenticeships places to support the creation of a new technician class central to our economic recovery and future growth, whilst continuing to support those currently seeking sustained employment as part of the Government’s Real Help Now initiative.

This allocation builds on record Government investment in post-16 further education, which has increased by 53% in real terms since 1997.

The investment strategy sets out how to meet the challenges the skills system faces to train people with the higher technical skills required for the key sectors that underwrite our economic growth, which requires a smarter focussing of resources. Following widespread consultation with the sector, the strategy also reflects the changes required to achieve the £340m of efficiency savings announced as part of the 2009 budget. 

Skills Minister Kevin Brennan said:

“Skills training is an investment in an individual and their ability to get on in life, an investment in the productivity of our companies and in our future economic growth. We need to invest in the right training, to encourage more employers and individuals to buy into skills and to ensure a more productive use of skills across the UK economy.”

This Investment Strategy focuses public investment on high quality provision and on maximising the contribution from employers towards training. It is these employers who will be the main beneficiaries of our skills system. Increased autonomy will be given to outstanding colleges and training organisations, allowing them greater freedoms across their total budget. 

  • Total Government investment in further education and skills will be £4.4 billion in 2010-11
  • Direct investment in training places through the Skills Funding Agency for 2010-11 will be £3.5 billion, an increase of nearly 3% compared with 2009-10. This will support over 3.4 million adult learners.
  • The Adult Learner Responsive budget will be over £1.75 billion in 2010-11. This will support a wide range of activity including training packages to provide work-focussed training for around 75,000 adults out of work in receipt of benefits for 6 months or longer, and up to 80,000 young people aged 18-24 as part of the Young Person’s Guarantee.
  • The adult Apprenticeship budget will be £400 million in 2010-11, supporting a total of 167,000 starts.  This includes an additional 20,000 Advanced Apprenticeship places in 2010/11 academic year for those aged 19 to 30.
  • The Train to Gain budget will increase to nearly £1billion to support nearly 1.3 million adult learner places in the 2010/11 academic year.


1.      The Skills Investment Strategy can be found at

2.      Last year’s LSC grant letter and Government Investment Strategy 2009-10 can be found at

3.      Total Government investment in adult further education and skills through the Skills Funding Agency and department-held budgets for 2010-11 will be £4.4 billion.  In addition, capital investment in FE and Skills will be £540m in 2010-11.

4.    £340 million of efficiency savings were agreed as part of the 2009 budget. This was communicated publicly to the Learning and Skills Council by John Denham in May 2009 and includes £100 million savings from bodies other than the Skills Funding Agency.

5.    For further information, please call the BIS press office on 020 7215 5947.

Department for Business, Innovation & Skills

The Department for Business, Innovation and Skills (BIS) is building a dynamic and competitive UK economy by: creating the conditions for business success; promoting innovation, enterprise and science; and giving everyone the skills and opportunities to succeed. To achieve this it will foster world-class universities and promote an open global economy. BIS - Investing in our future.

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Article Published/Sorted/Amended on Scopulus 2009-11-17 15:02:50 in Employee Articles

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