What is the Adult Skills Fund (ASF)?

As of August 2024, the Adult Education Budget (AEB) has been replaced with the Adult Skills Fund (ASF). Though there are lots of similarities between the two, there are some differences that training providers, colleges and universities should know.

What is the Adult Skills Fund (ASF)?

The ASF is a government-funded programme that finances the delivery of education and training for learners aged 19 or over, and can be accessed via local training providers or colleges. 

It can be used to take on new skills, improve job prospects and move into further education. The ASF provides adults with the skills they need to progress in work or equip them for an apprenticeship, much like its previous iteration, the AEB. 

This new fund is designed to be a more simplified and refined version of the AEB programme, making it easier to claim money and bolster learning opportunities. 

The ASF combines the AEB, free courses for jobs and community learning funds under a single header. This new programme also encompasses a sizable range of qualifications, including technical and professional training, as well as basic language skills courses.

What are the differences between the ASF and the AEB?

While both are similar, the ASF offers greater opportunities to deliver personalised learning compared to the AEB. It can provide additional tailored support to help participants realise outcomes beyond formal education. 

This could include improving their overall physical health, for example, or equipping parents and carers with the tools they need to oversee their child’s learning. Providers, colleges and universities are now allocated a specific portion of their overall ASF budget to spend on provisions that support these wider needs, depending on their prior history. 

This variation means that new funding rules have replaced existing AEB guidelines. It’s important to check the eligibility criteria and how these changes may affect you. 

What can the ASF be spent on?

The ASF can fund:

• Anyone aged 19-23 to get a full level 2 or 3 qualification, if they don’t already have one. If they are aged 24 or over, it may need to be co-funded
• Low-waged learners aged 24 or over to get a first full level 2 or 3 qualification.
• Anyone who is unemployed for any qualification or course up to level 2
• Any low-waged individual, for whom English is not their first language, to improve their language skills and knowledge up to level 2
• English and maths courses, up to and including level 2, for individuals aged 19 and over who have not achieved a GCSE grade A*-C or grade 4, or higher

It can also fund traineeships for unemployed learners aged 19 to 24, including additional units, awards and certificates. This should contribute toward a flexible traineeship that supports an applicant with occupationally-specific knowledge and skills. 

Funds from the ASF are commonly spent on continuing professional development. 

How is funding distributed?

Instead of all funding being handled by the ESFA, different regions in the UK are responsible for distributing the ASF. This prevents funding from being driven by overarching national priorities. Instead, money can be better attuned to the local needs of a specific region. 

The following areas are responsible for administering the ASF:

• Cambridgeshire and Peterborough
• Greater Manchester
• Greater London
• Liverpool City Region
• Tees Valley
• West of England
• West Midlands
• North of Tyne
• Sheffield City Region (from August 2021)
• West Yorkshire (from August 2021)

How will the ASF impact previous funding guidelines? 

The ASF has a few key alterations to its rules compared to the AEB that affect residency terms and funding eligibility in particular. 

Changes to residency rules: 

• Those with indefinite leave to remain must meet the 3-year residency rule, unless they’re a victim of domestic abuse of a bereaved partner
• Colleges must ensure visa holders can complete their course, even when it is due to expire
• Learners should remain in England throughout their course. Providers are not obligated to continue funding if a learner is outside of the country, even in temporary or emergency circumstances

Changes to ASF qualifications: 

• An introduction of an earning threshold. As part of ASF’s new eligibility criteria, learners earning below £25,000 can be fully funded, regardless of employment status. 
• Prior attainment is no longer a factor for policy entitlements. Learners can be fully funded if they meet residency eligibility criteria, are 19 or over and earn below £25,000
• Tailored learning has now replaced community learning, as well as formula funded, non-regulated learning

You can read the full ESFA funding rules document here. It includes a regularly updated list of changes and alterations. 

How can providers prepare? 

The AEB has now been fully replaced by the ASF. Providers should take the time to learn and understand the new system in order to best benefit from additional funding opportunities.

Examine your own learners and determine if any will be affected by the new programme and funding rules. College and university providers should ensure that all visa requirements are adhered to and are in line with the above changes. 

Visit the Education and Skills Funding Agency website for the full 2024/25 funding rules document here. For details on how providers will earn their funding, you can also view the 2024/25 ASF rates and formula guidance document here.

Drive compliance with Bud

Bud is a joined-up training management platform, designed to streamline the processes involved in delivering apprenticeships and skills training.

Bud is built to support compliance every step of the way, from onboarding to end-point assessment. For every learner’s programme, Bud dynamically generates a centralised evidence pack so that you can confidently claim your funding.

Book a discovery call to get started today.