Question

To ask the Secretary of State for Business, Innovation and Skills, what assessment he has now made of the potential efficiency gains that could result from a merger of the Education Funding Agency and Skills Funding Agency.

The Department for Business, Innovation and Skills (BIS) constantly keeps its delivery arrangements under review to ensure that funding of skills programmes is efficient and effective, as well as responsive to policy priorities to increase take-up of apprenticeships and traineeships for young people.

The Skills Funding Agency works closely with the Education Funding Agency on the funding of Further Education college provision and funding of apprenticeships and traineeships for 16-19 year olds. We have recently appointed Peter Lauener as joint Chief Executive of both agencies to make the most of the clear synergies between the two agencies. This exemplifies the commitment we have to promoting joined up Government. The Skills Funding Agency and Education Funding Agency share a number of services to ensure they function as efficiently as possible.

The Skills Funding Agency has recently been through significant restructuring exercises reducing staffing levels by 50% and administration budget by 37%. In addition the regional office structure was reduced from 54 offices to six offices.