Question

To ask the Secretary of State for Business, Innovation and Skills, pursuant to the Answer of 15 June 2015 to Question 1849, which funding bodies his Department is working with to determine how reductions to the adult skills budget will be made; and if he will instruct the funding bodies to look at the effect of changes on learners in Liverpool.

As noted in the replies to Questions 1656 and 1849, the Skills Funding Agency allocates funding based on learner demand and the majority of this Department’s £450m savings in 2015-16 will be delivered through known underspends and releasing unallocated funding.

FE savings will also be found by cutting low-value expenditure but one of the areas where the FE budget has the greatest impact, apprenticeships, is protected so apprentices in Liverpool, and elsewhere, will not be affected.

Officials in my Department are working with the Skills Funding Agency to determine how other savings can best be achieved in line with ministers’ priorities.

We understand that there are pressures across the sector and we have been working through the FE Commissioner to support any colleges that need to redevelop their business plans.