Purpose

Following devolution of adult education functions to Surrey County Council, the Council is in the process of determining Adult Skills Fund and Free Courses for Jobs grant awards for the 2026/27 academic year, with which providers will deliver adult skills provision to Surrey residents.

These direct grant awards have a total value of £7.9m and form a key element of the Council’s commissioning approach for 2026/27. In total, £11.5m (Adult Skills Fund + Free Courses for Jobs) will be available to providers for 2026/27, with further grants to be determined via a competitive process.

Decision

It was AGREED that:

1. £7.9m of Adult Skills Fundfunding would be awarded to 13 local providers via direct grants for the 2026/27 academic year

Reasons for the decision

The decision to award these direct grants was based on the delivery plans developed by providers, which recognise Surrey’s skills priorities with respect to key sector subject areas (as per Surrey’s new Local Skills Improvement Plan) and key resident groups (economically inactive, 19-24 year olds and low-skills residents).

2026/27 is the first academic year for which Surrey County Council will be responsible for commissioning Adult Skills Fund provision for Surrey residents. The benefit of direct grant awards is that they provide stability, speed and strategic alignment – enabling established providers to focus on delivering skills outcomes for learners and employers while supporting local economic growth priorities.

Details of the providers and grant amounts were reviewed with and approved by the Cabinet Member for Highways, Transport & Economic Growth in conjunction with the Executive Director - Place. Once grant agreements have been finalised, these details will be shared in the public domain.

Alternative options considered

The decision to award direct grants to established local providers in the 2026/27 academic year – including those in neighbouring local authority areas – is in line with commitments made as part of the devolution assurance process to maintain market stability in year 1 post-devolution.

Providers have also had the opportunity to apply for skills funding via a competitive grant process to support the transition to devolved commissioning and to create opportunities to innovate within overarching stability in year 1.