The Lancashire Skills and Employment Board met virtually on Thursday, 7th March 2024, to discuss the devolution of skills budgets, updates from the Lancashire Skills and Employment Hub, and progress on various employment and skills initiatives. The Board noted updates on the establishment of the Lancashire County Combined Authority and the ongoing preparations for the devolution of the Adult Education Budget (AEB).

Lancashire County Combined Authority and Devolution

Simon Lawrence, Director of Growth and Regeneration at Lancashire County Council, provided a verbal update on the arrangements for devolution and the establishment of the County Combined Authority. He informed the Board that as the Lancashire Enterprise Partnership (LEP) would cease to exist at the end of March, any decisions would be made under shadow Combined Authority arrangements while the governance structure for the County Combined Authority and the integration of LEP functions into local authorities were finalised. Mr. Lawrence assured the Board that there was a commitment to continue the work undertaken by the Board. The Board resolved to note the update provided.

Adult Education Budget (AEB) and Devolution

James Farr and David Brennan from Think UK presented findings from their review of AEB strategies and models in other Combined Authority areas, alongside local consultation feedback. They suggested several priorities for Lancashire and potential commissioning approaches. The presentation highlighted that the government intends to fully devolve the Adult Education Budget from the academic year 2026/27, subject to readiness conditions. It is estimated that approximately £30 million is currently invested in Lancashire's AEB annually. Lancashire must meet Department for Education (DfE) readiness conditions by May 2025, which includes developing a strategic skills plan and addressing governance, financial, legal, procurement, and data requirements. Work will continue with the Lancashire Skills Hub and a steering group to develop a draft strategy and commissioning plan for AEB readiness in Lancashire. The Board resolved to note the presentation.

Update from the Lancashire Skills and Employment Hub and Partners

Dr. Michele Lawty-Jones, Director of the Lancashire Skills Hub, presented a report detailing recent activities and progress. Key highlights included:

• Future Workforce: Schools and colleges in the Lancashire Careers Hub are exceeding national averages in achieving Gatsby Benchmarks[^1], with an average of 6.4 out of 8. The Early Connect pilot, aimed at increasing apprenticeship visibility for sixth form and college leavers, is underway with 92% of institutions participating. Funding has been secured for the rollout of Cyber Fairy Tales to an additional 60 primary schools.
• Inclusive Workforce: The Skills Hub is collaborating with Lancashire AEB providers to test new provision bridging to Skills Bootcamps. Wave 4 of the Skills Bootcamps has enrolled 812 learners, exceeding the DfE target of 700, with 130 learners achieving successful employment outcomes. The Skills Hub has also supported local authorities in commissioning provision using UK Shared Prosperity Funds (UKSPF) for NEET, unemployed, and economically inactive residents. The DWP has announced the Universal Support programme, aimed at helping individuals with disabilities or health conditions into work, with Lancashire likely to be included in the first phase.
• Skilled & Productive Workforce: The Lancashire Young Apprenticeships Grants programme has been extended, incentivising SMEs to recruit apprentices. The Multiply programme, focused on improving adult numeracy skills, has exceeded its targets for learner starts and spend in its second year. A bid for the Work Well Partnership Programme (WWPP), targeting economically inactive individuals, has been submitted, with an announcement expected in April.
• Social Value: Efforts are underway to embed social value within major developments like Lancashire Central and the Farrington Cricket Club. The Skills Hub has also engaged with local authorities and employers to promote and capture social value.
• Informed Approach: The Skills Hub's evidence base has seen significant online engagement. The consultancy with Think UK on AEB devolution is progressing, with initial findings to be presented. New interactive dashboards have been created to support colleges with labour market intelligence.

The Board resolved to note the report and the updates provided.

Date of Next Meeting

The Board noted that a further programme of meetings would be published, acknowledging the interim period while LEP functions are transitioned into Local Authorities. The date of the next meeting was to be confirmed once more information regarding LEP integration was available.