Budget 2025 Initial Response - Something for the younger, but nothing for the older Adult Learner
- LEI
- 4 minutes ago
- 2 min read
Given the amount that’s been already revealed about the Chancellor’s Autumn Budget statement, it’s not surprising that there’s nothing surprising in it. For the education sector it confirms the direction of government policy, with priority now pivoting towards the younger and more disadvantaged sections of our society.
There were some positive announcements on support for young adults, the 18-25 age group, which is hard to argue with given the alarming figure of just under a million NEETs. The announcement of an extra £820m funding for the Youth Guarantee, through which 18-21 year olds are assured of access to education, training or a job, puts financial flesh on the bones of a policy announced some time ago.
The decision to extend the exemption from levy costs for SMEs to take on apprentices who are under 25, at an estimated cost of around £725m, is a further measure to stimulate the flagging uptake of apprenticeships amongst the young. Both are welcome, though it’s far from clear that the main barrier to small employers recruiting apprentices is the levy charge (already only 5%), with the overall costs of employment and other rising costs of running a business more likely to be the main obstacle, along with the complex bureaucracy needed to get set up to employ apprentices.
There is, however, nothing in the budget for older adults, those who are over 25 and of working age. Given the OBRs latest forecast of – at best – sluggish economic and productivity growth, this is an issue that surely needs to come up the government’s priority list. Although we have the Lifelong Learning Entitlement to look forward to next year, much stronger and wider measures will be needed to give working adults better access to upskilling and reskilling to keep pace with technological change and boost business competitiveness.
As for the Higher Education sector, nothing new, other than a helpful freeze on the student loan repayment terms. The HE sector will be watching carefully to see what happens next with the proposed levy on international student fees, which as the IfS pointed out this week, is an unusual tax on our own exports which has been presented with little or no economic rationale. Universities will also be hoping for confirmation as soon as possible of the proposal to legislate to link student fee caps to inflation.
At least the FE sector has reasons to be cheerful over its above-inflation funding settlement for the next couple of years, but adult education providers and HEIs will be far less encouraged by this budget. From a lifelong education perspective, it’s a lopsided affair, favouring those up to 25, and leaving unanswered questions about what support the over 25s might see over the rest of this Parliament. The campaign to raise investment in lifelong learning will continue.