Welsh Government budget an opportunity to tackle economic inactivity

Ian Ross, CEO of Whitehead-Ross Education, argues why Welsh Government should focus its investment on adult education provision delivered by independent training providers.

The recent Budget from the new UK Government announced an additional £1.7 billion for Wales, with almost £1 billion of that allocated for the 2025/2026 budget. However, the question now turns to where and how that additional funding should be invested in order to have the best long-term impact across Wales.

Whitehead-Ross Education has been at the fore-front of providing education and anti-poverty support in Wales since its foundation twelve years ago. In this time, we have supported over 12,000 people and have seen first-hand how education, training, and upskilling are critical to the economy as well as individuals’ mental health and wellbeing.

After the first UK Labour Government budget in 14 years saw significant increases to the Welsh Government budgets, Ministers in Wales have the opportunity to take real action to support and invest in Wales’ economy and public services. 

This should be done through two key areas: 1) funding a new national employability programme to target the economically inactive; and 2) focusing investment on adult education provision delivered by Independent Training Providers.

A National Employability Programme for Wales

Wales continues to have the highest economic inactivity rate of any part of the UK, currently sitting at 28%, which is a further 3.7% increase on last year. To further add to this, Wales also has the lowest employment rate across any part of the UK.

Economic inactivity can have a variety of causes, including long-term sickness and ill-health, caring responsibilities, and retirement. This means there cannot be a one-size-fits-all approach to tackling it. However, with an ageing population and a rising number of adults signed off from work due to ill-health, we know that things are likely to get worse unless urgent action is taken.

Wales continues to have the highest economic inactivity rate of any part of the UK, currently sitting at 28%, which is a further 3.7% increase on last year.

Governor of the Bank of England, Andrew Bailey, recently noted that increases in economic inactivity are not due to there being less of a demand for workers. Simply put, there remain jobs and opportunities despite more people being unable to work. This is having a direct impact on inflation, leading to higher interest rates which, in turn, have a negative impact on spending and economic growth.

In order to address this, Welsh Government must tackle the issue head on. This means investing in employability services and launching a National Employability Programme for Wales now.

Leadership from Welsh Government can ensure people across Wales get access to the skills, training, qualifications, and, importantly, gain the confidence they need to get back into work. This is something that businesses looking to invest in Wales have been calling out for, with Chambers Wales that almost half of Welsh businesses have reported struggling with skills shortages in recent times.

Syniadau uchelgeisiol, awdurdodol a mentrus.
Ymunwch â ni i gyfrannu at wneud Cymru gwell.

Wales has been left out in the cold since the Welsh Government’s Employability Skills Programme (ESP) came to an end in March 2023. Since this time there has been no replacement employability support provided. Instead, communities have had to rely on the UK Government’s DWP Restart Scheme; however, with this being targeted at job seekers who have been unemployed for nine months or more, there remains a significant gap that Welsh Government needs to fill.

Adult education provision 

Five of Wales’ seven wellbeing goals (a prosperous Wales, a resilient Wales, a healthier Wales, a more equal Wales, a Wales of more cohesive communities) can be directly supported by ensuring individuals are able to access help to improve and develop their skills and education.

Despite this, only basic learning is currently available for many adult learners through Lifelong Learning Services (delivered by local authorities) and Adult Learning Wales.

By their very nature, the rigid timetables and campus delivery seen from colleges can act as a barrier for people who have not previously had a positive experience of formal education.

Instead, the majority of adult vocational learning and skills development must instead be directly accessed through Further Education Colleges. 

Whilst this experience is appropriate for some adult learners, for others this is far from effective. By their very nature, the rigid timetables and campus delivery seen from colleges can act as a barrier for people who have not previously had a positive experience of formal education. These adults are effectively locked out from learning.

However, Welsh Government has the opportunity to achieve progress towards its aspirations for a better skilled population and increased economic growth by focusing investment on adult education provision delivered by Independent Training Providers.

Independent Training Providers are well placed to be more responsive to local need and demand, deliver courses starting every week throughout the year instead of working to college term times, utilise community venues with flexible course times, and offer a large variety of vocational qualifications geared at getting people into work or, for those already in work, progressing into other careers and better paid work, reducing household poverty.

This flexible and holistic approach to learning has seen success in other parts of the UK, with 1,700 Independent Training Providers in England delivering 34% of adult education courses to complement courses offered by local authorities and FE Colleges.

Gofod i drafod, dadlau, ac ymchwilio.
Cefnogwch brif felin drafod annibynnol Cymru.

 

Eluned Morgan, upon her appointment as First Minister, set out her priorities for Wales as including ensuring opportunities for every family so that they have the chance to succeed. Pivoting to ensure that adults can access training and employment support in the way that is appropriate for them will be key to achieving the First Minister’s priority.

Welsh Government budget

Wales is at a crossroads. After 14 years of underfunding from Conservative-led governments, there is now a real opportunity for the Welsh economy, Welsh businesses, and ultimately Welsh families and individuals to realise their potential.

Welsh Government’s draft budget for 2025/26, due to be published on 10th December, could be just the start.

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Ian Ross is CEO of South Wales adult education and employability provision service Whitehead-Ross Education.

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