Employability Programmes Must be Funded If We Are to Support the Economically Inactive

CEO of Whitehead-Ross Education, Ian Ross said:

“While the recent Budget from the UK Government will have a stark financial impact on small businesses through the rise in national insurance, Welsh Government also has the opportunity to change lives with its draft budget coming next month. This is thanks to an additional £1.7 billion coming to Wales via the UK Government.

“With economic inactivity in Wales currently hovering at 28%, the Welsh Government must invest some of this additional funding into support for employability programmes. This is the only way we will see Welsh economic inactivity fall.

“Wales currently has the highest economic inactivity rate in the UK, and in the past year it has risen by 3.7%. This demonstrates a dire need for it to be addressed otherwise we could see this figure continue to rise.

“Employability and skills programmes play a major role in supporting those who are economically inactive by equipping them with the key skills and qualifications required to access employment. In turn, this significantly improves economic prospects and life chances.

“At present, the majority of vocational adult education courses in Wales are being delivered by colleges. However, their rigid timetables and campus delivery can act as a deterrent for people who have not had a previously positive experience of formal education. Independent training providers can offer a more flexible and responsive approach to learning, which can be a more attractive offer to those not already in work or with caring responsibilities. In England, there are 1,700 independent training providers who deliver 34% of adult education courses. If we are to address the rising rate of economic inactivity in Wales, by offering people the chance to improve their employment prospects, we need to make it as easy as possible for them to access and attend these courses.

“Therefore, not only do we need to address employability and skills services themselves, but the Welsh Government also needs to tackle their delivery to ensure there is a greater choice. This will mean allocating a new funding stream for independent training providers, so they can support the reduction of economic inactivity across Wales.

“It is also important to state that Wales currently has no national employability provision of its own.

“Instead, we continue to rely solely on the UK Government’s Department for Work and Pensions Restart Scheme, which is targeted at job seekers. The UK Shared Prosperity Fund is the only source of funding currently available to offer employability support for the economically inactive in Wales, but this is due to come to an end in March 2025.

“Welsh Government’s budget for 2025/26 must include an investment in national employability provision that can be shared across all adult education provisions, including independent training providers and colleges. If not, we could see a detrimental impact on economic inactivity, which will in turn have a knock-on effect on Wales’ economy, employment, and see an increase in anti-social behaviour.

“With a new First Minister in place, working together with a new Labour-led UK Government, there is a real opportunity to turn the Welsh economy around.

“As an independent adult education organisation, Whitehead-Ross Education is ideally located to directly support individuals who can’t access training through colleges and universities due to caring responsibilities. We offer people access to flexible courses that suit their lifestyle, removing the barrier to accessing training and ensuring people have the opportunity to gain the skills and qualifications they need and deserve.”