Purpose

1. These decisions are business critical for the recipients of this funding and deferring the paper to a future CA meeting (following cancellation of the May CA) would create serious financial issues for providers and risk jeopardising GMCA’s ability to meet its obligations in relation to maintaining continuity of provision, including legal entitlements.
2. These approvals will maintain continuity of skills delivery in AY2026/27 (commencing 1st August 2026) and provide assurance that current funding levels will be at least maintained while the system, approach and funding model is reviewed. This will provide coverage of:
- LA grants to support digital inclusion, ESOL and alleviating barriers will enable Greater Manchester Local Authorities to continue to deliver projects that support adult skills in their area, aligning with GMCA's place-based approach.
- GM’s grant-funded providers (Colleges and LAs) & contract extensions for procured provision across Lot 1 (unemployed residents) and Lot 2 (employed) will continue to support
Unemployed residents, including those furthest away from the labour market and residents who are economically inactive with the potential of re-entering the workplace, to develop the essential skills and occupational competences needed to progress further in learning, work or careers, on courses aligned with local employer needs.
Employed residents, to improve their skills and be more productive, or retrain to find a better job supporting in-work progression for adults into higher level careers, adapting to changing employer needs.
Occupational skills gaps to support our business needs, providing employers with a locally skilled workforce.
3. It represents a transitional approach pending completion of the stakeholder engagement and evidence review outlined above, including completion of the new LSIP.
4. The shift towards the system response described in the attached paper will require a phased approach. Provider delivery plans are set in advance, so any changes arising to the curriculum and funding model will take effect from AY2027/28. Future commissioning activity will be required across all types of AS provision for 2027/28, including essential skills, in-work up-skilling, and Level 3+ skills delivery focused on priority sectors.

Decision

1. 
   The award of following proposed indicative grants, and contract extensions, and subsequent expenditure from the adult skills pillar of the Integrated Settlement for the academic year 2026/27 is approved -
   • The allocation of grants to grant-funded providers (Colleges and LAs) (as set out in Part 4 and appendix 6, Tables 1 and 2 in the attached report) for the academic year 2026/27 in the sum of £78,506,836
   • The allocation of grants to the GM Local Authorities in the sums set out in Part 4 and appendix 6, Table 4 in the attached report) to support digital inclusion, ESOL and alleviating barriers at a total cost of £1,614,351
   • Contract extensions for procured provision across Lot 1 (unemployed residents) and Lot 2 (employed) for the academic year 26/27 in the sum of £16,984,744, as set out in Part 4 and Appendix 6, Table 3 of the attached report.
   
   2. The administration and management costs for the 2026/2027 academic year set out in section 4.4 of the attached report are approved.