Purpose

This paper sets out the strategic approach being taken by the Lancashire Combined County Authority (LCCA) to prepare for the full devolution of the Adult Skills Fund (ASF) from August 2026. It builds on the Lancashire ASF Strategic Skills Plan, which was approved by the LCCA in April 2025 and reflects recommendations from the LCCA’s Skills Advisory Board, to whom an earlier version of this paper was presented.

It outlines how implementation funding is being used to build the necessary capacity, systems, and governance arrangements, and proposes a series of strategic flexibilities to national funding rules to better align ASF delivery with Lancashire’s priorities.

The paper also includes:

• A breakdown of how the indicative £40.8 million annual ASF budget, plus the additional £2.9 million in ringfenced Free Courses for Jobs funding (FCFJ), will be allocated and utilised, with the likelihood of supporting around 36,000 residents annually.
• An explanation of how the ongoing management fee will be used to support programme delivery, oversight, and strategic coordination.
• An update on procurement activity since September 2025, when the LCCA approved the establishment of an open framework.

Decision

The Lancashire Combined County Authority approved the recommendation(s) as set out in the report.