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Changes to ESOL Funding

Issue date
ESOL briefing

November 2006

Summary

On Wednesday 18th October 2006 the Minister of State for Higher Education and Lifelong Learning announced that the existing universal entitlement to free ESOL training up to level 2 was to be removed. This commitment was included in the LSC's Annual Statement of Priorities. From August 2007/08 fee remission will only be available to people receiving means-tested benefits and tax credits.

This is an important issue for the work of unions supporting workers with English language needs, including migrant workers. This note includes an update on some of the key changes and also highlights that the DfES is currently undertaking a Race Equality Impact Assessment (REIA) in relation to the changes to ESOL funding. Whilst the initial stage of this assessment has been completed, the DfES has committed to further consultation on this process and more information on how the TUC and affiliated unions can contribute to the REIA should be available by the end of November.

This should provide an opportunity for unions to feed in their views and evidence about the importance of free ESOL provision. In the meantime it might be useful for unions to begin to collect evidence and case studies for the REIA and to brief union learning representatives about the proposed changes.

Introduction

On Wednesday 18th October 2006 the Minister of State for Higher Education and Lifelong Learning announced that the existing universal entitlement to free ESOL training up to level 2 was to be removed. This commitment was included in the LSC's Annual Statement of Priorities (page 25), available via the following link: http://www.lsc.gov.uk/National/Documents/Keyinitiatives

The TUC lobbied the Government on this issue in the lead-up to the announcement, which included an exchange of letters and contact with Ministers at the DFES.

Background

ESOL provision is funded through the Skills for Life budget, which also funds literacy and numeracy training. Take-up of ESOL has risen in recent years and in many cases demand exceeds supply. ESOL now forms more than half of the Skills for Life budget, totalling more than £250 million.

The recently announced changes to ESOL funding mean that for many people with ESOL needs, the cost of paying for courses will shift from the public purse to individuals, unless employers make a contribution. The TUC lobbied against the changes, in particular concerning the potential impact on low paid workers and the fact that the proposed changes could have a detrimental impact on the health and safety of workers with ESOL needs.

New Arrangements for ESOL funding

A summary of the recent announcement is outlined below. Full details of the changes will be contained in operational guidance from the Learning and Skills Council, expected in January 2007.

From August 2007/08, ESOL learning will no longer attract automatic fee remission;

Fee remission will only be available to priority groups - primarily people who are unemployed or receiving income-based benefits;

Asylum seekers aged 19+ will no longer be automatically eligible for publicly funded FE provision from 2007/08;

ESOL will form a key part of a new £23 billion basic skills and employability programme for Jobcentre Plus clients;

A new suite of ESOL qualifications will be accredited by the Qualifications and Curriculum Authority to support a shorter, more job-focused approach to English language skills available from August 2007; and

Employers who have recruited workers from outside the UK will be expected to bear the full cost of any necessary English language training.

Implications of the funding changes

The TUC is extremely concerned about the implications of these changes, which range from capacity for vulnerable workers to avoid exploitation, to social cohesion and the impact on union efforts to support migrant workers and workers with English language needs from settled communities.

While free ESOL will be available for those in receipt of means tested or income related benefits, in reality very few people with ESOL needs access these benefits even if they are eligible. For example, only 3% of workers from European Union Accession States receive tax credits, despite around 8 in 10 earning between £4.50 and £5.99 an hour.

This is likely to mean that a significant proportion of workers with ESOL needs will find it difficult to fund their own courses, or for unions to broker collective arrangements with colleges without employer support. These changes therefore clearly have implications for union work on organising and supporting migrant workers.

Whereas at the moment unions are able to broker provision with local colleges based on free provision, the new arrangements would require bargaining with the employer to obtain funding. As there are currently no statutory rights to collective bargaining on training, the capacity of unions to engage employers - and to protect those workers most in need - is constrained.

Unions and Union Learning Representatives have worked hard, supported by unionlearn, to develop approaches to ESOL that match their success in other areas of the Skills for Life Strategy. For ULRs to have raised expectations amongst this vulnerable group and then to be unable to deliver is a severe setback.

Representations to Government

The DfES is currently undertaking a Race Equality Impact Assessment (REIA) in relation to the changes to ESOL funding. Whilst the initial stage of this assessment has been completed, the DfES has committed to further consultation on this process and more information on how the TUC and affiliated unions can contribute to the REIA should be available by the end of November. This should provide an opportunity for unions to feed in their views and evidence about the importance of free ESOL provision. Action points that might be useful for unions to consider in the meantime are collecting evidence and case studies for the REIA and briefing union learning representatives about the proposed changes.

The TUC strongly believes that any new measures should be piloted, and that there should also be a pilot to transfer the cost of provision to those who employ or supply workers with ESOL needs. Furthermore, the Government should accept that there should be a free entitlement to fee remission for ESOL either through proof of receipt of tax credits or through an alternative means of demonstrating low pay, such as pay slips. And the Government should also review how the proposed changes to ESOL funding could conflict with its legal duty to promote gender equality as many low-paid women employees will be adversely affected by these changes.

Conclusion

The TUC is extremely concerned about the recent announcement to end the universal entitlement for ESOL provision up to level 2 and will be contacting unions on how they can contribute to the REIA once the DfES has clarified the consultation process.

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