TUC hails "real boost" for workers and economy as much-lauded workplace skills fund is restored 

• Chancellor’s decision to restore the Union Learning Fund “rights the wrong” of disastrous own goal made by former Conservative government to scrap the scheme, says TUC.
• Union body says restoring the Fund is hugely important because it targets training and upskilling opportunities at those who need them most.
• Previous independent analysis shows the scheme more than pays for itself over time and can deliver significant returns for the economy.

The TUC has welcomed the Chancellor's announcement today (Monday) that the government will reinstate the Union Learning Fund - and restore the funding to where it would have been had the Conservatives not scrapped it six years ago. 

The hugely successful scheme boosted access to training for workers up and down the country, particularly those who needed it most – and was praised by employers, providers and unions alike.

The long-established fund was scrapped in 2021 by Conservative Education Secretary Gavin Williamson - despite more than a decade of evidence showing strong benefits for workers and employers, and long-run boosts to economic growth and government revenue.

The TUC says this decision was a “massive own goal” by the then-Conservative government amid the UK’s growing skills crisis. Years of employer underinvestment in skills and cuts to adult education budgets by the previous Conservative government left workers unable to access the training they needed to keep pace with the skills required in a rapidly changing labour market – particularly with the adoption of AI.

Benefits to workers and economy

If access to learning was delivered at the best rates achieved by the Fund in the 2010s, training could benefit around 180,000 workers a year – supporting 400,000 to 550,000 learning opportunities for workers over the three years of the scheme.

The TUC says the scheme will deliver significant economic returns – pointing to previous independent analysis.

In 2019, at a time when the Union Learn Fund was funded at £12 million per annum, the training rates it achieved generated a long-run Return of Investment (ROI) of £12.87 for every £1 spent and a return to the Exchequer of £3.60 for every £1 spent.

The scheme was previously praised by employers such as Tesco, Heathrow, Arla Foods and British Steel.

Union learning – a success story

The Union Learning Fund was set up in 1998 and was supported by governments of all parties. The fund increased access to learning and training in workplaces, brokered by unions. 

By 2021, the Union Learn Fund consistently supported thousands of learners a year – both union members and non-members - to gain qualifications in a range of areas including English, Maths and ICT.

The scheme not only ensured workers could access relevant training but it levered in additional investment from employers, including through paid time off to train.

The ULF was subject to regular independent evaluation. An evaluation in 2016 found:

Skills growth:

• Over two-thirds (68%) of learners with no previous qualification got a qualification and just under half (47%) of those starting with Entry level or Level 1 qualifications got a qualification at a higher level - as a result of ULF support.
• Four-fifths (80%) of learners felt that union learning had given them skills that were useful in their current job; and the same proportion agreed they had developed skills that could be transferred into a new job. 
• Nearly two thirds (62%) of learners said their learning helped them do their job better.

Employer benefits: 

• Just over three quarters (77%) of employers reported that, in their view, their organisation received a return on their investment in union learning activity.
• 78% agreed or strongly agreed that management was very supportive of the union role in training.
• Six out of every ten reported that union learning helped to raise demand for learning for those with little history of training/ learning, while around two-thirds (65%) suggested that demand was increased amongst those with low literacy and numeracy skills.

Commenting on the announcement by the chancellor to reinstate the Union Learning Fund, TUC General Secretary Paul Nowak said:  

"Restoring the Union Learning Fund is plain common sense and a real boost for workers, businesses and the economy.

“The decision to scrap the hugely successful workplace skills fund by the previous Tory government was ideological and a disastrous own goal. The chancellor’s announcement today rights that wrong. 

"Britain is being held back by a persistent skills crisis. But we know the problem isn’t a lack of talent – it's years of underinvestment in the skills workers need to adapt to a rapidly changing jobs market, especially with the increased adoption of AI. 

"That's why this move is so important. Alongside an effort to get more young people into work, education and training, having proper support to ensure those already in the workplace can learn and earn is vital for a successful skills strategy. 

"There is a reason that many employers, providers and unions are united in support for this scheme. Every pound spent pays for itself over time – boosting productivity, opportunity and economic growth.

 “We will be working closely with our affiliate unions, government and employers to develop this scheme and ensure it is an even bigger union learning success story than the last.”