The Inquiry’s paper provides details of Government expenditure, private employer expenditure, voluntary and community sector expenditure, and individuals’ contributions to learning.  The paper estimates that of the total £55 billion, approximately £26 billon comes from the public purse, £20 billion is spent on training by private and non-profit organisations and £9 billion is spent by individuals, including the self-employed.

The paper shows how the balance differs between the costs of provision and the opportunity cost of time spent on learning. It also shows how the results were used to inform the Inquiry’s main proposal to re-balance resources for lifelong learning across four stages of the life course it used in its analysis (18-24, 25-49, 50-74 and 75+).

The National Adult Learning Survey published by NIACE shows that of people participating in adult learning, 33 per cent paid their own fees, employers paid all the fees for 37 per cent of those undertaking taught learning, and just 4 per cent shared the payment.  This, the Inquiry suggests, clearly shows there is greater scope for co-funding between individual and employers. 

Finally, the paper draws some overall conclusions and makes four recommendations for further work:

• a joint initiative between government and employers to improve the way expenditure on adult learning is recorded as a basis for encouraging a more strategic approach to future investment decisions;
• investment by government in a survey of individual investment in learning that is at least as comprehensive and detailed as the National Employer Skills Survey (NESS) survey of employer expenditure;
• the development of an agreed approach to valuing the time individuals invest in learning; and  local studies of expenditure on adult learning, its distribution and potential social productivity, as part of local government’s total place agenda.

Earlier this month, an independent review which had been commissioned by the Department for Business, Innovation and Skills to assess the systems by which adult learners and employers co-invest in learning with the Government, and how the system can be improved, issued its report.

The review on the co-investment system in Further Education, led by Chris Banks, recommended:

• Government contributions to the cost of appropriate training should follow and support the choices and contributions of  individuals and employers where required;
• Clear information should be provided about the total cost of a course and the quality of provision;
• Options for the individual to have access to financial support to meet the cost of their contribution to their course.

However, the Review did not make recommendations on the proportion of co-investment expected, nor current policy determining who is expected to make a contribution.

* Expenditure and funding models in lifelong learning by Jenny Williams and Stephen McNair