Understanding the devolution white paper
In December 2024, the government launched its English devolution white paper. Power and Partnership: Foundations for Growth sets out a plan for what Deputy Prime Minister Angela Rayner calls a "devolution revolution" that would give local authorities greater control over decision-making in their area.
The proposals would have a significant impact, creating new devolved areas, further empowering existing ones, and handing mayors joint ownership of Local Skills Improvement Plans (LSIPs) as well as influence over employment support and the National Jobs and Careers Service.
Here, we explain what this means and how it might shape the skills sector.
Current and proposed devolution landscape
Under the current devolved system, most powers are retained by central government and ad hoc deals are put in place across multiple small and fragmented authorities. The result is uneven coverage, inconsistent powers and a lack of strategic alignment across regions.
The proposed approach aims to expand powers by handing authorities greater control over areas such as transport, housing, skills, public safety and environmental legislation, and to simplify governance by creating a clear and standardised framework. This will be done through Strategic Authorities and Integrated Settlements.
What are Strategic Authorities?
Strategic Authorities would fit into one of three categories and have powers relating to seven proposed areas of competence, including skills and employment support. The categories are:
Foundation Strategic Authorities: non-mayoral Combined Authorities, Combined County Authorities, and any Local Authority designated as a Strategic Authority without a Mayor.
Mayoral Strategic Authorities: the Greater London Authority, all Mayoral Combined Authorities and all Mayoral Combined County Authorities.
Established Mayoral Strategic Authorities: Mayoral Strategic Authorities who meet specified eligibility criteria may be granted Established Mayoral Strategic Authorities status, which unlocks further devolution, most notably an Integrated Settlement.
England currently has ten devolved authorities: the Greater London Authority and nine mayoral combined authorities. Four more authorities are due to take control from August 2025: Greater Lincolnshire Combined County Authority (GLCCA); Hull and East Yorkshire Combined Authority (HEYCA); Devon and Torbay Combined County Authority (DTCCA) and Lancashire Combined County Authority.
The Greater London Authority, all Mayoral Combined Authorities and all Mayoral Combined County Authorities will automatically begin as Mayoral Strategic Authorities. These Mayoral Strategic Authorities will have the right to “unlock further devolution” by becoming Established Strategic Authorities which have greater spending flexibility known as ‘integrated settlements’.
What are Integrated Settlements?
Integrated Settlements are single funding pots that consolidate budgets across housing, transport, skills, and regeneration. They would allow Strategic Authorities greater flexibility when allocating resources, helping them avoid red tape and departmental silos.
From March 2025, the Greater Manchester Combined Authority and West Midlands Combined Authority will be handed single funding pots for all of their services, including skills. They will have flexibility to move some of this funding between service areas and between years that their budget has been confirmed for.
The North East, South Yorkshire, West Yorkshire and Liverpool City Region authorities will be eligible from 2026-27.
What does the white paper mean for adult skills?
The white paper proposes two significant changes to the way devolution impacts adult skills.
Joint-owned LSIPs. Strategic Authorities will be handed “joint ownership” of local skills improvement plans (LSIP), which until now have been produced and monitored by employer representative bodies, usually local chambers of commerce.
This ownership will help strategic authorities establish “skills priorities” that will inform development of the plans. LSIPs will be joined by a number of other national and regional plans already announced by the government, but the white paper does not mention whether LSIPs will be handed any further funding or how often they will need to be refreshed.
Removing ringfences. The majority of the Adult Skills Fund is already devolved to existing Mayoral Strategic Authorities, but under the new plans Skills Bootcamps funding and Free Courses for Jobs funding would have ringfences removed as well. This would create a single funding pot that provides Mayoral Strategic Authorities much more flexibility.
Though 16-19 education is not covered in the scope of devolution, Mayoral Strategic Authorities will work with employers to promote clear pathways from education and training into employment, including to help identify local industry placements for 16-19 year olds.
Key takeaway
The government’s goal is to give authorities the power they need to create an adult skills and employment provision that is more effective, less hampered by red tape, and highly relevant to local employment needs. This devolution announcement represents a significant step in that direction and will help employers and training providers gain the funding and support they need to deliver on those needs.
If you have any questions about how the devolution white paper may affect you, please contact your account manager, email us at support@tquk.org or call 03333 583 344.