The Union Learning Fund is to be scrapped in March 2021, Tes understands.
The news comes just a week after prime minister Boris Johnson announced a "skills guarantee" for adult learners.
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The fund, which is worth around £11 million a year, was established in 1988 and, through the work of trade unions and union learning representatives, delivers a range of learning and training programmes, including schemes to improve maths, English and digital skills, growing apprenticeship provision and seeking solutions to skills shortages.
It currently supports 250,000 workers a year to access learning.
According to a report published by Union Learn and the Department for Education in 2018-19, every £1 invested in the fund resulted in a total economic return of £12.30.
'Completely unjustifiable'
The fund is currently managed by the Trades Union Congress (TUC). In an email seen by Tes, Kevin Rowan, head of organisation, services and skills at the TUC, says it has received "some disappointing correspondence from the skills minister, Gillian Keegan".
"The correspondence confirms that it is the government's intention to cease funding completely for the Union Learning Fund at the end of the current financial year – ie, the end of March 2021."
He says the news "has come completely out of the blue and is, in my view, completely unjustifiable".
Mr Rowan adds: "It can be no reflection on the performance of union-led projects or the Union Learn programmes. Our delivery has continued to be exemplary and we have continued to receive very positive feedback from officials in the Department for Education, among others. There is clearly a huge skills challenge ahead and Union Learn and our trade unions remain extremely well placed to respond to that challenge."
Bob Harrison, chair of governors at Northern College, was involved in the setting up of the fund. He said: “The decision by the skills minister to cease funding the work of tens of thousands of union learning representatives who promote lifelong learning and training in the workplace is short-sighted and hypocritical, just a few days after appearing before the [Commons] Education Select Committee where she announced her commitment to the skills guarantee, adult skills and lifelong learning”
A TUC spokesperson said: “The TUC is seeking urgent meetings with ministers about Unionlearn funding. Unionlearn provides learning and skills opportunities to a quarter of a million working people each year.
“The Prime Minister has been clear on the importance of skills to rebuilding the economy. Unionlearn should be recognised by ministers as a valuable national asset, with particular importance now for the nation’s plans to build back better.”
University and College Union general secretary Jo Grady said that the decision was directly at odds with the prime minister's commitment last week.
"‘The fund’s work improves employee and employer relationships and identifies training for people unlikely to find it through more traditional routes. Unions have a vital role to play in developing workforce training and we hope ministers and officials will recognise that as they assess the fund’s many benefits.
"Education, and access to training, will be central to our national recovery effort and axing such an important and well-established resource makes little sense. This would also represent another funding cut for further education, as much of the training is delivered in our further education colleges.’
A Department for Education spokesperson said: “We have taken the decision not to continue to provide grant funding to Unionlearn in the next financial year.
“We will instead be investing the money to directly support further education colleges, other training providers and our new £2.5 billion National Skills Fund to help more people learn new skills and prepare for the jobs of the future. The Prime Minister also recently announced a new ‘Lifetime Skills Guarantee’ offering adults without an A Level or equivalent qualification a fully-funded course.”