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adulteducation.org.uk

The Adult Skills Fund explained (formerly the Adult Education Budget)

WarningThese are the rules for England in the 2026/27 academic year (1 August 2026 to 31 July 2027). They change each August.

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The Adult Skills Fund is the government money that pays for most free courses for adults in England. It used to be called the Adult Education Budget (AEB). If a course page says “free if you’re eligible”, this is usually the fund behind it.

This page explains what the fund pays for, who runs it, and who can use it in the 2026/27 academic year (1 August 2026 to 31 July 2027). To find out if you could study a particular course for free, choose it from our free online courses and use the “Am I eligible?” check on its page. For the general rules, read who can get a free course.

What it pays for

The Adult Skills Fund pays for three main kinds of learning.

  • Qualifications up to Level 3. These include many online Level 2 certificates, such as the ones listed in our free online courses.
  • English, maths and digital skills. These are free for adults whatever they earn. They’re called legal entitlements (see below).
  • Tailored learning. These are shorter courses that don’t always lead to a qualification. For example, they might build your confidence, help you get back into work, or help you support your child’s learning. They’re often run by local councils and colleges.

Free Courses for Jobs is also paid for by the Adult Skills Fund. It covers some Level 3 qualifications, and some Level 2 courses in construction, engineering and manufacturing.

The fund doesn’t pay for courses at Level 4 or above, or for apprenticeships. Those have their own funding.

Who runs it

Since 16 September 2025, the Department for Work and Pensions (DWP) has been in charge of adult skills policy. The Department for Education (DfE) still runs the fund day to day on DWP’s behalf. It sets the funding rules and pays colleges and training providers.

You don’t apply to the fund yourself. You apply to a provider for a course, and the provider checks whether you’re eligible and claims the money.

Who can study for free

In 2026/27, you can usually get a course fully paid for if:

  • you were 19 or over on 31 August 2026
  • you live in England, outside a devolved area
  • you normally live in the UK, and you’re allowed to live here
  • you’re unemployed, or you earn less than £26,800 a year before tax

The earnings limit went up from £25,750 in June 2026. If you earn more than this, you can often still study, but the course may be co-funded. This means the government usually pays half and you or your employer pay the rest.

There’s more detail, including what proof you might need, in Who can get a free course?

Some courses are free for anyone who qualifies, whatever their income:

  • English and maths up to Level 2, if you’re 19 or over and don’t have a GCSE at grade 4 or above in that subject
  • essential digital skills up to Level 1, if your digital skills are below that level
  • your first full Level 2 qualification, if you’re 19 to 23
  • your first full Level 3 qualification, if you’re 19 to 23

Providers must not charge course fees for these.

Devolved areas

Some parts of England get their own share of adult skills money and set their own rules. They include Greater London, Greater Manchester, the West Midlands, West Yorkshire and several other combined authority areas.

If you live in one of these areas, the national Adult Skills Fund can’t pay for your course. Your local area’s budget usually can, but the rules may be a little different. This is why some online providers say they can’t take learners from certain postcodes. If that happens, look for a provider that’s funded in your area.

What “free” means

If you’re fully funded, the rules say the provider must not make you pay compulsory fees for the direct costs of your course. If you need a DBS check for the course, that should be free too.

But “free” doesn’t always mean there’s no cost at all:

  • Admin or withdrawal fees. The funding rules don’t cover these. Some providers charge a fee if you leave early or don’t finish by the deadline. Ask about this before you sign up.
  • Out-of-date pages. The rules change every August. A provider’s website might still show last year’s rules.
  • One course at a time. Many providers only let you study one funded course at a time.

The provider always makes the final decision about whether you can study for free.

What changed for 2026/27

  • The earnings limit for full funding went up to £26,800 in June 2026.
  • Free Courses for Jobs now includes some Level 2 engineering and manufacturing qualifications.
  • Responsibility for adult skills policy moved from DfE to DWP in September 2025. DfE still runs the fund.

Find a course

  • Choose a course from our free online courses. You can filter them by subject.
  • Use the “Am I eligible?” check on the course’s page. It tells you if you’re likely to be eligible and shows which providers offer that course.
  • If you work in adult social care, your employer may be able to claim training costs back. Read about care training funding (LDSS).

Check if you can get a course for free

Whether you can study for free depends on the course you choose and on finding a provider that can fund you. So start with the course:

  1. Choose a course you're interested in.
  2. Answer a few quick questions in the "Am I eligible?" check on its page.
  3. See whether you're likely to be eligible, and which providers offer that course.
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Or choose a subject:

The check is a guide, not a promise. The provider makes the final decision.

Questions

Is the Adult Skills Fund the same as the Adult Education Budget?
Yes. The Adult Education Budget (AEB) was renamed the Adult Skills Fund. Some providers and older web pages still use the old name, or just say "government funded".
Do I apply to the Adult Skills Fund myself?
No. You apply to a college or training provider for a course. They check whether you're eligible and claim the funding. You never deal with the fund directly.
Is it a loan? Will I have to pay it back?
No. Adult Skills Fund money is not a loan, so there's nothing to pay back. Loans are a different scheme, the Advanced Learner Loan, for some courses at Level 3 to 6.
Why does the provider want to see my wage slip?
To be fully funded, you need to be unemployed or earn less than £26,800 a year before tax. Providers have to keep proof, such as a recent wage slip or Universal Credit statement, in case their funding is checked.
Does the Adult Skills Fund pay for degrees or Level 4 courses?
No. It pays for courses up to Level 3. For Level 4 to 6 courses, look at the Advanced Learner Loan or, for courses starting from January 2027, the Lifelong Learning Entitlement.
I live in London. Can I use the Adult Skills Fund?
Not the national fund. Greater London has its own adult skills budget with its own rules, and so do other devolved areas. You can still study for free, but you'll need a provider that's funded in your area.

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