Policy paper

Local skills improvement plans (LSIPs) and local skills improvement fund (LSIF)

Updated 8 April 2024

Applies to England

The skills for jobs white paper set out the government’s blueprint for reshaping the technical skills system to better meet the needs of employers and the wider economy.

As part of this new approach, the Department for Education (DfE) introduced local skills improvement plans (LSIPs) and a new local skills improvement fund (LSIF), which replaces the strategic development fund referred to in the white paper.

Local skills improvement plans

LSIPs provide an agreed set of actionable priorities that employers, providers and other stakeholders in a local area can get behind to drive change.

LSIPs:

• place employers at the heart of local skills systems
• facilitate direct and dynamic working arrangements between employers, providers and local stakeholders
• help learners gain the skills they need to get good jobs and increase their prospects

The role of designated employer representative bodies (ERBs)

In autumn 2022, employer representative bodies (ERBs) were designated to lead the development and review of LSIPs for all 38 areas of the country.

By having a single designated ERB to lead the development and review of each LSIP across England, we are:

• making it easier for employers to navigate the system
• helping to increase engagement
• enabling employers to build stronger relationships with their local providers

The designated ERBs worked closely with employers, technical education providers and stakeholders to develop evidence-based and actionable LSIPs. Each plan sets out the key changes needed in a local area to make technical education and training more responsive to employer and local labour market needs.

By being employer-led and locally owned, LSIPs are uniquely placed to highlight the skills employers need most in the workplace but may be struggling to find in their area.

In August 2023, the Secretary of State for Education approved all 38 LSIPs in line with the approval criteria set out in the Skills and Post-16 Education Act 2022 and in accordance with the LSIP statutory guidance.

The LSIPs and their annexes are published on the designated ERBs’ websites. You can find these through local skills improvement plans and designated employer representative bodies.

Following publication, the designated ERBs leading each LSIP have continued to work with local employers, providers and stakeholders to ensure the plans are implemented effectively and remain relevant and up to date. Further information on this process is set out in local skills improvement plans (LSIPs): implementation and review.

DfE will review and re-designate ERBs and LSIP geographies periodically, as appropriate.

LSIP trailblazers

In the 2021 to 2022 financial year, DfE ran 8 LSIP trailblazer pilots that enabled us to test how employers, education providers and local stakeholders can work together effectively to develop an LSIP.

The independent evaluation of the trailblazers, alongside wider stakeholder engagement and evidence, informed the development of the LSIP statutory guidance and our approach to rolling the plans out nationally.

Further information on how the trailblazer pilots helped to better align technical education and training provision with local labour market needs is set out in the skills accelerator pilot evaluation.

Getting involved with your LSIP

We would like employers across the country with an interest in skills to be engaged with their local LSIPs.

The contact details for the designated ERBs for your area are listed in local skills improvement plans and designated employer representative bodies.

LSIPs offer a direct route for businesses to become more involved in the planning, design and delivery of local post-16 technical education and training through:

• LSIF-funded projects
• implementation of the actionable priorities set out in the plans

If you are an employer that has not yet engaged with your LSIP, the first step is to contact the designated ERB for your area to discuss your skills needs.

The designated ERBs are actively surveying local businesses and, where possible, we would encourage you to respond to these requests.

Many of the ERBs also offer face-to-face and online events attended by employers, sector bodies, providers and local and national government. These offer a good opportunity for networking and feeding your views into the LSIP process.

If your business operates across more than one LSIP area, engage with each ERB and LSIP as relevant to your skills needs.

Milestones for LSIP rollout

Summer 2023

All 38 areas of the country had an LSIP published. Plans were drawn up for a 3-year period.

June 2024 and 2025

As part of regularly reviewing and updating their LSIP, ERBs are expected to provide an annual progress report.

Email any programme queries to LSIP.PROGRAMME@education.gov.uk.

Local skills improvement fund

The local skills improvement fund (LSIF) enables further education (FE) providers across a geographic area to respond collectively to the priorities in the LSIPs.

The LSIF supports the reforms introduced in the skills for jobs white paper, providing investment in the technical skills system to better support the needs of the local labour market and wider economy.

The LSIF is available across 2 financial years:

• £80 million in 2023 to 2024 (£40 million revenue and £40 million capital)
• £85 million capital in 2024 to 2025

The LSIF will:

• provide investment in new facilities and equipment
• fund the development and delivery of new courses and curriculum
• support excellence in college leadership, governance and teaching to create a sustainable approach to addressing local skills needs, particularly at levels 3 to 5

Milestones for LSIF rollout

May 2023

Collaborations of further education providers in each LSIP area applied for up to £100,000 mobilisation funding. This was to support the development of their full stage 2 application, including detailed proposals and costings.

June 2023

DfE notified lead applicants of the outcome of their stage 1 mobilisation funding application, issuing grant funding agreements confirming their eligibility for mobilisation funding.

The stage 2 funding application window was launched for full project proposals. This lasted 12 weeks, from June to September.

October 2023

DfE assessed stage 2 funding applications.

November and December 2023

DfE notified lead applicants of the outcome of their stage 2 LSIF funding application, issuing grant funding agreements to lead applicants and project lead providers.

December 2023 to March 2025

Lead providers implement project proposals, including creating new or refurbished facilities, and new or modified skills provision linked to LSIP priorities.

Strategic development fund

The LSIF builds on the strategic development fund (SDF), which was piloted in 2021 to 2022 and rolled out across England in 2022 to 2023.

The SDF provided capital and programme investment to enable areas across England to begin making changes to their facilities and provision in preparation for the rollout of the LSIPs.

Funding awarded through SDF

In 2021, a one-year SDF programme was trialled in 18 areas across England.

In spring 2022, the SDF was opened to collaborations of FE providers across all areas of England.

All areas of England applied for and received funding in the second strategic development fund round, with a total of £92 million awarded in the 2022 to 2023 financial year.

Further information on how SDF pilots helped to better align technical education and training provision with local labour market needs is set out in the skills accelerator pilot evaluation.

Use the following email addresses for any queries:

• policy LSIF.MAILBOX@education.gov.uk
• funding claims LSIF2.DELIVERY@education.gov.uk