TULO Report October 2026
The Chancellor’s announcement on 28 September that the government will reinstate the Union Learning Fund – and restore the funding to where it would have been had the Conservatives not scrapped it six years ago.
Boost to the economy
Restoring the Fund is hugely important because it targets training and upskilling opportunities at those who need them most.
Previous independent analysis shows the scheme more than pays for itself over time and can deliver significant returns for the economy.
The previous successful scheme boosted access to training for workers up and down the country, particularly those who needed it most – and was praised by employers, providers and unions alike.
The long-established fund was scrapped in 2021 by the Conservative government despite more than a decade of evidence showing strong benefits for workers and employers, and long-run boosts to economic growth and government revenue.
Years of employer underinvestment in skills and cuts to adult education budgets by the previous Conservative government left workers unable to access the training they needed to keep pace with the skills required in a rapidly changing labour market – particularly with the adoption of AI.
Benefits to workers and economy
If access to learning was delivered at the best rates achieved by the Fund in the 2010s, training could benefit around 180,000 workers a year – supporting 400,000 to 550,000 learning opportunities for workers over the three years of the scheme.
The TUC says the scheme will deliver significant economic returns – pointing to previous independent analysis.
In 2019, at a time when the Union Learn Fund was funded at £12 million per annum, the training rates it achieved generated a long-run Return of Investment (ROI) of £12.87 for every £1 spent and a return to the Exchequer of £3.60 for every £1 spent.
The scheme was previously praised by employers such as Tesco, Heathrow, Arla Foods and British Steel.