ASF procured contracts end August 2027 — no national re-procurement
1 October 2026
ESFA's procured Adult Skills Fund contracts expire on 1 August 2027. The DfE has confirmed there will be no national re-procurement for 2027/28. Instead, non-devolved ASF funding will transfer to local and combined authorities, which are already beginning their own commissioning processes.
The DfE confirmed in its 30 September 2026 FE Update that current procured Adult Skills Fund (ASF) contracts will expire on 1 August 2027 and that there will be no national procurement exercise for the 2027 to 2028 academic year.
This affects independent training providers (ITPs) and other organisations holding ESFA procured ASF contracts. Providers with grant funding agreements — mainly further education colleges — are not affected.
What is changing
ASF has two routes to providers:
- Grant agreements: primarily used for general FE colleges, sixth-form colleges, and specialist providers. These continue as normal.
- Procured contracts: awarded by ESFA to ITPs and other providers through competitive rounds. These contracts expire 1 August 2027 and will not be replaced nationally.
From August 2027, non-devolved ASF funding will transfer to local and combined authorities. They will commission their own provision — individually, not through a central ESFA process.
This accelerates a direction of travel already well under way. Several combined authorities (Greater Manchester, West Midlands, West Yorkshire, Liverpool City Region) have held their own ASF since earlier devolution deals. Now that model extends more broadly across England.
What local and combined authorities are doing
Local and combined authorities are already moving. Examples:
- Liverpool City Region Combined Authority is procuring for adult skills delivery covering 2027/28 to 2031/32.
- Warwickshire County Council has published its ASF commissioning strategy from August 2026, establishing direction for delivery as devolved responsibilities are embedded.
- Suffolk County Council is procuring for 1 August 2027 to 31 July 2028.
Providers with current ESFA contracts should not assume there will be a straightforward transfer. Each commissioning authority will run its own process, to its own timetable, with its own priorities and lot structure.
What this means for affected providers
Check where your learners are. Devolution works geographically — learner address determines which authority’s funding applies. If you deliver across multiple areas, you may need to engage with more than one commissioning body.
Find out who is commissioning in your area. Not all areas have published their plans. Some may be later than others. Contact your local combined or county authority now to understand their timeline and approach.
Don’t wait for ESFA to tell you. The national process is ending. There will be no procurement notice from ESFA for 2027/28 procured contracts. If you’re currently on a procured contract, your route to ASF from August 2027 is through your local authority, not ESFA.
Grant-funded providers. If you hold an ASF grant agreement, this change does not affect your current funding route. You should still monitor how devolution affects local commissioning in your area if you want to expand into new geographies.
Timeline
| Date | What happens |
|---|---|
| Now | Local/combined authorities beginning commissioning processes |
| 1 August 2027 | Current ESFA procured ASF contracts expire |
| 2027/28 | Non-devolved ASF transfers to local and combined authorities |