Talks to plug “potential gap” as training giant set to shut

By Ged Henderson

11 May 2018

The UK’s largest provider of skills training and employment is entering a “final close down period” after a damning Ofsted report and an Education and Skills Funding Agency (ESFA) decision to halt funding.

Learndirect manages and delivers Lancashire’s Skills Support for the Workforce contracts, together with a consortium of providers in the county, and almost 1,800 employers have directly benefitted from the programme.

Lancashire Business View understands that funding will be halted from the end of July across Learndirect’s adult education budget and European Social Fund contracts and suppliers have been told it is entering a “final close down period”.

As a result, Lancashire Enterprise Partnership (LEP) is currently in talks with the ESFA over a “potential gap” in provision for companies and organisations looking to upskill their workers.

According to reports, Learndirect’s staff have been informed that they are likely to lose their jobs as it prepares to “run down all areas”. It is believed the organisation employs around 1,500 people.

Learndirect was privatised in 2011. It has been the largest provider of adult training and apprenticeships in the UK.

Its difficulties began after a grade four Ofsted report, rating it “inadequate”. The report was published last August after the organisation tried to block its release and challenged it in court. It said it did not accurately reflect its performance. The subsequent fall-out saw the withdrawal of the funding.

Dr Michele Lawty-Jones, director of the Lancashire Skills and Employment Hub, told Lancashire Business View: “Lancashire’s Skills Support for the Workforce contracts, which are managed by learndirect ltd and delivered by learndirect, together with a consortium of providers in Lancashire, have been hugely successful with nearly 1,800 employers having directly benefitted from the programme.

“However, the Education and Skills Funding Agency (ESFA), who procure the European Social Funds (ESF) for the contract on behalf of the Lancashire Enterprise Partnership (LEP), have now confirmed that the contract will cease at the end of July 2018.

“The other two contracts procured via the ESFA in Lancashire, 'Access to Employment' and 'Moving On', will be extended until the end of March 2019.

“As a result, there could be a potential gap in provision for companies and organisations seeking to upskill their employees, and the LEP is currently in discussion with the ESFA regarding options and procurement of future activity to support local employers.

“Any employers who believe they could be affected by these changes should contact the Hub via [email protected] and we will advise them of the different options available.

“We are also currently contacting partners and business intermediaries with details of these changes.”

Enjoyed this? Read more from Ged Henderson

Latest news

1

‘Buy British’ call to protect Lancashire defence jobs bae-systems-typhoon.jpg

‘Buy British’ call to protect Lancashire defence jobs

02 Nov 2026

2

Skills debate: Attitude over aptitude Skills Debate

Skills debate: Attitude over aptitude

02 Nov 2026

3

Driving your business forward with electric Linz Pic 2

Driving your business forward with electric

30 Oct 2026

4

Lancashire businesses react to Autumn Budget UK Parliament

Lancashire businesses react to Autumn Budget

30 Oct 2026

5

Council shake-up decision early next year County Hall Gates

Council shake-up decision early next year

29 Oct 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

The Landmark, School Lane, Burnley, BB11 1UF

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

Sub36 Reunion & Networking
03 Dec 2026

Sub36 Reunion & Networking

Burnley Football Club, BB10 4BX

15:00 - 17:00

Lancashire Net Zero Conference 2027
NZC27 Social 1200x800Generic 1 11 Feb 2027

Lancashire Net Zero Conference 2027

The Wellbeing Farm, Edgworth, Wheatsheaf Hill Farm, Plantation Road, BL7 0BY

09:30 - 02:00

Help to Grow: Management Course
Help To Grow 25 Sep 2026 - 15 Dec 2026

Help to Grow: Management Course

University of Lancashire, Preston, PR1 2HE

09:30 - 12:00

Action Members November Event
1791817755261.png.png 03 Nov 2026

Action Members November Event

The Wellsprings, Howell Croft South, Bolton BL1 1SB, Bolton, BL1 1SB

09:15 - 11:45

Chamber Breakfast Networking – November
Lancaster And Morecambe Logo 1 03 Nov 2026

Chamber Breakfast Networking – November

Porsche Centre South Lakes, Carnforth, LA6 1FW

08:30 - 10:30

Funding Unlocked
IMG_3058.jpeg.jpg 04 Nov 2026

Funding Unlocked

Accrington Stanley FC, Accrington , BB5 5BX

10:00 - 12:30

Breakfast Social and Coworking Day: November
Brekfast social Nov Creative lancs small.png.png 05 Nov 2026

Breakfast Social and Coworking Day: November

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Clubhouse Business Network sponsored by Orca Finance - November 2026
Club House Padel 05 Nov 2026

Clubhouse Business Network sponsored by Orca Finance - November 2026

Clubhouse, Blackburn, BB1 3NT

14:00 - 16:00

Lancashire Construction Connections
1790691579952.jfif.jpg 05 Nov 2026 - 05 Nov 2026

Lancashire Construction Connections

Holmes Mill, Clitheroe, BB7 1EB

14:00 - 17:00

National Minimum Wage (NMW) and National Living Wage (NLW) Compliance
Untitled design (11).png.png 10 Nov 2026

National Minimum Wage (NMW) and National Living Wage (NLW) Compliance

Online - Microsoft Teams

11:00 - 11:45

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV130 Online GraphicWebsite
Subscribe now

Weekly news bulletin