Under new rules that come into force for the 2011/12 academic year, only benefit claimants on Jobseekers’ Allowance or Employment and Support Allowance (Work Related Activity Group), who are required to seek work as a condition of receiving their benefits, will be eligible for free training.

But to enable colleges to meet local demand for the skills that lead to employment and growth, FE providers will also be given some local discretion to provide fully subsidised courses for people on a wider range of benefits - provided the training is to help them enter employment.

Skills Minister John Hayes said:

“The Government has repeatedly taken action to lessen bureaucratic restrictions on colleges, and to give them the flexibility to respond to the needs of employers and learners in their areas.

“Today’s announcement marks a new phase in this process. It is good news for people who are currently reliant on benefits but want to get into work, and good news for employers looking for a local supply of the right skills to help their businesses to grow.”

Geoff Russell, chief executive of the Skills Funding Agency said:

"This decision is another example of putting freedom and flexibility into practice. We will now make this explicit in our funding rules."

The Department for Work and Pensions is reforming the benefits system to remove barriers to employment and support more people into work. The Welfare Reform Bill, introduced in the Commons on 16 February 2011, makes the most fundamental reforms to the social security system for 60 years. It will deliver a system that is simpler, fairer and ensures that work always pays.

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