The Learning and Skills Council (LSC) is under threat of closure.

The government made the proposals in a White Paper, which details the transfer of £7 billion to local authorities to help colleges and sixth forms deliver the reforms needed to raise the education and training leaving age to 18.

A new agency will be formed, with a further £4 billion a year, to provide training and skills for adults.

For adult learners, a new smaller agency will replace the LSC to streamline the funding process to colleges and training providers. This will ensure that funding follows the training needs of employers and learners.

John Denham, secretary of state for innovation, universities and skills, said: “If we are to meet the targets we set out in World Class Skills then we need a FE and skills system which is even more flexible and responsive to both learners and employers. The new Skills Funding Agency will ensure that government funding responds to employers’ and adults’ skills needs and supports excellence in the FE sector.”

Trades Union Congress general secretary Brendan Barber said: “Many of the proposed reforms, such as giving local authorities a greater strategic role for young people, should help more employees get the skills they need. But with two in five workers still not getting any regular training at work, this organisational reform must not divert attention from the wider skills challenge – getting more employers to offer quality apprenticeships and training opportunities.

“The LSC has played an important role in supporting the government’s skills strategy in recent years. Ministers must ensure that the expertise built up by LSC staff is utilised in any future arrangements, without recourse to redundancies.”

The consultation document can be found at www.dcsf.gov.uk and www.dius.gov.uk