The Skills Innovation Fund is an allocation from Mayoral Investment Funding to support skills development in the York and North Yorkshire region. The programme aims to innovate and build , or strengthen capacity and place based collaborative approaches.
The first round was launched in February 2025. £2,220,386 of the funding was allocated during this phase and those beneficiaries are now commencing delivery.
Phase two of the fund has been launched to allocate the remaining funding of £200,900 to independent training providers with an established base in York and North Yorkshire. This phase is focussed on building and strengthening capacity in independent training providers to enable them to innovate and change delivery to best meet the needs of employers and learners.
Key Challenges
The Skills Innovation Fund was developed to tackle a number of key challenges as highlighted in consultation with stakeholders, key strategies and Labour market analysis, these include:
A decline in engagement in learning
The numbers participating in Adult Education are 29% below 2018/19 levels, with Apprenticeship starts remaining 5% below their pre pandemic levels.
Skills Mismatch
A comparison of the subject profile of education and training provision with the profile of labour market demand shows major disparities between the two for apprenticeships, adult education and higher education.
Rurality, connectivity and access to services
Remote locations and a lack of digital connectivity and transport options present a particular challenge to individuals seeking training and support and local employers in recruiting and retaining staff.
Modes of delivery are not meeting business or learner needs
There is a lack of flexibility in how provision is delivered. More modular and bitesize provision is required with flexibility in when, where and how delivered – this was particularly highlighted in the work of the Local Skills Improvement Plan
Recruitment, retention and CPD issues in the skills/FE sector
Disparity of pay with industry and issues with lack of long-term funding for skills programmes means skills providers struggle to recruit and retain staff. Whilst teaching staff struggle to keep pace with technology and sector developments.
What can be funded?
The funding for Skills Innovation Fund Phase Two can support the following:
Capital investment that enables independent training providers to develop different modes of delivery to meet needs of employers and individuals and increases the accessibility of provision especially in remote areas.
Capital projects may include:
- upgrading equipment and facilities with cutting edge technology
- innovating teaching and learning practices using Immersive Technology, Virtual Reality and Artificial Intelligence.
Revenue projects may include:
- CPD and training for staff to develop the skills to use the new technology and equipment to effectively drive different ways of delivering provision.
Outputs and Outcomes
The deliverable and measurable outputs and outcomes that projects could aim to achieve, include:
Outputs
- Improved teaching facilities/technology/equipment
- Increased tutors trained in new technology
Outcomes
- New flexible courses (bite sized, modular, outreach) developed and delivered
- Increased number of adult learners trained, focussing on disengaged learners and those in need of upskilling and reskilling
As part of the application, you will be asked to specify the quantities of outputs and outcomes that you expect your project will achieve. For successful applications, this will inform the content of a grant funding agreement.
Projects are not expected to deliver against all outputs and outcomes here within a single application or project. It is important that applications are focussed and include achievable outcomes. Projects may identify and target a selection of these deliverables to focus on to monitor project progress and impact
Funding Opportunity and Requirements
Amount of funding available
Grants from £10,000 to £50,000.
The funding pot available to access will be £200,900 over one year April 2026 – April 2027.
Applications for a mix of capital and revenue funding will be accepted.
Applications for capital funding only will not be accepted.
There is an expectation that applications should request a minimum of £10,000 funding.
There is an indicative maximum limit of £50,000 for applications.
We want to make this funding as accessible as possible, so match funding is not a requirement of applications, and you can apply for up to 100% funding for your project. However, if you are able to provide evidence of match funding, including in kind contributions and demonstratable added value, this will be viewed favourably and will increase the value for money that your project can bring to the programme
Delivery Window
April 2026-April 2027
Who can apply?
Joint and collaborative applications are strongly encouraged, especially where provision will be complementary. The conditions and strength of any partnership submission will be considered during the project appraisal process.
Applications will ONLY be accepted from Independent Training Providers, with an established base in York and North Yorkshire as individual organisations, partnerships, or consortiums.
Established base in York and North Yorkshire defined as: physical presence or operational infrastructure in the region e.g offices, training centres or regular delivery venues. Demonstrates a track record of activity in the region- consistently delivered here over a period of time. Engages with local stakeholders- showing integration into the regional ecosystem. Understands the local context- labour market needs, demographics, regional priorities, geography.
Where an application is submitted by a partnership or consortium on behalf of multiple organisations, a ‘lead applicant’ or ‘lead provider’ must be identified to complete the application, enter into the funding agreement, and distribute the funding amongst its partners.
The lead applicant will act as an accountable body for the project. All delivery partners should be clearly outlined in the application and a signed declaration will be required as proof of each organisation’s commitment.
All applications should include the sector or sectors the project relates to. Further justification is needed for sectors outside of the emerging growth and core sectors listed in the objectives section of this prospectus.
Emerging growth sectors include: engineering biology, agri-tech, health and life sciences, rail, manufacturing, clean energy, creative and digital, maritime. Core sectors: construction, health and social care, visitor economy. Cross cutting themes: net zero, digital.
Eligible Activity and Costs
As part of the application, you will be asked to provide a full breakdown of project costs. Here are some examples of the types of project costs which may be eligible and ineligible. (This list is not exhaustive).
Eligible costs
Eligible costs may include:
- Costs associated with upgrading and purchasing new equipment that aligns with the programme objectives. This may include investment in cutting edge technology and the installation of immersive technology, virtual reality and artificial intelligence
- Staff costs including training, course costs, qualification/accreditation costs, transport/travel costs, to support delivery
- Costs associated with developing/trialling new provision
- 5% management fee, based on total funding amount requested, for consortium bids only
Ineligible costs
Ineligible costs may include:
- Costs associated with the maintenance of buildings, classrooms and workshops, or capital work which has already been planned and scheduled
- Costs of developing new build facilities
- Costs of purchasing equipment not related to the programme objectives
- Costs related to courses that are already running or staffing that is already funded. Applications should not include costs for ‘business as usual’ activity or activity which has already been planned to be introduced in 2025, 2026 or 2027
- Recoverable VAT
- Project contingency costs and contingent liabilities
How to apply
- Applicants should read all the Guidance information
- Complete and Submit the Application Form and any additional documents or supporting information before the deadline
- The Application window will be open for 6 weeks from the 1st December 2025, closing on 9th January 2026
- Applicants will be contacted when: their application has been received and also if their application is not complete
- Once the application window closes, all applications received will begin to be appraised
- Once the appraisal of all applications submitted has been completed, a decision will be communicated to applicants
- If applicants are successful, they will receive a grant offer letter. The contracting process to create a grant funding agreement will then begin.
- Once funding agreements have been finalised and signed, project delivery can begin
- Unsuccessful applications will be informed and high level feedback provided in due course.
Process and Indicative timelines
|
Milestone |
Date |
|
Communications available on the YNYCA webpage |
November 2025 |
|
Formal Launch of programme and open call for applications (6-week open application window) |
1st December 2025 |
|
Deadline for applications |
9th January 2026 |
|
Appraisal and Decision making |
February-March 2026 |
|
Contracting |
April 2026 |
|
Projects commence |
April 2026 – May 2026 |
|
Monitoring |
Monthly (ongoing) |
|
Evaluation Reporting |
January-March 2027 |
Further Information
How will applications be assessed?
All applications submitted will be scored against a consistent appraisal framework through an internal appraisal team. The appraisal team will attend a moderation meeting which will decide final scoring for each application. The team will then allocate funding based on the highest scoring applications. The appraisal team do have the option of reducing funding or scope within applications to achieve the right balance of projects funded.
For the appraisal of applications, HM Treasury’s 5 Cases methodology will be followed to ensure that applications demonstrate the strategic, economic, financial, commercial and management case for investment. This will require applicants to:
- Explain and evidence the Need for the project
- Explain and evidence the Strategic Fit with the programme objectives
- Explain and evidence the positive Impact the project will have and explain how measurable outputs and outcomes will be achieved. Any added value the project will achieve to maximise the public benefit from the grant funding should be described too
- Provide an accurate and reasonable breakdown of Project Costs
- Explain how the project will be Deliverable in full within the timeframe
- Explain who will be Managing the project, which partners will be collaborating, and their track record of delivery. The extent of partnership working will be an essential consideration for appraisal
Requirements for successful applicants
For successful applications, lead applicants will receive a grant offer letter and the process of contracting to enter into a funding agreement will begin.
The grant offer letter and funding agreement will set requirements to:
- Evidence that any outstanding conditions have been met or permissions secured, e.g. planning approvals or licenses granted
- Agree a schedule for payment of the grant that enables the project to be delivered effectively.
- Agree to data sharing protocols consistent with GDPR policy and the Privacy Policy of the Combined Authority.
- Adhere to Branding and Publicity guidelines which will be issued by the Combined Authority.
- Participate in providing monitoring information, focused on the reporting of expenditure, outputs and outcomes.
- Participate in Evaluation activities. This will be proportionate to the scale and scope of the project. For larger projects, there may be greater expectation on applicants (to provide case study material, to conduct surveys, to analyse value for money, etc.) over and above the reporting of outputs and outcomes.
- Participate in networking meetings alongside other successful applicants to help capture and communicate impact.
Useful Documents
- York and North Yorkshire Combined Authority – Economic Framework
- York and North Yorkshire Combined Authority – Mayor’s Vision
- York and North Yorkshire Routemap to Carbon Negative – (Summary Document)
- Guide to Developing the Project Business Case – Chapter 2 outlines HM Treasury’s 5 Cases Methodology
- UK subsidy control regime: statutory guidance – GOV.UK
- York and North Yorkshire Combined Authority Skills Strategy 2024
- Adult Skills Fund Strategic Skills Plan 2025 – 2028
- York and North Yorkshire Local Skills Improvement Plan (LSIP), Progress Report, June 2024
- York Skills Strategy – City of York Council
- North Yorkshire Council Economic Growth Strategy
- Get York and North Yorkshire Working Plan
Get In Touch
If you have any questions relating to these four funds, our team will be happy to assist. Please complete the following form and a member of the team will be in touch.
