Union Learning Fund: What It Was, Why It Was Scrapped, and What’s Happening Now
Introduction
If you’ve heard the phrase union learning fund thrown around in workplace conversations, union meetings, or news reports, you might be wondering what it actually is — or was. The Union Learning Fund (ULF) was a government-backed scheme that helped workers across the UK access training, skills, and educational opportunities through their trade unions.
This guide explains what the Union Learning Fund was, why it was closed in 2021, and what’s happening now as the government prepares to bring it back. Whether you’re a union member, an employer, or someone trying to understand workplace skills policy, this article is for you.
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What Was the Union Learning Fund?
The Union Learning Fund was established in 1998 by the Labour government under Education Secretary David Blunkett. Its objective was to create a “learning society” by helping trade unions use their influence with employers and employees to encourage greater take-up of learning in the workplace.
The fund wasn’t used to pay for training courses directly. Instead, it funded the infrastructure that made learning happen:
Training and supporting Union Learning Representatives (ULRs) — lay union members who advise colleagues on training and development needs
Helping unions work with employers to identify skills gaps
Arranging flexible learning opportunities in workplaces
Reaching workers who might otherwise never return to education
The fund was managed by unionlearn, the TUC’s learning organisation, under an agreement with the Department for Education.
How Much Was the Fund Worth?
The ULF distributed around £12 million per year in England before it was scrapped. From 1998 to 2016, it disbursed approximately £180 million to unions, supporting 1.45 million learning episodes. By the time it was closed in 2021, over two million people had used it to access training.
Information gap: For a full breakdown of how workplace training schemes are funded across the UK, read our guide on UK skills funding explained.
The Role of Union Learning Representatives (ULRs)
Union Learning Representatives (ULRs) were the driving force behind the Union Learning Fund. They were ordinary trade union members trained to advise colleagues about their training, educational, and development needs.
ULRs were granted statutory rights in 2003, including the right to reasonable time off with pay to carry out their duties and undergo training.
Their responsibilities included:
Starting conversations at work about the importance of learning
Carrying out one-to-one and group interviews to identify learning needs
Conducting Skills for Life screening to identify literacy or numeracy needs
Working with training providers to customise learning programmes
Supporting learners who might otherwise drop out
Setting up learning centres in workplaces
By 2008, more than 18,000 ULRs had been trained, helping over 150,000 workers into learning each year. By the time the fund was closed, around 6,500 ULRs were active across Britain.
Why ULRs Mattered
ULRs reached workers that employers and training providers found difficult to engage. As one parliamentary briefing put it, ULRs were uniquely able to connect with “hard to reach learners who might otherwise be too embarrassed to admit their learning needs to an employer”.
Information gap: Interested in becoming a Union Learning Rep? Read our guide on how to become a ULR.
Why Was the Union Learning Fund Scrapped?
In October 2020, the government wrote to the TUC to inform it that the Union Learning Fund would end in March 2021. The decision was made by Education Secretary Gavin Williamson.
The government’s stated reason was that funding would be redirected to the National Skills Fund, which supported free courses for jobs and skills bootcamps.
The Reaction
The decision was highly controversial. Critics argued it was an “unnecessary and ideological decision” that “defied economic logic”. The TUC accused the government of scrapping the fund “to settle scores with trade unions”.
Big employers including Tesco, Tata Steel, and Heathrow Airport joined unions and MPs in opposing the closure.
The University of Leeds had found that the ULF delivered an economic return of £12.30 for every £1 spent — £7.60 to the individual and £4.70 to the employer. Other evaluations put the return even higher, at nearly £13 for every £1.
What Happened After the Fund Closed?
Despite the loss of central government funding in England, union learning continued in Scotland and Wales through devolved funding. In Scotland, the government invested £2 million in the latest round of the Union Learning Fund to support 23 programmes. In Wales, the Wales Union Learning Fund (WULF) engaged over 100,000 learners in three years.
In England, unions continued to deliver learning where they could, but the loss of national funding created significant challenges.
Information gap: For a full comparison of skills funding across the four nations, read our guide on devolved skills policy in the UK.
What’s Happening Now? The Union Learning Fund Returns
On 28 September 2026, Chancellor John Healey announced at the Labour Party conference in Liverpool that the Union Learning Fund would be reinstated in England. He described it as being “reborn” after it was abolished by the Conservatives five years earlier.
The new fund comes with £15 million in annual funding and is intended to help employees develop skills and adapt to changes in the workplace.
Key Details of the New Fund
Annual funding: £15 million
Eligibility: Workers will not need to belong to a trade union to access support
Training areas: English, maths, digital skills, and preparation for jobs in advanced manufacturing
AI focus: The government has stated the fund “will help British workers harness AI rather than be outrun by it”
Delivery: Trade unions will work with employers and existing skills programmes to identify employees who could benefit
Before it was abolished, the fund generated around 180,000 learning opportunities each year.
What Else Was Announced?
The Union Learning Fund was announced alongside a £100 million Local Apprenticeship Service. This new service will broker youth apprenticeships through mayors across all 14 mayoral strategic authorities in England, starting from spring 2027. Local teams will work like “football scouts” to connect young people with small employers who have never offered apprenticeships before.
Both schemes are funded from savings identified by the Department for Work and Pensions.
Information gap: For a full breakdown of the Local Apprenticeship Service and how it works for employers, read our guide on the UK apprenticeship system.
What the Union Learning Fund Achieved: Key Numbers
Impact on Learners
Over 2 million people used the ULF to access training before it was scrapped
The fund supported 1.45 million learning episodes between 1998 and 2016
Nearly 25% of Wales Union Learning Fund learners reported having a disability, showing the programme’s success in reaching those facing barriers to education
Impact on Employers
49% of ULF learners became more supportive of union policies in the workplace
Employers including Tesco, Tata Steel, and Heathrow Airport publicly lobbied against the fund’s closure
Economic Return
£12.30 return for every £1 invested (University of Leeds evaluation)
£7.60 to the individual and £4.70 to the employer per £1 spent
Information gap: For case studies of how union learning changed people’s careers, read our guide on Union Learning Fund success stories.
Step-by-Step: How the New Union Learning Fund Will Work
While the full operational details are still being finalised, here’s what we know about how the new fund is expected to operate:
Step 1: Government Allocates Funding
The Department for Education will allocate £15 million annually to the fund. Further funding details are expected to be set out in the Budget.
Step 2: Unions Bid for Funding
Trade unions and national organisations representing trade unions will be eligible to bid for funding to run learning projects, as they were under the original scheme.
Step 3: ULRs Identify Learners
Union Learning Representatives will work in workplaces to identify employees who could benefit from training, focusing on essential skills like English, maths, and digital literacy.
Step 4: Learning Is Delivered
Training will be arranged in workplaces or through approved providers. The fund itself will not pay for training courses directly but will support the infrastructure that makes learning accessible.
Step 5: Learners Gain Skills
Workers gain new skills, qualifications, and confidence — benefiting both their careers and their employers.
Step 6: Employers and Workers See Returns
Based on the original fund’s track record, every £1 invested is expected to generate significant economic returns for individuals and employers alike.
Checklist: What to Know About the Union Learning Fund
✅ The ULF was established in 1998 by the Labour government.
✅ It was scrapped in March 2021 by the Conservative government.
✅ It was reinstated in September 2026 with £15 million annual funding.
✅ Union Learning Representatives (ULRs) were the driving force behind the scheme.
✅ The fund delivered a return of £12.30 for every £1 spent.
✅ Over 2 million people used the fund before it was closed.
✅ The new fund is open to workers regardless of union membership.
✅ Training will focus on English, maths, digital skills, and advanced manufacturing.
✅ The fund is part of a wider package including the £100 million Local Apprenticeship Service.
✅ Full operational details will be confirmed in the Budget.
Frequently Asked Questions
1. What is the Union Learning Fund?
The Union Learning Fund is a government-backed scheme that funded trade unions to promote and support workplace learning. It was originally established in 1998 and was reinstated in September 2026.
2. When was the Union Learning Fund scrapped?
The fund was closed in March 2021 by the Conservative government. Funding was diverted to the National Skills Fund.
3. Has the Union Learning Fund been reinstated?
Yes. On 28 September 2026, Chancellor John Healey announced the fund would return with £15 million in annual funding for England.
4. Do I need to be a union member to benefit?
No. The government has confirmed that workers will not have to belong to a trade union to access support through the new fund.
5. What can I learn through the Union Learning Fund?
Training areas include English, maths, digital skills, and advanced manufacturing. The government has also highlighted AI literacy as a focus area.
6. When will the new Union Learning Fund start?
The fund was announced in September 2026. Services are expected to go live from spring 2027, with full operational details to be confirmed in the Budget.
Conclusion
The union learning fund has had a remarkable journey. From its creation in 1998 to its controversial closure in 2021, and now to its rebirth in 2026, it has consistently shown that union-led learning changes lives.
The evidence is clear: for every £1 invested, the fund generated over £12 in economic return. Over two million people gained skills they might never have accessed otherwise. And the ULRs who made it happen reached workers that no employer or training provider could.
The new fund, backed by £15 million annually, represents a significant investment in workplace skills — and a recognition that trade unions are uniquely placed to reach learners that others miss.
For more guides on UK skills, employment rights, and navigating workplace policies, explore our website. We’re here to help you make sense of the system.