8.15 We believe that a major challenge in the establishment of a learning culture for all will be for the funding of lifelong learning to be systematically strengthened over time. This will require the development of a step-by-step process, designed to fit in with the overall strategy to be laid down by Government. The clear challenge will be to:

• Expand the total volume of funding from all sources, devoted to supporting lifelong learning
• Release maximum leverage from public investment
• Stimulate employer investment for all employees in all sectors of the economy
• Encourage increased individual investment
• Create a regulatory and funding regime where institutions are responsive to the needs of lifelong learners

8.16 Achieving this will require both a shift in the overall balance of funding within and between forms and levels of learning activity and initiatives designed to achieve an increase in the aggregate amount of funding devoted to lifelong learning from all sources, public and private. We believe that this will involve a combination of funding incentives, new forms of funding (such as Individual Learning Accounts) and a planned incremental shift of public resources, especially to stimulate and support involvement in lifelong learning from those individuals and groups who are currently excluded. The aim should be to widen participation substantially, open up progression routes between all levels of learning and underpin greater commitment to lifelong learning from individuals, employers and learning providers.

8.17 Effective lifelong learning will be financed from many sources, and through a wide range of mechanisms. In view of this, we make proposals about both broad principles and specific issues. We believe that more money is needed to create a genuine learning society in this country. We also believe that, over time, there is al need for public investment to be used to create a level playing field for student support, which does not differentiate in offering access to support by mode of learning, by age of learners, or, eventually, by level of study.

8.18 We also believe that a strong and convincing case needs to be made for additional public funding to be committed to lifelong learning. We recognise that, as things stand presently, there is little scope for such an increase. A convincing and engaging case needs to be set out in some detail, so that everybody knows what is being proposed. It should be given wide public discussion through consultation. As part of the major national debate and campaign that should be initiated by the publication of the Lifelong Learning White Paper, we urge that the difficult issue of the total volume, and form, of public funding devoted to lifelong learning be broached as a matter of public political discussion. We do not anticipate that this issue will be settled quickly, nor do we think there are any 'quick fix' answers to the complex questions surrounding the total volume of resources which should be applied to support lifelong learning. However, we think the issues should be given a full and proper airing.

8.19 As part of this, Government should also review the balance of investment by Government, individuals, and others in respect of entry level (including basic skills, new learning pathways) NVQ 3 level (the key National target level) access to and through higher education community related and led adult learning. The aim should be to increase the overall level of GNP devoted to learning, at all levels.

8.20 One way of beginning this process, step by step, would be to have phased approach along the following lines:

Phase One

• The Government should adopt the proposal made by the Dearing Committee that student loans be treated as investment in the national accounts, rather than expenditure.
• The Government should press for the international acceptance of the OECD finance Ministers' advice that human resource investment should be treated like physical capital in national accounts, and be written down over a number of years.
• Moneys saved by these measures should be reinvested in the expansion of post-school learning.

• The Government should adopt the Kennedy proposal that the millennium lottery fund be succeeded by a learning fund, with a remit to foster the creation of a learning society.
• Educational initiatives should be central to the Millennium Exhibition in 2000.
• The Audit Commission, Government and institutions could work to develop more effective social audit measures to capture non-cash based activity, and less quantifiable learning gain, to enable policy planners to capture better the value added by investment in lifelong learning.

Political Parties should consider including proposals in their election manifestos for the next general election for increasing public, employer, individual and other funding of lifelong learning.

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