In numbers: The economic benefits of investing in ESOL
This blog explores how English for Speakers of Other Languages (ESOL) provision has the potential to unlock valuable skills, facilitate growth opportunities, and increase employment and earning potential for individuals who use English as a second language.
Post-16 education and skills reform is at the heart of the Government’s plan to “kickstart growth” and is set to play a big role in increasing access to education and work opportunities.
Investing in skills is particularly beneficial for over one million adults in the UK who cannot speak or speak very little English as a Second Language (ESL) – many of whose talents remain untapped due to language barriers. This blog explores the body of evidence which suggests that, with appropriate action to meet demand and need, English for Speakers of Other Languages (ESOL) provision has the potential to unlock valuable skills, facilitate growth opportunities, and increase employment and earning potential.
According to the 2021 Census, ESL speakers who are highly proficient in English are also more likely to be employed. However, over one in every 50 people of working age in England report not speaking English well or at all; individuals who are being held back from accessing opportunities and contributing fully to their communities, the economy, and UK society more generally. This figure is equivalent to the number of adults "economically inactive" following the COVID pandemic in the UK.
Yet, according to Government data, the growing demand for ESOL (up by 17% since 2021) is being met with ever-declining funding and current provision isn’t reaching all those who need it. The data shows that there were 151,000 adult ESOL learners in England in 2022/23, meaning that only 4% of all adults in the UK who speak English as a second language are accessing ESOL classes.
According to the Institute for Fiscal Studies (IFS), classroom-based adult education spending has reduced by two thirds since 2003/04, with a further 3% cut to Adult Skills Funding announced for 2025/2026.
This mismatch sits in stark contrast with the growing body of evidence which tells us that investing in ESOL provision is a sound investment for the Government and will pay dividends for both learners, communities, and the public purse.
Untapped potential of ESL speakers
Current evidence indicates that increased investment in ESOL can reap benefits for ESL speakers themselves, as according to the 2021 Census, adults who have a high proficiency in English are also more likely to be employed.
Meanwhile, of those adults who have low English proficiency, the Census data also highlights the unrealised potential of the 65% that are economically inactive or unemployed in the UK who would benefit from English language tuition:
Nearly half (42%) of those adults with low English proficiency were born in or have been a resident in the UK for over ten years – demonstrating that ESL speakers can unlock their potential only when their English language skills are able to meet the language demands of the jobs on offer:
Current skills mismatches and under-employment
Many ESL speakers are already qualified professionals or skilled tradespeople, posing a notable missed opportunity for our society. Across the OECD* countries, around half of all migrants and refugees already possess tertiary (degree level) qualifications.
Despite many migrant workers holding in-demand qualifications, studies show that male immigrants have a 24% greater chance of un or under-employment compared to UK-born individuals. With the appropriate language support over time, these individuals can progress to higher education or employment and access opportunities that further contribute to society and help to address the current skills shortage.
Greater chance of higher earnings
Data suggests that greater English proficiency often correlates with higher earnings.
The 2024 Migration Advisory Committee annual report revealed that the average person arriving on a skilled worker visa in 2022-23 made a net contribution of about £16,300 to the UK finances in their first year, compared with about £14,400 generated by a working British adult.
This data reveals not only that learners themselves benefit financially from ESOL, but also the potential benefits of increased investment to public finances. Once individuals are employed and earning higher wages, they begin to pay more taxes and rely less on social security, enabling them to pay back the investment in their education.
What needs to change
In the wake of the Spring Statement which set out the Government’s vision for sustainable growth, there is undoubtedly a case for smart public investment that helps to address the current skills shortage and grow the economy. The above data shows some of the benefits of investing further in ESOL – the establishment of Skills England is one clear opportunity for the Government to reap those economic benefits by increasing ESOL provision to help upskill the one in 50 of those in working age with low English proficiency.
*Organisation for Economic Co-operation and Development