Barnsley AI Upskilling Fund

The ​Barnsley AI Upskilling Fund​ is available for upskilling providers to deliver novel AI skills pilots in Barnsley, aiming to drive SME productivity and support local labour market participation and progression as part of the Tech Town initiative.

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Contents

Summary

The Barnsley AI Upskilling Fund is a competitive fund to provide £800,000 of grant funding to drive productivity and support workforce participation and progress across Barnsley as part of the Tech Town initiative. The Tech Town initiative is a comprehensive place-based pilot that tackles private sector adoption, public sector adoption, and trust barriers together, providing a model for other regions of the UK. Underpinning all of this is the need for comprehensive upskilling of the workforce.  

Rapidly deploying the Barnsley AI Upskilling Fund would enable Barnsley to raise workforce capability across sectors where AI adoption is most likely to drive productivity, but where cost, outreach challenges, or lack of tailored provision currently act as barriers. Evidence suggests that UK firms adopting advanced digital technologies experience around 19% higher productivity per worker (ONS), highlighting the potential uplift if more Barnsley businesses and priority cohorts develop the skills needed to use AI effectively. The aggregate economic effect across Barnsley’s SME base could be substantial given the town’s concentration of labour-intensive sectors.  

The Fund aims to explore if targeted investment in locally delivered AI upskilling can remove key barriers, generate early productivity related benefits, and build an evidence base on what works. This approach is designed not only to deliver short-term gains, but to inform sustainable, scalable models of workforce preparedness that can be applied beyond the lifetime of the Fund. The Fund is designed to test this proposition directly by supporting intensive training for high growth potential sectors, such as manufacturing, and targeted programmes for harder to reach groups where free national provision may not be sufficient.  

The Fund will provide competitive grants to AI upskilling providers to deliver pilots in Barnsley. However, there would also be a requirement that funded projects demonstrate an ability to be scaled across the UK, to ensure that evaluation of the programmes can feed into national AI policy.  

The primary aims of the fund are to: 

  1. Offer deep, intensive training to priority sectors within Barnsley where there is strong potential for AI driven growth, but cost barriers may otherwise prove prohibitive. We particularly want to understand: 

    • The extent to which AI upskilling translates into tangible changes in firm behaviour, including sustained use of AI tools and changes to business processes, given the current lack of clear evidence linking training to deployment. 

    • Whether skills gaps are the primary constraint on adoption. 

    • What types of delivery model are most effective in converting workforce capability into productivity gains. 

    • The extent to which reducing cost barriers to training leads to additional employer investment. 

  2. Offer training to priority cohorts where existing free skills training may prove unsuitable or insufficient (e.g. due to challenges with effective outreach and/or the need for more bespoke training). We particularly want to understand:

    • Which approaches are most effective in enabling participants to apply AI skills in the workplace on an ongoing basis. 

    • How the effectiveness of provision varies across cohorts, including the relative impact of general AI capability building versus more tailored, role-specific training. 

    • What delivery, outreach, and employer engagement modes are required to successful reach underserved groups at scale rather than relying on voluntary uptake. 

The aim is for the Fund to demonstrate impact quickly, incorporating a blend of delivery models to understand what kind of skills provision can most effectively impact business productivity, as well as how we can reach different workforce groups that might not usually engage with this kind of provision. To support learning on what works in terms of delivery models, funded projects must engage with the DSIT-appointed evaluation supplier. This will involve participation in evaluation interviews, support to recruit participants to participate in the evaluation (firms and workers), and collection and provision of monitoring data. 

The programme is also designed to leave a lasting skills legacy in Barnsley. By strengthening capability across multiple locally rooted organisations rather than a single provider, the fund supports the development of a self-sustaining AI skills ecosystem that can continue delivering training without ongoing central funding. All funded projects are required to demonstrate how their delivery model can be replicated across other towns, ensuring that learning, tools and teaching approaches have wider application beyond Barnsley and contribute to a scalable national model of place-based AI upskilling.

Eligibility

Applications can be submitted by all public sector, ​​not for profit or private sector organisations, but may not be submitted by individuals or local authorities. Eligible  organisations can also submit an application as the Lead Organisation of a consortium.  

Applicants must be based in the UK. This means the applicant must be registered in the UK and have their head office in the UK. All applicants must also have been registered for at least one 1 year from the date that this Fund went live, and commit to ensuring that any funding awarded is used exclusively to implement the proposed project. Proposals cannot be for applicants to deliver skills provision to their own employees.  

​​​Proposals must take place in the Barnsley Metropolitan Borough area. This means that the businesses, organisations or workforce groups that are being targeted by the applicant must be based in / registered / living in the Barnsley Metropolitan Borough. ​​Organisations that do not currently have an established presence in Barnsley are encouraged to apply in partnership with local organisations (such as business networks, education providers or delivery partners) to demonstrate strong local engagement and place-based impact.  

All applicants can apply for grants of £100,000 to £350,000 and should make clear the amount of funding being requested and how it will be spent.  

Applications from consortiums (groups of stakeholders) are welcome. However:  

  • A consortium must have a Lead Organisation to serve as the main contact point through which the grant can be awarded and managed.   

  • All participating organisations must be identified. This may include local stakeholders such as companies, voluntary and community groups, and social enterprises.  

  • ​​​All members of the consortium responsible for delivering the project will be subject to due diligence checks. 

  • The Lead Organisation will be responsible for conducting relevant due diligence checks  and ensuring that any partners who receive funding only use it to support implementation of the funded project. DSIT may request evidence of due diligence performed by Lead Organisations on the consortia members. 

Applicants working with subcontractors are responsible for ensuring that these partners can meet their obligations and must carry out appropriate due diligence checks. All subcontractors must be clearly identified in the application. 

DSIT may also conduct its own due diligence on Lead Organisations and consortia members.  

Applicants must also provide a detailed breakdown of all associated costs in their application, as well as setting out clear delivery milestones.   

All eligible proposals must explain how their proposed project would:  

  1. Meet the needs of the Fund and contribute to at least one of its primary objectives. 

  2. Represent value for money for the taxpayer. 

  3. Demonstrate a novel or innovative approach. 

  4. Reach relevant target groups and / or businesses in Barnsley.  

  5. Contribute to robust evidence collectiondata via comprehensive Monitoring and Evaluation (M&E). 

  6. Be managed effectively. 

  7. Result in long-lasting impacts beyond the funding period and monitor these impacts. 

Applicants should ensure that they submit innovative proposals. To qualify as ‘innovative’, the proposal must meet the five criteria for Research and Development (‘R&D’) set out in Annex C of the Government’s Consolidated Budget Guidance 2024-25. Examples of innovative proposals in this context include:  

  • A brand-new idea that has never been tried before.  

  • A project that has been implemented before but not in the same way i.e. novel and uncertain aspects.  

  • A project that has been implemented before but to collect new evidence.  

  • A project to gather new evidence to inform existing tools or framework.  

  • A project designed to test new upskilling methodologies and create new tools / frameworks. 

R&D is described as “creative work undertaken on a systematic basis to increase the stock of knowledge, and use of this stock of knowledge for discovering or developing new products, including improved versions or qualities of existing products, or discovering or developing new or more efficient processes of production”. More information, including the criteria that needs to be met, can be found at Annex C of the Government’s Consolidated Budgeting Guidance.   

​​​Funding cannot be awarded to support the following activities:  

  • Any project that is ongoing or available to the public on the date that the grant recipient signs the grant funding agreement or MOU.  

  • To match fund a project which was already receiving government funding, whether in whole or in part.  

  • Staff costs unless required to deliver the proposed project.  

  • Installation of physical digital infrastructure projects e.g. broadband infrastructure, telecommunications, data centres. This does not include devices such as laptops and computers.

Objectives

Overall Aims 

The Barnsley AI Upskilling Fund will test and evidence scalable models of place-based AI upskilling that increase AI integration and broaden workplace participation in AI adoption. 

DSIT will use the Fund to generate robust evidence on which upskilling approaches most effectively: 

  • Increase AI adoption and integration in firms. 

  • Improve workforce capability and AI skills utilisation. 

  • Support inclusive economic growth at the local level. 

  • Can be replicated and scaled across other places. 

To demonstrate potential scalability, proposals must address one of the following challenge objectives and clearly set out the evidence they will generate. 

Objective 1: Sector-focused AI workforce capability and adoption 

Challenge 

How can deep, intensive AI upskilling in priority sectors overcome cost and capability barriers to drive meaningful adoption and AI-driven productivity gains? 

Proposals should deliver targeted, high-quality AI training in sectors within Barnsley where there is strong potential for AI-driven growth, but where cost, limited workforce capability, or lack of tailored provision currently limit uptake. Priority sectors include: 

  • Manufacturing; 

  • Logistics; 

  • Health; 

  • Professional business services. 

Evidence applicants should seek to generate 

  • Evidence of improved AI capability at firm and workforce level. 

  • Early indicators productivity, efficiency, or service improvements. 

  • Insight into how sector-specific approaches can support growth and inclusive access to higher-value work opportunities. 

Objective 2: Reaching and enabling underserved workforce groups 

Challenge 

How can AI upskilling be designed and delivered to reach workforce groups who are not well served by existing provision, and support their participation and progression in an AI-enabled economy? 

Proposals should test new approaches to engaging and upskilling priority cohorts who face barriers to accessing or benefitting from existing AI training offers, including where provision is too generic, inaccessible, or poorly targets. Priority cohorts include: 

  • Younger / entry level workers; 

  • Older workers (40+); 

  • Women; 

  • Individuals without higher or further education qualifications. 

Evidence applicants should seek to generate 

  • Evidence of successful engagement and sustained participation from target cohorts. 

  • Insight into which delivery models most effectively widen access and participation. 

  • Evidence of impacts on confidence, job quality, or access to higher-value or more secure work. 

Target firms  

Across both objectives, proposals should prioritise engagement with firms that are most likely to translate workforce upskilling into meaningful adoption and productivity gains. This includes firms that demonstrate: 

  • Strong sectoral relevance and growth potential. 

  • Sufficient baseline digital maturity to adopt AI. 

  • Leadership commitment to workforce engagement and organisational change. 

Proposals must also demonstrate how training will be delivered across organisational levels, engaging at least two of the following groups within participating firms: 

  • Senior leadership; 

  • Managers; 

  • Entry-level or junior roles. 

The Fund is also designed to support Barnsley’s Inclusive Economic Growth Strategy (IEGS) priorities by driving productivity, widening access to high-quality work, and ensuring that the benefits of AI adoption are shared across sectors and workforce groups. The IEGS is mission-led and outcome-focused. Funding should be explicitly aligned to delivery of those missions, particularly Digital, Logistics & Manufacturing, and Empowering Communities.

Dates

  • The Application window will close on 12/08/2026. 

  • Successful applicants will be notified around mid September.  

  • All projects can start from 01/10/2026, but must begin by 01/01/2027 at the latest.  

  • The maximum duration of delivery is 12 months.  

  • All projects should complete delivery by 30/09/2027.

How to apply

Eligible applicants are invited to submit an application by selecting ‘Start new application’ on the Find a Grant platform. 

You can begin your application and return to it at a later time through your 'Find and Apply for a Grant' account.  

Applicants may only submit one bid as a Lead Organisation via the online portal (the organisation submitting the application will be considered the lead applicant). However, applicants may participate in other bids as delivery partners. If an organisation submits more than one application as the lead applicant, only the first application submitted will be scored. 

For queries not included in FAQs please contact GGMS at barnsleyaiupskilling@cabinetoffice.gov.uk

Supporting information

FAQs and application guidance can be found here and ​​here. 

Template GFA can be found here

The following templates should be used in submitting your application: 

  1. Budget management Tool  

  2. Delivery Plan template

  3. Scoring Framework

  4. Postcode schedule 

  5. Application Guidance for Applicants (Information only)

Responses must use only the templates provided in their application response. Use of alternate templates will mean the application is deemed ineligible.

Barnsley AI Upskilling Fund - Delivery Plan Template

File type: vnd.openxmlformats-officedocument.spreadsheetml.sheet

Barnsley AI Upskilling Fund__ - Delivery Plan Template.xlsx (275 Kb)

Barnsley AI Upskilling Fund - Application Questions - Information Only

Barnsley AI Upskilling Fund - Budget Management Tool

File type: vnd.openxmlformats-officedocument.spreadsheetml.sheet

Barnsley AI Upskilling Fund__ - Budget Management Tool.xlsx (240 Kb)

Barnsley AI Upskilling Fund - Scoring Framework

Barnsley AI Upskilling Fund - Applicant Guidance

Barnsley AI Upskilling Fund - Postcode Schedule

File type: vnd.openxmlformats-officedocument.spreadsheetml.sheet

Barnsley AI Upskilling Fund__ - Postcode Schedule.xlsx (672 Kb)

Barnsley AI Upskilling Fund - Applicant Questions - Information Only

File type: vnd.openxmlformats-officedocument.wordprocessingml.document

Barnsley AI Upskilling Fund - Applicant Questions - Information Only.docx (1772 Kb)