Skills minister John Hayes has announced “greater freedoms” for colleges to deliver fully subsidised training to help people on benefits enter employment.

Under new rules taking effect from the 2011/12 academic year, only benefit claimants on Jobseekers’ Allowance or Employment and Support Allowance (Work Related Activity Group), who are required to seek work as a condition of receiving their payments, will be eligible for free training.

However, the government will give further education providers some local discretion to provide fully subsidised courses for those on a wider range of benefits – provided the training is to help them enter employment.

Hayes said: “The government has repeatedly taken action to lessen bureaucratic restrictions on colleges, and to give them the flexibility to respond to the needs of employers and learners in their areas.

“Today’s announcement marks a new phase in this process. It is good news for people who are reliant on benefits but want to get into work, and good news for employers looking for a local supply of the right skills to help their businesses to grow.”

Geoff Russell, chief executive of the Skills Funding Agency, said: “This decision is another example of putting freedom and flexibility into practice. We will now make this explicit in our funding rules.”