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This paper describes the PACE Partnership, a joint project undertaken in Wales with the intention of exploring ways that learners can move from their community base into levels of further education (FE) and higher education (HE) and identifying practical and institutional barriers to progression, focusing on socially excluded groups. The project highlights funding issues that need to be addressed and attempts to promote collaboration across the FE/HE divide in the community. Issues of staff development and support services have also been identified.