I really don't know the correct term for this effect. I'm talking about the faded colours in the background creating some sort of blurred lighting effect.

 

any input would be appreciated. Cheers

I suppose 'highlight', 'spotlight', 'glow' or as you say 'lighting'. I don't think it has a specific term (but I may be wrong).

I think spotlight, as mrchristoph said, but I don't know for sure.

It look pretty cool by the way.

GaussianBlurredPaintBrushStrokes.

basically, a coloured BG with noise added, at about 1, then guassian blurred. Then by the looks of it the have got a fuzzy brush, white and brushed in the middle, then either dropped the opacity, or added a clipping mask. Also try dropping the fill to about 40%-50% and leave the opacity at 100%. Where did you find the image? ask the person how they made it