Recommendation 5

We are concerned that continuing financial pressures and workforce challenges are hampering colleges’ ability to play a full part in the skills system. Colleges play an important role in reaching disadvantaged groups and giving people opportunities they would not otherwise have to develop their skills. In January 2021, we reported that there was clear evidence of the college sector’s financial fragility and that the situation was affecting students. We found that financial pressures had caused some colleges to narrow their curriculum and reduce the length of courses. Some colleges had significantly reduced enrichment activities, such as careers advice and employability activities. We are also concerned about colleges’ ability to recruit and retain teaching staff. DfE recognises that pay in the college sector will often not compete with pay in relevant industries, but highlights that the 2021 Spending Review increased funding for skills by £2.8 billion. It is considering how to give colleges greater funding certainty, and is working with the sector on initiatives such as supporting people who want to teach part-time and work in industry part-time. Recommendation: Within six months, DfE should provide us with an update on how it is helping colleges deal with the challenges relating to workforce shortages and funding arrangements.