Source · Select Committees · Public Accounts Committee
Recommendation 23
23
Acknowledged
In January 2021, we reported on the financial sustainability of the college sector.34 Our report...
Conclusion
In January 2021, we reported on the financial sustainability of the college sector.34 Our report emphasised that colleges play a crucial role in developing the knowledge and skills the country needs, and in reaching disadvantaged groups and deprived areas.35 In giving evidence on workforce skills, DfE told us that people in FE colleges were often motivated by a mission to give opportunity to those who had not necessarily had access to it before and noted that the support that colleges provided could be life-changing for students.36
Government Response Summary
The government will provide an additional £1.6 billion for 16-19 year olds education, uplift funding rates, increase cost weighting for specific subjects, address uneven monthly payments to colleges, and invest in direct support for the FE sector including bursaries and recruitment campaigns.
Government Response
Acknowledged
HM Government
Acknowledged
5.1 The government agrees with the Committee’s recommendation Recommendation implemented 5.2 The government has made available an extra £1.6 billion for 16-19-year-olds education in 2024-25 financial year, compared with 2021-22. The department is using part of this increase to uplift 16-19-year-olds funding rates for 2023-24 academic year. As well as a base rate increase of 2.2%, the department is increasing the cost weighting for engineering, construction and digital subjects to help providers with the additional costs of recruiting and retaining teachers in these subject areas – where providers are facing some of the greatest workforce challenges. 5.3 To help colleges manage their cashflow, the department is addressing the historical issue of uneven monthly payments from central government, which leave colleges out of pocket by March every year. The department will invest £300 million before the end of the 2022-23 financial year in bringing forward payments. This will smooth out the funding for a new even profile for colleges from 2023 to 2024 for both the 16-19-year-old and adult education budgets. 5.4 The department is also investing in a package of direct support for the FE sector in 2022-23 to assist with the recruitment, retention and development of teachers. This includes bursaries worth up to £26,000, a recruitment campaign, initial teacher education reforms, and the Taking Teaching Further (TTF) programme to support industry professionals to become FE teachers.