Recommendation 24

Our 2021 report also noted, however, that the financial health of the college sector had previously been, and remained, fragile and that financial pressures were affecting provision for students. These pressures had caused some colleges to narrow their curriculum and reduce the length of courses. Some colleges had significantly reduced enrichment activities for students, such as careers advice and employability activities, and some were particularly concerned about reduced mental health support for students.37 We asked DfE about the impact of funding concerns on colleges’ ability to provide the courses and skills needed. DfE told us that the 2021 Spending Review had allocated an extra £2.8 billion of funding for skills. It also said that it was looking to give colleges more funding certainty through its ongoing review of funding and accountability, and it aimed to offer investment that allowed colleges to make longer-term decisions. More specifically, DfE asserted that scaling up the T levels programme would give colleges more funding certainty.38