Source · Select Committees · Public Accounts Committee
Recommendation 21
21
The intervention regime for colleges incorporates a number of phases, from prevention work, through early...
Conclusion
The intervention regime for colleges incorporates a number of phases, from prevention work, through early intervention and formal intervention to, in the most serious cases, 31 C&AG’s Report, paras 1.7–1.8 and Figure 1 32 Q 43; C&AG’s Report, para 2.10 33 Qq 43–45; C&AG’s Report, para 2.10 34 Q 64 35 C&AG’s Report, para 4 36 Qq 107, 112 37 Q 109 Managing colleges’ financial sustainability 13 insolvency.38 At February 2020, the ESFA was intervening in nearly half of all colleges for financial health reasons—84 colleges (35% of open colleges) were in early intervention, while 31 (13%) were subject to formal intervention.39
Government Response
Acknowledged
HM Government
Acknowledged
6: PAC conclusion: The Department’s, the ESFA’s and the Further Education Commissioner’s approach to intervention takes too long, costs too much and is not effective in making colleges more sustainable. 6: PAC recommendation: The Department should set out within three months what actions it plans to take to improve its intervention arrangements, and how it will assess the success of these actions. 6.1 The government agrees with the Committee’s recommendation. Target implementation date: May 2021 6.2 The department will consult with sector stakeholders to review and publish an update to its college oversight: support and intervention policy in May 2021. This will set out the Education and Skills Funding Agency’s role as Regulator for the department, in respect of securing compliance and taking intervention action, and address the recommendations made the Committee, and those identified in the Independent Review of College Financial Oversight conducted by Dame Mary Ney DBE, published in July 2020. The Committee will be provided with a copy of the updated policy.