Source · Select Committees · Public Accounts Committee
Recommendation 25
25
Not Addressed
In January 2019, the Department introduced an insolvency regime for colleges, which applies aspects of...
Conclusion
In January 2019, the Department introduced an insolvency regime for colleges, which applies aspects of corporate insolvency law and involves a special administration regime known as ‘education administration’. The overriding priority while a college is in education administration is to protect the students. Two colleges in Kent entered education administration in 2019—Hadlow College, and West Kent and Ashford College.45
Government response summary AI-generated
The government response details emergency funding provided to colleges but does not address the Committee's conclusion about the introduction of the college insolvency regime or its application to specific colleges.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Not Addressed
HM Government · verbatim extract
Not Addressed
Between November 2014 and March 2019, the ESFA paid £253 million to 36 colleges which had serious cashflow problems. The purpose of this emergency funding was to help the colleges maintain their teaching and other services for learners. At the beginning of this period, government’s intention was that all the emergency funding would be repayable. However, at March 2020, the ESFA had categorised 39% of the total (£100 million) as non-repayable.42
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