Select Committee · Education Committee

Further Education and Skills

Status: Closed Opened: 29 Jan 2025 Closed: 30 Jan 2026 36 recommendations 32 conclusions 1 report

The further education sector is currently navigating a series of reforms and challenges. In this inquiry the Education Committee will explore these issues and other pressures currently facing the further education sector, including the pay gap between school and college teachers, maths and English GCSE resits, students’ mental health. Read the call for evidence

Clear

Reports

1 report
Title HC No. Published Items Response
6th Report - Further Education and Skills HC 666 23 Sep 2025 68 Responded

Recommendations & Conclusions

12 items
8 Conclusion 6th Report - Further Education and Skil… Rejected

Government devolution plans for skills are welcomed but exclude 16-19 education and training.

We welcome the Government’s plans to deepen and widen the devolution of skills and employment support in England. Devolving further powers to Strategic Authorities will help to drive growth, encourage the co- ordinated delivery of education and training services across the country, and meet the unique needs of local communities. …

Government response. The government rejects the implicit suggestion to devolve 16-19 education funding, stating it is important to maintain a national, consistently high-quality offer to promote social mobility. It confirms Mayors will continue to feed priorities into DfE's strategic conversations and LSIPs …
Department for Education
9 Recommendation 6th Report - Further Education and Skil… Rejected

Broaden devolution by default to include 16-19 education and training in the Devolution Bill.

The Government should broaden its commitment to “devolution by default” by devolving appropriate 16–19 education and training, skills programmes and funding streams to each Strategic Authority. We recommend that the 91 Government amends the English Devolution and Community Empowerment Bill to make provision for the devolution of 16–19 education and …

Government response. The government rejects the recommendation to devolve 16-19 education and training, stating it is important to maintain a consistent national offer to promote social mobility, but commits to working with Mayoral Strategic Authorities on aligning priorities.
Department for Education
14 Recommendation 6th Report - Further Education and Skil… Rejected

Expand Youth Guarantee eligibility to include all young people aged 16-24.

We recommend that the Government expands eligibility for the Youth Guarantee to include all 16–24-year-olds so that all young people are given the same opportunities to re-enter education or access employment. (Recommendation, Paragraph 57)

Government response. The government outlines the existing Youth Guarantee for 18-21 year olds and highlights various current support mechanisms for 16-24 year olds, thereby not committing to expanding the Youth Guarantee itself to include all 16-24 year olds.
Department for Education
23 Recommendation 6th Report - Further Education and Skil… Rejected

Introduce modular T Level qualifications to enable flexible student pathways and employer engagement.

We recommend the introduction of modular or smaller-sized T Level qualifications (e.g. equivalent to one A Level) to enable students to study a blend of academic and technical qualifications and allow more flexible entry and exit points. Employers should be involved more closely at the curriculum-design stage of these modular …

Government response. The government states it will introduce V Levels, a new vocational pathway, alongside A Levels and T Levels, which will allow students to explore sectors and combine applied learning with practical assessment. This differs from the recommended modular T Level …
Department for Education
25 Recommendation 6th Report - Further Education and Skil… Rejected

Commit to long-term retention and sustained funding for essential Level 3 qualifications and AGQs.

Level 3 qualifications—including Applied General Qualifications—which provide students with a popular and respected alternative to both A Levels and T Levels must remain an option for all young people. The Government must publicly commit to the long-term retention of these qualifications and to providing sustained funding for them. We hope …

Government response. The government proposes introducing V Levels as a new vocational pathway alongside A levels and T Levels, as outlined in its Post-16 Education and Skills White Paper. A consultation on post-16 Level 3 and below pathways is currently underway, with …
Department for Education
26 Conclusion 6th Report - Further Education and Skil… Rejected

Ensure post-16 students can combine A Levels, AGQs, and T Levels for tailored pathways.

The Department for Education should ensure that post-16 students are able to pursue a mixture of A Levels, Applied General Qualifications and T Levels in order to support more tailored and inclusive educational pathways. Providing students with the flexibility to combine different forms of post-16 qualifications would better reflect individual …

Government response. The government's Post-16 Education and Skills White Paper proposes a new V Level pathway alongside A Levels and T Levels. It also notes an ongoing consultation on post-16 Level 3 and below pathways, with a government response expected in 2026, …
Department for Education
44 Recommendation 6th Report - Further Education and Skil… Rejected

Introduce 16-19 student premium for disadvantaged post-16 students, pegged to the Pupil Premium.

We recommend that the Department for Education introduces a 16–19 student premium for disadvantaged post-16 students. This funding should be pegged to the Pupil Premium and would be a targeted investment for post-16 students who have been eligible for the Pupil Premium in the last six years. The Department should …

Government response. The government rejects the introduction of a new 16-19 student premium, stating it already funds existing financial support programmes for 16-19 year olds, including the Bursary Fund and other support mechanisms.
Department for Education
58 Conclusion 6th Report - Further Education and Skil… Rejected

Provide urgent capital grants and establish a national High Needs Fund for specialist SEND colleges.

We also recommend that the Department for Education provides a one-off capital grant for specialist SEND colleges to address serious and urgent concerns around the condition of buildings and facilities. Furthermore, the Department must create a ring-fenced High Needs Fund for specialist SEND colleges at the national level to reduce …

Government response. The government states existing annual funding mechanisms apply to special post-16 institutions but explicitly rejects creating a ring-fenced national High Needs Fund for specialist SEND colleges, stating local authorities determine priorities for un-ringfenced capital funding.
Department for Education
59 Recommendation 6th Report - Further Education and Skil… Rejected

FE and sixth form colleges face an unjustifiable VAT burden on expenditure.

Whilst academies and schools with sixth forms do not have to pay VAT, FE colleges and standalone sixth form colleges are not eligible for refunds in the VAT they incur on their expenditure. As colleges were reclassified as public bodies in 2022, this arrangement is unjustifiable and FE colleges and …

Government response. The government rejects the recommendation for VAT exemption for FE colleges, explaining that while education services are exempt, many public bodies cannot recover VAT on their expenditure, and any changes would need to be considered within broader public finances.
Department for Education
60 Conclusion 6th Report - Further Education and Skil… Rejected

Advocate for VAT exemption for all FE providers and update the Committee on progress.

The Department for Education must make the case to the Treasury that all FE providers—including FE colleges and sixth form colleges—be exempt from paying VAT on expenditure. The Department must update this Committee in writing on the outcome of these discussions by April 2026. (Recommendation, Paragraph 220)

Government response. The government states the recommendation is 'NOT TAKEN FORWARD,' explaining that while education services are exempt, colleges cannot recover VAT on expenditure like many public bodies, and any tax system changes require broader public finance considerations.
Department for Education
61 Conclusion 6th Report - Further Education and Skil… Rejected

Growing pay disparity between school and college teachers undermines retention and recruitment

There is a growing pay disparity between school and college teachers in England, with college staff earning significantly less—on average college teachers earn 15% less. This issue has led to staff dissatisfaction and has contributed to the recruitment and retention crisis. Whilst school-teacher pay is centrally reviewed and funded, college …

Government response. The government explicitly states it has "no plans to establish a dedicated pay review body" for further education, asserting colleges are responsible for setting pay. It highlights recent and planned investment to support colleges in addressing staffing challenges.
Department for Education
62 Recommendation 6th Report - Further Education and Skil… Rejected

Establish statutory pay review body for colleges to close pay gap with school teachers

We recommend that the Department for Education establishes a statutory pay review body for colleges comparable to the School Teachers’ Review Body. This body should provide independent, evidence-based pay recommendations for teachers and staff and help to ensure equity of pay across the post-16 education sector. The Department for Education …

Government response. The government explicitly rejects establishing a statutory pay review body and committing to close the pay gap, asserting that FE colleges are responsible for setting pay, though it outlines other support for recruitment and retention.
Department for Education

Oral evidence sessions

4 sessions
Date Witnesses
24 Jun 2025 Julia Kinniburgh · Department for Education, The Rt Hon. the Baroness Smith of Malvern · Department for Education View ↗
3 Jun 2025 Clare Howard · Natspec, David Gaughan · West Midlands Combined Authority (WMCA), Denise Rawls · The National Network for the Education of Care Leavers (NNECL), Dr Emily Tanner · Nuffield Foundation, Dr Fiona Aldridge · The Skills Federation, Dr Susan Pember CBE · HOLEX, Jane Gratton · British Chambers of Commerce, Qasim Hussain · National Union of Students View ↗
23 Apr 2025 Ben Rowland · Association of Employment and Learning Providers (AELP), Dr Katerina Kolyva · Education and Training Foundation (ETF), Emily Rock · Association of Apprentices, Jane Hadfield · NHS England, Phil Smith CBE · Skills England, Sarah Maclean CBE · Skills England, Sir David Bell · Skills England, Tessa Griffiths CBE · Skills England View ↗
25 Mar 2025 Alice Gardner · Edge Foundation, Bill Watkin CBE · Sixth Form Colleges Association, Darren Hankey · Association of School and College Leaders (ASCL), David Hughes CBE · Association of Colleges, David Robinson · Education Policy Institute, Jo Grady · University College Union (UCU), Mr Imran Tahir · Institute for Fiscal Studies, Robert Nitsch CBE · Federation of Awarding Bodies View ↗

Correspondence

1 letter
DateDirectionTitle
3 Feb 2026 To cttee Letter from Minister for Skills on Further Education ITE Reform, dated 26.01.26