Recommendation 54

The further education sector faces significant funding challenges due to prolonged real-terms cuts since 2010, with per-student funding still below 2009–10 levels. A rise in the number of 16–18-year-olds over the coming years will continue to increase pressure on colleges and other providers, yet per-student funding has not kept pace with the consequences of this population bulge. Although the Chancellor promised additional investment in the 2025 Spending Review, this is only a modest increase after adjustment for inflation, and details about how the extra money will be allocated are unclear. Without substantial investment, per-student funding will fall further, undermining the Government’s reliance on the further education sector to achieve its national missions. (Conclusion, Paragraph 204)