MPs warn of 'looming funding crisis' in further education colleges

Report reveals 70 further education colleges have been declared financially 'inadequate' by sector’s Skills Funding Agency

Sixth form students receiving their A-level results (Getty Images)

MPs are today warning of a “looming crisis” in further education colleges over funding.

A report by the influential Commons public accounts committee reveals 70 of England’s further education colleges have been declared financially “inadequate” by the sector’s Skills Funding Agency - up from just 29 two years ago.

The ruling means they are at risk of failing to provide adequately for courses and therefore face having to make cuts.

The report warns the declining health of many FE colleges has “potentially serious consequences for learners and local economies”. It adds that government agencies “are not doing enough to help colleges address risks at an early stage”.

“The Government has been desperately slow off the mark to tackle a looming crisis in further education,” said Meg Hiller, who chairs the committee. “This is deeply worrying for a sector which equips people with skills and qualifications that can transform their life prospects and by extension those of the communities in which they live and work.”

Department of Business, Industry and Skills officials told the committee that 15 of the colleges had now moved out of being rated financially inadequate. In his comprehensive spending review statement, Chancellor George Osborne extended the Government’s pledge to maintain funding at its current level for education to cover 16 to 19-year-olds.

Skills Minister Nick Boles added: “We have protected funding for further education and will be increasing real-term spending by more than a third in the next five years. Furthermore, funding for apprenticeships will have doubled since 2010.

“We recognise the important contribution the sector makes to increasing opportunity for young people and businesses and ensuring our long-term security.”