Select Committee on Education and Skills First Report


6 Further Education

Disparities in funding

63. During the year we have been looking at skills training and in particular 14-19 education. We shall be reporting on 14-19 education separately, but a general issue arises which we wish to address here.

64. Much of the education for 14-19 year olds is provided by Further Education colleges and the proportion is likely to increase as greater encouragement is given to vocational education and training. One of the issues that has concerned witnesses, particularly for the colleges sector, is the differential in funding per student between schools and further education colleges. This is particularly relevant to sixth forms, as the Association of Colleges told us:

"There is a 5% difference in LSC funding rates for schools and colleges in 2003-4. In addition, colleges bear some costs which are picked up by local education authorities in the case of schools. The AoC estimate that the total funding gap between the two sectors for the same work is 10%."

It also argued that the schools' funding settlement for 2004-05 which guarantees increases in funding levels "perpetuates a situation in which a disproportionate amount of government money is being targeted on institutions serving better qualified and better off young people".[51]

65. David Normington told us:

"The Government are seeking to narrow the differential of sixth-formers between FE colleges and school sixth forms, but it is happening very slowly, though it is happening slightly. For instance, the Government funded the increase per pupil for each qualification attained which was 4.5% in colleges last year and 3% in schools and that was an attempt to narrow the gap slightly… when the Learning and Skills Council took over school sixth-form funding, some guarantees were in place that they would not lose any money in real terms and, therefore, this has to be a slow process because actually the Government's commitment is to bring all the funding of FE students up to the same level as school sixth-form students and that is a costly business and it will take time to achieve, it will take some considerable time."[52]

66. We also asked about the different approaches to capital investment in the schools and college sectors, with schools benefiting from the Building Schools for the Future programme, which is not replicated for colleges. Mr Normington answered:

"This is simply a question of government priorities; the Government decided to prioritise schools and decided to put the bulk of its resources into schools. I do not think there is anything more than that, really, although it is putting capital investment into colleges now."[53]

67. The Secretary of State said that it had been a manifesto commitment to narrow the funding gap but that the Government would do that "in a very steady way". He added that one of the problems was the different ways in which teachers in different education sectors were treated:

"..how we can develop an approach to teachers and the profession of teaching more generally is an important consideration for us at the moment. One of the consequences of being able to do that would be to have more consistent financing regimes."[54]

Standards in further education

68. Another issue for the further education sector is the poor performance of some colleges. In the section of the Departmental Report on "Raising Quality and Participation in Post-16 Learning" it is stated that in colleges and other FE institutions: "16% of providers are below the floor target for long qualifications"; "12% of providers are below the floor target for short qualifications"; and "24% of providers are below the floor target for ether long or short qualifications". For work-based learning providers, performance is significantly worse. New floor and improvement targets have been introduced from September 2004 "to ensure that all education and training is brought up to an acceptable standard."[55] On the positive side, student satisfaction surveys indicate that over 90% of students are highly satisfied with their course.

69. These relatively disappointing outcomes in further education are particularly surprising in the light of the significant expenditure increases shown in Tables 2 and 3 above. Although funding per student in FE has not risen as fast as in schools - because of rising student numbers - there has nevertheless been a significant rise in spending (both overall and per student) since 1998-99. The total amount spent on FE in that period has risen by 53.2% (from £3.7 billion to £5.67 billion) and the real terms increase per student is 27% (36% for school pupils). We also note the figures in Table 5 above on underspends, which show that in 2002-03, the budget for Further Education, Adult Education and Lifelong Learning was underspent by 38%.

70. The Secretary of State said that there were real concerns about the deficiencies reported on by Ofsted and ALI:

"…the results are not as good as the colleges themselves would have wished. Now, of course, it is perfectly right to have satisfaction as an element in all of this but I think you cannot beat the Ofsted regime to try and understand what is really happening in colleges as elsewhere. We are not inventing the Ofsted assessments, they are making assessments, the ALI is making assessments, as they rightly should, and I think most of the colleges would say that those assessments indicate there is still a great deal of work to be done to get the standards up to those that we want."[56]

71. There are a number of challenges here for the DfES. In order to be successful in the implementation of its plans for 14-19 education, it needs a strong FE sector. It is clear from the evidence presented in the Department's report that while some colleges may perform well, others are struggling. Funding overall for colleges has increased by 53% since 1998-99, in a period when student numbers have increased by 13%.[57] This is a substantial increase, but funding for schools has grown at a faster rate.

72. The funding issue cannot be divorced from the quality issues. As we said at the beginning of this report, increased funding by itself will not lead to improved achievement. However, increased investment will help to address the issues concerning teachers that the Secretary of State referred to. Better pay for teachers, and improvements in teacher training for FE, which have recently been put forward by the Government, should also help to address these problems of poor achievement.

73. There is an issue of equity here. It makes no sense that a student undertaking a course at a Further Education college should, other things being equal, be less well funded than a student taking the same course at a local school. The Secretary of State appears to recognise that truth, but progress towards equal funding is painfully slow. Greater urgency is needed. Further Education colleges should not be seen as a means of providing education on the cheap.


51   Memorandum from the Association of Colleges, 14-19 Ed memo 41. para 31. Back

52   Q 138 Back

53   Q 143 Back

54   Q 289 Back

55   Departmental Report 2004, Department for Education and Skills, Cm 6202, page 74. Back

56   Q 290 Back

57   998,000 to 1,132,000: Departmental Report 2004, Annex L, page 127. Back


 
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