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22 ways in which DfE prioritises schools over colleges

19th June 2019

The Department for Education is responsible for the education and training of people of all ages. Since July 2016, DfE has had responsibility for sponsoring FE and sixth form colleges. Colleges are vital to a range of DfE objectives. Across a range of policy areas and programmes, DfE prioritises schools but does not extend these protections to colleges. AoC shared a list of 20 issues with DfE in September but there are 22 issues on the list below (item 6 and 10 are new).DFE has wide powers in law but is falling short on its duties to young people in favouring one category of institution: the 24% cut in funding when a pupil moves from year 11 to 12 results in a narrow curriculum, low teaching hours (averaging 15 hours a week) and reduced support for progression to higher education and work the differences between different types of 16-to-18 institution favour school sixth forms which (on average, as a sector) teach fewer disadvantaged young people the parts of the country where more young people study in FE and tertiary colleges (for example the South West) lose out in the distribution of funds Revenue funding1. Higher base rate in the pre-16 funding formula 2. More additional factors in the pre-16 funding formula3. A minimum funding level policy to protect schools from formula-related funding changes4. Pupil premium (worth £2,160 for secondary pupils; not paid at all for sixth formers)5. Retention factor (funds deducted if post-16 students leave after November)6. Teacher Pay Grant (adds £45-55 per pupil to secondary schools including those with sixth forms) Capital funding7. New buildings. Funded at a 100% grant rate8. Condition improvement. £578 million available for schools including those with sixth forms plus sixth form colleges9. Maintenance. £1,102 millon in formula based funds available for schools including those with sixth forms plus sixth form colleges10. Autumn budget capital funding. £400 million available (on a one-off basis) for schools including those with sixth forms plus sixth form collegesCashflow11. Payment profile. Academies paid in equal instalments on first day of the month; colleges paid variable amounts with a significant shortfall each spring12. Support for institutions in difficulty. Zero-interest loans given to financially strapped academies after fairly limited scrutiny with no requirement for professional advice Support with costs13. VAT. Refunded to schools and academies under 1994 VAT Act but paid by FE and sixth form colleges14. Business rates. The 20% levied on academies paid by DfE15. Insurance. DfE underwrites a risk protection scheme for academies16. Local government pension scheme. DfE offers a guarantee for academies17. Teacher pension scheme. DfE funding of extra TPS costs guaranteed for academies and maintained schools; the position for college is less certain18. Network services. Services provided to academies and maintained schools without extra charge. JISC subscriptions take effect for colleges in 201919. Copyright, education recording, music and other licences. Negotiated and paid for schools by DfE20. Software licence deals. DfE negotiated deals sometimes restricted to schools21. Pay and employment negotiations. DFE conducts these for schools and academies at no subscription cost to institutions22. Deployment of DfE and ESFA officials. Officials frequently deployed to do work for schools that colleges have to pay for. AoC list of 22 school college differentials 5 nov 2018.docx AoC list of 22 school college differentials 5 nov 2018.docx (DOCX,51.52 KB) AoC list of 22 school college differentials 2 nov 2018.pdf AoC list of 22 school college differentials 2 nov 2018.pdf (PDF,318.57 KB)