AoC responds to IFS annual report on education spending

David Hughes, Chief Executive, Association of Colleges said: “The analysis published by the Institute for Fiscal Studies (IFS) today reflects the reality colleges across the country are facing with funding. While we welcome the £300m awarded to FE in the autumn budget, it will be largely used to educate the increasing numbers of students already enrolled in colleges and will do nothing to increase opportunities for adults to learn the skills which are in high demand in the labour market.

“If the government wants to deliver 1.5 million new homes, boost economic growth and improve the NHS, it needs to fund more adults as well as young people to learn new skills in colleges. The spending review must address that, because this IFS report confirms that current planned investment in colleges will not go anywhere near far enough to reverse the decades of underinvestment colleges have suffered.

“The demographic increase of 16 to 18-year-olds between 2024 and 2028, the increasing gap between school teacher and FE pay, the demands of the labour market, the needs of employers wanting to grow, and rising FE staff turnover create the perfect storm in a sector which the government has recognised as vital to the success of all five of its missions. Expecting colleges to do more with the same money is simply unsustainable and limits the support they can give. In turn this will be a brake on economic growth, hinder opportunities and undermine the government’s efforts to deliver on its five missions.

“We know that the Department for Education recognises the need to invest more in FE colleges, and we are working with them to make the case for sustainable long-term funding ahead of the spring spending review.”