It's disappointing to see no funding for FE pay, says AoC

David Hughes, Chief Executive, Association of Colleges, said: “The Chancellor's statement committing to meet the school teacher pay body recommendation is good news for schools. However, it is disappointing that funding was not found to allow colleges to match that award. The result is a no-change position for college finances and pay in the short-term.

“Back in May, AoC's Employment Committee deferred its recommendation on FE college pay until the Department for Education (DfE) had confirmed its decision for schools. Today's announcement that the DfE will accepting a 5.5% increase and will be providing funding to schools makes the position for colleges difficult because FE funding rates are simply not rising enough to match that, with the 16 to 19 study programme budget the only college funding increasing at all, and only at 1.9%. That budget makes up about half of the average college income. The next meeting between FE employers and unions is in September and that looks likely to be the start of a set of difficult negotiations – with a significant gap between the pay awards colleges want to be able to offer, and the funding available.

“Colleges face significant staff recruitment and retention problems, mainly because of the £10,000 pay gap with schools which is likely to widen, making it increasingly challenging to run the high value technical courses which are needed for economic growth, the NHS and the drive to net zero. Indeed, AoC research published last Autumn found that colleges had waiting lists for courses last year in key shortage areas like construction, health and digital due to staffing shortages – all of which will hamper delivery on the government’s five missions.

“Colleges were hit hard by the austerity years of the last government, and are struggling with rising prices for key services, staff vacancies, funding that hasn't kept up with inflation, Treasury restrictions on borrowing and the costs of rising student numbers. More 16 to 18-year-olds enrolled in college last autumn and a rising population means there will be more demand in September. Colleges provide many of the skills needed to help young people and adults into work, to fill vacancies in the NHS and to support companies in growing sectors.

“AoC and colleges will continue to work with government on practical solutions to deal with these issues and in building the evidence base for the spending review where we hope to secure the funding colleges deserve. We want this to be a high priority for the government because it underpins their ambition for economic growth and fairness.”