Exclusive: SFA chief Peter Lauener warns providers of adult funding cut of up to 24 per cent

Colleges and independent learning providers are set for a national funding cut of up to 24 per cent next academic year, FE Week can exclusively reveal.

The Department for Business, Innovation and Skills (BIS) this morning released details of its 2015-16 (financial year) adult FE and skills funding budget, which will fall 5 per cent overall to £3.91bn — in line with indicative plans published in February last year.

However, alongside the letter from BIS, FE Week has seen a letter from Skills Funding Agency (SFA) chief executive Peter Lauener (pictured right) to providers, who are expecting their allocations in just over a fortnight, outlining how this will apply to the 2015/16 academic year.Peter-Lauener-(£)

He warned that the adult skills budget line in the SFA grant was being cut by 11 per cent, translating to a 17 per cent cut to the 2015/16 academic year. This, he said, would mean after protecting apprenticeship funding there would be cuts to provider allocations of up to a quarter — even bigger than last year’s 15 per cent cut.

He said: “At headline level, our initial modelling suggests that the total skills budget that we have available for allocation for the 2015 to 2016 funding year will be around 17 per cent less than in 2014 to 2015.

“Within this, the allocation budget for apprenticeships will initially be set at £770m and we will continue to work to ensure that every high quality apprenticeship opportunity can be funded.

“As a result of this continuing commitment to apprenticeships, the primary impact of the reduction is on the funds available for allocation as non-apprenticeship (other) adult skills which we estimate could reduce by around 24 per cent.

“The overall impact of our funding allocations will vary significantly between individual colleges and training organisations, depending on the mix of training provision delivered.

“Reductions will be higher where colleges and training organisations deliver low numbers of apprenticeships, traineeships, English and maths.”

The cut was attacked by the Association of Colleges (AoC) and the Association of Employment and Learning Providers (AELP).

Martin Doel, AoC chief executive, said: “The Government cannot continue to reduce this provision and at the same time expect adults to have sufficient opportunity to retrain for new or future job opportunities.

“By 2020, if the next Government continue to cut at this rate, adult FE will be effectively a thing of the past.”

He added: “This situation is now urgent. This could be the end of this essential education in every city, town and community in England and the consequences will be felt by individuals and the economy for years to come.”

Stewart Segal, AELP chief executive, said: “This is another major cut in budgets for the employment and skills sector while the funding for higher education continues to increase. This is the wrong focus while we are trying to give vocational learning the status it deserves.”

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6 Comments

  1. Whilst it’s clear that the Government must do all it can to operate within an increasingly constrained budget, the level of cuts for non-apprenticeship further education funding is a significant drop for colleges and training providers. This will inevitably make it harder for further education providers to meet the needs of their current and future students.

    These cuts could also have an impact on adults who require new skills for work, a likely scenario for millions who will have to change their career at least once if they keep working until retirement age.

    All political parties should seek to find a consensus that retains as much as possible of this important part of the education framework. This will ensure that the UK workforce has the skills businesses require today and tomorrow to grow Britain’s economy.

  2. This reduction is disgraceful. How is it that community learning goes up?? Soon City Lit will have the biggest allocation in the country. Don’t worry about giving adults the skills they need – as long as wealthy folks can still make stained glass!

    • Bob Deed

      Bob

      I agree that the funding cuts are unjustified. But the reason why the Community Learning funding pot increases is that it includes an extra £5m for pilot community learning courses to help adults recover from mild to moderate mental illness. So I don’t begrudge Community Learning funding increase.

      Community Learning funding is protected until 2016. There could be some nasty cuts then.

      Bob

  3. natasha

    Im a single parent with two children one is severly autistic. I cannot afford to go to college to learn a skill so i can work around the challenges i face finding accessible employment. I am faced to stay on benifits as i cant afford to work at min wage. My children would starve. If i could access free higher education i can gain the skills needed to support my family and pay my fair share in tax and be a good role model to my kids. Which the job center looked me in the eye and told me im a bad example to my kids because im not working. What a ever decreasing circle of ignorant descisions driving this country away from the spirit which built it.

  4. Declan

    These cuts need to be fought against. FE is the foundation of life chances and choices from the most challenged to those with skills have never been realised. Cuts of this depth are shameful to see happening. And it’s not just this occasion…. it’s a constant feature since 1992.