More than 170 college leaders have urged the chancellor to stump up the cash to tackle the FE teacher recruitment crisis ahead of this month’s budget.
The leaders, who represent an estimated 1.6 million students across England, have made three pleas in a new letter to Rachel Reeves.
They highlight the injustice of schools being offered £1.2 billion to help fund a 5.5 per cent pay rise for their teachers while colleges received nothing, the rapid growth in 16 to 18 students that is further stretching their resources, and repeat their request of government to offer colleges the VAT reimbursement that schools benefit from.
The letter said: “The staffing challenge facing colleges is stark. After a decade of cuts under the previous government, college lecturer pay lags far behind school teacher pay – over £9,000 on average – and even further to industry. This directly hampers the supply of new workers in key skills shortage sectors, including construction, engineering and health and social care, and stifles economic growth.
“The decision to award school teaching staff a 5.5 per cent pay award for 2024-25 and not make funding available for colleges to be able to do the same will sadly see this challenge only deepen, unless action is taken.”
The Association of Colleges estimates that it would cost the government £250 million to match the school pay award.
Leaders who signed the letter assert that without more lecturers, skill shortages “will remain, making it unlikely that the government will be able to fully deliver a number of manifesto commitments, including the 1.5 million new homes, the transition to net zero, a reformed NHS and the productivity gains needed to secure strong economic growth”.
Andrew Green, chief executive of Chichester College Group, said: “Year on year, colleges are finding it harder to fill vacancies in teaching roles. The decision to award school teaching staff a 5.5 per cent pay award, without making funding available to colleges to do the same, has made that worse.
“The FE sector has suffered neglect for more than a decade and we need the new government to turn that tide.”
Today’s letter also asked the chancellor to recognise that the “growing cohort of 16-year-olds means that colleges are educating and training ever greater numbers”.
While predicted school pupil numbers are forecast to fall over the next four years, the number of 16- to- 18-year-olds is set to rise by 118,000.
In the 2023/24 academic year, 39 per cent of college leaders told their membership body they had seen a growth of 10 per cent or more in young people coming to their college. And while enrolment is still underway for 2024/25, leaders are reporting larger numbers than ever, according to the AoC.
The letter said the growth “requires both a commitment to fund in-year growth to meet demographic growth for 2025-26, as well as capital investment to deliver the extra space and equipment needed”.
On VAT, the signatories said the imminent extension of VAT to independent schools offers the “perfect opportunity to put right the injustice of colleges having no VAT relief despite their strong social inclusion and public service roles”.
Colleges spend an estimated £210 million a year on VAT – around 3 per cent of income – that they cannot reclaim, unlike schools and academies where VAT is reimbursed. This is despite colleges being reclassified as public sector bodies in 2022.
Sam Parrett, chief executive of London South East Colleges, said the decision to grant the FE sector a VAT exemption is “long-overdue and very much needed”.
She added: “For our college alone, this exemption would have been worth around £3 million last year – funds that would enable us to continue investing in our estate and capital programmes. This is essential as we strive to ensure our high-quality provision can meet local, regional and national skills needs and support people of all ages into successful careers.”
Reeves will deliver her first budget on October 30.
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