The Education and Skills Funding Agency has “withdrawn” plans to clawback this year’s unspent adult education budget grant funding following criticism from the sector.

Last week the agency announced that providers and colleges would retain their full 2019/20 allocation only if they attempted to continue delivering during the Covid-19 period and they delivered 80 per cent of activity in the whole year.

Where providers fall below this threshold and under deliver by more than £10,000, the ESFA said it would fund the “actual costs”.

Original guidance published in March by the agency said they would “not carry out the final reconciliation for grant funded providers in receipt of ESFA funded AEB” in 2019/20 due to the pandemic – there was no mention of the 80 per cent threshold.

Susan Pember, a former director of FE at the Department for Education and now policy director of adult education network HOLEX, quickly took issue with last week’s announcement.

“[The announcement] goes back on all the funding reassurances that were given by DfE in March,” she tweeted.

“Providers acted in good faith, quickly moved on line, followed government advice on not using the job retention scheme, protected their learners and now this.”

The Association of Colleges deputy chief executive Julian Gravatt also hit out at the move, stating that the 80 per cent “may seem like a low threshold but the unprecedented closure of buildings for more than four months has meant that some colleges won’t reach this”.

He also pointed out the announcement, which was made on July 22, was less than nine days before the end of the college financial year and that most colleges would have already set their budgets for the new academic year.

Luke Rake, principal of Kingston Maurward College, tweeted that “sadly this the norm for college information and needs to change soon”.

And Chris Todd, principal of Derwentside College, tweeted: “I would have no issue with it, if it had been made clear at the beginning. We’ve agreed all of our financials with our board last week. Hopefully they will see sense.”

The ESFA appears to have listened.

In an update published today, the agency said: “We have received helpful feedback from providers on the AEB reconciliation article published in update on 22 July and while we consider this feedback and review delivery at the R12 submission, we are withdrawing the published approach.”

The agency will provide an update and further guidance “after we have considered the data and views in August”.

“Our original guidance issued in March was produced quickly to respond to the developing crisis and may not operate fairly across all providers,” they added.

“It remains our intention to fund grant providers during the coronavirus (COVID-19) period and ensure a stable financial footing going into the next funding year, whilst also ensuring the appropriate use of public funds.”

Latest education roles from

Principal & Chief Executive – Bath College

Principal & Chief Executive – Bath College

Dodd Partners

IT Technician

IT Technician

Harris Academy Morden

Teacher of Geography

Teacher of Geography

Harris Academy Orpington

Lecturer/Assessor in Electrical

Lecturer/Assessor in Electrical

South Gloucestershire and Stroud College

Director of Management Information Systems (MIS)

Director of Management Information Systems (MIS)

South Gloucestershire and Stroud College

Exams Assistant

Exams Assistant

Richmond and Hillcroft Adult & Community College

Sponsored posts

Sponsored post

Skills Bootcamps Are Changing – What FE Colleges Must Know 

Skills Bootcamps are evolving as funding moves to local control and digital skills trends shift. Code Institute, an Ofsted...

Code Institute
Sponsored post

Building Strong Leadership for Effective T Level Implementation

Are you struggling with T Level curriculum and implementation, or building strong employer relationships? Do you want to develop...

Advertorial
Sponsored post

Derby College Group DIRT and TOES: A Story of Enhanced Learning and Reduced Workload

"Feedback is one of the most powerful influences on learning and achievement" - Hattie and Timperley 2007. This powerful...

Advertorial
Sponsored post

Keeping it real – enriching T Level teaching with Industry Insights

T Level teachers across all subjects are getting invaluable support from the Education and Training Foundation’s (ETF) Industry Insights...

Advertorial

More from this theme

AEB, Devolution

Mayors better at spending adult skills cash

Devolved AEB underspend figures revealed for first time

Josh Mellor
AEB, Training Providers

Learning Curve vs DfE contract case ends in secret settlement

Deal ends 18-month court battle over major provider's alleged 'unlawful' adult education budget bid rejection

Shane Chowen
AEB, ITPs

Administrators called in after DfE and MCAs end provider’s contracts

The company earned millions providing publicly funded courses for adults seeking work before being judged 'inadequate' by Ofsted

Josh Mellor
AEB, Colleges

£300m of adult education lost in post-pandemic underspend

'Hugely disappointing' unspent cash revealed to Parliament

Josh Mellor

Your thoughts

Leave a Reply

Your email address will not be published. Required fields are marked *

One comment

  1. Dave Spart

    So hooray, they have seen sense, there is more joy in heaven etc etc. However, the question remains: since the 80% pronouncement blatantly contradicted the original statement in March (on which providers based their planning), how on earth did it come about in the first place? One might almost be forgiven for thinking that the ESFA have no idea what they are doing. Providers have been caused anxiety and wasted effort at a time when we need it least. Disgraceful.