AEB business case outcomes delayed

Providers are waiting to see if they can hang on to underspent AEB funding

Providers are waiting to see if they can hang on to underspent AEB funding

adult education

Colleges will have longer to wait to find out whether their business cases against a controversial adult education budget clawback have been successful.

They had expected to receive the outcomes of the Education and Skills Funding Agency’s review of these cases this coming Monday.

Yet the ESFA has today confirmed there will be a “short delay” in communicating outcomes.

“We recognise the importance of notifying decisions to those providers who submitted business cases as soon as possible,” a spokesperson said.

“We have undertaken a comprehensive review of each case and want to ensure that our decisions are correct, as a result there is a short delay whilst we finalise those outcomes.”

The ESFA said it could not provide a new deadline for the outcomes.

Around 50 colleges submitted business cases, the Association of Colleges has said.

Providers resisted 90 per cent adult education funding clawback

The ESFA attracted a large amount of sector criticism when it announced in March providers would have to use at least 90 per cent of their 2020/21 AEB grant funded allocation or hand back cash up to that threshold.

At that time, officials ruled out allowing colleges to submit business cases.

Providers protested that having to hand back funding would affect cashflow, capital spending and future planning.

The Association of Colleges predicted the threshold put “tens of millions of pounds” in college funding at risk.

Leicester College, which was affected by a drawn-out lockdown in its home city, highlighted how it had been “impacted by the pandemic far more severely than 2019/20,” when the AEB reconciliation threshold was set at 68 per cent.

Following the pressure from the sector, the agency announced in September it would allow colleges which had not spent 90 per cent of their allocation to submit business cases explaining why they should be able to keep the funding. 

A deadline of October 7 was set for submitting business cases.

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

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
Sponsored post

The Role of Further Education Colleges in Bridging the UK’s Digital Skills Gap 

In today's rapidly evolving digital landscape, the UK faces a pressing challenge: a significant shortage of digital skills within...

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 *

3 Comments

  1. Dave Spart

    I wish FE Week would stop using the expression “underspend” in this context. To a very large extent providers will have incurred the same costs in delivering their AEB last year (perhaps even more), but have had fewer learners and compromised outcomes as a result of the pandemic. The funding is therefore ‘under-earned’; if it was underspent there would not be a compelling case for cancelling the clawback.

    And can anyone explain the logic of a 68% threshold in a year that was only partially affected by Covid (and not during the crucial start of the year), but a 90% threshold in a year that was impacted throughout?

    • Amy Ealing

      Just to point out the comment “Same cost in delivering”? But most subcontracts out a large chunk (c20%) and are therefore keeping 100% of 20% rather than their usual 25% top slice – which is a disgrace too!