Bursary payments for vulnerable students dip to new low

Compliance audits rise as colleges see more challenging ESFA rules

Compliance audits rise as colleges see more challenging ESFA rules

Bursary payments for vulnerable students are falling as the government tightens rules around their use, an FE Week investigation has found. 

Analysis of never-before published Department for Education data on 16-19 bursary payments to “vulnerable” groups show learners received a record low average payment of £877 last year, despite the cost of living crisis

Now in its tenth year, eligible learners could initially claim a maximum of £1,200 to pay for transport and course equipment such as books. 

But from 2019-20, the “tone” in the Education and Skills Funding Agency’s (ESFA) guidance changed to stipulate that colleges should not automatically hand out the full payment and should only claim what students needed. Evidence also had to be provided for the claim. 

Audit guidance says the ESFA will “recover funds” if providers cannot prove students met the eligibility criteria. 

Internal auditors told FE Week they’ve seen an uptick in bursary audits as colleges have recognised the rules have made it a “more challenging area”. 

Defined vulnerable groups

This branch of the 16-19 bursary was introduced in 2013 to support those unlikely to receive assistance from parents or carers, such as young people living away from home, to enable them to continue full or part-time college study. 

Eligible students are those in care, care leavers and young people receiving benefits such as Universal Credit. 

Unlike other bursaries available to FE providers, the vulnerable bursary is not handed out through allocations based on student numbers. 

To apply for a payment, students must submit a claim to the college, which will then assess their eligibility and submit a claim with evidence to the DfE’s Student Bursary Support Service. 

Not enough for travel

The total amount colleges have claimed has been on a gradual decline. 

In 2013-14, £23.6 million was handed out, falling slightly to £21.8 million in 2017-18 and then to £19.3 million last year. 

The average payment for each student has fallen from a high of £1,037 in 2018-19 to £877 in 2022-23. 

Lisa Humphries, the associate principal of students at Chichester College and chair of the National Association for Managers of Student Services, told FE Week the averages were a surprise “because lots of colleges would say that money isn’t enough to support those students needing to travel”.  

ESFA guidance highlights that colleges can use the discretionary 16-19 bursary pot to top up payments to individuals. 

The DfE did not provide a breakdown of the participation of each defined vulnerable group, so FE Week obtained the data through a freedom of information request (see table). 

Comparing the figures with official government data going back to 2019, 67 per cent of the 22,019 over-16s in care in England received a payment in 2022-23. That proportion has stayed the same since 2019, apart from 2020-21 when 69 per cent received a payment, likely due to the pandemic. 

Tone ‘changed’ over the last decade

Humphries said many colleges handed out the full payment of £1,200 in the early years, but the ESFA had become “more rigid” with asking for evidence on how the vulnerable bursary would be spent. 

“That tone changed over the last decade.” 

In 2014-15, the guide directly stated: “[Education Funding Agency] would not usually expect students in the vulnerable groups to be awarded less than £1,200, if they are on a course lasting 30 weeks or more and are participating full-time.” 

The following year, the guidance wording changed to “vulnerable bursary of up to £1,200”. 

Then from 2019-20, the ESFA said students should only receive the amount they needed and not automatically be awarded £1,200. 

Colleges are increasingly under strain to keep an audit trail of each claim and what students will use it for or the ESFA can claw back the funds.  

Auditors told FE Week that when they examined bursary audits, they looked for “evidence to support the payments made, how these are agreed, and we’d be auditing against the ESFA guidance”. 

Humphries said: “For example, I would have to record in my system that if we’ve spent £1,200, £850 was their travel ticket for the year and £350 was their course cost.  

“Whatever it may be, you would have to be specific.” 

Julian Gravatt, the deputy chief executive of the Association of Colleges, added: “The changes to allocation rules over the past couple of years is a result of colleges now being required to carry out documented assessment of need for each individual, when by definition these young people are the most in need of money to support their continued engagement in education. 

“AoC has challenged this approach and will continue to do so.”

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

Functional Skills reimagined: Drive success in English & Mathematics with modern qualifications.

In today’s educational landscape, supporting learners with essential English and maths skills goes beyond traditional teaching. It’s about providing...

Advertorial
Sponsored post

Do you want to be part of The Bedford College Group’s next chapter?

At The Bedford College Group, we are passionate about transforming lives and communities through education. As one of the...

Advertorial
Sponsored post

It’s Education’s Time to Shine: Celebrate your Education Community in 2025!

The deadline is approaching to nominate a colleague, team, whole school or college for the 2025 Pearson National Teaching...

Advertorial
Sponsored post

Framing the future of creative education: new BTEC HTQ in Photography nurtures talent beyond the lens

The creative industry is evolving rapidly, and so is the way we teach photography. Discover how Pearson's new BTEC...

Advertorial

More from this theme

Colleges

Intervention lifted at pandemic-hit City Lit

Principal praises staff and FE Commissioner as college finances recover faster than planned

FE Week Reporter
Colleges

Ban mandatory bikini waxes on beauty students, says mum

A college tutor wrongly claimed a 16-year-old needed to undergo waxing to pass her course

Josh Mellor
Colleges, sixth form colleges

Sixth form college academisation reaches tipping point

But some principals doubt whether the Labour wants new academy conversions

Josh Mellor
Colleges, Politics

Saudis ‘ready to offer decade-long FE tuition deals’ to UK colleges

Fresh tendering round expected to launch this academic year to revive ventures in the kingdom

Billy Camden

Your thoughts

Leave a Reply

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