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9 July 2026

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Colleges caught offside by rules on staff send-offs

Data analysis reveals bosses still breaking financial exit-package regulations

Josh Mellor

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Colleges are still breaking government spending rules on exit payments almost four years after they were reclassified as public bodies, FE Week has found.

The Treasury’s ‘managing public money’ rules mean that FE colleges need Department for Education sign-off before making large staff severance payments, including those worth £50,000 or more.

But DfE figures released via a freedom of information request show that in 2024-25, of 28 special payment requests, six colleges made “retrospective” requests once cash had already been paid out. Officials subsequently rejected four of these requests.

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