Colleges facing adult education budget clawback have four weeks to make their case to keep the unused cash.

Six months after announcing the controversial 90 per cent threshold for 2020/21 adult education budget reconciliation, the Education and Skills Funding Agency are from today open to receive business cases from affected colleges.

To be eligible, colleges must have delivered less than 90 per cent of their adult education budget allocation for 2020/21 and must explain why meeting the threshold was not possible in their local area.

Documents published by the Education and Skills Funding Agency today confirm that “a small number of cases” have been identified through year-end claims submissions where the planned clawback of funding could destabilise institutions.

Business cases allow affected colleges to claim that “eligible costs” should be retained, rather than clawed back. To be successful, colleges must provide detailed explanations against a series of questions, laid out in the guidance published today, about; specific local circumstances, plans that were in place to mitigate against risks to under-delivery, and the financial impact of the clawback on the institution.

For a number of months, the ESFA resisted pressure from colleges calling for local circumstances to be taken into account. In March, ESFA told the sector that there “will not be a business case process” which AoC’s deputy chief executive Julian Gravatt described at the time as “self-defeating”.

One of the colleges hardest hit by the decision to set the tolerance threshold at 90 per cent was Leicester College. Speaking to FE Week, Leicester College’s principal, Verity Hancock, said she “was pleased to finally make our Leicester-specific case” and that “the reference to looking at previous AEB delivery performance was welcome”.

Business cases must be submitted by 23.59 on Thursday 7 October, with outcomes to colleges expected by Monday 15 November.



More from this theme

AEB

Controversy as Liverpool City Region hands adult education budget contracts to ‘out-of-area’ providers

16 providers won procured contracts in the Liverpool City Region’s latest AEB tender

Billy Camden
AEB

‘Frustrating’ for some but ‘not surprising’: ESFA extends AEB contracts for one more year

National adult education budget contracts renewed for 2022/23

Billy Camden
AEB

Tactical subcontracting deal abandoned in mayoral combined authority

Funding rules state 'you must not subcontract to meet short-term funding objectives'

Billy Camden
AEB, Devolution

London launches VIP adult education quality mark

Holders of the new adult education quality mark could get the edge on future bids for funding.

Shane Chowen
AEB, Covid-19

Provider pulls out of £3m devolved contract due to low student uptake

'Potential learners just haven’t been able to commit to signing up'

Billy Camden
AEB

Relief as most AEB business cases are successful

Colleges and providers that didn't meet last year's 90 per cent AEB threshold have had their business case outcomes....

Shane Chowen

Your thoughts

Leave a Reply

Your email address will not be published.