FE base rate to increase from August 2020 for first time since 2013 to £4,188

Colleges will see a 4.7 per cent increase in the unweighted base rate for full time students aged 16 and 17 as part of the chancellor’s £400 million boost to FE, it has been revealed.

After having been introduced at £4,000 per year, per student since 2013, and £3,300 for 18-year-olds since 2014,, the Treasury has today told FE Week the rate will rise to £4,188 from August next year.

The £400 million funding boost will will come into effect in 2020/21 and cover the 257 colleges in England, as well as other FE providers delivering classroom courses like school sixth forms and independent training providers.

Despite the increase, this new base rate is likely to disappoint sector bodies which have campaigned for much larger rises.

The Sixth Form Colleges Association’s Raise the Rate campaign has fought for the rate to go up to £4,760; while the Association of Colleges has campaigned for as much as £5,000.

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