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Budget 2024: Extra £300m for FE

An “additional” £300 million will be handed to the further education sector next year, the chancellor has announced in today’s budget.

Details on exactly what this extra cash is earmarked for have however not been released in the Treasury’s budget documents. £300 million was the annual cost of increasing teaching hours for 16- to- 19-year-olds by 40 hours under the previous government.

Chancellor Rachel Reeves revealed the funding boost while also announcing a £1 billion uplift for special educational needs as part of a £2.3 billion increase to the core schools budget to “support” the government’s pledge to hire thousands more teachers.

Budget documents state: “The government is committed to addressing skills challenges, which are holding back growth across the country, alongside supporting people into work. The government has already established Skills England to begin addressing these challenges.

“In the budget, the government is going further by providing an additional £300 million for further education in England, while increasing the core schools budget by £2.3 billion, which increases per pupil funding in real terms.”

The Treasury told FE Week that it will be for the Department for Education to decide what the £300 million can be spent on, including whether it should be used for teacher pay rises. DfE has been approached for comment (see end of article for update).

Schools got £1.2 billion of government cash over the summer to raise teacher pay 5.5 per cent, but colleges received nothing.

The Association of Colleges previously said it would cost the government £250 million to match the school pay award.

University and College Union general secretary Jo Grady said the £300 million announced today for FE “must be used to match the 5.5 per cent pay rise that schoolteachers received and help close the £9,000 pay gap”, adding that if pay doesn’t rise, colleges will “continue to haemorrhage staff and there will be no one left to train the workforce of tomorrow”.

Daniel Kebede, general secretary of the National Education Union, also claimed the additional £300 million will “enable colleges to match the 5.5 per cent pay settlement agreed for school teachers” following this summer’s funding snub.

AoC chief executive David Hughes said his organisation has started “detailed conversations” with the DfE to “understand the implications for colleges and will communicate more when we know more”.

National insurance hike

Employer national insurance contributions will increase by 1.2 per cent in April. The Treasury has told FE Week the Department for Education will get some extra money to reimburse colleges and schools for this rise, but can’t confirm whether costs will be fully funded until the spring.

The AoC estimates that the national insurance rise will hit college budgets by around £50 million. The membership body also calculates that national minimum wage increases will cost a further £50 million.

Independent training providers are unlikely to see any compensation for rising employer national insurance, which is the “biggest area of concern” from today’s budget for Ben Rowland, chief executive of the Association of Employment and Learning Providers (AELP).

Rowland said: “We are currently modelling this so we can work out how different-sized providers will be impacted” but welcomed the £40 million for foundation apprenticeships and £950 million for skills capital.

More £ for capital and apprenticeship reforms

Reeves also announced she was giving the Department for Education £6.7 billion of “capital investment” next year, which she said was a 19 per cent real-terms increase on this year.

Of this, £950 million will be for “skills capital, including £300 million of new funding to support colleges to maintain, improve and ensure suitability of their estate”.

The Treasury’s documents also show the government will invest £40 million to help deliver new foundation and shorter apprenticeships in “key sectors” – initiatives announced at Labour party conference in September – as part of initial steps towards a reformed growth and skills levy, set to replace the apprenticeship levy.

Ministers have also decided to push back the launch date of the lifelong learning entitlement to January 2027.

[UPDATE: A day after the budget the DfE said in a blog that “colleges have freedom to use the [£300 million] funding in the way that best suits their needs, and the government does not set their pay and conditions”. The department later changed this wording to simply say the budget “allocated an additional £300 million to further education”, adding that “we’ll set out in due course how the funds are to be distributed”.

[The last additional cash injection for colleges was controversially funded through the 16 to 19 funding formula.]

Apprentice minimum wage to rise to £7.55

Apprentices will see an 18 per cent bump to the minimum hourly wage next year, the Treasury has announced.

Ahead of the autumn budget tomorrow, chancellor Rachel Reeves said that the apprentice wage will rise from £6.40 to £7.55 an hour from April 2025.

Reeves will also raise the national minimum wage for 18-20-year-olds by £1.40 to £10 – the largest increase in the rate on record.

The move appears to ignore an independent advisory body’s March recommendation that the government should link the apprentice hourly rate to the national minimum wage for over 18s during the first year of their apprenticeship.

Employers pay at least the apprentice minimum wage for apprentices aged 16-18, and for apprentices aged 19 or over in the first year of their apprenticeship. After their first year, apprentices aged over 19 should receive at least the national minimum wage, or the national living wage, depending on their age.

The Low Pay Commission (LPC) undertook a review into abolishing the apprentice minimum wage last year after hearing “widespread” concern that the “low” rate was discouraging people from taking apprenticeships. It recommended to keep the rate but link it to age to narrow the gap between the national minimum wage for apprentices and non-apprentices.

The Treasury also today confirmed a boost to the national living wage from £11.44 to £12.21 an hour, a 6.7 per cent increase. The rate applies to those aged 21 and over, after the age boundary was lowered last year from 23 to 21-years-old.

Last year, the apprentice minimum wage rose by 21 per cent from £5.28 to £6.40.

The government will deliver the 2024 autumn budget tomorrow afternoon – Labour’s first in almost 15 years.

Reeves said: “This government promised a genuine living wage for working people. This pay boost for millions of workers is a significant step towards delivering on that promise.”

Deputy prime minister Angela Rayner said: “Our changes will see a pay boost that will help millions of lower earners to cover the essentials as well as providing the biggest increase for 18–20-year-olds on record.”

A government spokesperson claimed the Department for Business and Trade estimate over 3 million workers will directly benefit from the 2025 national living wage increase, nearly 200,000 workers will benefit from the increase to the national minimum wage for 18 to 20-year-olds, and over 130,000 workers will benefit from the uplifts to the rate for apprentices and those aged under 18.

Minimum wage rates from April 1, 2025

	Per hour rate	Annual increase	Percentage increase
National Living Wage (21 and over)	£12.21	£0.77	6.7%
18-20-year-old national minimum wage	£10.00	£1.40	16%
16-17-year-old national minimum wage	£7.55	£1.15	18%
Apprentice rate	£7.55	£1.15	18%

Assessing Skills for Job-Ready Learners

Further education is at a pivotal moment, shaped by the growing skills gap. As industries evolve, employers are struggling to find job-ready candidates, especially in trades and technical fields. The gap between what learners are taught and the skills employers need—both technical and soft skills like communication, problem-solving, and adaptability—is widening across industries.

This disconnect between education and workforce needs is particularly pressing for apprenticeships and vocational programs. Learners need adaptable, job-ready skills that can transfer across different industries and sectors. New approaches are essential to develop and validate these skills, focusing on mastery through hands-on learning, continuous feedback, and authentic assessment.

Bridging Learning and Work in Apprenticeships

The skills gap continues to challenge employers who are looking for candidates that possess both technical expertise and essential soft skills like teamwork, communication, and critical thinking. For vocational education and apprenticeship programs, aligning skill development with real-world job expectations is key.

By focusing on both technical and soft skills, educators can ensure that learners are prepared to meet workforce demands with confidence and competence. These assessments not only validate learners’ abilities but also help them gain practical experience that directly translates to the workplace.

Rethinking Skill Assessments for Job Readiness

Traditional exams often focus on theoretical knowledge, but they don’t capture practical, job-ready skills. Authentic assessments simulate real tasks, allowing learners to demonstrate job readiness. Skills for success are built through hands-on practice, reflection, and feedback. These practical, job-related skill assessments challenge learners to apply their skills in realistic settings, ensuring they’re not only knowledgeable but also competent and confident in their abilities.

Get the Ultimate Guide to AI Assessments in the AI Era

The Power of Authentic Assessments

Traditional assessments fall short in preparing learners for real-world work. Authentic assessments validate practical skills by testing learners in realistic scenarios, ensuring they’re job-ready. These assessments bridge classroom learning and job readiness by focusing on tasks that reflect workplace environments.

Key benefits of authentic assessments include:

Validate Skills in Action: Real-world scenarios test learners’ ability to perform tasks effectively.
Encourage Deeper Learning: Critical thinking and problem-solving are fostered, moving learners beyond simple memorization.
Promote Continuous Feedback: Learners receive actionable insights, refining their skills through practice and reflection.

Authentic assessments play a vital role in closing the skills gap by ensuring learners are fully prepared to meet the demands of modern apprenticeships and skilled work environments.

Explore this Authentic Assessment Toolkit

Preparing Learners for Job Success

In further education, preparing learners for real-world job success means combining technical knowledge with hands-on, practical skill development. Learners need opportunities to practice and refine their skills through real-world tasks, allowing them to gain the confidence and competence required in today’s workforce. This cycle of practice, reflection, and feedback is crucial for building job-ready skills that translate directly to workplace success.

A New Approach to Skill Mastery

Traditional teaching methods alone are no longer enough to meet the demands of modern apprenticeships and vocational programs. GoReact provides a solution by using the power of video to enable authentic assessments that mirror real-world tasks. With GoReact, learners can demonstrate and practice skills, self-reflect, and receive targeted feedback from instructors to continuously improve.

GoReact not only helps learners, it saves instructors time by allowing them to observe and assess skill demonstrations from anywhere and using tools, including the AI Assistant, provide instant and meaningful feedback to drive continuous improvement. Whether training the next generation of welders, electricians, or healthcare professionals, GoReact equips learners with the confidence and hands-on skills they need to thrive from day one on the job.

See how GoReact helps learners gain hands-on practice in any skill across any industry.

Revealed: The new education committee membership

The 11 MPs who will sit on the new education committee have been confirmed.

The parliamentary committee consists of seven Labour MPs, two Conservatives and two Liberal Democrats.

It will be chaired by Labour MP Helen Hayes, the former shadow children’s minister who was elected to the position in September.

The committee plays a key role in holding the Department for Education and its executive agencies and arms-length bodies to account.

Party: Labour

Constituency: Penistone and Stocksbridge, South Yorkshire

Disability rights campaigner and former charity policy and legal officer. Stood against Hayes for committee chair.

First elected in July.

Caroline Voaden

Party: Liberal Democrats

Constituency: South Devon

Former journalist, member of the European Parliament and leader of the Liberal Democrats in the European Parliament.

First elected in July.

Neglecting over-50s in the training world must change – here’s how we do it

At 50, workers still have 15 years until state pension age. So why do so many of the nine million over-50 workers feel that their days of learning and development are behind them?

Employers, training providers and society all have a part to play in the perception that learning is for the young. Is it any surprise that just 21 per cent of workers aged 50-59 say their employer encourages them to upskill, compared to 56 per cent of workers aged 18-29?

While some training providers focus primarily on younger learners, aiming to attract those who might return for training over the coming decades, this overlooks the immense value older learners bring to the workplace and their industry.

In fact, their experience and institutional knowledge are crucial to futureproofing industries, especially in sectors facing skills shortages.

That’s why training providers must focus on long-term growth and progression, not just for individual employees but for employers and the training sector as a whole. If training programmes don’t help safeguard the industry against skills shortages and workforce attrition, they are falling short.

Changing perceptions around who should be trained is key to this.

Post-pandemic, businesses are evolving rapidly. Many workers who have spent years in office environments now find themselves working remotely, often with little investment in their development.

Without the opportunity to upskill, their careers can feel stagnant. Career development is directly linked to job satisfaction, and for older workers, continued learning is vital for retaining talent. Investing in their growth fosters motivation and workforce diversity.

Tailored and inclusive courses

Offering courses tailored to individual learners and inclusive of all is a surefire way to attract more older generations to your training programmes.

Some workers may not have been in formal education for decades, so it’s important to avoid school-like environments and offer alternatives to traditional essay-based assessments. In addition, providing refresher sessions on study skills, time management and exam preparation can be helpful.

Start with short courses to build confidence and gradually show the impact of training on the learner so they feel empowered to progress their training.

Flexible and responsive provision

Flexibility in both learning styles and technology is essential. If your course is solely delivered via Zoom, but a learner prefers in-person mentorship, you run the risk of learners losing interest before they’ve even enrolled.

Everyone has their own preferred way of engaging with learning, and it’s important to cater to everyone. Some learners may need extra guidance to navigate online learning platforms, so providing tech support from the outset is crucial.

Many older workers also have family or caregiving responsibilities, so it’s key to recognise that training must fit around their lives rather than the other way around. Offering flexibility in course timings and duration ensures that learners can get the rest they need while still finding the course accessible.

In this context, a blended approach—combining in-person and online learning—can enhance both accessibility and flexibility.

Motivated and supported learners

Older workers seek training for a variety of reasons: career changes, staying competitive in the job market or personal fulfilment.

Training providers will likely see success when they take the time to truly understand each learner’s motivation. An introductory meeting focused on this allows the provider to tailor the course and set clear, achievable goals. A taster session will also spark interest in learning and allow the learner to reflect on their goals.

Additionally, training providers should position themselves as trusted advisers, both to the learner and the employer.

Older workers bring a wealth of knowledge, experience and previous education – and a finite amount of time to learn more. Providers should guide these learners to prioritise training that aligns with their interests, meets their career goals, remains relevant to their current roles and can be practically applied or passed on to others.

As a training provider, we are embracing learners of any age. The economy demands that our whole sector does too. Celebrating and leveraging their extensive experience is key to growth and so much more.

Streamlined skills and jobseeker support to cut ‘ballooning’ benefits bill

The government is hoping to cut its “ballooning” benefits bill by targeting disabled and unemployed people with better skills, work and health support.

Mayoral combined authorities and several unidentified English ‘trailblazer’ areas will receive a share of a £240 million “Get Britain Working package”, aimed at the 2.8 million who are out of work due to long-term sickness.

The funding will “streamline” local services and fund the testing of “early interventions” that target specific barriers to work faced by the long-term unemployed.

Chancellor Rachel Reeves said: “Due to years of economic neglect, the benefits bill is ballooning.

“We will build a Britain where people who can work, will work, turning the page on the recent rise in economic inactivity and decline and towards a future where people have good jobs and our benefits bill is under control.”

Prime Minister Keir Starmer first announced the move this morning ahead of Wednesday’s budget, alongside a new £3 cap on bus fares until 2025, up from £2, which is likely to impact on college students.

The £240 million package will focus on encouraging the unemployed to use existing local skills courses and employability support rather than fund new provision, FE Week understands.

Locations of ‘trailblazers’ will be announced in “due course,” according to the Treasury announcement.

Labour has pledged to raise the country’s unemployment rate from 75 to 80 per cent through several new measures including a board of labour market expert advisors, merging careers advice with job centres and devolved employment support.

Further details of government’s plans – such as localised work, health, and skills plans – are expected in a “groundbreaking” Plan to Get Britain Working white paper this autumn.

Been here before?

Language such as ‘trailblazer’ is not the only echo of Conservative policies in today’s announcement.

The Restart Scheme, one of several Plan for Jobs measures announced in 2020, also offers the long-term unemployed careers advice, coaching, training and wellbeing support.

The Work and Health Programme, launched in 2017, specifically targets long-term unemployed people with a disability, health condition or disadvantage circumstances with up to 15 months support including health and wellbeing support, work coaching, and training.

The £238 million Job Entry Targeted Support scheme, which ran from 2020 to 2023, also targeted people who had been out of work for three months with support including “specialist advice” on building skills.

‘Get Britain Working’ was also an initiative launched in 2011 under the Conservative-Liberal Democrat coalition that included benefit reforms, work programmes and pushing local support services to work together.

Boris Johnson’s government also revived sector-based work academy programmes in 2020, a scheme first attempted under the 2011 Get Britain Working, that offers unemployed people a short-term combination of training and work placement, followed by a guaranteed job interview.

The Plan for Jobs also included free training for people without a level 3 qualification through the Free Courses for Jobs scheme and short, flexible Skills Bootcamps that are free for the unemployed.

Education spending ‘protected’?

On Sunday, Reeves vowed to “protect” education priorities at this week’s budget, including by committing £1.4 billion to funding the existing school rebuilding programme next year.

She said this as she repeated the new Labour government’s line that the party is having to make “tough decisions” in the face of a £22 billion blackhole in public finances inherited from the Conservatives.

But there is a lack of detail from the government about exactly what it means by “protected”. There have been no other announcements regarding FE and skills spending decisions so far.

Global education investors snap up Corndel

One of the country’s largest apprenticeship training providers “partnered” with a French education empire in a private equity deal announced today.

Galileo Global Education has bought private equity firm THI Investments’ share in Corndel, a provider that trains 4-5,000 higher level business and IT apprentices each year.

The company’s co-founder and chief executive officer James Kelly said the purchase follows months of negotiations with Galileo.

He added: “It’s about higher education and workplace education coming increasingly together as things go forward.

“That’s partly why the fit works for us. It’s about organisations that equip people for the world of work and careers.”

‘Network of excellence’

The London-based training provider will join Galileo’s roster of more than 60 institutions in 18 countries, including Regent’s University London, Italian fashion school Instituto Marangoni and Paris School of Business.

Kelly said Corndel will “focus on growth” within Galileo’s network of education providers.

He has told staff Corndel will remain “organisationally independent” while benefitting from being in a “network of educational excellence”.

Higher ambitions

According to the training provider’s accounts for the year up to December 2023, its turnover increased 25 per cent to £37.4 million while its profits increased 66 per cent to £5.6 million.

In 2021-22, Corndel received £25 million in apprenticeship levy funding, the seventh highest sum in the country.

The company, set up in 2016, specialises in training apprentices in management, senior leadership, data analysis and project management at advanced or higher levels.

Kelly has said he hopes Corndel College London, a division of the main company, will become a new higher education organisation that is “free from the constraints and burdens of traditional structures”.

Equity deals

Galileo was bought in 2020 by its current owners – a consortium including the Canadian Pension Plan Investment Board, Montagu Private Equity and Tethys Invest, the main shareholder of L’Oreal. The French group was reportedly on the market for £2.1 billion.

Corndel’s Stuttgart-based seller THI Investments, owned by the Hagenmeyer family, reportedly manages assets worth £1.7 billion.

Marc-Francois Mignot Mahon, chief executive officer of Galileo said: “We are very pleased to welcome Corndel to the Galileo group and are looking forward to supporting Corndel to build on its exceptional reputation for delivering the highest quality professional training programmes to the UK’s leading business.”

Mihir Kotecha, chief executive officer of THI Investments, said: “THI has greatly valued the opportunity to have been part of Corndel’s tremendous growth story over the last four years during which time learner numbers have tripled. We wish both Corndel and Galileo every success for the future.”

Cambridge drops senior leader apprenticeship despite ‘outstanding’ inspection

The University of Cambridge’s apprenticeship training has been rated ‘outstanding’ in its first full inspection, although its programme for senior leaders has now been axed.

Last month’s full inspection was the university’s first since its Institute of Continuing Education launched its apprenticeship programme in 2019 and resulted in ‘outstanding’ grades across the board.

At the time of the inspection, the university had 76 senior leader apprentices and 88 architect apprentices, both level 7 standards.

However, the university now only delivers the architect course after closing enrolments for its senior leader master’s apprenticeship in criminology and police management, which is taken by small groups of high-ranking police officers.

Ofsted praised the university’s “considerable academic rigour” and expert assessment that help its 164 apprentices “thrive”.

Apprentices “swiftly” improve their work thanks to “extensive, incisive feedback” from academics and employers that challenges them to deliver work “of a consistently high standard”, inspectors said.

Architects are “very well prepared for their next steps” while many police senior leaders are promoted either during or after their course.

A university spokesperson confirmed the senior leader apprenticeship, which attracts £14,000 in funding per apprentice and must last a minimum of two years, was no longer viable and declined to comment further.

According to the latest DfE data, the university started its last senior leader apprentice in November 2023.

Cambridge appears to be the second prestigious training provider this year to drop an apprenticeship programme despite gaining Ofsted’s highest grade.

Earlier this year, Dyson announced it would pay at least £250,000 per employee for training rather than bear the “heavy (and costly) administrative burden” of degree apprenticeships.

The Institute of Continuing Education is based in Madingley Hall, a 16th-century country house boasting “tasteful en-suite accommodation” for up to 100 delegates, meeting rooms, a bar, and seven acres of “spectacular” gardens.

‘Outstanding’ for Dyson’s axed degree apprenticeships

Apprentices and other students at the institute study in three in-person ‘blocks’ per year, where they “relish” formal dinners and benefit from “high-profile guest speakers”.

Although it will no longer offer apprenticeships for senior police officers, Cambridge’s Institute of Continuing Education is still accepting applications for its two-year criminology and police management master’s, also known as its ‘police executive programme’, costing £31,000.

The institute – which increased its enrolments by a quarter to 8,369 in 2022-23 – also dropped an apprentice-postgraduate certificate in research and innovation management for academics in 2022.

It appears to have scaled back its previously reported plans to deliver “a range of new programmes” in apprenticeships.

Writing in the institute’s annual report, director Dr James Gazzard said 2022-23 placed “punishing” levels of demand on staff.

“The sector is increasingly competitive and regulated,” he added.

“Rightly, particularly given increasing tuition fees, learners are increasingly demanding.

“The University’s offer of continuing, professional, and executive education is distributed across more than twenty providers, strategic frameworks are absent, meaning coordination and economies of scale are difficult to achieve, and internal competition a concerning distraction.”

Level 3 qualifications reform poses a risk to digital skills

Through my work with digital employers and FE colleges across the UK, it’s clear that the recent decision to pause and review the cancellation of the Level 3 Digital BTEC (and indeed other subjects) has come as welcome relief for many.

The slight shift in tone from DfE ministers is also positive, with Jacqui Smith indicating that the cull of qualifications won’t be as drastic as the last administration had planned.

However, there is still much uncertainty about how the new Level 3 qualification landscape will look, which is proving a challenge for colleges in terms of curriculum planning and recruitment for 2024/25.

Having worked in education for over 25 years and in FE for a decade, I am unequivocal in my view that BTECs must be preserved. They have long been an essential pathway for young people to develop practical skills, particularly in the digital space.

For many students, especially boys aged 16-19, the two-year BTEC programme provides flexibility and time needed to mature, not just academically but personally.

I see remarkable growth in students’ abilities and attitudes between their first and second years. The opportunity to learn at their own pace, adapt to new technologies, and develop critical business skills is invaluable.

This continuity and growth is what worries me about the push to phase out BTECs in favour of newer qualifications like T Levels. While T Levels are an excellent addition to the educational landscape, the reality is that they aren’t suitable for every 16-year-old.

The requirement for students to have already passed their Level 2 English and Maths before they can begin a T Level creates a barrier for those who may need more time or support to achieve these qualifications.

Some colleges are creating transition courses to prepare students for T Level courses, but even these don’t guarantee that they will all be able to handle the more academically rigorous and exam-driven structure of T Levels.

Another significant hurdle is the mandatory 45-day industry placement required to complete a T Level. Finding relevant placements is difficult, and the strict rules—such as limiting students to a maximum of two employers—make it even harder.

Without incentives, recruitment problems will continue

Add to this the difficulty of scheduling placements around college timetables, and the whole process becomes burdensome for students and institutions alike.

Many of the colleges I work with are also struggling with a lack of qualified teachers to deliver the Digital T Level.

The curriculum is more complex and demands more teaching hours than BTEC, yet colleges struggle to recruit digital experts, who can earn significantly more in the private sector. Without incentives such as additional payments for teaching in high-demand subjects, this problem will continue.

Some solutions may lie in increased collaboration with businesses, but building these partnerships takes time and resources, both of which are in short supply.

In my own work with colleges, we collaborate with companies by arranging visits, running skills projects and setting up placements for students, but a co-ordinated policy solution is needed. For example, the government could consider offering tax incentives for companies that allow staff to contribute to college teaching or mentorship programs.

Apprenticeships offer another valuable route for young people, and skills-based hiring is becoming more prevalent across many industries. Companies like Wavemaker, Hays, and Lloyds Bank are establishing their own academies to train young people post-Level 3, offering opportunities to ‘earn while you learn’. Degree apprenticeships are also gaining traction and becoming very much in demand.

But to ensure that every student can access such opportunities and reach their career goals, the Level 3 qualification landscape must provide choice and flexibility.

Level 3 BTEC courses are a lifeline for many students who, for various reasons including personal challenges and disrupted education need an accessible, flexible option. Without it, many students may leave full-time education with only a Level 2 qualification, potentially cutting off further progression into higher education or skilled employment.

This isn’t about complicating the system with too many qualifications; it’s about ensuring that there is a pathway available for everyone, no matter what their ability, interest, career goals or preferred way of learning.

If we want to close the skills gap, particularly in the digital industries, we must ensure that Level 3 qualifications remain responsive to the needs of all learners, as well as the needs of employers.

BTECs are central to this ambition. They will help ensure that every young person can pursue a digital career and take advantage of the endless opportunities available in this exciting sector.