Calls for college chief executive and principal pay levels to be published have emerged amid concerns the growth of group management structures could mean taxpayers are not getting the full picture of top college earners.

College accounts for the 2012/13 academic year, published this week by the Skills Funding Agency (SFA), only include pay and pension information relating to an organisation’s highest-paid employee — usually the principal or chief executive.

But questions have been asked about whether the data shows the full picture with colleges increasingly forming groups that employ separate principals and chief executives and only declaring the pay of one.

Calls for a change to the system have been led by University and College Union general secretary Sally Hunt, but the SFA has argued that colleges are already required to publish their accounts.

Ms Hunt said: “These latest accounts show that, as college staff were being offered a measly pay rise of 0.7 per cent in 2012/13, some of the top earning college leaders were enjoying pay rises of more than 30 per cent.

“It’s absolutely unacceptable for those at the top to net huge pay increases while the staff who are working hard to teach and support students on the ground are having their pay held down.

“We’re also concerned that these figures only show part of the picture.

“The highest earning person at each college is recorded in the data, but the move by many colleges towards group structures means that there are often several people in well paid leadership and oversight roles, and these figures aren’t being published in the same way.

“We would like to see the SFA include the salaries for all senior leadership roles in their data reporting to provide greater clarity around how colleges are being managed, and so that all those in charge of FE institutions can be properly held to account.”

An investigation by FE Week has revealed that in many cases, figures listed under “principal’s salary” for large college groups actually refers to the chief executive’s pay.

It means the pay of principals working under a chief executive is not published by the SFA.

An SFA spokesperson said: “The data collection process is part of a joint college reporting project led by the Association of Colleges (AoC) and includes the SFA, Education Funding Agency and sector representation.

Submission of this data does not remove the obligation on colleges to prepare a full set of accounts and an annual report on their activities.

“Colleges are required to make their accounts and annual report available to the public. In accordance with Charity Commission guidance, colleges are expected to make their annual reports and accounts promptly available on their websites.

“The accounts direction published by the Agency requires that colleges disclose details of emoluments of the principal, and of higher paid staff and senior post-holders in their annual accounts.”

Newcastle College Group (NCG) has defended the salary paid to its former chief executive Jackie Fisher, who earned £215k in 2011/12 and £225k in 2012/13 — putting the college second in the list of highest paying colleges.

A spokesperson said: “The salary figures quoted by the SFA are for the chief executive of NCG, who for the 12/13 accounts was for the previous post holder, Jackie Fisher.

“NCG is not a single further education college, but a national training organisation with an annual turnover at the time of £179m from a variety of public sector bodies and commercial income.

“The chief executive heads a large, complex organisation with more than 3,500 employees in three colleges and two training organisations which work across the UK at more than 70 locations.

“This is not a traditional FE college principal’s role, and comparable organisations in the private sector which we often compete against for many of our contracts, would pay considerably more.”

He said Carole Kitching, the current principal of Newcastle College, earned between £100k and £110k a-year.

For some organisations, like Derby College, the data shows a saving, with previous principal and chief executive David Croll having earned £212k in 2011/12, and existing chief Mandie Stravino earning £168k in 2012/13. A spokesperson said they did not want to comment further.

In the case of The Manchester College, the figure of £187k shown in the data is also the salary of the chief executive, although not the one currently serving.

A spokesperson said: “The Manchester College is the largest FE college in Europe. As it currently stands our chief executive’s salary is £180k and principal’s is £130k. The £187k [in the accounts] was the previous chief executive’s salary.”

But in some cases, the salaries reported were not those of the highest-paid employee.

City College Norwich reported a top salary of £163k in 2011/12, which fell to £110,000 in 2012/13. The college has confirmed that the higher figure relates to Dick Palmer, who was principal and chief executive at the time but now heads up the overarching Ten (Transforming Education in Norfolk) Group, and the lower figure was for current principal Corrienne Peasgood.

The most recent record of Mr Palmer’s salary as chief executive of the Ten Group is recorded as between £170k and £180k.

Top 10 college boss earners take home nearly £2m

England’s ten highest-paid college bosses earned almost £2m in the last academic year, figures released by the government have revealed.

The Skills Funding Agency’s annual college accounts for 2012/13 show that the 10 top earners in FE colleges and sixth form colleges earned salaries totalling £1,992,000 in that period.

The total amount of money paid in salaries to college principals has declined in recent years as colleges merge and form groups, the figures show.

The data shows that the total amount paid out in salaries to bosses at 338 colleges in 2012/13 was £40.636m, a 1 per cent decline on the previous year. This does not include pension contributions or other benefits.

The decline in overall payouts follows a decline in the number of colleges actually reporting to the SFA for their annual data release. In 2010/11, the number of colleges to report data was 348. This fell to 344 in 2011/12.

The data also shows the number of principals paid more than £200,000 a-year fell from eight in 2010/11 to six in 2011/12 and again to four in 2012/13.

According to the figures, the highest-paid college leader in the 2012/13 year was the chief executive of Barnfield College, a post which for part of that period was held by Sir Peter Birkett, who went on to become director general of the Barnfield Federation.

But Sir Peter said the figures were misleading and said he didn’t recognise that amount as his salary while he was in the post.

He said: “I ran a group that comprised of a college and six schools as director general of the federation — given size and complexity it is unrealistic to make direct comparisons with standalone FE college principals salaries. In addition I do not fully recognise the figure stated as the amount I was paid.

“Another point to note is that my salary was not paid solely by the college, it was paid through contributions of all the members of the federation – so the figure in the accounts is not the cost to the college – sharing costs provides better value for all.

“The role of the FE principal today is more complex and diverse than ever and if we are to truly have transparency (which you should have) in their remuneration packages then we need more information than simply an annual salary statement in the form of a league table.”

Colleges themselves have also defended the salaries they pay to principals and chief executives, as has the Association of Colleges (AoC).

Martin Doel, chief executive of the AoC, said: “It is important to remember that college principals are chief executives of multi-million pound organisations, with a responsibility for thousands of staff and students. It is for college governing bodies to set their principal’s salary based on individual circumstances.”

It comes after higher education institutions across the country were criticised for failing to publish information about the amount paid to vice-chancellors. They came under fire from the University and College Union (UCU), which said the pay rises enjoyed by senior staff were an insult to other workers who had been forced to take a real-terms pay cut in recent years.

The union said vice-chancellors’ salaries and benefits rose by an average of 5.5 per cent between 2011-12 and 2012-13.

The UCU has also been fighting for pay rises for staff working in the further education sector, after claiming in February that lecturers in FE colleges had seen their pay lose 16 per cent of its value since 2009.

New rules which mean schools will be forced to tell their pupils about FE and apprenticeships “don’t go far enough”, the Association of Colleges (AoC) has warned.

The Department for Education (DfE) published new statutory guidance on careers advice this month, which for the first time explicitly requires schools to promote vocational courses — using the word “must” to indicate it is a legal requirement.

It comes after the provision of independent advice and guidance (IAG) became the responsibility of schools in 2012, but was widely criticised for not being explicit enough about FE.

But while some sector organisations have welcomed the report, AoC director of policy Joy Mercer (pictured) said that although it took “a few tentative steps in the right direction”, it didn’t “go far enough”.

She said: “Providing high quality, impartial advice and guidance is no easy task. While we appreciate schools are receiving no extra funding to support this statutory obligation, while competing in an increasingly competitive market to enrol young people, we wanted to see the legal duties more clearly defined.

“We believe more work needs to be done, especially regarding the steps that will be taken to ensure that schools comply.”

Stewart Segal, chief executive of the Association of Employment and Learning Providers, said: “The new document is a significant step forward although there is much of the guidance that is left to the judgement of the schools. We agree with that principle providing the outputs of the school are monitored and the schools operate in a transparent and open environment.

“In particular we welcome the fact that schools are now expected to welcome employers and training providers on to their premises to allow pupils to hear about options such as apprenticeships and traineeships and of course any other work- based options.”

And 157 Group chief executive Lynne Sedgmore said: “We wholeheartedly agree with the assertion that pupils in schools will be inspired by the presence of employers and other role models in this work, and this guidance offers schools some helpful ideas about how best to achieve this.

“Recent research from City & Guilds showed that an overwhelming majority of school pupils were clamouring for more contact with the world of employment. I know that schools will want to work ever more closely with their local FE colleges who have a proven track record in employer relations.”

Announcing the guidance in the House of Commons, Skills Minister Matthew Hancock said it would “drive links between schools and colleges and employers” to “inspire and mentor”.

He added: “There will be no excuse for schools and colleges not opening their doors to employers and no excuse for employers not to engage with schools and colleges.”

A good practice brief on careers advice has also been published by the Association for School and College Leaders (ASCL), Association of Teachers and Lecturers (ATL), the National Foundation for Educational Research (NFER) and the 157 Group.

The document calls for a culture change led by senior leaders in schools and colleges, and “widespread agreement on the principles of effective careers education”. It also calls for extensive collaboration that always puts the interests of the young person first.

Skills Funding Agency (SFA) interim chief executive Barbara Spicer has written to contractors with an update on a range of sector issues, including funding software and local enterprise partnerships (Leps).

Ms Spicer said “final adjustments” were being made to the troubled new Funding Information System (Fis). And she thanked providers for their “patience” over the eight-month wait for reliable software.

Ms Spicer added she had written to local enterprise partnership (Lep) chairs offering guidance on long-term capital spending planning — as Leps will take over skills capital spending from the SFA from April next year.

She said: “I am pleased to say I received a very positive response. Shortly, I will write again to Lep chairs to set out in more detail the support the agency’s technical experts can provide.”

She said £432m had been allocated to 95 projects in 2013-14 and 2014-15 through the college capital investment fund, with a further £48m split between 114 colleges in need of refurbishment.

Ms Spicer also reflected on the SFA’s “slimmed down” management structure and said that “by the end of June we will have reduced our overall headcount by 30 per cent”.

It is understood a 30 per cent cut would mean the loss of around 360 jobs.

More than 160 engineering apprentices are set to be transferred to City College Norwich from an independent learning provider facing closure.

The college said the East Anglian Group for Industrial Training (Eagit), based in Norwich and formed in 1967, is set to close in July.

The college will take on 146 level three and 22 level two engineering apprentices — which the college said were all the apprentices currently registered with Eagit.

Corrienne Peasgood, principal of City College Norwich, said: “We will draw on our existing expertise in engineering training, our well-established relationship with Eagit, and our extensive experience of apprenticeship delivery, to ensure a smooth transition for employers and apprentices.”

Eagit is a lead provider and City College Norwich and Lowestoft College are subcontractors, through contracts worth £28,255 and £16,053, respectively (as of March 27).

City College Norwich confirmed it had delivered training for technical certificates for Eagit’s level three mechanical engineering apprentices since 2005.

Eagit also runs a variety of engineering-related FE courses and the college spokesperson said: “We are in discussion [with Eagit] to ensure that its adult learners, and this provision, can also continue.”

A spokesperson for Lowestoft College said it provided specialist engineering training for Eagit, but declined to comment on whether it would become the primary contractor for Eagit learners.

David Shorten, chief executive of Eagit, said: “Eagitis pleased to have secured provision for our current apprentices and the future of engineering apprenticeships in Norfolk.

“The current economic climate means it is increasingly difficult for a small provider like ourselves to survive.”

Norwich college is inviting Eagit apprentices and their employers to meetings to discuss the transition plans on Thursday, April 24, and May 1.

Eagit was rated as “inadequate” by Ofsted in July last year, when it had 280 learners.

A subsequent monitoring report published in January said it had made “reasonable progress” with improving apprentices’ numeracy and literacy, but “insufficient progress” with managing staff.

Eagit received £114,769 funding from the adult skills budget and £882,119 for 16 to 18 apprenticeships in 2012/13.

A Skills Funding Agency spokesperson said: “We are assured that City College Norwich has the capacity available to support learners currently studying with Eagit through to the timely completion of their apprenticeships.”

A pay deal for college staff is yet to be agreed for the next academic year.

The University and College Union (UCU) and other unions have begun talks with the Association of Colleges (AoC) over staff pay for the 2014/15 academic year.

But in a recent session, no agreement was reached. It comes as a dispute over last year’s pay deal remains ongoing.

A UCU spokesperson said: “The 2014/15 pay talks opened on April 8 at a meeting of the National Joint Forum (NJF) where the trade union side presented their claim of three per cent or £1,040 whichever is the greater, a recommendation to colleges to become Living Wage employers and pay protection for a minimum of three years in line with school teachers (in restructures and re-grading etc).

“Disappointingly, the AoC insisted it was unable to make an offer on the day. However, it gave a commitment to bring an offer that was ‘without strings attached’ to the next meeting of the NJF on May 16. The AoC also said it was sympathetic to the call for a Living Wage but needed to consult further with members.”

Marc Whitworth, the AoC’s acting director of employment policy and services, said: “Our discussions with the trade unions are at an early stage but we intend to make a pay offer when we meet in May following further consultation with our members.”

The UCU has said it had not given up on its efforts to secure a pay deal for the 2013/14 academic year, which will end in July.

Meanwhile, further industrial action at sixth form colleges has still not been ruled out after staff walked out at the end of last month.

Members of the National Union of Teachers (NUT) in sixth form colleges took part in strike action on March 26 in protest against proposed changes to pay and conditions – particularly the proposed introduction of performance-related pay for teachers.

Speaking on the day of the strike, NUT general secretary Christine Blower said further strikes could take place in the summer if there wasn’t movement in talks with the government.

Colleges will get £2.41 for every free meal served to a disadvantaged learner under a new system coming into force this year, the government has revealed.

As part of a plan to introduce universal free school meals, FE colleges will be required by law to offer free meals to qualifying youngsters aged 16 to 18 from September.

A report issued by the Education Funding Agency has set out the legal requirement which will be imposed on colleges, and reveals for the first time the rate that schools will be funded for the meals.

It also reveals that colleges will be given financial help to set up schemes for payment in school, like vouchers or card payment systems.

The report said: “Maintained school and academy sixth forms are already required by the Education Act 1996 to provide free meals to disadvantaged students who are aged over 16.

“From September 2014, this requirement is being extended to disadvantaged students following FE courses at the range of FE funded institutions. Funding agreements will be amended to place a legal duty on institutions to comply with this requirement.

“In the 2014 to 2015 academic year, institutions will receive funding at a rate equivalent to £2.41 per student per meal taken. Initial allocations will be based on students being matched as previous recipients of free school meals at the age of 15, and subsequent adjustments will be made on a lagged student number basis.”

Free meals will be given to learners who receive, or whose parents receive certain types of income support including job-seeker’s allowance (JSA) and employment and support allowance (ESA). They will also be available to those being supported under part VI of the immigration and asylum act, those claiming child tax credit whose income is below £16,190 a year and those receiving working tax credit and in some circumstances universal credit.

City College Norwich principal Corrienne Peasgood (pictured) said: “The news that there will be help with the set-up costs for allocating and processing free meal payments is very welcome.

“At City College Norwich we will be introducing a new cashless card payment system for all students to use across all of our catering outlets from September. This means that there will be no stigma involved as it will be impossible to know whether any given student is getting the free meal entitlement.

“The set-up costs attached to this will not be insignificant, not least because we have so many catering options on campus, including student-run cafés alongside those run by outside caterers, but we feel strongly that free meal students should have the same choices available as everybody else.

“We will draw on the experience of our partner Academies in the Transforming Education in Norfolk (TEN) Group federation to assist us in implementing an effective system for this.”

Martin Doel, chief executive of the Association of Colleges, said: “It is gratifying to see this come to fruition after the success of AoC’s No Free Lunch? campaign in gaining free meals for disadvantaged 16 to 18-year-old students who study in colleges.

“It is good news that colleges will receive a one-off payment to help them put in place
the processes and facilities to provide
free school meals for disadvantaged
students.

“Allowing students to use a cashless system to take meals on campus and in local outlets is also welcome, as is the ability to be able to provide the students with cash in certain circumstances.”

A large London college has been criticised in a follow-up report on its inadequate Oftsed rating.

LeSoCo, a 17,000-learner college in South London, got grade four  by Ofsted in January.

A follow-up monitoring visit was carried out in March and the report has now been published.

The original inspection criticised teaching standards and said improvements were needed to tutorials with learners.

But inspectors on the follow-up visit found there was still insufficient monitering of sub-standard teaching and said: “Many learners testify to the strong support they currently receive from their personal and subject tutors, but too many tutorial sessions have low attendance.

“Learners’ progress in still not monitored with sufficient diligence.”

The quality of teaching, learning and assessment in foundation English and maths was also criticised in the original report.

But monitoring visit inspectors found “reasonable improvement” had been made in this area.

It said: “College staff place a high priority on supporting teachers in these subjects, particularly those who were not performing well.

“The number of permanent staff teaching English and maths has increased, further strengthening the capacity of the department to improve learning.”

No one from LeSoco was available for comment.

Qualifications in accounting and youth work have proved the most popular for students taking out 24+ advanced learner loans, officials have revealed.

Since loan applications for courses starting in August opened in April, 42,534 learners have used them to enrol — and the top loans-funded qualification was the Association of Accounting Technicians’ (AAT) level three diploma in accounting, with 2,238 students enrolling with loans.

The level four diploma in accounting, also awarded by AAT, was the third most popular choice with 1,119 enrolments.

Suzie Webb,  AAT director of education said the association was “very pleased” by the news.

She said: “Accounting technicians play a vital role in the finance function and have solid foundations that make them invaluable to the economy.

“So we take pride in knowing that AAT is the preferred option for people who receive a loan to study.

“This data is evidence that both employers and students see the value of studying an AAT qualification.”

The second most popular course was the Council for Awards in Care, Health and Education (Cache) level three diploma for the children and young people’s workforce with 1,640 loans-funded enrolments.

The fourth and fifth most popular qualifications were also awarded by Cache, with its certificate in supporting teaching and learning in schools and diploma in specialist support for teaching and learning in schools, both level three, attracting 928 and 908 enrolments through loans, respectively.

Director of Cache business development Julie Hyde said: “This highlights the importance of these qualifications to the sector, especially in light of the perceived barrier that 24+ advanced learning loans present, and is a clear indication of the value of these qualifications to both learners and employers alike.”

The figures come as a survey commissioned by the Department for Business, Innovation and Skills revealed that just 12 per cent of the general public were aware of 24+ advanced learning loans although around two-thirds of potential and current learners said they would or might take out a loan to fund a qualification.

Read Verity Hancock’s expert piece on FE loans.

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