A mergers and acquisitions specialist has hit out at the government after his group of training providers’ skills funding contracts were terminated for a “contentious” reason, forcing them to go bust.
BEI Education Group Ltd and its three subsidiaries – Best Practice Training and Development Limited, Leaders in Business Limited, and DNA Apprenticeships Ltd – have filed for insolvency with a combined loss of around 50 jobs.
It’s unclear exactly how many apprentices and learners are currently on their collective books and will need to transfer to alternative providers, but their most recent Ofsted reports show the providers had well over 1,000 individuals between them.
David Kitchen set up BEI Education Group in 2019 to act as a holding company as he acquired several commercial and apprenticeship training providers to operate in different sectors such as retail, care and IT.
However, all providers under the group had their register of apprenticeship training providers (RoATP) refresh applications rejected this year. Best Practice Training & Development Limited also had its near-£500,000 adult education budget (AEB) contract – awarded in July 2021 – terminated by the Education and Skills Funding Agency (ESFA).
Kitchen claimed there was no financial or performance issues with the providers themselves, two of which have received positive outcomes in Ofsted monitoring visits.
He said the ESFA decided to no longer contract with any providers under the BEI group because it had to put another separate provider – Create Care Training Ltd – into liquidation two years ago.
Kitchen told FE Week his firm took over Create Care Training while it was failing to save it from going under. But, his attempt was unsuccessful, and the firm went into liquidation in late 2020.
All affected learners as well as staff were placed elsewhere as the provider closed down – an effort that Kitchen said led to the ESFA sending a letter of thanks.
He said it “seemed like a clean exit”, although he was expecting clawback of some funds which he claims has not been requested by the agency.
His other providers have continued delivering government-funded training as well as winning contracts, which made the ESFA’s sudden rejection of RoATP reapplications and AEB termination this year bemusing.
“The agency rejected the refresh because of what happened with Create Care back in 2020,” Kitchen told FE Week.
“From our point of view, it is quite contentious, because shareholders are not responsible for the debts of a company, and a parent company is not responsible for the debts of its subsidiaries. In this case, we took on a struggling company back in 2020 with good intentions and then it closed; other companies in the group were judged on this event in 2022 without any direct connection or common directorship.
“A lot of people lost their jobs, which is very upsetting.”
He said there were no investigations or audits into any BEI’s providers.
Kitchen continued: “In fact, in the summer of 2021 we spent a lot of time working with the ESFA to help rescue a very specialist niche provider that worked with struggling learners, but despite putting together a very strong business case the ESFA rejected it, and closed it down anyway displacing a lot of staff and learners as a result.
“And strangely enough one provider – Best Practice – was issued an AEB contract eight months or so after Create Care had gone down. That AEB contract was on track in summer 2022, there were no issues, and they didn’t take that AEB contract away at the same time as the RoATP. They said it was unrelated. Four months after they took the RoATP away from Best Practice (in May 2022) they confirmed the new AEB contract value for 2022-23 then they took it away in July. Two weeks later they sent the new 2022-23 contract to be signed. Absolutely bizarre.”
The ESFA declined to comment on BEI’s RoATP reapplications but told FE Week as part of its assurance checks, the agency checks if any directors in control of the bidding provider are subject to the “funding higher risk organisations and subcontractors policy”.
Under the policy, the agency can terminate contracts where the director of a provider “is the subject of insolvency or winding-up proceedings”.
The FE community has paid tribute to the Queen’s “dedication to public service” after it was announced she has died at the age of 96.
The royal family announced the news this evening.
Geoff Barton, general secretary of the Association of Schools and Colleges Leaders, said the Queen’s “dedication to public service has been an inspiration to children and adults alike over the past 70 years”.
“We are deeply saddened by her death. She will be hugely missed by the nation, including all those in the world of education where many people will have fond memories of jubilee and other royal events during her reign.
“Through her dignity and unswerving sense of duty the Queen has set an extraordinary example to us all, and she has been a reassuring presence through many turbulent times. We pay tribute to her and we send our deepest sympathies to her family.”
David Hughes, chief executive of the Association of Colleges, said: “The whole FE sector will want to join with me in paying tribute to Her Majesty The Queen for her many years of service to our country.
“The news of the passing of The Queen is something which has saddened us all. For most of us working in the sector, indeed most of us alive today, it is hard to imagine times without Queen Elizabeth on the throne. The coming days will have an emotional impact on college staff and students alike and it will be important to treat each other with compassion.”
A statement from the Association of Employment and Learning Providers (AELP) said: “We are saddened to hear that Her Majesty The Queen has passed away. To spend over 70 years as the monarch is a remarkable achievement. She selflessly carried out her duties in representing the United Kingdom throughout the world. We send our deepest condolences to her friends and family.”
And the Federation of Awarding Bodies, in its tribute, said: “The Federation is deeply saddened by the news of HM The Queen’s passing. In her tireless service to the nation, she has inspired us all. For that we are eternally grateful. Long live The King.”
Education secretary Kit Malthouse said Her Majesty’s “devotion to public service has been an inspiration, and her wisdom and strength have often provided solace to her people in times of darkness, most recently during the pandemic.”
The Queen had a long relationship with the education sector
The monarch had a long-established relationship with the sector, spending a significant amount of time during her 70-year reign visiting schools, colleges, training providers and adult education centres.
Over the past two years, her public outings have been stymied both by Covid and her own ill health, with the Queen having to pull out of many key events due to ongoing issues.
Reaseheath College, which the Queen visited in 2010, tweeted: “We are deeply saddened to hear of the passing of HRH Queen Elizabeth II and our thoughts are with all of the Royal Family at this very sad time.”
With parliamentary business expected to be suspended for 10 days, a list of priority issues in the new education secretary’s in-tray will likely be on hold.
The day of Her Majesty’s funeral will be one of national mourning, but it is up to employers whether their staff can take the day off.
Government guidance published this evening states that FE settings should remain open during a period of national mourning.
Andrea Jenkyns has been re-appointed as a minister in the Department for Education – but it is unclear whether she will retain her current skills, further and higher education brief.
The MP for Morley and Outwood re-joins the department as a parliamentary under secretary of state, alongside newly appointed minister of state Kelly Tolhurst and education secretary Kit Malthouse.
Jenkyns was named as the minister of skills, further and higher education in July.
Brendan Clarke-Smith, who was the children’s minister, has now moved to the cabinet office, it was announced tonight.
More junior minster appointments are still to come. Full DfE ministerial briefs are yet to be confirmed.
Jenkyns was first elected in May 2015, and had been an assistant whip in the Whips Office since September last year.
Prior to that she had served on several committees.
The new minister attracted some controversy at their time of her first appointment to the DfE after footage emerged that showed her raising a middle finger to protestors in Downing Street.
Jenkyns later issued a statement in which she explained that there was a “baying mob” outside the gates who were shouting abuse to MPs. She said she had “reached the end of my tether” following “huge amounts of abuse” over the years, adding: “I should have shown more composure but am only human.”
On 1 September, the window opened for the latest round of registrations to work towards Qualified Teacher Learning and Skills (QTLS) status, the definitive mark of professional status for those teaching in the FE and Training sector in England. Teachers and trainers from all parts of the sector – including colleges, independent training providers and local authorities – will be registering to join over 26,000 colleagues who have already gained QTLS status to mark their career development.
This nationally recognised status is conferred by the Society for Education and Training (SET) on behalf of the Education and Training Foundation (ETF), the expert body for professional development and standards in the FE and Training sector in England. QTLS status confers a number of significant benefits for those seeking career progression in the sector:
Formal recognition for being a professional, capable teacher
An opportunity to demonstrate that professionalism to colleagues and managers
Parity with QTS to teach in schools on equal pay and conditions
An opportunity to evaluate and invigorate teaching practice through the QTLS professional formation process
A chance to network and build relationships with colleagues
A vital part of the professional formation process in the sector
The ‘Skills for Jobs’ white paper published by the government in January 2021 emphasised the need for continuing professional development for teachers in the FE and Training sector in order to uphold quality and enable progression.
QTLS is a vital part of that ongoing professional development, offering a next step in the journey for those early career teachers who have recently completed initial teacher education. It is equally relevant for experienced teachers and trainers seeking formal recognition of their professionalism and progress. Whether new to teaching or experienced, the professional formation process at the heart of QTLS provides a valuable opportunity to reflect on practice and explore new approaches.
Head of Professional Status and Standards at the ETF, Andrew Dowell, explains why QTLS status has become so popular with practitioners: “Undertaking a period of professional formation with SET is the perfect next step to build upon your initial teacher education and provide a solid foundation for your future teaching career. Successfully gaining QTLS demonstrates to future employers that you are committed to your professional development and will set you apart from other teachers and trainers going for sought after teaching roles.”
Tracey Bedford, Curriculum Lead for Health and Social Care and Functional Skills for GB Training, took QTLS three years after completing her Diploma in Education and Training (DET): “I have always been passionate about personal development and enjoy any kind of CPD, so I enjoy setting myself a target every year to achieve something on a professional level. I’ve loved the QTLS journey – it’s been such a positive experience, and I take all learning as positive.”
Nick Chadwick, Education and Assessment Manager at Train Aid and former Head of Sports Development at Reigate College, completed QTLS straight after his PGCE qualification: “Teacher trainers who knew about QTLS said it was a fantastic progression route for all trainee teachers. From my very first teaching session in 2012, I always knew that QTLS was a pathway to go into and that it was the golden standard for practitioners in FE to increase the scope of teacher training and opportunities.”
What is involved in QTLS?
QTLS is gained after successfully completing a six-month period of professional formation which enables you to show your progression and commitment to excellence. The formation process is self-guided and requires you to complete a forward-looking online portfolio demonstrating the skills and knowledge you have gained since your initial teacher education qualification. You will be asked to nominate a colleague who can act as your supporter. If you have not already done so, you will need to join SET and this will give you access to advice, an online community of those undertaking QTLS, and a range of free CPD resources.
Once you submit your portfolio and gain QTLS status, you will be able to use the designation MSET QTLS after your name and you will be added to the professional register where future employers can check your status.
How does the professional formation process work?
The professional formation process is focused on developing and collating evidence for an online portfolio. There are nine sections which enable you to take stock of your current teaching practice and focus on an area of interest for your development:
About you
Qualifications
Roles and responsibilities
Self-assessment
Professional development plan
Continuing Professional Development (CPD) record
Critical reflection on impact
Final action plan
Final supporting statement
Typical evidence will include observation reports of your teaching practice, with supporting documentation such as a lesson plan and a self-evaluation of the session.
After you have completed your portfolio, you share it with your nominated supporter to add their supporting statement before submitting to SET for review.
Rooted in shared Professional Standards
At the heart of the professional formation process is a self-assessment which relates your practice to the shared Professional Standards for Teachers and Trainers in the FE and Training sector. These Standards are maintained by the ETF on behalf of the sector. They consist of 20 aspirational statements, first launched in 2014 and updated in 2021, which have been developed collaboratively with organisations and practitioners from across the sector, with review by key sector bodies and the Department for Education.
According to the ETF’s Andrew Dowell, the Standards provide a clear set of aspirations for the post-14 teacher throughout their career: “The Professional Standards were written specifically for the FE and Training sector and are mapped to three key career stages – early career teacher, experienced teacher and advanced teacher. Those who regularly self-assess against the Standards using our reflection tool will be able to craft a well-informed professional development plan and identify professional development to support their areas of development, which is at the core of the QTLS professional formation process.”
Bedford found the self-assessment process invaluable as part of her QTLS formation: “When I went through the professional formation process, it helped me to challenge my practice by using the Professional Standards. I had already been using them to self-evaluate as part of my DET, so this helped me to look at what I needed to develop and fine tune my teaching practice so I could make constant improvements to my practice.”
Samantha Ziegenfuss teaches at a Pupil Referral Unit (PRU) at Kent Health Needs Education Service and decided to build on her initial teaching qualification with QTLS to progress her career. She found the self-assessment in QTLS helpful to develop her reflective practice: “The self-assessment was an effective method of identifying my strengths and areas for development against the Professional Standards for Teachers and Trainers. This enabled me to benchmark my abilities against a set of criteria and establish a professional development plan within my workplace.
A valuable CPD opportunity
Above all, QTLS provides an opportunity to take positive action towards personal and professional goals. Feedback from those who have gained the status indicates that participants find it a useful process of self-reflection and improvement.
Like many others, Dance teacher at Philip Morant School and College, Charity Burgess, believes that QTLS has had a significant impact on her practice. After completing a PGCE she decided to undertake professional formation leading to QTLS to strengthen her portfolio and gain recognition in the industry: “I believe my professional formation has absolutely impacted my practice for the better. It made me analyse the areas of my teaching I could improve upon, and practical ways to implement changes.”
Taylor Hennah, Lecturer in Health and Social Care at Oaklands College, enjoyed the opportunity to revisit educational theory: “I really liked the fact that it forced me to look at myself and my own practice and consider what practice is working and what isn’t.”
Kyle Kirkpatrick, Deputy Head of School: Arts and Media at Milton Keynes College,
enjoyed how the self-directed formation process allowed him to identify areas for investigation in response to the sector’s Professional Standards, as well as his own interests: “It allowed me to consider and challenge my own pedagogy and how my practice can and does have an impact on my learners, colleagues, and organisation.”
For Ziengenfuss, reflection has led to innovation: “I have learned to be a more reflective practitioner, using my knowledge to experiment with more innovative approaches and alternative ways of engaging students.” This is echoed by Liam James, Lecturer and Course Co-ordinator at Weston College: “It has given me the chance to try new innovative teaching methods which my learners have enjoyed. Trying new things and reflecting has strengthened my teaching skills and allowed learners to contribute, creating a positive learning environment.”
For Bedford, QTLS re-ignited her passion for learning: “I am always learning and looking at how we can make the learner have a better experience as an individual, as well as becoming a better practitioner.”
Growth in confidence
Growth in confidence as a teacher is one of the main outcomes that QTLS participants report.
Hennah found it was a real confidence booster as a new teacher: “QTLS has grown my confidence which has led to better outcomes for my students because I’ve stopped second guessing myself. My students have benefited from my confidence growing because I’m more authoritative and less scared of change.”
Qualifications and Development Lead/Lead IQA, Jeminiyi Ogunkoya took QTLS to increase her understanding of the value of embedding practical knowledge in further education through in-depth teaching and learning: “Knowledge is power and with my QTLS achievement I feel more confident in my practice and how I support my team.”
Chadwick has seen the impact of increased confidence: “QTLS has improved my confidence and profile in the college and has helped me through any progression routes or course leader roles I’ve gone for.”
Opening doors to wider employment opportunities
In addition to opening doors to career progression in the FE sector in England, QTLS opens doors to opportunities in schools and overseas in Australia, Canada, New Zealand and the USA.
Since April 2012, teachers and trainers holding QTLS status who are also members of SET have been recognised by law as equivalent in status to teachers with QTS in schools. Holders of QTLS can teach across all subjects on equal pay and conditions. This is particularly relevant with the introduction of the new T Level qualifications into schools, requiring teachers with technical and vocational teaching experience.
Hennah has used her QTLS to move to a new role at a secondary school teaching health and social care. For Chadwick, parity with QTS was always a key draw for QTLS: “I knew I wanted to undertake QTLS, primarily because of the changing landscape of FE and to increase the scope of my teaching opportunities, but also so I had the option of moving into the secondary teaching sector or going to an independent school.”
Am I eligible for QTLS?
To apply for QTLS status you need to be a SET member and meet the following criteria:
Hold an eligible teaching qualification at Level 5 or above
Hold eligible Level 2 maths and Level 2 English qualifications
Hold a Level 3 qualification in all subjects that you teach during professional formation
Be teaching or training in a Further Education and Training setting for a minimum of four hours a week, throughout the professional formation programme
Be regularly teaching groups of five or more post-14 learners throughout the professional formation programme
Further education colleges will be covered by the prime minister’s pledge for a sixth-month energy “guarantee” for the public sector, government officials have claimed.
But, an industry body has said college leaders cannot be left in the dark on whether longer term support beyond April is coming.
In an address to Parliament on Thursday, Liz Truss said typical homes will not pay any more than £2,500 per year for energy for the next two years, while the government will “also support all businesses, charities and public sector organisations with their energy costs this winter, offering the equivalent guarantee for six months”.
Further education colleges are not currently considered to be in the public sector, but the Office for National Statistics is currently reviewing that designation. The ONS is due to conclude its review this month.
However, the Department for Business, Energy and Industrial Strategy told FE Week that FE colleges will be covered by that guarantee, while the Department for Education, in a message to the sector, said: “Providers in all DfE sectors will be eligible.”
Julian Gravatt, Association of Colleges (AoC) deputy chief executive, said he welcomed the news that colleges will be covered, but said there was “little detail” so far.
He added: “If these plans only last for six months, then colleges will be wondering what happens in April and will be anxious about future bills. This uncertainty is a struggle for financial planning purposes, and we hope a long-term plan is announced swiftly.”
It comes after 189 college leaders – eight in 10 across England – came together with the AoC to pen a joint letter demanding urgent action from the new chancellor Kwasi Kwarteng and warning of a “serious risk to solvency”.
It said that as colleges were not covered by a price cap in the same way as homes, some were facing bills four times higher than they had been paying previously, which meant the combined £130 million annual energy bill for colleges could skyrocket to £520 million nationally, up from two per cent of college income to eight per cent.
Hari Khurmi, chief financial officer at Loughborough College, said prior to Liz Truss’ announcement that his college was facing a “big hit” – an estimated 100 per cent bill rise.
The college is planning to put together a working group to come up with ways of reducing energy use, and was implementing dashboards to see the areas of biggest use.
In addition, it was consolidating its evening and weekend activities into one or two buildings at most to reduce power and looking carefully at the times it heated buildings.
Luke Rake, principal, and chief executive of Kingston Maurward College, said his college had been facing another £400,000 on top of its existing £338,000 bill, that was despite it installing a ground source heat pump designed to save £100,000.
“We are already looking at budget reductions – not redundancies but discretionary spend on other things,” he added.
Nikos Savvas, chief executive of the Eastern Colleges Group said colleges were being put in an “unworkable position”. He said: “At West Suffolk College alone, our electricity costs are going to move from £400,000 a year to £1.2 million.”
Alison Andreas at Colchester Institute said her 2022/23 budget had a 66 per cent energy cost increase, with its fixed rate contract expiring at the end of the month.
Andreas said the leadership team had developed a 50-point plan that included reducing evening opening, while “a four-day week is not off the table, but something we are trying to avoid if at all possible”.
Suffolk New College was preparing for a 34 per cent utilities bill increase. Principal Viv Gillespie said: “We signed the AoC’s letter to bring these issues to the attention of the new chancellor, and to raise the profile of the FE sector in the context of the government stance on the importance of skills in order to fuel the economy.”
The AoC letter made a call for three immediate actions: an increase in funding rates for 16-to-19 students, boosting efforts to recruit and retain teachers, and exempting colleges from VAT.
Education staff at 48 prisons and youth offender institutions are set to vote on strike action in a row over low pay.
Around 500 University and College Union members will be balloted on the action from next week. The staff are calling for a pay rise that helps them meet the cost of living crisis.
Novus, their employer, has offered a two per cent rise for 2021/22 and three per cent for 2022/23, below the current RPI inflation of 12.3 per cent.
The UCU claimed that prison educators have seen their pay fall by more than 25 per cent since 2009.
UCU general secretary Jo Grady said: “Prison educators urgently need a pay rise to help them meet the cost of living crisis, yet Novus wants them to accept a real term pay cut. This is completely unacceptable, our members in prison education are at real risk of facing poverty this autumn because historically low pay means they are already financially insecure.”
A spokesperson for the LTE Group, the parent group of Novus, said: “LTE Group is committed to ensuring that all our colleagues receive a pay increase that will help to support them in the face of the current cost of living crisis at the earliest possible opportunity.
“We commenced discussions on colleague pay with unions in February this year, and have remained in an ongoing dialogue ever since. We remain engaged in productive discussions with trade unions with the aspiration of reaching an agreement swiftly.”
The ballot will open on September 14 and close on October 5.
[UPDATE: On October 10 UCU announced that 94.47 per cent of its voting members voted for strike action. UCU members will now meet to decide next steps.]
First-year results for health and science T Level students will be regraded after the exams regulator found exam papers were not fit for purpose, FE Week can reveal.
An Ofqual review identified a catalogue of issues including question errors and inadequate mark schemes. The watchdog has now ruled that students’ grades did not validly measure their performance.
The “serious” incident comes after large numbers of students complained that they received lower than expected first-year grades over the summer for the flagship new qualification, citing severe problems with the core exam papers.
Many said they were predicted A* to Cs but received Ds, Es and U grades.
Around 1,600 students across 76 colleges and schools on the two-year course – which launched in 2021 – picked up their first-year results in August, although they have not been released publicly.
A petition started by disheartened students which secured more than 1,200 signatures said that the exams contained some topics which were not covered in the syllabus, while the textbook was reported to have only been released a few weeks before the exam.
They demanded grade adjustments in light of the problems – an option that was originally refused by awarding body NCFE.
However, a review by Ofqual and the Department for Education resulted in a summit of college principals which took place on Wednesday morning. A letter issued later that day by the DfE’s director of professional and technical education, Sue Lovelock, confirmed the exams had serious and significant issues.
The letter, seen by FE Week, said: “Ofqual have now completed their thorough review of the core assessment papers. This identified issues including question errors, inadequate mark schemes, and questions covering areas not explicitly in the specification.
“Given the breadth and volume of issues, Ofqual has determined that the assessments do not secure a sufficiently valid or reliable measure of student performance. This is obviously a significant finding and a serious matter. Ofqual has initiated an investigation to identify the issues in how these papers and mark schemes were developed to ensure that NCFE address them for future series.”
As a result, students’ grades will change to be based entirely on their employer set project grade. However, it recognised that students should not be unfairly penalised, and any students who secured a higher grade in their overall core component than their employer set project can carry the higher mark forward.
For those that did not secure a grade they were happy with, an opportunity to re-sit the employer set project this autumn will be provided. They will not be charged for the resit.
It marks the biggest hurdle to date for the bellwether new post-16 qualifications, designed to be the technical equivalent to A-levels.
T Level grades comprise a core exam component, employer set project and an industry work placement of 45 days.
The DfE also said that “Ofqual will review the employer set project tasks and mark schemes to check that they have met expectations”.
Following the DfE’s letter, one tutor who delivered the course but wished to remain anonymous said: “The response from Ofqual shows the gravity of the situation, despite repeated warnings the NCFE did not adapt appropriately to concerns raised, nor did they respond appropriately when the results came out.
“Colleges, including ours, have lost up to half or all of their students to other health courses or out of healthcare completely. Those left are still in limbo over what they want to do as the changes have come too late.”
He said his college’s numbers for first years this year was half that of last year, despite higher application numbers.
One student, who did not wish to be named, said: “I think it’s good for people whose grades have improved, but I think it is a bit of a kick in the teeth considering we’ve spent a whole year learning the content for the exams for it all to be ignored.”
But some students who got the same grades on the core exams and the employer set project said they would not benefit.
The DfE’s letter said this would be a one-year adjustment only.
In addition, the DfE said that the Institute for Apprenticeships and Technical Education (IfATE) will review the content of all three health and science T Level pathways, and consult with employers, colleges and schools to see if changes are needed.
The DfE recognised the problems could have impact on recruiting or retaining students, and said that it did not expect to recoup capital funding for providers which have delayed delivery or low numbers for a year as a result of the problems.
But the news comes too late for some students, with some already having been encouraged to switch to BTEC alternatives, while others have dropped out entirely.
A spokesperson from NCFE said the awarding body is working with providers on the details around using only employer set project grades as student outcomes.
“We are also keen to ensure a smooth transition for students who want to move to alternative provision,” the spokesperson added. “In addition to this, we intend to provide a raft of early interventions and personal support to maximise future assessment success.”
T Levels were launched in 2020. Full results for the first three T Levels were issued last month. First year grades for the health and science T Level, which launched in September 2021, were also issued over the summer.
A further three T Levels pathways begin this September.
Kelly Tolhurst has been appointed as an education minister, as schools minister Will Quince moves to the Department of Health.
Following cabinet-level appointments last night, the new prime minister Liz Truss is now appointing junior ministers in government departments.
Tolhurst, a former housing minister who is MP for Rochester and Strood, is the first junior minister to be appointed to the Department for Education under Truss.
However Quince, responsible for overseeing the SEND review, has moved on. Like Quince, Tolhurst is a minister of state, but her exact portfolio is yet to be confirmed.
Tolhurst was first elected in 2015, when she beat former UKIP MP Mark Reckless to the Kent seat he had won the year before in a byelection.
She served in a string of junior ministerial jobs, including small business minister, aviation and maritime minister and minister for housing and rough sleeping.
Following the resignation of deputy chief whip Chris Pincher earlier this year, Tolhurst took on the role until her promotion today.
Further ministerial appointments are due to be made today.
College heads across England have demanded urgent action by new chancellor Kwasi Kwarteng in tackling the soaring cost of energy bills, warning of a “serious risk to solvency”.
A joint letter penned by the Association of Colleges chief David Hughes and signed by 189 college leaders – eight out of 10 in England – said that as colleges are not protected by an energy price cap in the same way as consumers, some are now facing bills four times higher than they were paying previously.
The letter warned that there are “very serious risks to solvency and in turn UK skills development if nothing is done”.
It said that in recent years the college sector’s energy bill has been a combined £130 million annually, with rising prices meaning that could rocket up to £520 million a year on energy alone if replicated nationally – up from 2 per cent of college income to 8 per cent.
The letter pointed out that a lack of investment in the last decade to buildings has left some more vulnerable to rising energy costs. Colleges in England run an estimated 4,500 buildings across 800 sites, according to the AoC.
The letter, issued ahead of an expected announcement this week by the new government on its plans to tackle skyrocketing energy bills – has called on the new chancellor to increase funding rates for 16 to 19 students, boost efforts to recruit and retain teachers and exempt colleges from VAT.
AoC chief executive David Hughes said: “Outside of the cost-of-living crisis, few challenges will be as important as tackling the skills shortages which are holding back businesses and the economy.
“Supporting colleges must be at the top of his priority list. Cutting VAT on skills and paying college staff better will deliver the economic growth the new PM has promised.”
The AoC said the funding rates for 16- to 19-year-olds was last reviewed in 2021 while adult funding rates last increased in 2010 – both before the spike in inflation, most recently at 10 per cent.
On teacher recruitment, the letter pointed out that teachers can earn more money in industry or in schools, where pay is up to £9,000 a year higher.
The letter said the energy costs “cut the resources we have for staff at a time when colleges are already struggling in the face of the widening gap between college pay and what skilled teachers can earn in industry and in schools,” and was “already hampering the expansion of technical education”.
It has called for a new workforce fund to be established to help recruitment, particularly in key sectors like health, construction and green energy.
