DfE accounts 2025: Apprenticeship ‘failures’ and minister payouts revealed

Millions in apprenticeship provider “failure” write-offs, the skills minister’s salary and payouts to senior officials all feature in the Department for Education’s accounts this year.

The department’s annual report for 2024-25 was published this morning, as were the Education and Skills Funding Agency’s final accounts following its merger with the DfE in March.

Here’s what we learned…

Hefty cash losses from apprenticeship ‘failures’

The department suffered £24 million in losses and claims that were waived or abandoned in more than one thousand cases that were not linked to student loans.

Several apprenticeship providers and one college were named individually where the value of the written off funding clawback by the government hit over £300,000.

This included Vocational Skills Solutions, which closed down in 2023 and left the taxpayer £633,000 out of pocket.

Debts totalling £6.6 million were written off after the “corporate failures” of six apprenticeship providers: Vista Training Solutions, ARC Academy UK, Apex Management Consultants, Insight Development & Consultancy, People and Business Development, and Hair and Beauty Industry Training.

Vista Training Solutions cost the DfE £2.2 million. The company’s director, Shakar Habib has since received a six-year ban, as reported by FE Week in January 2024.

The department also waived £2.016 million owed by ARC Academy UK Ltd, which was judged ‘inadequate’ by Ofsted before closing.

The remaining providers had less than £1 million waived. 

Most debts related to “overstated funding claims” that the DfE seeks to reclaim where possible, “but in some cases the provider has failed”, the report said.

The department also recorded a loss of £510,000 to Lambeth College this year, which merged with London South Bank University in 2019.

Meanwhile, £1.6 million was also written off for Weymouth College, which merged with Kingston Maurward College in 2024.

And UTC Warrington also had £825,000 written off for un unspecified reason.

Smith’s salary revealed

The department paid skills minister Jacqui Smith an £86,804 basic salary in the 2024-25 financial year after she started part way through the financial year in July, equivalent to an annual salary of £117,851.

This is a higher yearly wage than education secretary Bridget Phillipson’s £67,505, although Phillipson also receives an MP’s salary of equivalent to £91,346.

As a member of the House of Lords, Smith does not receive a salary and has never claimed a £342 daily attendance allowance, according to latest data that goes up to February, although she claimed £800 in secretarial expenses in September last year.

Bumper pay rise for top boss…

DfE permanent secretary Susan Acland-Hood saw her salary band rise to between £180,000 and £185,000 pounds last year, up from between £170,000 and £175,000. Her pension benefits also increased from £108,000 to £137,000.

It means her pay and benefits rose by 12.3 per cent, compared to a DfE staff average of 5.2 per cent. 

…and big increase in exit packages 

The DfE and its agencies and arms-length bodies paid out £3.9 million in exit packages to 64 departing staff in 2024-25. In 2023-24, it had paid £1.27 million to 30 people.

Two of the exit packages last year were worth between £150,000 and £200,000, while six were between £100,000 and £150,000.

Exit packages are for staff who are made redundant or retire early. It does not name which staff the payments relate to.

The DfE also sometimes makes special “severance payments” when employees or contractors resign, are dismissed or reach an agreed termination of contract.

In 2024-25, it made 23 payments totalling £1.3 million up from two payments totalling £115,000 in the year prior.

The highest payment was £142,186.

£17k payout for Keegan

Ministers get severance payments when they leave office, regardless of whether they resign, are sacked or voted out as MPs.

The report shows former education secretary Gillian Keegan received £16,876 last year after losing her seat, while departing schools minister Damian Hinds and skills minister Luke Hall got £7,920. Former children’s minister David Johnston received £5,593.

The document also shows £7,920 was also paid out to Nick Gibb and Robert Halfon, who both resigned as ministers in late 2023.

£234k to Keegan’s husband company, £21k to Smith’s consultancy

It’s not just axed ministers getting pay days.

The report details related-party transactions, spends by the DfE with organisations linked to ministers and board members.

It shows £234,000 was spent with Centerprise International Holdings Limited, an IT provider of which former education secretary Gillian Keegan’s husband is a non-executive director.

Jacqui Smith

Meanwhile, £21,000 was paid during the year to Jacqui Smith Advisory Ltd, a company owned by the current skills minister Baroness Smith. And £14,000 went to Steve Crocker Consultancy Ltd, run by DfE board member Steve Crocker.

The accounts do not state what the payments are for but a government spokesperson told FE Week the extra payment to Smith relates to her time as the DfE-funded independent chair of Sandwell Children’s Trust, which she stepped down from before joining government.

Fraud and audit

The ESFA’s counter-fraud team claims to have detected £20 million in fraud and prevented a further £71 million being paid out, from the £79 billion in public funds it distributed.

During the year it recovered £10 million, which includes amounts from cases in previous years.

It also carried out funding audits of 79 FE colleges and 91 independent training providers, although it did not specify how much funding was clawed back.

The number of new allegations the counter-fraud team handled increased from 142 to 246 in 2024-25, with 118 cases relating to ITPs and 41 to colleges.

However, more than 200 of these allegations did not proceed to a formal investigation as they did not meet the threshold, were referred to other bodies, or concluded with “advice” to colleagues.

Contrary to its own policy, the ESFA has only published two reports detailing counter-fraud investigations, despite carrying out nearly 200 full investigations between 2017 and 2024.

But the DfE’s annual report says merging with the ESFA will “ensure a more cohesive approach” to investigations, positioning it “at the forefront of counter-fraud efforts across government”.

£13.6m Ecctis repayment

The DfE’s counter-fraud team, separate to the ESFA’s, secured a £13.6 million repayment from its contractor Ecctis, which runs the UK’s official agency for recognising international qualifications and running language tests.

Earlier this year, permanent secretary Susan Acland-Hood said a “very hard” review of Ecctis found that the company had failed to reinvest profits from the not-for-profit contract back into the service as promised.

The accounts say the department has now “strengthened” contractual management arrangements.

Loans rise

The DfE’s total amount loaned to FE providers increased from £170 million to £256 million.

It lent a total of £103 million during the year and received £44 million in repayments.

Following public sector reclassification the DfE has faced growing demand for financing from colleges, which have lost the freedom to take out commercial loans in most cases.

During the year nine colleges received £25 million in emergency funding or loans, which the DfE says protected 61,000 learners.

A further £91 million was loaned to 24 providers, most of which were FE colleges, according to the accounts.

£600m ‘irregular’ grant spend identified by auditor

The DfE paid out £88.3 billion in resource grants and £5.5 billion in capital grants in 2024-25.

Gareth Davies, the comptroller and auditor general to the House of Commons, said he identified irregular grant spend in several areas. 

Within the core department, he identified estimated irregular grant spend of £61 million relating to various grant streams. 

“I also identified an estimated £588 million of irregular spend within ESFA and £63 million of known irregular spend,” he added.

No further details on which grants were irregular and how was provided.

MP criticises college group after another campus sale

A large midlands college group has left a local MP “very disappointed” after closing a college campus in their local town that was opened 50 years ago. 

On June 4, Warwickshire College Group’s (WCG) board signed off the decision to close its Evesham New College campus at the end of this academic year after a “comprehensive public consultation”. 

Motor vehicle, hair and beauty, construction, art ESOL and apprenticeship provision will move from the campus in Evesham, which opened in 1970, to Pershore College, a rural campus that is a 5.5 mile drive away, or fifteen minutes by public transport. 

WCG claims the move is needed to address longstanding issues of “underutilisation, financial inefficiency, and limited facilities”. 

The Evesham campus has about 200 full-time learners and operates at a “marginal surplus” of £100,000 per year, the college argued. 

Nigel Nuddleston, MP for Droitwich, Evesham and the villages said: “I remain very disappointed by the decision to close Evesham College, and I know many constituents are understandably concerned about the impact on students, staff and the wider community. 

“While I appreciate the financial pressures faced by the college, I believe it is important that where possible proceeds of the sale are properly re-invested into the Pershore campus for the benefit of my constituents who would otherwise miss out.” 

Students at the Evesham campus will be offered free transport for all existing learners and September 2025 starters for “at least the full academic year”, the college said.

What will be lost? 

WCG describes the Evesham campus as a “small and friendly” FE college that provides “essential” adult part time courses in its workshops, salons, studios and “fully equipped Energy Training Centre”. 

In 2020, it celebrated the site’s 50 year anniversary, praising the “key role” it has played in thousands of people’s lives. 

The college argues it has now committed to “over £1.5 million” of investment in the Pershore College campus to “accommodate the transition”, including a “new Construction Academy”, upgraded workshops, and “new wellbeing spaces”. 

Regarding the future of the Evesham site, WCG told FE Week: “Options for the site’s long-term future are still to be considered by the corporation, and at this stage, even if a sale is the option taken, then it would not be commercially appropriate to comment on proceeds.” 

A controversial chapter 

The closure marks the end of two college sites that were adopted by WCG in a merger with South Worcestershire College in 2016. 

Earlier this year, the college group confirmed it has finally sold its Malvern Hills campus to pay off government funding clawbacks and debts after winning a controversial legal battle with the local council two years ago. 

Both the Evesham and Malvern Hills sites were previously part of South Worcestershire College, but merged with WCG in 2016 with the promise of “significant benefits”. 

At the time, then-WCG principal Angela Joyce claimed her college would provide “a broader curriculum”, a wider range of specialised facilities and “an enhanced overall student experience”. 

‘Asset stripping‘

Local Lib Dem councillor Dan Boatright-Greene, a former FE teacher, said the loss of the Evesham college will have a “huge impact” on local young people due to the additional distance they will need to travel. 

He said: “I will never forgive Warwickshire College Group for asset stripping the former South Worcestershire Colleges sites. 

“Despite their protests I am adamant that their plan was always to do this ever since they took over the colleges. 

“My personal view remains that all proceeds from any sale should be used to invest in the relevant location and not used to prop up their sites in Warwickshire. 

“Bigger is clearly not always better and economy of scale has clearly not worked.” 

A WCG spokesperson questioned whether Boatright-Greene had engaged with the consultation process and offered to show him around the Pershore College campus. 

‘The end of an era’ 

Sara-Jane Watkins, principal and chief executive of WCG, said: “We recognise that this change marks the end of an era for Evesham New College, and that many people will feel sadness and concern.  

“But this is also the beginning of a stronger, more resilient future for learners and ensuring one sustainable and vibrant college within Wychavon. 

“We are protecting all current courses, expanding what we offer, and ensuring that every learner, including those with additional needs, receives the support and opportunities they deserve.” 

Gill Clipson, chair of the WCG board of governors, said: “This has been a thoughtful and considered decision, taken with care and compassion. 

“We have listened carefully to the feedback and responded where we could. 

“By consolidating provision at Pershore College – just four miles from Evesham – we can deliver a higher-quality learning environment, invest in future skills, and ensure long-term educational sustainability.” 

Let’s try to solve the FE recruitment crisis from within

I’ve been delivering accounting skills for over 20 years, and while staffing challenges have always been present, the sector is approaching a crisis. Cancelled classes and delayed cohorts are unwelcome consequences of tutor shortages – and it’s not just affecting accounting.

The National Audit Office’s recent report shows that in 2022-23 there were 2,500 unfilled teaching posts in the FE sector, with forecasts estimating the need for an additional 8,400–12,400 FE teachers by 2028–29. Sadly, the government’s response feels insufficient, meaning that recruitment and retention is the number one concern among sector leaders, with 18 per cent identifying it as the most pressing future challenge.

As learner numbers continue to rise and private providers lure tutors with favourable pay and conditions, it’s time to consider a more organic, sustainable solution.

 ‘Grow Your Own’

Building your team of AAT (Association of Accounting Technicians) tutors not only increases capacity for learner numbers, but also reduces pressure on other staff members, positively impacting attendance, morale and work-life-balance – something we can’t afford to ignore if colleges want to retain the brilliant tutors they already employ.

I’m a strong proponent of the ‘grow your own’ approach – because it works. It is the path I took when I was studying accountancy as a career changer over 20 years ago, and I’ve seen the benefits first-hand, both for accountants-turned-tutors and for the colleges who support them. With a shift in mindset and structured support, it can deliver real, long-term impact.

Being open to recruiting brand new teachers empowers your AAT tutors, allowing them to harness the potential they see in learners, colleagues or professional contacts, and train them in ways that compliment your college culture.

It also helps to avoid the uncertainty associated with hiring external candidates: will they be a good fit for your team; will they be disruptive? Then there are expensive agency fees, a lengthy hiring process and the need to re-advertise hard-to-fill roles. And let’s face it – AAT tutor roles sit firmly in that category.

Learners approaching the end of their studies are a great starting point for recruitment, but don’t discount those who are already established accountants – perhaps even currently working in your college’s own finance team. I know a number of fantastic tutors who have a foot in both camps, teaching alongside their ‘day job’ in industry. They relish the opportunity to inspire others and learners benefit from seeing their subject brought to life in an authentic way.

An AAT qualification doesn’t have to equate working in accountancy

Many AAT learners simply don’t consider teaching because their focus is firmly on becoming an accountant. But as tutors, we’re in the perfect position to plant the seed.

Mentioning teaching pathways during course inductions or classroom discussions can make all the difference. I look for learners who support others, making explanations or sharing their work experience, and encourage them to continue; it helps them learn as well as helping the student that they are supporting.

Presenting yourself as an attractive employer is key. Flexible hours, blended delivery and support with lesson preparation can all go a long way in helping potential teachers see this path as a viable, exciting next step.

There are few professions as deeply rewarding as teaching. I still get a buzz when I see a student embrace their potential. The sense of fulfilment, from helping someone transform their future, is what keeps me going. In my experience, learners are passionate about accounting and want to share their knowledge. 

How to support interested learners

Reassure them that it’s not a complicated process. These days introductory teacher training courses are delivered online, so basic teaching skills can be obtained more flexibly. 

Don’t underestimate the importance of support in the staffroom. Shadowing or guidance from established tutors in their team can provide valuable ‘on the ground’ insight to life in the classroom.

Ready to rekindle the joy of teaching?

I didn’t go into FE because it was easy. I went into it because it changes lives. And although it’s had its challenges, I’d do it again without a second thought.

By nurturing talent from within, we’re not just addressing a staffing crisis. We’re building a future-ready teaching workforce that knows our learners, understands their journey, and is already invested in their success.

Ofqual probe finds exam extra time figures wrong for years

Exams regulator Ofqual has admitted botched data “significantly overstated” the number of students receiving extra time in exams for the last decade.

Access arrangements are adjustments given for learners with special needs, disabilities, or injuries to help ensure they are assessed fairly. They can include receiving 25 per cent extra time in exams, or the help of a reader or scribe.

Ofqual data has shown the proportion of pupils with access arrangements soared in recent years. The number rose by 12.3 per cent in 2023-24 to around 625,000, with three in ten pupils granted extra time.

However, the regulator has now admitted the proportion of students getting access arrangements overall is actually closer to 14 per cent.

Late last year, concerns were also raised about a growing gap between the use of access arrangements between private and state schools. 

Almost 42 per cent of private school pupils received extra time, according to the Ofqual data, far above the 26.5 per cent in state secondaries.

The education secretary told the Financial Times the divide as “a real concern”, and asked Ofqual to investigate “why so many children require this support”.

Following a review, Ofqual said it found issues with the statistics, dating back to 2014. The officials access arrangement statistics for the past decade have now been withdrawn.

Error in data

Ofqual’s statistics were based on data collected by exam boards. However the review found they “significantly overstated” the number of pupils receiving access arrangements.

According to the regulator, the error is due to the way the data was recorded and aggregated, such as including arrangements for students who did not sit exams that year, or including duplicate applications for the same student.

It said new analysis suggested the actual proportion of students receiving access arrangements was “broadly in line” with the proportion of students with special educational needs, without an EHCP.

There are now almost 1.3 million pupils in schools in England who fall into this category, equating to 14.2 per cent of pupils – up from 13.6 per cent in 2024.

New data based on an “improved methodology” will be published later this year following a “comprehensive” review of evidence, Ofqual said.

Wrong data ‘frustrating’

Tom Bramley, executive director of research and analysis at Ofqual, said: “We are correcting the record as soon as possible. The access arrangements process has not changed, and students who received support did so appropriately.

“This issue is limited to our access arrangements dataset and our other statistics are not affected.”

Ofqual is “working closely with the Office of Statistical Regulation” on fresh data, and says it will also work with exam boards to improve data quality and reporting.

The regulator says there was “no change” for students who are receiving or applying for access arrangements, and those already granted remain “appropriate and valid”.

Tom Middlehurst, deputy director of policy at the Association of School and College Leaders, welcomed the withdrawal and correcting of the data, but said it was “frustrating that the data was apparently incorrect in the first place”.

Ofqual ‘was aware of error’

A senior industry source also claimed the regulator had been aware of concerns about the data error for at least two years.

They argued that while exam boards collect the data, it is processed by Ofqual, and it was the regulator’s responsibility to check it.

They said one reason likely to contribute to the overstated number was that pupils who are granted access arrangements are kept on exam boards’ system for a period of around two years, to save them from reapplying each time they sit exams.

In response, Ofqual said it had always recognised limitations to the data, but the new analysis revealed the scale of the issue for the first time. The regulator added it decided to withdraw the statistics after discussions with the Office for Statistics Regulation, who they have been working with on the issue.

But Julie Robinson, chief executive of the Independent Schools Council, added: “Ofqual is supposed to be the trusted source for exam statistics and as a result of these significant errors, independent schools have wrongly seen their results undermined and their integrity questioned.

“We are pleased that the investigation instigated by the DfE will lead to a correction of the record and we hope an apology will be forthcoming.”

Apprenticeship starts rise as tax and wage hikes come into force

Apprenticeship starts rose 7 per cent in April despite warnings the chancellor’s tax hikes and rises to the minimum wage would wreck recruitment.

Department for Education data published today shows the number of apprentice newcomers increased from 21,100 in April 2024 to 22,600 in the same month this year.

The rise was driven by new apprentices aged 25 or older and higher level apprenticeships – in line with recent trends.

However, adverts on Find Apprenticeship Training over the last three months – April, May and June – have decreased compared to those in the previous year by 22 per cent, 17 per cent and 18 per cent respectively. For each of those months in 2025 the number of apprenticeship adverts sat at just above 4,500.

Meanwhile, overall vacancies in April and May increased – by 17 per cent and 21 per cent – but this was “primarily due to the British Army, who placed 2,840 vacancies in April and 2,880 in May”, the data states.

The 6,500 vacancies on Find An Apprenticeship in June 2025 were 33 per cent down on those in June 2024.

Chancellor Rachel Reeves announced £40 billion in tax rises in her autumn budget, which kicked in from April.

This included increasing employer national insurance contributions by 1.2 percentage points and a national living wage rise of 6.7 per cent from £11.44 to £12.21 an hour, while the apprentice minimum wage went up 18 per cent to £7.55 an hour.

Business secretary Jonathan Reynolds admitted the increases were likely to impact companies’ ability to hire new staff and an FE Week investigation in November found early signs that apprentices were either being let go or recruitment was being put on hold in industries like hairdressing and early years.

However, the government did remove English and maths functional skills requirements for adults aged 19 and older in February – hoping to remove barriers to apprenticeships and increase starts and completions.

Today’s data shows that for the first three quarters of 2024-25 – August to April – overall starts have risen 2 per cent to 284,190 compared to the same period for the previous year.

Apprenticeship starts in March – a month before the tax and wage rises – surged by 18 per cent from 23,570 in 2024 to 27,900 in 2025.

Poverty matters. But it’s not the whole story

I don’t think deficit narratives about poverty are constructive and, moreover, they’re inconsistent with our core mission as educationalists. Our profession should certainly discuss poverty and education, but specifically in terms of understanding when and how poor children do well. Too often, when poverty is mentioned, this focus is lost.

I’m not in any way unsympathetic to the experience of poverty or the wider disruptions it can bring and, if it matters to some, I do have “lived experience” of it. I’m also not suggesting we should ignore the difficulties poor pupils or students have. FE colleges provide lots of welfare support from bursaries to food banks, help with meals, transport costs and even facilities to wash clothes. Many schools do the same.

However, I personally believe that support should be given discreetly and shouldn’t signal a drift from education towards a quasi-welfare service. When you are born or brought up poor, learning and developing your human talents is almost the only power you have to create a better future – and our job is to keep that hope alive.

Data shows there is a clear correlation between poverty and educational outcomes, but the evidence about causation is more complex. For much of the period from 2010 to Covid, educational outcomes improved. In 2012, for example, only 36 per cent of five-year-olds eligible for free school meals reached a good level of development. But 57 per cent did so by 2018-19. We don’t yet know whether this will continue through the system because this cohort won’t reach 16 until 2029-30. But we could see improvements at 11, 16, 19 in terms of chances of university progression before Covid (and other factors) interrupted progress.

It’s also important to note that underneath these averages there are huge variations between different poor children. In terms of ethnicity, the highest performing group on free school meals are Chinese children and the second highest are Indian. In terms of gender,  girls do better than boys and, in geographical terms, free school meals recipients in London outperform their counterparts in post-industrial or coastal towns.

The general conclusions which can be drawn are that outcomes for poor children are not monolithic: they can improve and some already do very well.

So, we need a better understanding of when and how poverty matters in educational terms. There are clues to help us …

Relative poverty, a measure of inequality rather than poverty levels as such, may be less important than absolute poverty. The latter measures whether poor children are better off than in the past and gives a more optimistic picture. The number of children in absolute poverty (after housing costs) fell from 32 per cent in 2003 to 26 per cent in 2024.

In What Money Can’t Buy, economist Susan Mayer acknowledged that all children need a level of “basic necessities” to succeed – but after that point is reached, there’s no straightforward correlation between more money and better educational outcomes.

This is common sense. Some things, like luxury cars and five-star holidays, cost a lot, may result from privilege and give some children huge material benefits – but they have zero impact on their educational achievements. Being a  Chelsea season ticket holder, for example, is probably a sign that a child is from an affluent family, but it won’t improve their cognitive skills. And this is good news because, if it wasn’t true, poor children would stand no chance at all.

Mayer argued that factors bigger than family income affect outcomes, with parental characteristics being the most significant. These are complex, she acknowledged, but she identified parental education, cognitive abilities, mental health, parenting practices and behaviours as being especially influential.

Again, there’s a common sense to this. Complementary findings arise from studies of educationally successful poor children, such as the Chinese and Indian high performers. These conclude that cultural values and parental expectations, work ethic and attitudes to learning, behaviour standards, plus community and peer norms, were factors that explained their success. Interestingly, belief in superior ability featured low in these characteristics. Effort and commitment were of much greater import.

Parents cannot do everything on their own, of course. Institutions are very important too and where they do produce exemplary results with a disproportionately disadvantaged intake, they tend to favour similar approaches. Whether that is Michaela school in Wembley, Tauheedul in Blackburn or Mercia in Sheffield, their approach tends to have similar characteristics focussed on strong behaviour, work ethic and high expectations – plus something that the average parent can’t ensure: excellent teaching, learning and assessment.

It follows then that poor children’s chances of achievement increase when their parents and educators share a set of characteristics. The problem we have is understanding why it seems so difficult to extend this across the country and there are two aspects to consider. First, there are those who don’t achieve because they’re excluded, opt out or otherwise don’t respond to a highly-disciplined environment in which their peers thrive. And then there’s geography.

The significant improvement in London’s educational outcomes in the last twenty years shows what can be achieved, but other areas remain consistently at or near the bottom in achievement terms despite numerous initiatives. Excellence in Cities, Education Action Zones, national strategies, pupil premium, opportunity areas, academies and free schools have all had some success. But none have brought consistent progress across all areas of the UK.

So, here is the dilemma to be resolved.

What is it about institutions, families, communities and neighbourhoods which make it so difficult to bring educational success to those who are ‘left behind’?

Poverty and money might be part of the answer – and cash transfers do have a role to play. But they won’t make a real difference unless we look beyond money and examine the wider aspects of disadvantage that really hold children back. And what we cannot and should not ever do is throw our arms up in the air and just blame “poverty”.

New ‘youth panel’ to help shape government policies

The government has set up an advisory panel of young people to help “shape” its policies for keeping them in education, employment or training.

Made up for 17 young people aged 18 to 24 “with experience” of being out of work and or training, the Youth Guarantee Advisory Panel will feed back its “insights” on employment support, barriers to work and new government policies.

It comes amid “worryingly high” estimates of young people who are not in education, employment or training (NEET), currently believed to be about 930,000, or one in eight 16-to-24-year-olds in England.

The latest Office for National Statistics (ONS) estimates, for January to March this year, place the number of NEET young people at about 930,000, or 12.5 per cent of the population.

The advisory panel follows the Get Britain Working whitepaper last year, which included £45 million in funding for eight youth guarantee “trailblazer” areas that will test out ways to bring NEET numbers down ahead of a promised “national roll-out”.

In an announcement, the Department for Work and Pensions (DWP) said the panel has already held “some early sessions” and will now meet every six to eight weeks.

Insights will be “fed back” to relevant senior officials and ministers after sessions.

Early feedback has included emphasis on the obstacle mental health challenges pose, and schools’ “overemphasis” on UCAS applications rather than tailored careers advice that explores other options such as apprenticeships and training.

Work and Pensions Secretary Liz Kendall said: “Young people know better than anyone the challenges they face – and the support they need to succeed.

“That’s why their voices will shape how we will deliver a youth guarantee that truly works, opening up real opportunities for every 18-to-21-year-old to be in work, training or education.”

Education Secretary Bridget Phillipson said: “For too long, young people have been talked down to and had their opinions dismissed. The youth advisory panel’s contributions so far have been incredibly insightful, and we are already starting to implement some of their suggestions.”

Panel members were recruited with the help of Youth Futures Foundation and Youth Employment UK – but only two of the 17 members have been identified.

Shana Fatahali, a panel member who is also Future Voices Group Ambassador for the Youth Futures Foundation said: “Since we are the ones using the system, we are aware of its challenges and where it needs to be improved. For this reason, youth voices are important.

“I’m honoured to be a member of an organisation that is influencing actual decisions and introducing alternative perspectives. I can’t wait to keep advocating for a system that genuinely hears, involves, and supports all youth.”

The DWP has refused to name all the panel members at this stage.

Earlier this week, Chancellor Rachel Reeves also announced a £500 million “better futures fund” for charities and civil organisations to invest in youth services.

Shrinking budgets, smaller trips: The new reality for Turing scheme

 Recent changes to the Turing Scheme’s funding structure, including a newly imposed cap that has reduced allocations by over 30 per cent for some providers, are prompting institutions to reconsider how they plan and deliver international study experiences.

These cuts raise concerns around access and inclusion, especially for students from underrepresented backgrounds. FE services are now having to focus on how to adapt effectively under the new conditions.

Since the scheme launched in 2021, Turing has enabled thousands of students to take part in funded international placements, many of whom had never travelled abroad. 

According to a study by Red Brick Research, over half of students have made sacrifices affecting their academic experience, such as opting out of educational trips, due to the rise in the cost of living.

For some institutions, Turing was a lifeline to these types of opportunities. It saw more than £10 million in funding given to almost 300 institutions (7,000 students) for trips this academic year. More than half of the recipients were based in disadvantaged areas.

Turing opened doors for students who may not have previously been able to access them, offering to study and gain cultural experiences across the world. With its global reach and focus on inclusivity, the scheme aims to equip young learners with essential skills for an interconnected future. 

Beyond textbook learning, real-world experiences help students connect with subjects in meaningful ways, often sparking lifelong interests in ways traditional teaching cannot.

For FE providers in particular, the scheme was a tool for delivering both academic and personal development opportunities. Institutions used it to embed global learning into vocational courses, provide cultural enrichment and build employability skills through international work placements.

The cuts to the scheme – including a 29 per cent reduction in overall funding and nearly halved daily living allowances – mean that, inevitably, fewer trips will take place. Those that do go ahead are likely to involve smaller cohorts of students and be closer to the UK. This reduction has real consequences, particularly for students from disadvantaged backgrounds for whom schemes like Turing were often the only viable route to experience education overseas.

Smaller group sizes also diminish the richness of the experience. Travelling in diverse groups helps students to develop transferable social skills, build confidence in unfamiliar environments and cultures, and foster friendships across different backgrounds. These are not just ‘nice to have’ experiences. They build resilience, communication skills, cultural awareness and personal ambition, all of which are critical for a young person’s growth.

But there are still practical ways for institutions to plan meaningful, affordable trips that benefit students:

Destination selection

Choosing cost-effective locations is now more important than ever. Countries within shorter flight distances, lower cost-of-living indexes or with existing institutional partnerships are gaining traction. Locations such as Brussels, Tunisia and Berlin are proving popular due to their affordability and availability of relevant academic or vocational experiences.

Use travel management companies

Turning to travel management companies with experience in the education sector can support the planning and delivery of trips. They can help identify cost-saving opportunities, access preferential group rates and ensure trips are logistically smooth and inclusive. For institutions managing reduced budgets and increased compliance requirements, this external support can free up internal resources and provide peace of mind.

Exploring lower-carbon travel alternatives

With growing awareness around sustainability and institutional carbon reduction goals, some providers are looking at rail and coach travel as alternatives to flights. While these options may increase journey time, they can often reduce costs and emissions, particularly for travel within Europe. In some cases, longer travel times can be integrated into the learning experience, offering students opportunities to reflect, collaborate or engage with the journey itself as part of the broader educational value. Diversity Travel has introduced a new carbon-offsetting feature button, incorporating air-to-rail switching functionality and sustainable hotel filtering, which can help reduce costs.

Looking ahead

While the flat allocation model now in place changes the landscape significantly, it also creates an opportunity for providers to rethink their approach to global mobility. Today’s challenges call for more creativity, collaboration and a focus on sustainability, but they should not prevent students from having meaningful international experiences.

Creating Tomorrow College rated ‘outstanding’ today

A Northamptonshire specialist college has received an ‘outstanding’ Ofsted grade in its first ever full inspection.

Creating Tomorrow College, located in Kettering, was today awarded top marks in all areas for its “rigorous” recruitment process, passionate staff and clear vision to prepare learners for adulthood and employment.

In grade one report published this morning, inspectors praised learners for their “very positive” attitudes and focus on their future.

The college opened in 2022 and is part of a multi-academy trust that specialises in educating children and young people with SEND.

It had 60 learners at its three centres at the time of its June 18 to 20 inspection, 52 of which were on an employability pathway and eight were on supported internships.

The report found learners had “excellent” attendance and have quickly developed confidence that allows them to travel independently and gain sustained employment in the future.

Ofsted inspectors said the individualised personal development programmes were “highly effective” and the curriculum ensures learners feel safe, supported and valued.

Leaders were commended for their “ambitious vision” that prepares students for the world of work.

These consist of employability skills, work experience, tutorial topics and core subjects such as English, mathematics and digital skills.

“Leaders are dedicated and enthusiastic about the college, the curriculum offered and the partners they work with,” the report added.

Inspectors were also impressed that leaders educated employers on neurodiversity, which employers “valued immensely”.

The inspection also noted the “very rigorous process” for recruiting learners, which onboards students who aspire to employment and whose needs the college can meet.

Staff were found to carefully and skilfully assess learners during the recruitment stage to establish prior knowledge and skills. They then set “highly individualised targets” aligned to the outcomes set in learners’ education, health and care plans. 

“Staff frequently monitor these targets and, when achieved, learners are set more challenging ones,” the report added.

Regarding the teaching, the watchdog found tutors “skilfully” develop learners’ English and mathematical knowledge and skills.

One example is helping learners on verbal communication by first talking in small groups to then projecting their voice in large spaces so they can be heard by an audience.

Overall, inspectors found both leaders and staff were proud and dedicated to work at the college and are supported by an “enthusiastic” group of trustees.

Gareth Ivett, principal of Creating Tomorrow College, said: “To be rated outstanding in our very first inspection is well-deserved professional recognition of the dedication and passion our entire team brings every day. 

“But what sets us apart is not just the quality of our teaching – it’s our commitment to changing the system around our learners. We believe it’s not only our job to prepare learners for the real world, but to prepare the real world for our learners.”