Three leaders of ‘outstanding’ colleges have been appointed to the Department for Education’s roster of national leaders of further education.
The national leaders (NLFEs) form part of the FE Commissioner’s active support offer and are sent in to guide and mentor colleges facing difficulties.
Following a recruitment round in February, Notre Dame Sixth Form College principal Justine Barlow, City Lit principal and CEO Mark Malcomson and New City College group principal and CEO Gerry McDonald have been appointed.
They will serve three-year terms.
Joining them is Peter Doherty, deputy principal for finance and resources and Kirklees College, who has been made a national leader of further education finance specialists.
Each of NLFE’s home colleges can claim up to £15,000 per year from a DfE bursary to cover “costs associated” with their principals’ national roles.
DfE guidance states that the NLFEs help colleges identify improvement needs, provide mentorship and deliver the FE Commissioner’s curriculum efficiency and financial sustainability programmes.
It brings the total number of NLFEs up to eight after the departure of previous postholders from their college roles. Those standing down recently include Peter McGhee from St John Rigby College and Graham Razey from EKC Group.
FE Commissioner Shelagh Legrave’s most recent annual report said her team of NLFE’s and national leaders of governance supported 59 colleges in 2023-24.
To become an NLFE, bosses must hail from colleges graded ‘good’ or ‘outstanding’ for financial health and by Ofsted.
Once again the department has failed to appoint principals from diverse backgrounds to the NLFE team.
In an FE Week interview in 2021, Legrave was challenged specifically on representative of non-white college principals on her top team. She said at the time this was “reflective of the small number of BAME leaders in the sector”, adding, “I think it is really sad that we haven’t got as diverse in our leadership in FE as we should have. And I will certainly work with everybody to try and ensure that there is a greater diversity”.
National leaders of further education
Justine Barlow, Notre Dame Catholic Sixth Form College
Colin Booth, Luminate Education Group
John Laramy, Exeter College
Mark Malcomson, City Lit
Gerry McDonald, New City College
Sam Parrett, London South East Colleges
Ellen Thinnesen, Education Partnership North East
Gill Worgan, West Herts College Group
National leaders of further education finance specialists
A large midlands college has finally sold a campus two years after winning a controversial legal battle with its local council and campaigners.
Warwickshire College Group (WCG) sold its Malvern Hills campus, which it closed in 2020, to special needs school provider Aurora Group earlier this year for an undisclosed sum.
The college group was gifted the school by Malvern Hills District Council on the covenant that it could only sell the site for educational purposes.
However, WCG successfully overturned the legal agreement after taking the local authority to the High Court with the hope of achieving a higher price for the site by selling it for another use.
The financially embattled college group now plans to use the proceeds to pay off debts to the government, which include a clawback from apprenticeship funding claims previously estimated to be at least £1.4 million.
It continues to face funding clawback claims from the DfE due to audits of its “historic learner data”, covering several previous academic years.
A spokesperson said: “We are able to confirm that the sale of Malvern Hills College has occurred to another education provider, with none of the proceeds going to the local authority.
“In agreement with the Department for Education, WCG has used the funds to cover liabilities owed to the DfE that can now be used to support other public works.
“The college had a new CEO in place from September 2024, who sought to expedite the sale of what was an already a closed college when she joined, thus ensuring it re-opened for education purposes as soon as possible.”
A WCG spokesperson refused to confirm how much the site has been sold for, but FE Week understands the college had hoped to achieve a price of about £1.4 million.
Richard Arquati, spokesman for the Aurora Group, also refused to disclose the price, arguing the sum is a private financial transaction between two parties.
Dame Harriett Baldwin, MP for West Worcestershire, said: “I campaigned strenuously for education to remain at the historic Malvern Hills College site and I am relieved that a new education provider will be taking over the site for this purpose. I plan to meet with the team leading this shortly.
“I’ve also had constructive conversations with the new chief executive of WCG who inherited significant budget challenges and I have stressed the importance of delivering the best possible further education opportunities for my constituents.”
The Aurora Group is a growing provider of special needs education to more than 1,200 children at 25 schools.
Its ultimate owner is investment giant Octopus Group, which declared a pre-tax profit of £51 million on a turnover of £313 million in 2023-24.
Arquati said: “We are working closely with Worcestershire Council to ensure that Aurora Peartree School best serves the needs of students with additional learning needs in the county.
“It will provide day placements for 120 primary and secondary students up to the age of 19 who have special educational needs and disabilities.
“There are lots of steps that need to be taken before a school like this can open. These include the building works, curriculum planning, recruitment of staff and Ofsted registration. Our plan is to open the school in autumn 2026.”
The government will temporarily slash minimum off-the-job training (OTJ) hours for 39 apprenticeship standards by up to half after concerns emerged that the timing to implement new rules was “too short”.
The move, agreed by the Association of Employment and Learning Providers (AELP), is part of a four-month transitional period from August for apprenticeship standards “of concern” to allow training providers “headroom” to engage with employers and change delivery models.
The agreement comes after DfE’s May introduction of minimum off-the-job training (OTJ) hours for each apprenticeship standard for the first time.
DfE will publish an updated document with the revised minimum OTJ hours next month.
DfE said at the time that the changes were necessary due to the shortening of the minimum apprenticeship duration from 12 to eight months, as well as “the introduction of new products and feedback from the sector”.
But in an email to members today, AELP deputy chief executive Simon Ashworth said it had received feedback from providers that there was not enough time to talk to employers on the change nor to tweak their specific delivery models and curriculum.
“Some members also raised that they believed that in some instances, the required OTJT minimum hours had been set too high,” he added.
One standard of “concern” could have been the level 6 digital and technology solutions professional standard, which had been set a high minimum OTJ hours at 1022 hours. The transitional period will see a 23 per cent reduction to 787 hours for the standard.
Until now, training providers have had to calculate how much OTJ training each apprentice requires depending on the length of their apprenticeship – but must be a minimum of 20 per cent of their working hours.
The biggest difference in temporary OTJ minimum hours is the level 6 financial services professional, which has been reduced by nearly half (47 per cent) to 370 hours.
Other standards with large reductions include level 2 hairdressing professional and the level 7 health and care intelligence specialist, both minimum OTJ hours of which will briefly fall by over 40 per cent.
Three standards will not see and change in OTJ hours: these are the level 3 fundraiser, level 3 funeral director and level 3 team leader standards.
Additionally, 12 standards have had their OTJ hours reduced to the baseline of 278 hours.
“DfE’s criteria for inclusion are only where the minimum hours are “materially” different and that the baseline remains 278 OTJ training hours,” Ashworth said.
He added: “Having secured a transition, this allows some headroom for providers impacted. Over the next period of time, we think 3-6 months, the DfE will be working with Skills England to review standards included in the transition to decide on the right level of OTJT and subsequent funding.
“We recognise just how important this is, and are preparing ourselves to engage rapidly and fully with the Department to make sure we secure a reasonable outcome for you, for your employers and for your learners. Once we get more clarity on that process, we will share that with you as well.”
The transitional arrangements for the revised OTJ hours will be in place from August until December 2025.
An accounting loophole keeping spiralling SEND deficits from bankrupting councils has been extended for two years.
The Ministry of Housing, Communities and Local Government has confirmed today that the so-called SEND deficit “statutory override” – which was due to end next March – has been extended until the end of 2027-28.
The override means high needs spending deficits are not part of councils’ general balance sheets.
The government said today it was reforming services for children and young people with special educational needs and disabilities, “including ensuring councils are properly funded to help support and protect the most vulnerable children”.
“While these reforms are underway, the dedicated schools grant statutory override, which helps councils manage SEND costs, will stay in place until the end of 2027-28 and in addition we will introduce a bespoke formula to recognise home to school transport costs.”
Kicking the can down the road
Today’s decision effectively kicks the can of a permanent solution two years down the road.
The government has not said how it will reform SEND or council funding, recently confirming that it would release a white paper on its planned reforms in the autumn.
But a key focus will be on education more pupils with additional needs in mainstream schools. A government adviser has also said they are considering limiting education, health and care plans to children in special schools.
It comes after the National Audit Office warned last year that the current SEND system is “financially unsustainable”. The current intervention programmes are inadequate to resolve the issues and urgent reform is required, with councils’ deficits due to hit £5 billion.
Helen Hayes
Education committee chair Helen Hayes said the announcement would “bring certainty to local authorities across the country in the short term, for whom SEND has become one of the biggest financial pressures and who will be already planning for the coming financial year.
But she said ministers “will know that this is only a temporary fix until the government brings forward desperately needed, long-term reforms to the SEND system.
“The Government should not delay a permanent resolution to local authorities’ long term SEND deficits beyond 2028 and it must work to devise a solution that helps councils to achieve long term financial sustainability and does not damage their finances further.”
‘A sigh of relief’
Tim Oliver, chair of the County Councils Network, also welcomed the news. He said leaders could “breathe a sigh of relief knowing they no longer face a financial cliff edge in nine months’ time.
“We now need to ensure that the government’s commitment to support councils to manage their SEND deficits rings true.”
He said it was “critical government sets out a comprehensive solution later this year.
“This should include writing off deficits and compensating councils who went through the pain of ‘safety valve’ agreements, ensuring that the slate is wiped clean so local authorities can begin driving through badly-needed reforms to ensure the SEND system works for young people, families, and councils alike.”
The announcement forms part of a package of measures the government said would “overhaul…the outdated and complex council system” to bring “fairer funding, more stability and improve lives of people across the county”.
The local government funding system “will be reformed to get councils back on stable footing, improve the lives for people across the country and deliver essential funding for better public services”.
The assessment watchdog has set out how it plans to regulate new-style apprenticeship assessments that will see training providers do their own marking and more control over assessment methods handed to awarding organisations.
Ofqual sets out the rules that awarding organisations (AOs) must follow and has the power to sanction them if these rules are broken. A 14,000-word consultation launched today sets out new proposed rules for “simplified” apprenticeship assessments, following the government’s revised assessment principles for apprenticeships announced earlier this year.
One of those new principles was allowing training providers to do some of the assessment of their apprentices themselves. Currently, all assessments must be done by awarding organisations (AOs) and must take place at the end of the apprenticeship programme. New assessments will be able to take place during, rather than at the end, of an apprenticeship.
The current system of end point assessments has come under criticism in recent years. Training providers have complained about high costs and bureaucracy. And crippling assessor shortages in some sectors have left apprentices waiting months longer than planned to complete their apprenticeship, leading to dropouts and low achievement rate scores for training providers.
It’s unclear when new-style apprenticeship assessments will be brought in. There will be another consultation after this one, and the awarding sector is braced for a raft of new guidance they will be required to follow.
FE Week has asked Ofqual, Skills England and DfE for clarity. We’ve been told delivery timescales will be published “in due course”.
Ofqual is proposing that existing apprentices continue to be assessed under the current rules, with new-style assessments taking place for new starts once the new rules have been consulted on and approved. More on that below.
Here is your trusty FE Week speed-read on Ofqual’s proposals.
RIP EPA
Regulating for assessments under the February principles is a “significant change”, Ofqual said, giving awarding organisations “greater design and delivery flexibility”.
The first change is that elements of an apprentices’ assessment will be able to take place “on-programme”, rather than waiting until the end.
What apprentices get assessed on will still be informed by the apprenticeship standard, and new slimmed-down assessment plans (more on those below). But behind the scenes, Ofqual will be expecting detailed strategies and plans from AOs on what gets assessed, when, by who, and how.
The consultation stated: “Ofqual does not propose to prescribe the overall structure of apprenticeship assessment or when individual assessments should take place. This is because decisions about the structure of assessment and when assessment should take place are best made at the level of the individual apprenticeship assessment, in line with the occupational standard.”
Rob Nitsch, chief executive of the Federation of Awarding Bodies, said: “The changes are substantial and will impact awarding organisations, providers and employers; it is important to remember that EPA is valued and the majority of assessments are working well now”.
Centre marking
Ofqual recommended AOs should be required to mark “a substantial proportion” of apprenticeship assessments but they should allow training providers and colleges to make some of the assessments themselves.
Ofqual said today they recognise this is a “significant” change and have proposed rules to mitigate against risks to the reliability of assessments. Those risks range from inconsistency between different assessors from the same training provider through to fraud and malpractice.
To reduce those risks, the regulator suggested 40 per cent of the assessment should be marked by AOs, but advised AOs could do less.
Ofqual’s plan is to publish guidance for AOs to follow, and be held to account to, rather than prescribing how much marking AOs or centres should do.
Some training providers may not want to mark their own apprentices’ assessments, according to the Association of Employment and Learning Providers (AELP).
Simon Ashworth, AELP’s deputy CEO, said: “It’s important not to assume that all employers or providers want to play a direct role in assessment. The system should support flexibility and choice, rather than impose a one-size-fits-all model”.
Following the consultation, which closes in August, there will be another consultation on “the detail” and a raft of new guidance AOs will be expected to follow.
‘Substantial’ synoptics
Apprentices can face a range of different types of assessment. The methods differ for each apprenticeship but are all currently carried out by independent assessors from approved end-point assessment organisations.
In the popular level 3 business administrator apprenticeship for example, apprentices currently go through a multiple-choice knowledge test, a 30-45 minute portfolio-based interview with an assessor, and a project presentation.
Apprentice installation and maintenance electricians currently undergo a 17-hour “observation of professional competence”, a 90-minute scenario-based interview and a multiple-choice online knowledge test.
Ofqual confirmed that AOs will still need to set the assessments and there will still be rules to make sure these are appropriately demanding.
But the rules will be less prescriptive. AOs will have to include a “synoptic” assessment in apprenticeships. This means giving apprentices tasks or tests that assess a wide range of knowledge and skills taught over the whole apprenticeships.
These can be marked “by the AO or by centres, depending on what is appropriate” for the apprenticeship.
These synoptic assessments should, Ofqual propose, make up a “substantial” proportion of the overall assessment. They suggest 40 per cent but there will be guidance for AOs to follow, rather than a requirement. But less than 40 per cent would need to be “justified”.
Nitsch added: “The Federation welcomes the new opportunities for awarding organisations to apply their expertise whilst sustaining critical aspects of apprenticeship assessment, such as independence and synoptic components. This will benefit apprentices and employers”.
Simple plans
New assessment plan structure
Documents known as apprenticeship assessment plans tell AOs and training providers what apprentices need to be taught and how they should be assessed. Each approved apprenticeship must have an assessment plan.
The government wants “simpler” assessment plans, which can currently run to over 30 pages, and told Skills England to start reviewing each one.
Today’s consultation came with a new assessment plan structure for AOs from Skills England. It lists five sections for AOs to follow once they’ve been rolled out; assessment details, assessment of behaviours, assessment outcomes, assessment requirements and a performance descriptor (how apprentices achieve grades).
Writing for FE Week in February, skills minister Jacqui Smith promised “assessment plans will now be shorter and more flexible, focusing on the ‘must haves’ for occupational competency and also allowing providers to deliver assessments in some cases without compromising quality”.
Next steps
While Skills England reviews and simplifies the assessment plans, Ofqual is now carrying out the first of at least two consultations on assessment regulation.
Ofqual proposes that when new-style assessments are ready, they should be introduced for new apprentices, so existing apprentices will continue under the current end point assessment model.
They acknowledge that this could mean a period where training providers have apprentices on two different assessment models.
Published delivery timescales have been promised “in due course”.
Ofqual’s consultation says all new apprentices will start under the new assessment regime “in the fullness of time”.
Nitsch said: “Key to the successful implementation of these changes will be sensible timelines, collaboration and the continuing the engagement with the sector that we are now seeing”.
Apprentices, training providers and employers have until August 27, 2025 to respond to the consultation.
Teachers at a London mega college’s sixth form campus are balloting on strike action over plans to “harmonise” their salaries with lower-paid FE staff.
Capital City College (CCC) management anticipate strike action from its 81 sixth form staff after deciding their pay will be “frozen” for two to three years until a “discrepancy” between their salaries and the rest of the college group’s teaching staff disappears.
The college group has also closed its more generous sixth form teaching contracts to new employees or existing teachers moving into new roles.
And it plans to drop any commitment to the Sixth Form College Association’s (SFCA) national bargaining framework for sixth form teachers under its new trade union recognition agreement.
The National Education Union (NEU), which represents sixth form staff, called the prospect of real-terms pay cuts “levelling down” and expressed alarm at the “pace and rapacious scale of harmonisation” by CCC management.
But the strike ballot was withdrawn after the college threatened the NEU with a legal challenge when union representatives lobbied the governing board during a meeting, which management called “unprotected action”.
Pippa Dowswell, joint secretary of Islington NEU, said: “We have been part of the SFCA for 30 years, and we want to stay part of that as an entity and not be subsumed into the wider college.
“Our argument would always be with management who, if you go to a meeting with them, will try to appeal to our socialist hearts and say ‘surely you’ll see it’s unfair that you’re being paid more than the wider FE college?’.
“But our argument is ‘why don’t you level up, not level down?’”
Cold years ahead
Minutes for a CCC board meeting in March, seen by FE Week but not yet published on the CCC website, say pay is likely to be frozen for a “two or three-year period”, but union staff fear a freeze could last up to five years.
During the meeting the college’s chief people officer Trovene Hartley told governors the plans carried several risks, including strike action, “significant reputational risks” that could impact student recruitment, and an “increased difficulty” in recruiting high-quality teaching staff.
A college spokesperson said: “The issue of pay is becoming more complex following the government’s decision to fund annual pay awards recommended by the school teacher pay review body and not for those in non-academised sixth form colleges and FECs.
“As the government created an inequity in pay last July between schools and colleges, we decided not to create a further inequity within our own institution and therefore awarded the same annual pay award to all staff across the group.
“While the SFCA, working with NEU, recommended a 5.5 per cent award and suggested that the £50m ringfenced for FE in 2024/25 could fund it, these payments are one-off awards, and so using them to make consolidated pay awards carries financial risk.”
A SFCA spokesperson said: “Our expectation post-merger is that staff terms and conditions of employment are maintained and recommendations made through national pay bargaining are implemented.
“It is important that staff are not disadvantaged as a result of structural changes that are outside of their control.”
In 2023-24 it had an income of £126 million and taught 30,000 learners.
But despite promises of achieving a healthy surplus thanks to its size, the group has faced repeated deficits – including £4.6 million in the last academic year.
It hopes to break even by 2027-28 but has “healthy reserves” of £328 million.
Teachers are continuing an exam-season walkout over plans to ditch A-levels and make up to 43 redundancies at a college known for offering “second chances”.
Staff at Hackney Sixth Form Campus in east London began four weeks of strike action on June 12 after parent group New City College (NCC) proposed reductions due to the centre’s 67.6 per cent achievement rate.
NCC, which took over the college formerly known as BSix last summer, told staff last month that scrapping A-levels would improve the “quality of the NCC offer” and a reorganisation of staffing would align the college with NCC’s “matrix” structure.
But National Education Union (NEU) members said low achievement rates were a consequence of the sixth form’s model of keeping course entry requirements low to give students a “second or third chance”.
And they claimed the college’s previous management would move struggling A-level students onto other courses after a year to ensure they could stay in education.
BSix had an income of around £9 million before its NCC merger and Hackney Sixth Form Campus now has about 1,100 students.
It was founded in 2002 in response to a local inspection that recommended opening more 16 to 18 provision. It remained a standalone sixth form college through two local reviews but began to encounter financial troubles from 2015-16.
NCC had a group A-Level achievement score of 80.4 per cent in 2023-24.
Improve quality
NCC management argue many students living in Hackney choose to study at one of the borough’s 12 other sixth forms and 78 per cent of Hackney Sixth Form’s students travel from a wide area across north and east London.
In a document sent to staff, bosses said: “The historical low-entry requirements for an A-level programme at BSix have made this travel to learn pattern feasible, but the alignment of entry requirements to NCC expectations has reduced the overall current A-level learners to just 25 per cent of the total student cohort.
“It is imperative we deliver high-quality A-level provision across all NCC campuses to ensure our learners have positive and sustained destinations.”
‘Corporatisation’ of education
Striking NEU members want to defend their college’s “second chance” model and have accused NCC of reneging on pledges made during the merger that it would protect course options at the sixth form.
David Davies, joint district secretary of Hackney NEU, said: “This is the corporatisation of education, the epitome of exam culture and the lowest common denominator.
“Rather than give kids a chance, don’t take the risk – funnel them through an exam factory where it’s about economies of scale.
“BSix has held out until now. National underfunding is the main problem.”
Merger promises
Before the merger formally completed in August, public consultation documents suggested the Hackney college would see “a strong depth and breadth of course options retained”.
They added the merger would “protect” a strong college-based A-level offer in Hackney, developing an “arc of post-16 academic excellence across east London” that would include BSix, Havering Sixth Form and Attlee A-level academy in Tower Hamlets.
Chairs of both college boards also recommended the move, arguing the sixth form had “much to contribute” to NCC, including its ‘good’ Ofsted rating, “excellent pastoral care” and “broad curriculum”.
Matrix structure
NCC management rejected NEU demands to retain A-levels or negotiate further on redundancy packages.
The 43 potential job losses are part of the college group’s wish to align Hackney Sixth Form Campus with its wider “matrix structure” to “improve efficiency and performance”.
Teachers, curriculum managers, learning support and safeguarding staff are at risk in the shake-up. Meanwhile, 23 new posts will be created, FE Week understands.
Strikes during exams ‘disrespectful’
In a briefing to staff, seen by FE Week, NCC chief executive Gerry McDonald complained the picket line outside the college was “unnecessarily large” and called the exam-period timing of the strike “disrespectful to students”.
He said: “Striking is a legal right. Making students cross a picket line to take a national exam with a background of chants and horns is wrong”.
When FE Week visited on Tuesday, around 30 people, mostly adults, were outside, making occasional chants of “save BSix” and “save our college” as students and staff arrived. Managers, including McDonald, watched from inside the gates.
The crowd then moved to the opposite side of the busy Hackney roundabout, where a loudspeaker was set up for a rally that included a speech from journalist and former student Gary Younge.
Striking staff are understood to be planning a protest from an open-top bus next Friday.
Business groups are being sought to run local skills improvement plans for the North East and Somerset from October.
The Department for Education confirmed this week it had made £6.3 million of grant funding available for all 39 officially designated employer representative bodies (ERBs) from October to March next year.
And expressions of interest are being invited until next week for two new ERBs after the DfE reviewed LSIP areas and changed geographical boundaries for two areas to “ensure they remain closely aligned” with devolution areas.
LSIPs were first outlined in the FE white paper, where colleges and training providers would tailor provision according to local employer needs. ERBs were set up in 2022 and were given £20.9 million over three years to develop, implement and review LSIPs.
Each ERB was able to apply for up to £550,000 to develop LSIPs plus £50,000 start-up funding.
ERBs must be a “body corporate” independent of government and not a public authority or an organisation carrying out the functions of a public authority. They must also demonstrate they are “reasonably” representative of employers in their area.
Procurement documents show officials want a new ERB following plans to merge North East LSIP and North and Tyne LSIP, with the new LSIP’s boundaries matching those of the North East Combined Authority.
The current LSIPs will remain valid until a new LSIP is created next summer.
Interested bidders will need to evidence engagement with the combined authority and show they can work “collaboratively” with the existing ERBs – North East Automotive Alliance and the North East England Chamber of Commerce – until their replacement.
Meanwhile, the Heart of the South West LSIP area is being split into two LSIPs: Greater Devon (Plymouth, Devon and Torbay) and Somerset.
The existing ERB, Devon and Plymouth Chamber of Commerce for the Heart of the South West LSIP, will remain in place during this period, including in Somerset.
But the DfE is seeking a new ERB for the Somerset LSIP area, meaning there will be two designated ERBs covering Somerset during the transitional phase.
Documents show the successful applicant will be expected to “work closely” with Devon and Plymouth Chamber of Commerce to support delivery.
“Skills England will work closely with both ERBs to support this process,” it added.
A separate grant will be agreed with Devon and Plymouth Chamber of Commerce, which will cover both the continued execution of the existing Heart of the South-West LSIP and the development of the new Greater Devon LSIP.
The number of college chief executives paid more than £200,000 has more than tripled since the pandemic.
And analysis of new data reveals two colleges fork out over £300,000 for their leader.
FE Week’s investigation shows that average principal earnings, which include basic salary, bonuses, benefits in kind and pensions, have risen 15 per cent from £163,000 in 2019-20 to £188,000 in 2023-24.
Seventy-one principals had total pay packages of £200,000 or more in 2023-24, up from 47 the previous year and 22 in 2019-20.
But while CEO pay has grown, the highest paid college leaders still receive less than their counterparts running universities and large multi-academy trusts.
Julian Gravatt, deputy chief executive at the Association of Colleges, said: “College principals play a pivotal role in steering institutions towards success, managing complex operations, and ensuring the best outcomes for students.
“Their pay reflects the significant responsibilities they bear and the competitive market for experienced educational leaders”.
We have focused on total emoluments as growing numbers of principals are receiving payments in lieu of their pension that are, in some cases, being added to their basic salary instead of being reported separately, which leads to distorted figures.
Published data includes financial information on England’s 221 colleges and designated institutions. Data was missing for five. We have excluded colleges that had multiple principals that year, leaving 197 for our analysis.
The highest-paid principal in the country last year was Gerry McDonald, who runs east London’s New City College, receiving a total salary package worth £318,000.
This included basic pay of £263,000 plus a payment in lieu of pension of £55,000. According to the DfE accounts database, New City College had 19,514 DfE-funded learners in 2023-24 and total income of almost £118 million – both figures are in the top four for colleges nationally.
New City College declined to comment.
Oxfordshire-based Activate Learning’s chief executive Gary Headland received a £316,000 salary package, which was made up of £220,000 basic wage, a £31,000 performance bonus, £13,000 in benefits in kind and £52,000 pension contributions. Activate had 16,735 DfE-funded learners and an income of over £102 million.
A spokesperson for Activate said Headland was “responsible for the delivery of further and higher education across eight college campuses in Oxfordshire, Berkshire and Surrey, as well as substantial national online and apprenticeships provision”.
Manchester’s LTE group’s long-standing chief executive John Thornhill ranked third, earning £290,000. This included basic salary of £225,000, a £17,000 bonus, £8,000 in benefits in kind and £40,000 of pension contributions.
LTE had 14,522 DfE-funded students in 2023-24 but recorded the highest total income of over £184 million.
LTE is a national group, which runs The Manchester College as well as seven other education and training organisations across England and Wales which collectively support around 50,000 learners each year.
Its spokesperson said: “The LTE group board insists that part of the CEO’s remuneration package should be based on performance, and a balanced scorecard of targets linked to performance across the organisations which make up the group is agreed at the start of each year.”
Not all college principals’ salaries appeared to be in line with income or student body size.
Chief executive officer of NCG Liz Bromley’s total remuneration, £262,000, was the seventh largest in England.
But her college group – spread across the north, midlands and London – educates 35,722 funded learners and manages the second highest income of £171 million each year.
Up to £37k bonuses
The DfE’s accounts database showed 17 colleges paid a performance-related bonus to their principal in 2023-24.
The highest of these was a £37,000 bonus for Dawn Ward, former principal of Burton and South Derbyshire College (BSDC), and £31,000 for Activate Learning’s Headland.
A BSDC spokesperson said Ward’s package reflected her “significant” 15 years of experience leading the college group and was aligned with key performance indicators such as Ofsted inspection grades and “success in securing lucrative global commercial contracts in countries such as Saudi Arabia”.
Activate Learning’s accounts said the performance-related pay was a “contractual entitlement” but noted the remuneration committee kept Headland’s basic salary “the same” in 2023-24, while the rest of the group’s staff received a consolidated pay rise of 6.5 per cent.
An Activate spokesperson said this was the first year Headland received a “discretionary” £31,000 bonus, which was based upon “clearly defined objectives”.
Payments in lieu
FE Week noticed different approaches to how colleges classified principals’ payments in lieu of pension – which is where employees opt to receive cash instead of their pension contribution.
Some, such as New City College, declared their CEO’s £55,000 payment as ‘payment in lieu of pension’ in their accounts, while others, such as Hammersmith, Richmond and Uxbridge Colleges (HRUC), included the cash payment under ‘salaries’.
A spokesperson for Luminate, which counted its principal’s payment in lieu as a ‘benefit in kind’ said they were confident this was the correct approach.
Biggest increase isn’t what it seems
The principal that appeared to have the largest salary raise between 2022-23 and 2023-24 was HRUC chief executive Keith Smith, whose full-time equivalent salary increased 17 per cent per cent from £198,780 to £232,000, according to the college group’s published accounts.
However, following an approach for comment from FE Week, HRUC said Smith’s basic FTE salary in 2022-23 was £165,000 and had risen to £179,850, a 9 per cent increase. The college explained that the salaries stated in its accounts were total emoluments to the accounting officer and included pension contributions, although this was not reported separately in the accounts.
The DfE’s accounts direction states colleges must separately disclose emoluments, including a breakdown of basic salary and pension contributions.
HRUC now plans to declare payments in lieu of pension separately in its future accounts, FE Week understands.
Top job has grown
Colleges have dramatically increased in size and complexity during the last decade as they merged into large regional groups with incomes of up to £180 million per year, involving large commercial contracts and overseas ventures in some cases.
The DfE’s ‘college accounts direction’ for 2023-24 said institutions must publish the total pay principals receive and explain how it is linked to value and performance delivered, including “benchmarking or other means of comparison to the broader market”.
Most colleges state in their accounts that they have adopted the Association of Colleges’ (AoC) senior post holder remuneration code, which says colleges must regularly review principals’ salaries through an independent process such as a remuneration committee that makes “fair, appropriate and justifiable” decisions on pay.
Colleges now require government approval for salaries above £150,000, following reclassification to the public sector in 2022.
How do salaries compare?
Pay for FE college leaders is lower than those in the crisis-hit university sector who, according to The Times, were paid a median total salary of £340,901 in 2023-24, a 13 per cent rise since 2020-21.
University of Cambridge vice-chancellor Professor Deborah Prentice received the highest total salary of £577,000.
And according to FE Week’s sister publicationSchools Week, 64 of England’s multi-academy school trust CEOs were paid more than £200,000 in basic salaries, although their overall salary cost is likely to be higher when counting pension contributions.
The highest-paid, Harris Federation’s CEO Sir Dan Moynihan, received a basic salary of at least £515,000.
Schools Week found that the national average for the highest paid person across 1,800 trusts was £119,000 in basic salary, although this includes small trusts.
A Confederation of School Trusts annual pay report published earlier this year found the median basic salary for trusts with more than 10,000 students – comparable to most colleges in the top 20 highest-paid principal group – was about £170,000.
It also found that chief executives of public service organisations and charities receive a median basic salary of about £140,000, while private sector bosses earn a median salary of £240,000.
Gravatt said: “The majority of colleges adhere to the AoC senior postholder remuneration code and its principles, with Weston College a couple of years ago being an exception.
“The combination of this code and recent government public pay restrictions has led to significantly lower senior pay multiples in colleges compared to other sectors.”
