The leader of a college with an annual turnover of just £30 million was paid almost £300,000 in 2016/17 – a £68,000 increase and nearly double the sector average.

Matt Hamnett’s huge pay packet last year has probably made him the highest-paid principal in the country at the time, provoking a furious reaction from the University and College Union.

He was paid £294,000 on top of a £47,000 pension contribution and benefits in kind worth £1,000 last year, according to North Hertfordshire College’s financial statements – or just over one per cent of its entire turnover.

Mr Hamnett stepped down from his role in November, but a college spokesperson said his salary was justified, as “Matt led us to a strong position”.

She stressed that the payment “included a one-off payment of accrued benefits and significant performance-related measures, earnt due to the success of our turnaround”.

These included a grade two Ofsted inspection in November, up from the previous grade three, and improvements in the college’s achievement rates for the year.

Its overall apprenticeship achievement went up from 60 per cent in 2015/16 to 64.7 per cent in 2016/17, while its overall education and training achievement rate went up from 80.2 per cent to 86.4 per cent in the same time period.

The sum paid to Mr Hamnett – which is £68,000 more than he received in 2015/16 – is larger than the salaries paid to the bosses of the country’s two largest college groups, and dwarfs the average salary for a principal of a college the size of North Hertfordshire.

There are other very well paid college bosses in England. NCG boss Joe Docherty was paid £227,000, plus a £33,000 pension contribution and an £11,000 bonus and benefits in kind worth £10,000, while John Thornhill, chief executive of the LTE Group, which includes Manchester College, earned £221,000 over the year plus a £36,000 pension contribution, according to the groups’ accounts.

But NCG’s income was almost £128 million and the LTE Group took in £184 million – whereas North Hertfordshire College’s turnover was just £30 million.

The average principal salary for a college of this size was £148,000 in 2015/16, according to figures included in the college accounts published by the Education and Skills Funding Agency.

The UCU, which has recently held a series of strikes in colleges across the country over pay, has been spitting feathers.

Lydia Richard, a regional official, said his “bumper pay deal” was “was totally out of step” with both staff pay and that of other principals.

She demanded “greater transparency and accountability” in principal pay decision-making, adding: “The huge disparities between institutions when it comes to principal pay highlights the arbitrary nature of how it’s awarded.”

Mr Hamnett was appointed head of the college, which trades under the name Hart Learning Group, in March 2015.

He has also been director of group sales at Capita and a senior consultant at PwC, and spent over seven years as a senior civil servant.

ESFA accounts show his North Hertfordshire predecessor, Signe Sutherland, received a salary of £162,000 in 2013/14.

But records for Mr Hamnett’s first full year, 2015/16, show he received a salary of £227,000 in the same role for the year.

This increased again the following year, to £295,000.

The college’s turnover had actually gone down slightly, by around eight per cent, during Mr Hamnett’s two and a half years at the helm – from £32.6 million in 2014/15.

He stepped down as principal at the end of August, but continued as chief executive of the group – which also includes Hart Learning and Development and a school trust – until his resignation on November 30.

When asked to justify his salary, Mr Hamnett told FE Week he had “delivered rapid and significant improvements over the course of my time”.

“We made big changes, and they worked,” he said, referring to the college’s recent Ofsted report.

“I am proud of the part I played in the group’s transformation.”

Peter Lauener is taking on yet another job next month, this time as chair of the Construction Industry Training Board at the request of the skills minister.

The former boss of both the ESFA and the Institute for Apprenticeships, once dubbed the busiest man in FE, will take up the role at the organisation on May 1.

He will take over from construction insider James Wates, who steps down after eight years in the post.

This is the second chair role that Mr Lauener has taken on since he left his government posts last year. This spring, he stepped into the job at NCG, one of the largest college groups in the country.

He is also still interim chief executive of the Student Loans Company, and will for the time being continue in this role alongside his other positions.

“I am pleased to appoint Peter Lauener as the new chair of the CITB,” said skills and apprenticeships minister Anne Milton.

“Peter’s knowledge of the skills industry, along with his experience, will help his work with the CITB to make sure that our country has the construction skills it needs.

“I would like to thank James for the contribution he has made to the CITB during his time as chair, and I wish him the very best for the future.”

Mr Lauener said he is “delighted” to join the CITB.

“I know how committed the industry is to training and I am looking forward to working with industry leaders, together with Sarah Beale [CITB’s chief executive] and her committed executive team to make construction an exemplar for skills development,” he added.

The CITB is the organisation that has taken on responsibility for all of the apprentices who were left jobless following the collapse of outsourcing giant Carillion.

UPDATE: UCU staff members at Bradford College have today (May 3) voted to strike. The result for Kirklees College is expected to be announced tomorrow (May 4).

Two cash-strapped colleges in West Yorkshire are being balloted for possible strike actions over plans to cut jobs and change contracts.

Bradford College, which received two government bailouts in December alone and has been hit with two recent notices to improve for financial control, announced plans in March to cut 75 jobs as part of an effort to tackle its funding deficit.

Meanwhile, Kirklees College, which was warned by the FE commissioner Richard Atkins last month that it may need “structural change” after it was given £1.4 million in emergency cash, has proposed a restructure which plans to axe 52 jobs.

The college is also planning changes to contracts which the University and College Union says could lead to increased workloads and worse terms and conditions for staff.

The union said the plans would “hit students the hardest” and urged the colleges to work to develop alternatives to cutting jobs.

“Job cuts would mean fewer learning opportunities for the people of Bradford and Kirklees, and a huge loss of valuable expertise at both institutions,” said UCU regional official, Julie Kelley.

“Members feel they have been left with no option but to ballot for strike action in order to defend jobs and working conditions. We want both colleges to halt their damaging plans and work with us to develop alternative approaches.”

The ballots at both colleges will begin tomorrow April 13 and finish on May 3.

Bradford College said it was “disappointed” that the UCU is balloting for strike action.

“Bradford College’s strategic recovery plan is focused on improving the quality of provision for students whilst achieving financial sustainability,” a spokesperson said.

“In some subject areas we have fewer students and therefore have to realign our resources. We are also introducing new roles such as curriculum and quality managers so that we focus on delivering outstanding teaching and learning.

“We are seeking to avoid compulsory redundancies and welcome any alternative proposals from staff and the UCU. We are therefore disappointed that the UCU is balloting for strike action, which we do not feel is in the best interests of students or staff.”

The skills minister has imposed administered status on a cash-strapped college in Luton, due to the “significant” financial challenges it faces.

Anne Milton wrote to Barnfield College on March 26, following a recent investigation by the FE commissioner, Richard Atkins.

He found that its finances were a “major cause for concern”, with “significant” operating losses in 2015/16 and 2016/17, which is likely to be repeated in 2017/18.

“This has weakened the college’s balance sheet and eroded cash balances to the point where the college will need to sell land or secure commercial loans,” Mr Atkins wrote.

He recommended the college should be placed in administered status until “there is sufficient evidence of a significant improvement in financial management and forecasting”, an action Ms Milton has now implemented.

The college’s financial performance is a major cause for concern

Barnfield suspended its recruitment of new apprentices last month, after it received an ‘inadequate’ rating for this provision from Ofsted in an overall grade three report.

The college taught around 3,700 learners last year. It was issued with a financial notice to improve by the ESFA in January.

Its turnover has fallen between 2013/14 and 2016/17 whilst also experiencing a year on year decline in income, The FE Commissioner said in his report.

And despite the reductions in turnover, pay costs have not reduced which has resulted in “exceptionally high pay costs as a percentage of turnover and significant operating losses”.

The college also has “ambitious” plans for relocation of its two main campuses on a 1.8 acre site which it has acquired in the centre of Luton, Mr Atkins noted.

He said this scheme costs up to £57 million, which is to be financed through a combination of asset sales, local enterprise partnership grant and bridging loans.

A target date of project completion has been set for September 2021.

The FE Commissioner said this capital project is “arguably a distraction to getting the college back on track”.

He added that a step change is “urgently required, both in the quality and reliability of financial information coupled with decisive leadership to right-size the college and deliver a realistic and credible financial recovery plan”.

In addition to fears about the college’s financial health, there were also concerns about its progress made following area review recommendations.

It was supposed to merge with Central Bedfordshire College but a spokesperson for Barnfield told FE Week in September last year that the partnership was taken off the table the previous April, after comments made on the local ITV news by Central Bedfordshire’s chair Professor James Crabbe in March, which were taken as a power grab.

Mr Atkins said Barnfield does not currently have a “clear enough picture of its forward financial position to be confident it has a sustainable future as a standalone institution”.

He added that his team’s assessment considered the pace of improvement as a standalone college “too slow” and that the finances demand a “faster move to a new structure, alongside merger sooner than later whilst there is potential for access to the restructuring fund”.

“Whilst the opportunity to request restructuring funds remains open, there is a compelling case to progress with the FE Commissioner-led structure and prospects appraisal recommended by the South East Midlands Local Enterprise Partnership area review,” he added.

The FE Commissioner will undertake a full “stocktake” of the college in October 2018.

Administered status means that a member of the ESFA’s local team will now observe all of the college’s board meetings, and that the college will be required to consult the ESFA about any significant changes to its operations or finances.

A spokesperson for Barnfield College said: “We accept and acknowledge the findings of the FE Commissioner’s recent report.

“We are working closely with the FE Commissioner’s Office and the ESFA to ensure we move forward swiftly and continue to provide the learners and communities of Luton with a high-quality learning provision.”