The scale of the financial fallout from Strode College’s subcontracting scandal has been revealed – with a £5.75 million clawback now transferred onto the newly merged University Centre Somerset (UCS) College Group.
Government investigations into Strode’s historic delivery of traineeships found subcontracted learners were working illegal hours and funding rules had been breached.
The college’s financial health dived from ‘outstanding’ to ‘inadequate’ in 2023 once the Department for Education tallied up the recovery amount. Leaders were told to seek a merger partner as the institution was no longer sustainable on its own.
Last month the college formally merged with Bridgwater & Taunton College to create UCS College Group.
A newly-published batch of Strode College’s delayed financial accounts for years up to 2023-24 reveal the total clawback amount for the first time.
The £5.75 million liability has followed the college into the new merged organisation.
In a statement to FE Week, a UCS spokesperson confirmed discussions with the DfE regarding the clawback were handled prior to the merger.
They said: “We are working closely with the department on an agreed approach and repayment plan that ensures the continued financial health and stability of the newly formed college group, without compromising the quality of education or support for students and staff.”
The spokesperson stressed the merger was designed to “create a stronger, more resilient educational offer for Somerset” and insisted UCS remained in a “robust financial position” despite inheriting the multimillion-pound debt.
Strode College’s previous leaders last year instructed lawyers to write to the six subcontractors involved to demand repayment.
UCS College Group’s spokesperson told FE Week they were “not in a position to comment on the contractual matters relating to legacy third-party providers, but the appropriate reviews and actions are being taken where necessary”.
The DfE and college have not disclosed the repayment plan’s structure or duration.
Rule breaches occurred between 2019 and 2022 – around the time the government cracked down on subcontracting in FE by introducing caps on volumes, geographic restrictions and enhanced oversight and transparency requirements to tackle poor-quality provision from third-party providers.
‘Our focus is now firmly on the future’
Strode College was judged as ‘good’ by Ofsted in 2022, brought in a total income of £16 million in 2024 and taught around 5,000 students last year.
Bridgwater & Taunton College holds an ‘outstanding’ Ofsted grade, teaches around 24,000 learners, has income of £65 million and a ‘good’ financial health rating.
UCS’s spokesperson said: “Our focus is now firmly on the future. UCS College Group is well placed to grow and deliver for Somerset. We have an outstanding curriculum, a history of strong employer partnerships, and a commitment to widening access to university-level study through University Centre Somerset.
“The group is in a robust financial position, with a clear vision and ambitious strategy that will continue to deliver educational excellence and transformative opportunities for students and communities across Somerset.”
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