‘Unfair’: Devon college set to axe 65 jobs amid funding shortfall

The college says it is facing rising costs and increased competition

The college says it is facing rising costs and increased competition

30 Apr 2025, 17:31

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A south west college has shocked staff with plans to cut 65 jobs in a bid to secure its “long-term financial sustainability”.

South Devon College, whose main campus is in Paignton, opened a consultation with union representatives about the “potential redundancies” earlier this week.

A college spokesperson said management took the “necessary decision” to cut 65 full time equivalent jobs after a period of “rigorous financial planning and review” earlier this year.

They added: “The decision to restructure has not been taken lightly.

“But, it is essential to securing the college’s long-term financial sustainability, ensuring it continues to deliver outstanding education and support for current and future students.”

The job cuts outlined to union officials include 47 academic, nine management, and 17 other roles, some of which may be part-time, FE Week understands.

It comes as other colleges in the south west are also grappling with financial issues, including reports of up to 100 job cuts at Truro and Penwith College, and proposed mergers between Bridgwater and Taunton College and Strode College, and Exeter College and Petroc College.

South Devon College said it is facing rising costs and increased competition “like many colleges and other organisations nationally”.

Nick Varney, regional official for the south west University and College Union, said notice of the redundancies came as a “real shock” on Monday evening.

He suggested the cuts are “unfair” as they target the “hardest working” staff in the college.

“We will do all we can to mitigate cuts and will talk to members about that”, he added.

A strategic assessment in the college’s most recent accounts, for 2023-24, blames short-to-medium term underfunding due to the “lagged funding model”, which caused an estimated shortfall of £800,000 during the year.

During that year, the college recorded a £739,000 deficit on a total income of £36 million, however it has £16 million in unrestricted reserves.

“The college declined to share its current financial health rating, as assessed under the Department for Education guidance, which colleges typically publish in their accounts.

But according to its accounts, it has a “clear strategy and action plan” to return its financial health to ‘good’ by 2025-26.

The accounts said: “The College is engaged in ever-ongoing work on determining where forward efficiencies will need to be made whilst maintaining capacity and the ability to grow, minimising as far as possible impact on quality delivery, and also recognising short and medium term (until 2028) demographic upside gain.”

Since 2020, its staff numbers have grown from 567 to 724, while income has remained at about £36 million.

The Torbay council area that the college serves has a population of about 136,000 people, nearly half of whom are aged 50 or over, with only about eight per cent of residents aged 16 to 24.

According to the council’s accountability statement, the area “suffers from several issues common to coastal towns” including a low-wage, low-skill economy that is “over-reliant on seasonal tourism and is now “one of the weakest in the country”.

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