Warwickshire College Group has exited government intervention after making “tough decisions” to secure its finances.
The midlands college has been subject to government intervention since 2024 and almost entered insolvency last year before a last-minute government bailout.
Warwickshire College Group (WCG) now has government loans totalling £3.9 million and has put its Evesham campus up for sale – the latest in a series of controversial campus sell offs.
After finalising an apprenticeship claim funding audit that left it with a £5.4 million clawback bill from the Department for Education (DfE), the college’s financial notice to improve has now been lifted.
Principal Sara-Jane Watkins, who joined the college in September 2024, said: “Moving out of intervention is a pivotal moment for WCG. It demonstrates the Department for Education’s confidence in our recovery and our strategic direction.
“This progress is the result of an incredible collective effort from our new executive team and staff across all our campuses.
“We have moved at a rapid pace to address inherited financial issues, making tough decisions to ensure we have a sustainable foundation.”
Changes at the college since Watkins joined include introducing a new leadership team and appointing a campus principal to each site to “drive excellence” while maintaining group-wide stability, the college said.
The sale closure and planned sale of its Evesham Campus last year drew criticism from some local politicians and followed the controversial sale of its Malvern Hills campus.
Both campuses were part of South Worcester College, which it merged with in 2016. The proceeds of both sales will contribute to repaying government funding clawbacks.
The college can once again access targeted government funding and development opportunities that were restricted due to its intervention status.
Officials including the FE Commissioner’s team will continue to observe WCG via a post intervention monitoring and support plan.
FE Week also understands that the government is expected to publish a formal investigation outcome report which should detail what funding breaches led to the £5.4 million clawback.
WCG has more than 11,000 students at five campuses across Warwickshire and Worcestershire.
Gill Clipson, chair of the corporation, said: “I am delighted that the college has moved out of intervention and supervised status.
“This milestone is a testament to the leadership of our new executive team, whose drive and tenacity enabled us to make such rapid progress in very challenging circumstances.
“By swiftly assessing our financial position, rebuilding our finance and data functions, and redesigning our quality cycle, we have ensured the organisation is both effective and efficient.
“We now have a strong board and an even greater opportunity to shape and sustain a thriving, successful college for the region.”
The DfE did not respond to a request for comment.
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