Reforms to Further Education Funding and Accountability

In 2021, the Department for Education ran a consultation asking for views on proposals for reforming the further education funding and accountability system.

We would like to thank all those who responded to the consultation, as well as college leaders and sector experts who have worked with us to co-design our proposals.

Respondents generally agreed with the adult skills funding system reform objectives as set out - many remarked that the core of the present system is not complicated, but the add-ons and various funding streams have made it so. A significant number of respondents did not agree that Community Learning should be included as part of these reforms and expressed concern that we would lose sight of the positive impact this provision has on communities as a result. Most respondents welcomed the proposed multi-year funding allocations, recognising it as a helpful step towards providing more predictability and to enabling providers adapt to changing employment needs.

Over three quarters of respondents wanted our accountability proposals to apply to all grant funded providers on a proportionate and relevant basis; agreed with our objectives for new Accountability Agreements; with a renewed focus for the FE Commissioner on driving improvement and championing excellence; and with high level proposals to improve student data collection. A significant number of respondents did not agree with our proposals for a simpler three-stage approach to improve college performance, and inclusion of a financial health measure in the proposed FE performance Dashboard.

We have taken on board responses to the first consultation, and are now setting out further detail of our proposals in a second consultation – available here – which is open until 21^st September 2022. We welcome the views of all those who work in and with the FE sector and encourage you to respond.