Proposals to improve financial oversight of colleges

The Department for Education has published proposals to strengthen relationships with colleges and promote better planning to make sure students get the skills they need.

The proposals follow Dame Mary Ney’s Independent Review, which was initiated after Hadlow and West Kent & Ashford Colleges were placed in education administration in 2019. The review looked at how the government monitors colleges’ finances and financial management. This included examining the work of the Education and Skills Funding Agency (ESFA) and the Further Education Commissioner’s team.

The Government response sets out a number of actions following the report’s recommendations, including strengthened alignment between the Further Education Commissioner and ESFA and a regular strategic dialogue led by the ESFA and Further Education Commissioner’s team with all college boards around priorities, starting from September.

Other actions include new whistle-blowing requirements for colleges, including publication of policies on college websites and a review of governance guidance to strengthen transparency, as well as a new College Collaboration Fund round.

Further changes will be announced as part of the FE White Paper after the summer.

Gillian Keegan, Apprenticeships and Skills Minister said: "Now more than ever, it’s vital that colleges ensure students gain the skills they need to progress and meet the needs of businesses and their local communities.

"I welcome this independent review by Dame Mary Ney and her call for a clear vision for the sector. We have started to put in place changes that address many of the recommendations in the report, including strengthening oversight of the financial health of the sector and increasing the alignment between the Education and Skills Funding Agency and the FE Commissioner.

"I’ve seen first-hand the exceptional work done by colleges across the country, and know what a key role they will play to support our economic recovery. I look forward to working with them and the wider sector to achieve a new vision for FE."