Further Education Institutions

Wednesday 16th July 2025 Westminster Hall

15:59

[Anna Dixon (Shipley) (Lab)]

I beg to move,

That this House has considered Government support for further education institutions.

It is a pleasure to serve under your chairship, Sir Christopher. Up and down the country, further education institutions are educating and training 1.6 million people, providing them with the skills they need. These colleges are the lifeblood of the British economy, serving as a vital bridge between compulsory schooling and higher education and employment. However, further education was cut to the bone under the previous Conservative Government, and colleges are crying out for more support. According to the Institute for Fiscal Studies, spending on adult skills and apprenticeships was 23% lower in 2024-25 than it was back in 2009-10. That is a huge cause for concern.

Many of us in this room have seen the great work that these colleges do at first hand, and I am sure we will hear that from colleagues during the debate. I pay tribute to Shipley college in my constituency, and I hope to draw attention to some of the challenges that it and others face, as well as their tremendous contributions. Shipley college is the local lead on health training, and has built a strong relationship with Bradford Royal Infirmary. They have developed a T-level cadetship programme, giving local 16 to 17-year-olds invaluable experience on hospital wards.

I recently visited Shipley college and met students and staff who were training on life-like robots with AI-generated voices to mimic a conversation with a patient. That was clearly giving the students confidence, and preparing them much better than traditional teaching methods. Government funding has enabled the college to invest in such amazing resources as Gaumard human simulators, Anatomage tables for learning anatomy and physiology, and an immersive classroom where students get to prepare to deliver skills in a real-life situation.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady, who has made a reputation for herself in the Chamber by asking all the questions. I understand this is her first Westminster Hall debate, and I congratulate her on it and wish her well. Last year there were almost 19,000 UCAS applicants who self-identified as young adult carers. That is around 4% of all applicants. I spoke to the hon. Lady before the debate; does she agree that more support must be offered in further education settings to those who have caring responsibilities—from caring for a parent or being a parent themselves—so they can achieve educational standards?

[Anna Dixon]

I agree that we must open up access to education for all, including carers. Further education colleges require significant investment to upgrade and maintain their buildings and ensure that they can provide a modern learning environment and access to up-to-date technology. However, staff tell me that their ambitions for further capital investment are limited. Since colleges were brought back into public ownership, their ability to borrow money and invest in capital projects has been removed, and they must now seek permission from the Department for Education to borrow money, which is a slow process. I would appreciate the Minister outlining what the Government are doing to address the capital funding needs of further education colleges.

I would like to move on to some issues around skills training. Every year, 3.8 million people aged 19 and over access skills education in England. That is a critical part of our education system, enabling people to build rewarding careers and fulfil their dreams. Yet, across the country, businesses do not have the right skills available to deliver the services they want and we need. According to the Learning and Work Institute, the UK could face a £120 billion loss by 2030, with a projected shortfall of 2.5 million highly skilled workers.

In Saltaire in my constituency, businesses tell me that they are struggling to recruit people with digital and tech skills locally. Is that any wonder when the Conservatives cut FE funding so significantly? With the right support, FE colleges can drive productivity gains across key sectors, such as engineering, healthcare, digital technology and construction. They can supply skilled technicians and specialists, enabling businesses to expand, innovate and compete.

[Mr Gregory Campbell (East Londonderry) (DUP)]

I congratulate the hon. Lady on securing the debate. Regional colleges such as the North West regional college and the Northern regional college in my constituency do exactly what the hon. Lady outlines. Particularly, the likes of apprenticeships are the future for many young people, especially those from disadvantaged communities. We should encourage and support that.

[Anna Dixon]

I entirely agree that the FE college apprenticeships—these other routes—are important for disadvantaged children. I will expand on that in a moment.

I am delighted that this Labour Government are committed to equipping the workforce with the skills they need to rebuild Britain, including through the establishment of Skills England. I hope that Skills England will encourage and facilitate strong partnerships between colleges and employers. Perhaps the Minister might like to say whether we could go further in empowering local areas and colleges to tailor their provision to local labour market needs and community demands.

[Will Stone (Swindon North) (Lab)]

Does my hon. Friend agree that Institutes of Technology can play a valuable role in setting forward the workforce, especially in defence, which the country needs, and will she join me in wishing Darran Marks the best in his next career endeavours?

[Anna Dixon]

I am certainly happy to commend the leader of my hon. Friend’s local IOT. I recognise the contribution that IOTs make to training the next generation in all sorts of careers; they prepare them for the demands of some highly skilled roles in defence.

FE colleges are not just about supporting our young people; they also give older adults opportunities to gain skills and retrain to access and retain good work. It will be vital, for example, to upskill and retrain people transitioning into jobs in the clean energy sector. I was disappointed to learn of the cuts to the adult skills fund, and a number of constituents wrote to me about it. I understand that the public purse is under huge strain and there are many competing demands, but further education colleges provide an excellent education, and given the real-terms funding reductions that they have experienced over two decades under the Conservatives, I do hope that in future they will receive more sustained, multi-year funding that accounts for inflation and rising student numbers.

[Ms Julie Minns (Carlisle) (Lab)]

Beaumont college in my constituency provides excellent specialist education for young people transitioning from a specialist school into adulthood. Does my hon. Friend believe that part of that funding must be available for colleges such as Beaumont so that we can support young people with special educational needs and disabilities?

[Anna Dixon]

Indeed, and I note that FE colleges, on average, have a higher number of SEND pupils than others. They give really good opportunities for children with additional needs to thrive and to go on and educate, so I commend the work of her local college.

[Tom Gordon (Harrogate and Knaresborough) (LD)]

I thank the hon. Lady for securing this important debate. One of the first things that I had to do after the general election was to ensure a funding guarantee of more than £20 million for a rebuild of Harrogate college. Due to the local authority dropping the ball, the planning expired and the funding period elapsed. I was grateful to work with the Labour Government to secure that funding. I do worry, though, about the £90,000 cut to Harrogate college’s adult skills funding. The response that I got from the Government said that that is now devolved to the Labour mayor. Does the hon. Lady agree that we need more funding for our devolved mayors to ensure that we keep up adult skills funding?

[Anna Dixon]

I am pleased to hear that the Labour Government have secured the future of Harrogate college. I also agree that it is vital that, as the workplace changes, people keep their skills up to date with lifelong learning, so it is essential that we protect and maintain adult education funding. I would like to hear from the Minister on that. Will she outline the Government’s plans to ensure sustainable funding for FE colleges, as well as the ongoing support for adult education as mentioned?

[Julia Buckley (Shrewsbury) (Lab)]

I thank my hon. Friend for this excellent debate. Does she agree that colleges like mine in Shrewsbury have achieved their “outstanding” status because of the breadth of training and qualifications that they offer across a wide rural area? Do the Minister and the Department need to recognise those twin challenges? One challenge is offering qualifications from supported internships right up to level 4 degree qualifications, and there is a massive rural challenge as well. Those twin challenges must be considered.

[Anna Dixon]

My hon. Friend is a great champion for her area and for rural communities. I agree that there are particular challenges for colleges seeking to deliver such a breadth of education and many different sorts of qualifications, and I know that the Government are looking at review and reform of that.

Let me turn to T-levels.

[Edward Morello (West Dorset) (LD)]

Will the hon. Lady give way on that point?

[Anna Dixon]

I want to make some progress. There have been recent innovations in further education with the introduction of T-levels. As a member of the Public Accounts Committee, I contributed to the inquiry that found that T-levels are a great option for many students, and it would be great to see them rolled out further, but that there are significant teething problems. T-level students attend three full days at college and, generally, two full days in placement. It is, in my view, far more demanding than three A-levels. However, finding suitable work placements can be challenging. While colleges welcome the greater flexibility that is given in where and how these requirements are fulfilled, there is a clear need for employers to be incentivised to offer such work placements to students.

Teacher shortages are also a huge problem for colleges, particularly when trying to attract people from the high-priority skill sectors that we have mentioned, such as digital and construction. The Public Accounts Committee also looked at teacher numbers and concluded that further education teacher shortages put the achievement of the Government’s missions for opportunity and growth at risk.

[Edward Morello]

rose—

[Adrian Ramsay (Waveney Valley) (Green)]

rose—

[Anna Dixon]

I will give way first to the hon. Member for West Dorset (Edward Morello).

[Edward Morello]

The hon. Member mentioned two points relating to staffing that are extremely important. Often, further education colleges, such as Kingston Maurward college in my constituency, also provide higher education qualifications, but pay for staff, especially specialist staff, tends to be higher in higher education institutions than in further education, which makes it difficult for them to recruit. Does the hon. Member think the Government need to address that pay disparity?

[Anna Dixon]

The hon. Gentleman makes an excellent point—I was about to come on to the pay gap between teachers in schools and those in further education colleges. Teachers in further education colleges earn an average of £8,000 a year less than schoolteachers. I was not aware of the gap with higher education, but it is clearly important that there is a level playing field so that they can attract and retain teachers.

[Adrian Ramsay]

The hon. Lady has now pre-empted my intervention. I wanted to highlight that further education leaders I have spoken to, such as those from Suffolk New college, who run the Halesworth campus in my constituency, have highlighted that £8,000 to £10,000 gap in pay between FE lecturers and secondary education teachers teaching the same subjects. Does the hon. Lady agree that this needs to be addressed in order to tackle the challenge of retaining and recruiting staff?

[Anna Dixon]

I agree. Closing the gap in pay will be vital, particularly if we look at vocational areas where industry salaries are higher. In construction, engineering and digital, FE teachers earn around 11% less on average than their peers who work in industry. Even when colleges do manage to recruit, they are quickly enticed back to industry, so it is not enough to just ask employers to release their staff to support the teaching of these in-demand skills. How does the Government intend to address the teacher shortages in further education, attract people and offer incentives for businesses to release people?

The final point I will touch on is social mobility.

[Natalie Fleet (Bolsover) (Lab)]

My constituency is one of 15 in the whole of England that does not have a sixth-form college or a further education college. That has huge repercussions for local young people and their potential. I thank my hon. Friend for securing this debate and sharing her point on the impact on social mobility. I have been campaigning for a sixth-form college at the Bolsover school site since I was elected, after the last Government offered the sixth form but left no funds to pay for it. Does my hon. Friend agree that areas such as mine must be the priority for Government support for a sixth form?

[Anna Dixon]

I commend my hon. Friend for being such a champion for Bolsover and wanting to secure opportunities for her constituents to get the education that they deserve. I am sure that the Minister heard her words.

By improving education across the board, including further education, we can increase social mobility and address the stark regional disparities across the UK. Social mobility is a core Labour value.

[Alison Bennett (Mid Sussex) (LD)]

rose—

[Leigh Ingham (Stafford) (Lab)]

rose—

[Anna Dixon]

I will take the intervention from my hon. Friend the Member for Mid Sussex (Alison Bennett) first.

[Leigh Ingham]

I thank my hon. Friend for calling the debate. I am proud to represent the best FE college in the country—I am sorry to everyone else—because I have Newcastle and Stafford Colleges Group in my constituency. The work that it is doing to increase social mobility is incredibly important, but by the end of this decade it is facing a shortfall of 30% of places to allocate to my constituents. Does my hon. Friend agree that it is important that investment is given to colleges—not just revenue for lecturers’ wages, but capital to build the spaces we need?

[Anna Dixon]

Absolutely; it is vital that we get more capital as well as more revenue funding into FE.

[Alison Bennett (Mid Sussex) (LD)]

The hon. Lady is being generous with her time. I want to mention Haywards Heath college, which closed but was then able to reopen in 2020, thanks to the work of Mid Sussex district council and the previous MP. Does the hon. Lady agree that extending the pupil premium into further education colleges would make their financial sustainability more secure?

[Anna Dixon]

I thank the hon. Lady for making that point. It is important that the general funding available in education for those taking on disadvantaged students is reflected in things such as the pupil premium. FE certainly plays a huge role in widening participation of learners from disadvantaged backgrounds, such as by offering flexible schedules, part-time study and tailored support services that lower barriers to education. For many, further education represents the most affordable and practical route to upskilling and career advancement, or progression to university. College students are more likely to be from diverse ethnic backgrounds and to have special educational needs and disabilities.

Colleges are already supporting both the most deprived learners and those from most deprived areas. For example, 30% of college enrolments are students from the most deprived postcodes. Sadly, in 2023 only 39% of those who finished level 3 courses at FE colleges, which are equivalent to A-levels, went on to higher education. The equivalent rate in state school sixth forms was as high as 60%, so it is critical that the Government increase opportunities for those in further education and open up degree-level apprenticeships.

I would appreciate it if the Minister outlined the Government’s plans to support new routes for disadvantaged children to go into higher skilled work and the role of further education colleges in helping to achieve that ambition. I will conclude in a moment, but I believe that further education colleges are a vital part of the UK’s educational landscape.

[Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)]

I thank my hon. Friend for being so generous with her time. Fife college in my area does hugely important work, but it has had its budget slashed by 20% over the last three years by the SNP Scottish Government, who are actively moving funding out of my area and into Glasgow, Aberdeen and Edinburgh. Does she agree that such a cut is unacceptable, and that people in my area deserve the same opportunities to learn new skills as those in every other part of Scotland?

[Anna Dixon]

I thank my hon. Friend for her excellent intervention, pointing out some of the cuts that her constituents are experiencing at the hands of the SNP Government in Scotland. It is incumbent on them to ensure that all children and adults have the opportunities to learn and continue to update their skills.

In conclusion, I believe that further education colleges are vital to those skills; they provide vocational training, apprenticeships and essential skills for young people and adults who want to upskill and reskill. They play a crucial role in addressing skills gaps, boosting productivity and promoting social mobility. However, as we have heard, the sector is facing significant challenges, including real-terms funding cuts, workforce shortages and complex funding structures. In her response, can the Minister set out how this Labour Government are increasing both day-to-day funding and capital funding for further education? How do they plan to address teacher shortages in FE? How are they ensuring that those in further education have the same opportunities to progress?

[Sir Christopher Chope (in the Chair)]

If the hon. Member for Scarborough and Whitby (Alison Hume) wishes to participate in this debate, I should say that there are only 10 minutes or so for the Minister to respond to the mass of points that have been made. I hope she will be brief.

16:18

[Alison Hume (Scarborough and Whitby) (Lab)]

It is a pleasure to serve under your chairship, Sir Christopher, and I will be brief. I congratulate my hon. Friend the Member for Shipley (Anna Dixon) on securing this important debate and for her excellent speech.

To improve living standards, we need to generate economic growth; to generate economic growth, businesses must have the skilled workforces they need to thrive. Further education institutions play a vital role in training the workforce we need for the jobs of the future. In my constituency of Scarborough and Whitby, we have some brilliant further education institutions that play a critical role in training young people with the skills they need, such as Scarborough university technical college.

Just last week, Scarborough UTC hosted Jürgen Maier—the chief executive officer of publicly owned clean energy company GB Energy—on a visit to its new Mainprize suite. The suite, named after a local service vessel company, will link employers with students to support them in their studies by providing valuable real-world knowledge and expertise to prepare them for careers in the renewables sector.

Offshore wind is a huge opportunity for Scarborough, and Scarborough UTC is a great example of how further education colleges can tap into opportunities to drive local economic growth, as well as provide career pathways. However, we need to ensure that young people in our most deprived communities have access to these new educational opportunities. Scarborough is the most deprived borough in North Yorkshire, and is rated in the lowest 30% of lower-tier local authorities in England, with three LSOAs—lower layer super output areas—within the most deprived 1% in the country.

Further education colleges in my constituency need the support of this Government to ensure that disadvantaged students can access good careers, and I would be grateful if the Minister outlined how the Government plan to work with local authorities and further education institutions to support pathways for disadvantaged students into high-skilled work.

16:20

[The Minister for School Standards (Catherine McKinnell)]

I thank my hon. Friend the Member for Shipley (Anna Dixon) for securing this incredibly important debate on further education colleges. Their importance and the passion for them have been clearly demonstrated by the number of interventions that she has skilfully taken, while also allowing for the contribution from my hon. Friend the Member for Scarborough and Whitby (Alison Hume).

It is a real honour to be representing my colleagues from the Department for Education; the Minister for Skills and the Minister for Children, Families and Wellbeing speak on these issues in the House. Further education really is vital to our plans to develop the skilled workforce needed for all pillars of the plan for change, and for providing people with the skills that they need to thrive in their life and work. It is key to unlocking their living standards and opportunities and to breaking down barriers to opportunity right across the country.

Let us not forget—all hon. Members have reminded us clearly of this today—that colleges are a unique part of the education landscape. They deliver such a wide range of provision at all levels and to all learners of all ages. From foundation-level qualifications to master’s-level provision, they really do it all. We ask an awful lot of the sector, but we also know that it can deliver: it has shown that, and it delivers really well. As of 31 May this year, 86% of colleges were rated good or outstanding in their Ofsted reports. That really is a fantastic achievement, demonstrating consistently high quality across the sector.

I know that the sector is dealing with a whole range of challenges, not least those set out by my hon. Friend the Member for Shipley in her opening speech. That is why we are continuing to invest and to provide support. We are really focused on delivering that where it is most needed.

My hon. Friend first raised a question relating to capital investment, because excellent further education colleges, with good quality buildings and facilities, are really foundational to the Government’s opportunity and growth missions. In 2025-26, the Government are investing £6.7 billion of capital funding for education. That is a 19% real-terms increase from 2024-25, and includes £950 million for skills. The 2025 spending review announced continued capital investment to support further education providers’ capacity to deliver high quality training, ensuring that learners have access to the facilities and equipment that they need along all their training routes. From 2026-27 to 2029-30, the investment will include £200 million for the new skills mission fund, to strengthen technical education and tackle those sector-specific shortages of skills that we know are right across England, including through targeted investment in technical education colleges, which I will come on to shortly.

Building on the £80 million of capital commitment in construction made at the spring statement, there will also be £1.7 billion of capital funding to help colleges maintain the condition of their estates, which will be risen in line with inflation, in terms of their annual allocation, and £375 million to support post-16 capacity to accommodate the increasing student numbers, which, of course, we welcome and are happy to support. More broadly, more than £7.5 billion of the 16 to 19 programme funding will be invested during this academic year, ensuring there is a place in educational training for every 16 to 18-year-old who wants one. That funds further education colleges and other institutions to provide study programmes or T-levels for 16 to 19-year-olds. Many Members raised how valuable access to T-levels is for young people. We used the 16 to 19 funding formula to calculate the allocation based on each institution, each academic year.

My hon. Friend the Member for Shipley expressed significant interest in the adult skills fund, which fully funds or co-funds courses for eligible adults aged 19 or over from pre-entry to level 3. A number of other Members understandably have a huge interest in those opportunities. The Department will provide approximately £1.4 billion in funding for the adult skills fund in the coming academic year, ensuring that adult learners can access education and training that they need to progress in their employment and work. The funding will be used by colleges, local authority adult education providers and independent training providers.

I want to be clear that the reduction to the adult skills fund for the 2025-26 academic year in no way diminishes our commitment as a Government to investing in education and skills training for adults over the life of this Parliament. We want to work collaboratively with the further education sector to make sure that these difficult decisions can be taken while still delivering in the way that the country requires. On sustainable funding, which I know many Members have an interest in, the Government are committed to ensuring that the further education sector is supported to achieve continuous improvement and, most of all, excellent outcomes for learners.

The Department has in place a really strong accountability system alongside college oversight, which holds colleges to account and encourages continuous improvement. We really want to see improved outcomes for learners. That involves both the Department for Education and the Further Education Commissioner. We have place-based teams with an overarching responsibility for maintaining these relationships. The system ensures accountability, quality and finance oversight; that we are monitoring performance, support and intervention; and that we work collaboratively with local stakeholders to deliver on the outcomes we need to see. That means we can hold colleges to account, but also support them when they need intervention to ensure that they are delivering.

Any organisation is only as good as its workforce. FE teachers and staff play such a vital role in colleges to break down barriers for learners and teach skills vital to economic growth. I was pleased to hear my hon. Friend the Member for Carlisle (Ms Minns) mention learners with special educational needs and disabilities, and ensuring that opportunities exist for them too. That is why the Government are committed to recruiting 6,500 additional teachers across both schools and colleges, to raising the quality and prestige of FE teaching as a career, and to offering effective training and professional development.

[John Slinger (Rugby) (Lab)]

Will the Minister give way?

[Catherine McKinnell]

I am really sorry, but I do not think I will have time if I am to respond to all the issues that have been raised; I do not think I will manage even that.

We are offering targeted retention incentive payments to FE teachers, particularly in key science, technology, engineering and mathematics and technical shortage subjects. We have a national recruitment campaign called “Teach in Further Education”, which we cannot shout about enough, to help raise awareness and increase consideration for FE teaching among industry professionals. We are also ensuring our initial teacher education system is setting high standards for new FE teachers, ensuring they have access to quality training, that we have bursaries to attract more than 2,300 trainees, that they are achieving the level 5 or higher FE teaching qualification, and that we are promoting the role in industry associates. Industry practitioners can teach part-time in FE and help to spread construction skills and exchange of industry practice, to make sure we can pass that on to the next set of learners who will work in our industries.

I was going to talk about technical excellence colleges, but I am running out of time, so I want to say thank you again to my hon. Friend the Member for Shipley for securing the debate. I thank all Members who have taken part. I think I have demonstrated excellently our passion and support for further education colleges. We know how important they are to employers, businesses and the country as a whole, and I share that passion. Our colleges are crucial to the education system, equipping young people with the skills they need to get on in life and giving some people the second chance that they might not otherwise have had. Our plans and investments will help to support, develop and transform our excellent FE system.

Motion lapsed (Standing Order No. 10(6)).