Question to the Department for Education:

To ask the Secretary of State for Education, whether she plans to introduce a multi-year funding settlement for the further education sector, and what assessment she has made of the potential benefits of a three-year funding cycle for workforce planning and financial sustainability in FE colleges.

Further education colleges have a number of different funding streams, including funding for 16-19 year-olds.

Funding for 16-19 year-olds is through a lagged funding system whereby the funding for each college is based on its student numbers in the previous year. However, for those institutions with a significant growth in students, the department recognises that there are additional costs and provides in-year growth funding to help with these.

This system allows funding for colleges to respond to changes in their delivery and give them confidence on 16-19 funding in the year ahead. Colleges are informed of their allocations several months before the start of the academic year to help them finalise their financial and workforce planning. Ensuring that funding directly reflects the number of students recruited enables institutions to recruit with confidence, whereas a fixed multi-year funding allocation would not. The department keeps the effectiveness of the funding system under review.