Question to the Department for Education:

To ask the Secretary of State for Education, for what reason Hull College's fresh start formula funding included was a cap on its staffing costs; and if he will make a statement.

Hull College Group (the College) has been making significant year on year losses and has therefore been in financial intervention. The College has developed a plan to deliver financial sustainability and quality education which meets local needs through a ‘Fresh Start’, for which the department is providing supporting funding through the Restructuring Facility.

The College’s plan includes a reduction in staff costs. The Further Education Commissioner’s intervention report published in January 2017 noted the college had staff costs of around 78% of income in 2015/16. This is significantly higher than the benchmark based on experience from well-run, sustainable colleges of staff costs of around 60-65% of income.