Five further education colleges needed extra financial support owing to the impact of the coronavirus pandemic, apprenticeships and skills minister Gillian Keegan has said.
Speaking during education questions in the House of Commons, Keegan said that the Department of Education was currently working with 40 colleges who were struggling.
She said: "We have a team of officials right now, working with colleges, every college that needs that support. We are working with 40, but so far, only five have needed assistance. But we will keep this under review.
"Colleges are facing financial uncertainties as a result of Covid-19 and many phase reductions in commercial income and uncertainty with apprenticeship starts. We have a team, including skilled finance professionals, who are working very closely to support colleges, and we're also working with banks to ensure access to commercial lending where required. Since April, only five colleges have needed to access emergency funding."
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Shadow apprenticeships and lifelong learning minister Toby Perkins said that the colleges needed "far greater action".
He said: "Despite the measures that the minister has spoken of, the Association of Colleges is warning of a £2 billion cash shortfall and we know from the Nay report that the government has got inadequate mechanisms for identifying colleges in crisis.
"So, the truth is that all those measures that the minister speaks about simply aren't enough and we need far greater action if we're going to see our colleges, the pupils and their staff, not let down and left in financial crisis this autumn."
At a Commons Education Select Committee meeting in July, FE commissioner Richard Atkins said that 30 to 40 colleges were "at risk" going into this financial year. In August, Tes reported that five colleges in the West Midlands were predicting a collective loss of £22m due to, in part a fall in commercial income and additional Covid-19 health and safety costs.
Ms Keegan also said the department was "absolutely committed" to helping anyone who finds themselves looking for a job access training "at every age and every stage",
She said: "That's why the Chancellor set out his plan for jobs to give businesses confidence to retain and hire and get careers back on track, and that includes £1.6 billion pounds to scale up employment, training, support and apprenticeships.
"We are investing in high-quality careers provision incentivising employers to hire new apprentices tripling the number of sector-based work academy placements and doubling the number of work coaches. This is on top of we're also investing £2.5 billion, which will be available in April 2021, and I'm sure that the colleges will be very much looking forward to that. And we're working to make sure that they will make sure everyone has access to training."
