The FE sector could hit a “financial crisis” if colleges’ contribution to teacher pensions is increased, according to the Sixth Form Colleges Association (SFCA).
SFCA chief executive Bill Watkin said a significant increase in employer contributions to the teachers’ pension scheme had “the potential to lead to a financial crisis in our sector”.
Mr Watkin’s comments come after draft directions for the Teachers’ Pension Scheme, published last Thursday, stated that “early indications are that the amount employers pay towards the schemes will need to increase”.
‘Give sixth-form colleges financial support’
He added: “Years of cuts, cost increases and a static funding rate since 2013 have had a negative impact on staff, students and the financial health of institutions. The government must find the funding to cover any increase in employer contributions and this funding must be for the long term.
“We have made it clear that any financial support offered to schools to cover these costs must also be extended to sixth-form colleges, and that this funding is no substitute for a desperately needed increase to the 16 to 19 funding rate in next year’s spending review.”
It was revealed last month that the Department for Education would not stump up extra cash to fund a pay rise for college teachers and staff, despite promising to fund part of a pay rise for school teachers.
