Colleges are set to receive a funding boost for increased student numbers in the spring, Tes can reveal.
Tes understands that the Education and Skills Funding Agency (ESFA) has agreed to provide colleges that have seen an increase in student numbers for the 2020-21 academic year with extra funding to lessen the pressure on the 16-19 budget.
Usually, every college that has recruited more than 200 additional students is given 50 per cent of the per student funding rate for these students in March.
This year, however, Tes understands that the threshold will be lowered to 100 students - and that the ESFA will give colleges 100 per cent of the per student funding. And for those institutions that are smaller - below 1,333 students - a 7.5 per cent threshold will apply, rather than the 100 students.
However, if there are more than 200 additional students, colleges will receive 100 per cent of funding for 100 to 200, but 50 per cent for any learners beyond that figure.
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The base funding rate per student currently stands at around £4,200 - meaning that larger colleges could see six-figure increases in funding this spring.
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In November last year, the Association of Colleges warned that 20,000 students in colleges were underfunded, due to increased levels of students turning to education, rather than the workplace, during the pandemic.
At the time, AoC data showed that 62 per cent of colleges had seen an increase in 16-19 enrolments, while outgoing costs had increased due to Covid.
A report published by the Institute for Fiscal Studies also found that despite the £400 million extra in funding this year, exceptional rises in student numbers could still generate a real-terms fall in funding per student for colleges.
A Department for Education spokesperson confirmed the “in-year growth process for 16-19 delivery”.
They said: “We can confirm that we are running an in-year growth process for 16-19 delivery. This will help colleges, schools and other providers of 16-19 education that have recruited significantly more students this academic year. We will contact the providers who are eligible for growth funding by the end of February. The growth process will be purely data-driven. Providers do not need to send business cases.”
David Hughes, chief executive of the AoC, said: “From last summer, we have urged DfE to pay for the inevitable growth in young people in colleges this academic year as opportunities in the labour market dried up. Our analysis shows that nearly two-thirds of colleges have seen an increase in 16-18 enrolments and we have been discussing that with officials and the minister since then.
“This announcement of in-year growth funding will ensure colleges can continue to provide high-quality learning to all of their students, so it is very welcome news. It does raise the question of how appropriate the lagged funding approach is in a time of such turbulence.”
