‘Will it take a catastrophe for this funding crisis to be recognised?’
A Tes analysis shows how financial pressures in FE are pushing colleges to the brink, with one in eight now facing danger because they are not able to pay the bills, writes Jonathan Owen
For many colleges, juggling finances is no longer simply a means to make ends meet and be more “efficient”. Instead, it is a desperate bid for survival against the threat of going into administration, unless they are bailed out by the government.
Ahead of the introduction of a new insolvency regime for failing colleges, which comes into force later this year, a Tes analysis of the latest college accounts shows that more than one in eight colleges are in such poor financial health that they are in danger of not being able to pay their bills – and are likely to be reliant on the “goodwill of ...