Thank you very much for your letter of 5 February, addressed to the Chancellor of the Exchequer, about further education (FE) funding. I am replying as the minister responsible for this policy area.
I am grateful to you all for raising these important points. I am aware that Ofsted has also recently raised concerns about the financial sustainability of further education. Those of you who were at the Westminster Hall Debate about college funding on 21 January will realise that I do understand the range of challenges faced by FE providers and the funding pressures that FE is under.
You will have heard me say on numerous that we are looking at the sustainability of the sector, and I am determined to articulate the pressing case for FE funding in the 2019 Spending Review. We need to make sure that the sector is on a stable footing, to deliver high quality provision both today and in the future, particularly in delivering our key reforms such as T levels, apprenticeships and improved basic skills.
I do recognise that FE funding has not kept up with costs. Although we have continued to make a significant investment in the sector. I accept that we are reaching the point where total funding levels will not allow colleges to do all that we are asking them to do, at the high level we need. The decline in student numbers as a result of the falling 16 to 18 population has also posed a challenge for providers. We must now make sure that funding keeps up with the forecast increased in the young adult population in the coming years.
I have spoken on many occasions about the government's plans to invest an additional £500 million a year in technical education once the new T levels are fully rolled out. I realise that this is not a substitute for additional core funding, but it is an important investment for young people and the sector.
I am pleased that we have provided additional funding for level 3 maths and basic skills for 16 to 18 year olds. We also continue to invest in education for adult learners, including those furthest from learning and the labour market. This will provide the skills and learning they need to equip them for progression to, or in, work, an apprenticeship or further learning. We are also supporting adults on low incomes through the low wage trail. This provides full funding for adults who would otherwise be eligible for co-funding. We are currently reviewing whether this will be extended to cover the 2019/20 academic year.
I would like to assure you that the FE Sector is at the heart of this government's plans for an education system that works for everybody. I care deeply about FE and recently spoke with the Chief Secretary to the Treasury about the challenges the FE sector faces. I felt strongly about the important role of FE long before I became responsible minister, and will continue to look carefully at these issues in preparation for the next Spending Review, making the case for the best possible settlement for the sector.
I am very grateful for your invitation to meet to discuss these issues further. With the recent Westminster Hall Debate, as well as the coverage of funding in parliamentary questions, it is great to see FE funding being brought up more and more, and I look forward to continued discussions with you on the topic.
I truly welcome the support from member across the House in helping to ensure we make a strong, united case for FE funding, and I would be grateful if you could share my reply with MPs who have support your letter.
Best wishes.
Anne
Rt Hon Anne Milton MP
Minister of State for Apprenticeships and Skills