MPs call for urgent investment in further education to drive economic growth

The Education Committee has set out a blueprint for how the Government should use investment in further education (FE) and skills to support its economic growth agenda.

In a new report, MPs warn that the sector has been underfunded and overlooked for more than a decade, leaving colleges struggling with staff recruitment and retention. Funding per student fell by 14% in colleges and 28% in school sixth forms between 2010-11 and 2019-20, according to the Institute for Fiscal Studies.

The report recommends the creation of a statutory pay review body for FE teachers, targeted funding to support disadvantaged students through a new “student premium”, and the removal of VAT costs for colleges.

MPs also highlight concerns about the independence of Skills England, which was set up as an executive agency rather than a non-departmental body. They call for an independent review by 2027, with legislation to guarantee full autonomy if required.

Other recommendations include devolving education and training for 16–19-year-olds to strategic authorities, expanding the Government’s Youth Guarantee to cover 16–24-year-olds, and creating a Skills Co-ordination Board to simplify engagement for employers.

On qualifications, the Committee urges reforms to T Levels, including the introduction of smaller “modular” courses equivalent to one A Level, and a national awareness campaign to boost take-up. It also calls for apprenticeships to be made simpler and more accessible, particularly for small businesses, and for foundation apprenticeships to be widened to cover sectors such as hospitality, retail and care.

The MPs say the current requirement for pupils to resit maths and English GCSEs is ineffective, with over 80% of students failing to achieve a pass by 19. They propose a three-route system, offering retakes, embedded subject content or functional skills qualifications as alternatives.

The report further backs faster rollout of Mental Health Support Teams in colleges, retention of Applied General Qualifications such as BTECs, and greater support for staff and students in post-16 settings.

Committee chair Helen Hayes said: “Successive governments have rightly talked up the FE and skills sector as an engine for economic growth across the whole country, but it’s an engine that’s been left to run on fumes.

“15 years of real terms funding cuts and stagnant pay have left colleges struggling to recruit and retain teachers who earn far less than their peers in schools. Far from receiving the parity of esteem it’s been promised in the past, FE continues to be treated like the Cinderella of the education system.”