Latest trends in further education and sixth form spending in England

This comment provides updated analysis of trends in further education college and sixth form spending per student.

In the decade up to 2019–20, spending per student aged 16–18 in colleges fell by 14% in real terms, and that in school sixth forms fell by 28%. In recent spending reviews, the government has committed to an additional £2.3 billion in funding by 2024–25 compared with 2019–20 in cash terms.

However, student numbers are growing rapidly, with at least 160,000 additional students expected in 2024 compared with 2019. This is partly due to demographic change, but also historically high numbers in full-time education (84% of 16- and 17-year-olds) and low numbers in part-time education/training (10%) or full-time employment (2%).

In any case, the growth in student numbers means that extra funding has only delivered a small amount of real-terms growth in spending per pupil between 2019–20 and 2021–22 (4% in colleges and under 2% in school sixth forms).

As with all areas of public service spending, rising inflation is also eating into spending plans. As a result, spending per student in colleges in 2024–25 will remain about 11% lower in real terms than in 2010–11 and about 27% lower in school sixth forms based on current plans and forecasts.

Imran Tahir, Research Economist at IFS: 

‘Colleges and sixth forms saw large cuts in spending per student in the decade up to 2020. Additional funding in recent spending reviews was meant to lead to a return to growth in spending per student. However, rapid rises in student numbers, and much-higher-than-expected inflation, have quickly eaten into these spending plans.

‘Under these circumstances, cutting planned spending in this sector would not be an easy option for a government looking to repair the public finances. It would also sit uncomfortably with a commitment to focusing on skills and economic growth.’