The first annual education spending report from the Institute for Fiscal Studies shows that the new money for T levels will be offset by cuts to FE. The chancellor Philip Hammond pledged £500 million in funding for T levels in his Spring Budget and in his Autumn Budget he announced an extra £20 million to support FE colleges.
Most of the money for T levels is focused on delivering extra teaching hours, and is unlikely to ease the resource challenge for the sector.
The report highlights that FE funding has had a greater cut than funding for schools, pre-school or higher education. 16-18 education has suffered the most from education spending changes over the last 25 years.
Spending per student in FE and sixth-form colleges is about 8% lower than spending per pupil in secondary schools, in the early 1990’s spending was 50% higher. Overall spending per student in FE had fallen by around 12% in real terms since 2010.
The spending per student in FE has also fallen since 2010. By 2019-20 funding per young person in FE will be at about the same level as in 2006-07 and only 10 per cent higher than it was 30 years earlier in 1989-90.