22 November 2002
Unions responded by suspending strike action planned for December over a 2.3% pay offer. The Association of Colleges and the six trade unions, including the Association of Teachers and Lecturers, will resume negotiations next month.
The funding package, announced by Clarke at the AoC conference on November 19, will see a real-terms cash increase for colleges of 19% between 2003 and 2006. The sector will also move to a system of three-year funding agreements linked strongly to performance.
Each college will negotiate an individual performance contract, along the lines of local Public Service Agreements. The three main target areas will be student numbers, pass rates and the number of professional qualifications for teachers.
Next year, all colleges will receive a real-terms increase of 2%. Over the following years until 2005/06, this will increase incrementally – to 2.5% if targets are met and to 3.5% for high performers. Poor performers can expect only an inflation-based increase plus 'government help'.
Capital investment will also rise to over £400m by 2005/06.
Clarke announced several changes to the funding system to channel up to £100m from ringfenced schemes such as the Teaching Pay Initiative into 'core funding'. He also abolished the requirement for colleges to make 1% per year efficiency savings.
Clarke told the conference that the cash would 'address structural pay issues' and narrow the funding gap between FE and schools.
'Change in the sector is desperately needed – for too long it has been the forgotten service of the education world,' he added.
The AoC said the deal was the best the sector had ever received and would place colleges on a firm financial basis.
'What Charles Clarke has given is a powerful vote of confidence in colleges and their ability to deliver the government's goals,' said David Gibson, AoC chief executive. 'While the gap between schools and colleges still exists, the announcement goes some way to creating equality.'
PFnov2002
