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FE Budget

Volume 451: debated on Tuesday 7 November 2006

To ask the Secretary of State for Education and Skills what the (a) total budget and (b) budget per pupil was at 2006 prices for further education in each of the last 20 years. (93514)

The Government have increased total investment in further education for participation and other FE expenditure by 48 per cent. in real terms between 1997 and 2005.

The participation expenditure for further education and the participation unit of funding per full-time equivalent student in each year from 1997-98 to 2007-08 are provided in the following tables. The figures for 2005-06 reflect plans as outturn is not yet known on unit funding.

Table 1: Further education participation expenditure (cash)

Total FE participation1 (£ million)

Actual

1997-98

3,131.4

1998-99

3,101.6

1999-2000

3,216.4

2000-01

3,311.0

2001-02

3,643.8

2002-03

3,823.2

2003-04

4,274.3

2004-05

4,323.9

Planned

2005-06

4,871.8

2006-07

4,949.2

2007-08

5,101.9

1 FE participation funding excludes funding for colleges for other types of participation, raising standards, capacity building and capital. These are included in total FE funding, eg when calculating the 48 per cent. increase in overall FE funding. Note: Participation figures shown include some targeted funds (Teachers’ Pension Scheme, Teachers’ Pay Initiative and some Standards Fund resources) which were consolidated in 2003-04; and LSC funding for learners with learning difficulties and/or disabilities. They do not include UfI/Learndirect or Personal Community Development/Adult Community Learning.

Prior to 2001-02, the figures quoted represent expenditure by the Further Education Funding Council (FEFC), and we cannot disaggregate at a lower level than this, therefore these figures may include some administration and non-participation costs.

Table 2: FE participation unit of funding per full-time equivalent student

Funding for participation (cash) (£)

Real terms index

Actual

1997-98

13,070

100

1998-99

3,090

98

1999-2000

23,290

102

2000-01

3,470

107

2001-02

33,810

114

2002-03

3,940

115

2003-044

4,360

124

2003-044

4,310

100

Provisional

2004-05

4,320

98

Planned

2005-06

4,890

109

2006-07

4,970

108

2007-08

5,160

109

1 1997-98 only, includes assumed additional employer contributions. 2 From 1999/2000 onwards, excludes 18,500 FTE Higher National Certificate/Diploma students and associated funding which was transferred to HEFCE. 3 From 2001-02 onwards, includes funding for Teacher Pay Initiative, Teachers’ Pension Scheme, and some Standards Funds resources. 4 A technical change to the measurement of FTEs in 2003-04 means that there is a break in the series. This does not affect total funding, but does result in a larger estimate of FTEs, and so a small reduction in the unit funding estimate. Both figures are available for 2003-04 as shown to indicate the difference. It also means that the real terms index must be re-based in 2003-04 and a separate series shown from this point onwards.

Unit funding per full time equivalent (FTE) in further education between 1997-98 and 2005-06 in real terms is provided in the table above, with the real terms index, based with 1997-98 as 100. This information is based on the departmental annual report 2006 (DAR 2006) and all other footnotes from the version of this table in DAR 2006 also apply.

The change in figures for 2003-04 does not represent a reduction in unit costs. Instead it represents a change in the method of measuring FTE, meaning that learners are counted from October rather than November.