Nearly half of colleges at risk of collapse in the next decade due to cuts | Politics - Mirror Online

Ministers have admitted that a pensions black hole will cost colleges over £100 million every year, says Nicola Bartlett, Political Correspondent for the Daily Mirror and Mirror Online.

So far 38 colleges have been put on notice to improve their finances
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Nearly half of colleges in England could be at risk of being unable to pay their debts in the next decade as cuts to funding bite.

Ministers have admitted that a pensions black hole will cost colleges over £100 million every year.

So far 38 colleges have been put on notice to improve their finances, but the government have admitted that this figure is likely to more than double in the next decade.

And the colleges have been given a stark warning to make sure they understand insolvency procedures.

Angela Rayner MP, Labour’s Shadow Secretary of State for Education who uncovered the figures, said: “The Prime Minister promised that austerity is over, but it clearly isn’t for the one hundred colleges facing the real risk of insolvency after years of relentless cuts.”...

Ms Rayner said: “We have seen the number of adult learners fall by one million since 2010 and overall spending on adult skills cut by almost half, just at the time when we need to develop a skilled workforce more than ever, with Brexit looming.

“Now it has been revealed that the Treasury is imposing new unfunded pension costs of £80 million a year from 2020, amounting to over £300,000 per college. So I want to reiterate our call on the government to give all schools and colleges the certainty they need and guarantee that their budgets will be protected from these stealth cuts.
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Source: Mirror Online