New statutory insolvency regime for FE colleges

The government is introducing a new statutory insolvency regime for further education (FE) colleges. 

A consultation on the introduction of a new regime took place in 2016, securing Royal Assent as the Technical and Further Education Act 2017.

The new regime will entail:

  • Introducing a new statutory insolvency regime for FE colleges to ensure there is legal clarity about what will happen in the exceptional event of a college entering insolvency, including protection for current students.
  • Reviewing and strengthening the FE college intervention regime so that the right processes are in place to identify quality and financial issues within FE colleges earlier, delivering appropriate support and intervention, and focusing on preventing colleges getting into a position of insolvency.

To build awareness among FE colleges, a Q&A on the forthcoming changes has been published by the Department for Education, and further details will be released in April, setting out what is changing within the FE college intervention regime.

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