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  1. Summary

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Summary

Consultation on Developing an Insolvency Regime for the Further Education and Sixth Form Sector.

This consultation seeks comments on proposals to introduce procedures for further education and sixth form colleges which become insolvent (unable to pay their debts). The proposals include a Special Administration Regime which would give extra protection to ensure continuity of service.

The insolvency regime would be designed to:

  • Protect learners from disruption to their courses

  • Help the rehabilitation of the college, where possible

  • Provide an orderly winding up procedure if a college becomes insolvent

DfE are proposing insolvency procedures for colleges in line with those provided for companies under the Insolvency Act 1996, including administration and liquidation, as well as a Special Administration Regime.

Collab Group is broadly supportive of this proposal, but raise a number of concerns.

In developing the implementation plan we would like the government to think carefully about protecting access for learners and about the financial and governance implications the bill may have on healthy colleges. These challenges are not insurmountable, and the benefit of an insolvency regime to the sector is undeniable.

At its best, the opportunity presented by this bill could ensure that each college across the country is delivering in the best way possible for its local community, as a productive business as well as an effective training provider.

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