HC Deb 11 December 1997 vol 302 cc654-5W
26. Mr. Tyler

To ask the Secretary of State for Education and Employment what assessment he has made of the impact of the demand-led formula on the financing of further education colleges; and what proposals he has to address the current financial problems of further education colleges. [18775]

Dr. Howells

The demand-led element was withdrawn by the previous Government. The additional funding for further education next year, announced by my right hon. Friend on 12 November, provides for the resumption of growth on a financially sound basis. The funding provides for an additional 20,000 full-time equivalent students, with the efficiency squeeze on the sector restricted to the costs arising from inflation.

Mrs. Gordon

To ask the Secretary of State for Education and Employment what financial resources are being made available to further education colleges in England in advance of the New Deal. [20743]

Laura Moffatt

To ask the Secretary of State for Education and Employment what financial resources are being made available to further education colleges in England in advance of the New Deal. [20878]

Mr. Blunkett

I am announcing today that we intend to provide £6.05 million of additional resources for Further Education colleges to be financed from Windfall Tax receipts. This will enable them to provide relevant courses from January to JSA claimants under the New Deal in advance of its implementation in April. The additional money will enable FE colleges to make better use of their capacity to tackle unemployment amongst young people.

Mr. Willis

To ask the Secretary of State for Education and Employment what estimate he has made of the effect on further education college budgets of the proposed changes to EU Social Fund provision. [19139]

Dr. Howells

Colleges will have the opportunity in 1998 and 1999 to bid for some £140 million available from Objective 4 of the European Social Fund, to help prepare workers for industrial change.

Mr. Willis

To ask the Secretary of State for Education and Employment if he will list the surplus or deficit of each further education college ordered by region. [19140]

Dr. Howells

I have asked the Chief Executive of the Further Education Funding Council to write to the hon. Member concerning this matter.

Mr. Willis

To ask the Secretary of State for Education and Employment (1) what proposals he has to address the current funding deficit in respect of further education colleges; [19228]

(2) what assessment he has made of the effect of ending the demand led formula in respect of funding further education colleges on the financial situation of such colleges; [19229]

(3) What plans he has to compensate further education colleges for the loss of the demand led element in Janaury; and if he will make a statement. [19135]

Dr. Howells

The demand-led element was withdrawn by the previous Government. The additional funding for further education next year, announced by my right hon. Friend on 12 November, provides for the resumption of growth on a financially sound basis. The funding provides for an additional 20,000 full-time equivalent students, with the efficiency squeeze on the sector restricted to the costs arising from inflation.

Dr. Kumar

To ask the Secretary of State for Education and Employment what funds he will make available to assist colleges of further education in the Teesside region for the year 1998–99. [19255]

Dr. Howells

On 12 November, my right hon. Friend announced additional funding for the sector next year. The Further Education Funding Council will take decisions, in the light of guidance from my right hon. Friend, on the general principles to be applied to funding for the academic year 1998–99. Allocations of funding to sector colleges within given regions are the responsibility of the Council, which will make them early next year.