§ Mr. Jim CunninghamTo ask the Secretary of State for Education and Skills whether there will be a ceiling to increases in funding for FE colleges that continually exceed their targets; and whether the premium rate of funding increase will be reduced as more FE colleges exceed their targets. [86889]
§ Margaret Hodge[holding answer 16 December 2002]: We want to see a continuing incentive for colleges to continually improve and we are working with the Learning and Skills Council (LSC) on the detailed proposals for the future funding of further education colleges. The strategy document "Success for All" sets out our intention that excellent colleges, which exceed their targets, enjoy a 3.5 per cent. real terms increase in each of 2004–05 and 2005–06 with no ceiling. This premium rate of increase will not change in those years as the percentage of colleges eligible grows.