Further education

This evidence should prompt us to look beyond simple financial incentives for classroom attendance.

This report studies the long-run effect of the Education Maintenance Allowance on educational attainment, earnings and crime.

To maintain spending per student at 2025–26 levels, total funding would need to rise by almost £200 million in today's prices by the end of 2027–28.

Although there has been some improvement since 2017, 37% of colleges reported operating in deficit in 2022–23.

Public funding for adult skills has declined significantly since its peak in the early 2000s.

There have been large and sustained reductions to public spending on classroom-based learning over time.

The new funding rates for the 2024–25 academic year establish a consistent hourly rate, simplifying the funding system.

The proportion of funding directed to higher-level apprenticeships (level 4 and above) has trebled between 2017–18 and 2021–22 from 13% to 39%.

This chart compares the trends in public spending per student on various stages of education over time in England. 

Rising student numbers and inflationary pressures mean that funding per student has not increased significantly beyond 2019–20 levels. 

Increased funding from the last government only partially offsets the cuts to 16–18 education of the previous decade. 

Our latest report on education spending in England shows how further education has faced some of the deepest funding cuts across the education system.

The launch of 2024/25 IFS Annual Report on Education Spending in England, funded by the Nuffield Foundation

This annual report contains our latest estimates of spending per pupil and resource challenges across different stages of education in England.

This report sets out the financial state of colleges in England since 2010 and analyses the key future challenges they face.