“There are some positive indicators of value for money
in the Department’s expenditure on educating 16- to 18-year-olds. A
number of issues will need to be addressed, including performance
management and accountability arrangements, before I can conclude
that value for money is being delivered across the
board.”
Amyas Morse, head of the National
Audit Office, 23 March 2011
Increases in expenditure on education for 16-
to 18-year-olds, which now stands at £6 billion per year, have been
matched by improvements in students’ achievements and increasing
participation of 16- to 18-year-olds in education. Nevertheless,
the National Audit Office cannot conclude that value for money is
being delivered across the system because of variation in the
arrangements for accountability, performance monitoring and
intervention where poor performance exists.
Students achieve, on average, better academic
progress and results in institutions educating large numbers of 16-
to 18-year-olds, whether colleges or school sixth forms. Sixth-form
colleges perform best on most measures of student achievement,
despite currently receiving £280 per student less funding than
school sixth forms. The Department for Education has taken steps to
reduce inconsistency in how different provider types are funded and
has committed to bringing the funding levels for school sixth forms
into line with colleges by 2015.
Although there are clear arrangements for
dealing with poor performance in colleges, there is no consistent
approach to dealing with poor performance in school sixth forms. In
addition, the inspection frameworks and performance and financial
reporting requirements for the various types of provider are not
consistent.
Many schools and colleges have improved their management of
back-office costs through good practice in procurement. However,
direct costs including teaching staff account for over 60 per cent
of a provider’s costs and some providers have a poor understanding
of how to manage these costs. The Department for Education needs to
understand better how expenditure can most effectively improve
pupils’ achievement and progression to higher education or
employment.
Publication details:
HC: 823, 2010-2011
ISBN: 9780102969597