Colleges 'urged to bid for non-existent funding'

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The Conservatives have accused the government of "actively encouraging" colleges to bid for funding that was not available.

In an Opposition-led debate on skills and the recession, shadow skills secretary David Willetts told ministers that they and the Learning and Skills Council (LSC) had played a "cruel trick" by telling colleges to ask for more money.

But last year, projects at 144 further education colleges were stopped because the Building Colleges for the Future programme had run out of money.

Willetts told MPs: "They've not just been promised funding, often colleges have been encouraged to bid and been told: 'Oh you're only bidding for £20m. £20m is pathetic. Have you thought of going back and bidding for £50m?'

"They have been actively encouraged, even when perhaps originally the idea was refurbishment and modest improvements, they were told: 'No, knock the whole thing down and go for a grandiose capital project.'

"Having had their hopes raised as a result of the LSC and the Department for Innovation, Universities and Skills ministers encouraging them to do so, they now find themselves with their hopes dashed.

"That is a cruel trick to play on a crucial part of the training and skills scene in our country."

Willetts expressed concern that young people would become the "victims of the recession".

He said that the future of young people not in education, employment or training (Neets) meant that he had a "bone to pick" with the skills secretary.

"The number of Neets has gone up," he stated. "It has gone up in absolute terms."

And Willets accused ministers of being "irresponsible" by avoiding these figures.

"The government is so obsessed with only funding the production of paper qualifications," he stated.

And the shadow skills secretary criticised the "savage" reductions in adult education made by the government through its allocated funding.

"I am here to speak on behalf of the 144 colleges that are not being funded," he said.

"What we have got here is an enormous gap between the prime minister, the chancellor, the secretary of state, and the reality."

But skills secretary John Denham replied that no minister had asked colleges to upgrade their bid.

Denham said: "Could you give me one example, just one, of a case where a minister went to a college and asked them to withdraw their bid and put a new one in?

"And if you can't, then I'd be grateful if you'd stop making that allegation."

Willetts argued that the government had to take responsibility in part for the actions of the Learning and Skills Council.

He said: "If you're going to tell us that for the past 18 months, when the LSC was going around telling colleges to bid in for more capital, you knew nothing about it, then you are admitting to an incompetence."

Denham responded: "I do accept ... that the very success of this programme, which is doing so much for the country and for learners has meant the LSC adjusting and readjusting contracts with colleges and providers.

"This has created uncertainty for some colleges and other providers."

On the colleges building programme, the skills secretary admitted: "The position we are in today, with over-commitments made and expectations raised unrealistically high - should not have happened. I've made that clear before."