Technical consultation on insolvency regime for FE and sixth form colleges launched

15 January 2018

The DfE has launched this technical consultation which runs until 12 February 2018 – you can respond to the consultation online here.

This consultation seeks views on the technical detail of the insolvency regime that will be included in secondary legislation. It sets out proposals on how colleges at risk of, or in, insolvency will be dealt with in practice. Such cases of insolvency are expected to be rare, and the consultation also outlines plans to further improve the monitoring and support available to colleges where they are in financial difficulty.

The Technical and Further Education Act 2017 has already set out the main framework for the insolvency regime. It will apply aspects of normal company insolvency law to further education and sixth form college corporations. It also introduces a special administration regime which is designed to protect the interests of learners in the event of a college becoming insolvent.