There’s no denying that the academy brand is at the heart of the Government’s education policy. Conversion will help offset these costs and may provide access to some funding initiatives which are not currently accessible to sixth form colleges, for example assistance with insurance premiums. Colleges need to make savings just to stand still because the national sixth form funding rate is fixed at £4,000 regardless of any inflation or pay pressure. This April’s National Insurance increase will cost the average sixth form college more than £150,000 a year. Although most sixth form colleges have good or satisfactory financial health, the prospects are tough. The main benefits from conversion are financial and these are important. As with any changes, there are always pros and cons, so this week’s blog will try to break these down. Conversion doesn’t tackle the underlying issues about the differential tax treatment of schools and colleges but deserves to be considered carefully by every governing body against other options raised in the area review process. If a sixth form college converts, it can expect to secure £250,000 a year in refunded VAT which will make a helpful contribution to protecting high quality, specialist provision. The Government has responded to years of questions about VAT by giving sixth form colleges the option to convert to academy status. This year sixth form colleges will face a big decision.
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