Stuart Anderson MP has called for independent specialist colleges to be “fully compensated” for costs incurred by the upcoming hike in national insurance. There are around 140 post-16 specialist colleges in the UK. They are mostly charitable or private organisations, so are not publicly funded. They cater for young adults with special educational needs and disabilities (SEND).
Over 150,000 young people attend special educational needs schools or colleges in England. Oxford Economics in 2018 found that independent schools in the UK save the taxpayer £3.5 billion every year by providing places for pupils who could otherwise be expected to take up a place in the state-funded sector.
The Association of National Specialist Colleges (Natspec) has stated that the tax hike will create a “significant financial burden” for specialist FE colleges. It has Natspec has added that this is because of their “high staff to student ratios.” It estimates this could increase employer costs by up to £900 per employee.
Recently, the Department for Education said it “will receive compensation in recognition of the increase in National Insurance Contributions paid by state-funded schools and colleges." Yet, it is not clear whether this provision will be extended to specialist colleges, which often have high staff to student ratios. This enables them to provide tailored tuition to children in need of extra support.
This means that the increased costs will have a disproportionate impact on this sector. So, Stuart has written to Exchequer Secretary Mr James Murray MP. He has said that Ministers must include specialist colleges in their compensation plans. Stuart has added that he is committed to ensuring specialist colleges are not unfairly disadvantaged by the tax hike.
Stuart Anderson MP said:
"As a parent, I want to ensure every child is supported to succeed. Specialist education colleges provide high-quality education to thousands of young people with special educational needs and disabilities. As charitable organisations, they create valued places for those who require tailored support. This means they often have high staff to student ratios than counterparts in the state-funded sector. It means increased costs from April's hike on employer's National Insurance Contributions will have a disproportionate impact on this sector. So, I have called on Ministers to fully compensate them."
