FE colleges spent at least £65 million on agency workers last year

Further education colleges spent at least £65 million on agency staff last

year*, according to new figures released today (Friday 11 May).

Information obtained by UNISON, under the freedom of information act,

shows that 170 colleges that replied to the unionÕs request spent a combined

total of £64,613,485 on agency staff. There are 251 FE colleges, meaning the

total bill will be even higher.

The disclosures come as hardworking college staff have seen their incomes

fall in real terms by up to £3,100 over two years, and the cost of living rise by

9.4%. They are also facing the constant threat of job cuts.

The unions are warning colleges that using agencies is a particularly wasteful

way of employing staff. Agencies regularly charge fees as much as three times

the cost of directly employing a member of staff. Colleges also have to pay

20% VAT on agency bills, but do not have to pay this tax when they directly

employ workers.

Colleges with the highest spend on agency staff include Bolton College, which

recently announced plans to introduce £7,000 pay cuts for some teaching

staff. Leeds City College, Rotherham College of Arts and Technology,

Lewisham College, City College Birmingham and the College of Haringey,

Enfield and North East London all spent over £2m on agencies

UNISON and the University and College Union (UCU) will be raising this issue

with employers when they meet themÊon Thursday 17 May.

UNISON head of education, Jon Richards, said: ÒColleges are claiming that they

cannot afford to relieve the pressure on workers and their families by giving

them a pay rise. These staff will be rightly shocked that colleges have tens of

millions to spend on agency workers and on VAT bills. This is a disgraceful

waste of money. It is time for colleges to stop wasting money and mange their

budgets so they can pay workers fairly and safeguard jobs.Ó

UCU head of further education, Barry Lovejoy, said: ÒStaff, who for the last two

years have been forced to suffer real-term pay cuts, will be astonished to see

the amount of money colleges have spent on agencies. How can institutions

use the funding uncertainties in further education as an excuse to keep

salaries down and at the same time sign all this money off?Ó

notes

*The colleges were surveyed in their financial year – 1/8/2010 Ð 31/072011.