Recently, the DfE published the accounting details for academies and free schools and their Trusts and Committees for the year September 2020 to August 2021. Academies consolidated annual report and accounts: 2020 to 2021 – GOV.UK (www.gov.uk)

There are several interesting annexes. One contains 15 pages of Trusts where at least one member of staff was paid more than £150,000 as recorded in the accounts for that year! However, more relevant for the purpose of this post is the list of schools with deficit balances. The list contains 12 identified University Technical Colleges (UTCs) plus a Trust with 4 UTCs in its portfolio of schools three of which appear to have negative balances in the Trust’s 2022 accounts).

This means that possibly 16 out of the 47 UTC could possibly have been in deficit in this accounting year. Home | University Technical Colleges (utcolleges.org) cites 47 colleges.

This means that at least a third of the UTC sector might have been in deficit in the 2020-21 accounting year. I cannot say that I am surprised. Way back in 2017, this blog contained my post Can UTCs survive? | John Howson (wordpress.com) asking whether UTCs could survive.

I am not opposed to the idea of a UTC, but here is part of what I wrote in a 2106 post on the topic.

‘So, might UTCs be set to become the ‘De Lorean’ of the education world; a good idea, but not financially viable? Having visited the Didcot UTC recently, I can see the attraction of the concept as supported by Lord Baker. But, they do run into a number of challenges. Firstly, changing school at 14 isn’t a normal part of the school scene, so the UTCs have to persuade young people and their parents that the change is worthwhile. Secondly, the schools that they are departing from will lose cash for every pupil that transfers. After four years a school losing ten pupils a year could be £200,000 down on income, but still be trying to offer the same curriculum to its remaining pupils. Lose twenty pupils a year and the cash burn become even more concerning. Some schools might fight to keep their pupils or only be interested in losing those that cost more to educate than they generate in revenue.’ W(h)ither UTCs? | John Howson (wordpress.com)

Since then we have had the National Funding Formula covering two years of most UTC’s rolls, with the other two years being funded by the post-16 funding that has never been seen as generous.

Even with increasing pupil numbers in the secondary sector, the fact that most UTCs recruit at age 14 and don’t have free travel probably restricts their ability to grow unless they are in an area of significant housebuilding, as is the Didcot UTC mentioned above. Even there, the issue of loss at 16 to other institutions or apprenticeships can significantly affect the UTC’s income. For many, being science and technology biased in their curriculum, also affects their outgoings, both in resources and in attracting STEM subject teachers.

So, where will the UTC programme go, even with the support of Lord Baker?