'Santa' Clarke's coming to college

If Charles Clarke wanted to retain his reputation as a bruiser, his plans went badly awry when he addressed college leaders last week. The new Education Secretary had them eating out of his hand as he announced the biggest ever funding boost in the history of further education at the Association of Colleges annual conference in Birmingham. Indeed, he was almost embarrassed as questioner after questioner stood up to congratulate him for bringing the Cinderella of the education service to Gordon Brown's funding ball.

He had to remind them that his "Christmas present", an extra £1.2bn over three years came with strings attached in the shape of improved performance by individual colleges. And, as the college leaders recovered from their euphoria, it was clear that the devil would be in the detail.

The immediate impact of the statement was a feeling of optimism. The strike action that has disrupted colleges this term, with the employers refusing to budge from a 2.3 per cent pay offer, could be over. Leaders of the National Association of Teachers in Further and Higher Education had in fact already agreed to suspend a one-day strike planned for 5 December before Mr Clarke started speaking. That was because there were fears there could be a lack of support for action in the run-up to Christmas. The two sides have agreed to meet on 9 December to try to thrash out their differences.

The AoC wants a longer term deal than the one-year offer on the table. It is talking of a three-year deal and – with shades of the firefighters' dispute – is looking at an "extensive modernisation package" altering the structure of the lecturers' pay scale.

Sue Dutton, deputy chief executive of the AoC, says: "There is going to have to be some serious talking about institutional performance." She is glad that the three-year pay settlement from the Government will help enable colleges to plan ahead, she says.

Mr Clarke's plans include the introduction of new performance contracts for individual colleges, under which they will have to agree a package of measures to improve their performance – on items such as drop-out rates and exam performance.

In exchange, there will be a three-tier funding system – with institutions that have improved standards the most getting the biggest increases in their budgets. All colleges will receive a 2 per cent rise next year but – after that – those that failed to reach their performance targets will have their budgets pegged to inflation. Those who reach agreed targets will get 2.5 per cent extra for the next two years and those who excel and exceed targets will receive 3.5 per cent. Mr Clarke expects about 10 per cent of the 420 colleges in England to be likely to underperform.

The college lecturers' union, Natfhe, is willing to discuss modernisation but its biggest worry is that this implies performance-related pay for college lecturers. Teachers are already paid according to performance: a £2,000 salary boost is given to all teachers who pass a performance test on reaching the top of their salary scale.

"What we're totally against is any move into performance-related pay," says Barrie Lovejoy, the head of Natfhe's further education section. "That will be resisted."

Mr Clarke is urging college leaders to "make the most of this once-in-a-generation opportunity" of increased funding. Like the fire service, colleges will have to modernise to meet the challenges of the 21st century, he says.

In his first interview on taking office, Mr Clarke joked about his reputation as a bruiser and said that maybe now was the time to show "his feminine side". Those attending last week's AoC conference may have thought that was what they were witnessing. But as they mulled over the implications of what he said, they must have realised that this was not the case – and a lot of hard work lies ahead.

education@independent.co.uk