WARWICKSHIRE College Group has exited government intervention after taking measures to secure its finances.
The group – which teaches some 11,500 students at colleges in Leamington, Moreton Morrell, Rugby and Warwick, together with Pershore in Worcestershire – received a financial support bailout package from the government in 2024.
A Department for Education (DfE) report at the time stated the college urgently needed £1.7million to keep running. WCG also asked for government help to refinance the remainder of a £3million bank loan which it was in danger of defaulting on.
Staff wages were highlighted as a major reason for WCG’s financial troubles.
The DfE report described wages as “significantly above budget”, accounting for more than 70 per cent of the group’s total income of £51.6million in the previous financial year.
It prompted the DfE to intervene and issue a Notice to Improve (NtI), severely limiting WCG’s control over how it operated.
But 18 months on, the DfE have now confirmed the Ntl has been lifted allowing WCG to once again access targeted funds and development opportunities that were previously restricted due to its so-called intervention status.
WCG’s CEO and principal Sara-Jane Watkins – who took up the job in September 2024, and who was praised in the original damning DofE report for her “positive, joined up approach to leadership and governance” – said the lifting of the Ntl marked a new era.
She told The Observer: “Moving out of intervention is a pivotal moment for WCG.
“It demonstrates the DfE’s confidence in our recovery and our strategic direction. This progress is the result of an incredible collective effort from our new executive team and staff across all our campuses.
“We have moved at a rapid pace to address inherited financial issues, making tough decisions to ensure we have a sustainable foundation.
“Our commitment to our communities, our staff, and our students remains resolute. I would also like to note that the support provided by the Further Education Commissioner’s team (at the DfE) throughout this process has been excellent.”
During the intervention, WCG underwent a major leadership restructuring, including newly appointed campus principals at every site.
Addressing the financial problems included the closure of Evesham New College and the consolidation of its provision into Pershore College.
It also including the sale of its Malvern Hills Campus and the closing down of Pershore College Garden Centre and Wholesale Plant Nursery in summer 2025, which had operated on the site for more than 30 years.
Moving forward, WCG has agreed a post intervention monitoring and support plan with the Further Education Commissioner to ensure future progress.
