Ninety-three Sixth Form College Corporations, created from 1 April 2010 following the passage of the Apprentice, Skills Children and Learning Act 2009, have been classified as Local Government entities for the purposes of the National Accounts.
In the course of the reaching this decision, ONS reviewed the existing classification of other further education institutions in England and Wales using Eurostat’s Manual on Government Deficit and Debt, which has been published since the original classification decision was taken in the late 1990s.
ONS has decided that Further Education (FE) Corporations in England and Wales should be reclassified, from Non-Profit Institutions Serving Households (NPISH) to Central Government, from their inception in April 1993.
NPISH is often known as the 'third sector'; in National Accounts, NPISH is part of the private sector.
Similar analysis of education systems of Scotland and Northern Ireland results in the reclassification of Colleges of Further Education in Scotland, and Institutions of Further Education in Northern Ireland from NPISH to the Central Government sector. These changes take effect from 1 April 1993 in Scotland, and 1989 in Northern Ireland.
This article explains the rationale for these decisions.