Part 3: Protection for Learners Further education in England: intervention Section 23: Further Education in England: intervention
The Secretary of State has intervention powers under the Further and Higher Education Act 1992, which can be used where there is serious failure including mismanagement, underperformance and failure to discharge a statutory duty. This section strengthens these existing powers so that intervention action can also be taken where the education or training provided by an institution is failing, or has failed, to adequately meet local needs. This section will also enable the Secretary of State to issue a direction to a governing body, requiring it to make a structural change such as a merger. These provisions are needed so that the Government can intervene to secure improvement where that is not possible through other means.
	This section amends the statutory intervention powers in section 56A of the Further and Higher Education Act 1992 that apply to further education colleges, designated institutions and certain other bodies that provide further education (other than institutions within the higher education sector). It also amends the statutory intervention powers that apply to sixth form colleges, in section 56E of the Further and Higher Education Act 1992. The amendments are as follows:
Subsection (2)(a) extends the circumstances in which the Secretary of State may use the powers to include cases where the education or training provided by an institution is failing or has failed to adequately meet local needs. Under subsection (2)(b), new sections 56A(2A) to (2C) provide that for the purposes of new subsection 56A(2)(e), the Secretary of State must take into account any approved local skills improvement plan that applied to the institution when the education or training was provided.
Where the conditions for the use of the statutory intervention powers are met, subsection (2)(c)(i) amends section 56A(7)(b) of the Further and Higher Education Act 1992, in so far as it applies to a direction requiring the governing body of a designated institution (rather than a further education corporation) to dissolve itself. Subsection (2)(c)(ii) enables the Secretary of State to direct the governing body in respect of the transfer of property, rights or liabilities, for example to effect a merger, when one institution is dissolved and its activities are transferred to another body.
Subsection (2)(d) applies in cases where the Secretary of State directs the dissolution of the governing body (which is already possible under the existing legislation. It requires the governing body of a further education corporation to transfer property, rights or liabilities on the dissolution date (as permitted under section 27B of the Further and Higher Education Act 1992 in the case of a voluntary dissolution), unless the Secretary of State directs otherwise.
Subsection (2)(e) requires that where another party – such as a merger partner – is named in a direction under subsection (2)(c), this can only be done with the agreement of that party.
Subsection (2)(f) sets out that before making a direction for the transfer of property, rights or liabilities, the Secretary of State must consult the Competition and Markets Authority in respect of competition effects. The merger control provisions set out in Part 3 of the Enterprise Act 2002 would not apply in these cases.  The Secretary of State is able to provide financial assistance in connection with a direction. This could include, for example, loans, grants, guarantees or any other form of financial assistance.
Subsection (3) makes the same amendments as made in subsection (2), but to section 56E of the Further and Higher Education Act 1992. These provisions relate to intervention powers in respect of sixth form college corporations, which closely mirror those for further education college corporations and designated institutions.