Insolvency in the Further and Higher Education Sector
Produced in partnership with Neil Smyth of Mills & Reeve LLP

The following Restructuring & Insolvency practice note produced in partnership with Neil Smyth of Mills & Reeve LLP provides comprehensive and up to date legal information covering:

  • Insolvency in the Further and Higher Education Sector
  • Coronavirus (COVID-19)
  • Background
  • What did the TAFEA 2017 introduce?
  • What bodies does this apply to?
  • How does TAFEA 2017 deal with decision making procedures?
  • Restrictions on the use of normal insolvency procedures
  • Out-of-court administration
  • Administration Orders
  • Winding up orders
  • More...

Insolvency in the Further and Higher Education Sector

This Practice Note summarises the insolvency regime introduced by the Technical and Further Education Act 2017 (TAFEA 2017), the Further Education Bodies (Insolvency) Regulations 2019 (FEBR 2019), SI 2019/138 and the Education Administration Rules 2018 (EAR 2018), SI 2018/1135 which came into force on 31 January 2019.

TAFEA 2017 sets out the framework of an insolvency regime which applies to further education and Sixth form colleges in England and Wales.

It also introduces a special administration regime which is aimed at protecting the interests of learners at an insolvent college.

Coronavirus (COVID-19)

The Department for Education has established a Higher Education Restructuring Regime for higher education providers who are facing coronavirus related financial difficulties and are at risk of insolvency, see: LNB News 03/08/2020 26. The scheme will review the provider’s circumstances and assess the case for support (ie repayable loans), although these will come with strict conditions, including the provider needing to ‘be aligned with the government’s wider priorities’. The Department for Education has also published guidance for applicants, see: LNB News 16/12/2020 56 and News Analysis: Guidance on higher education restructuring scheme issued.

For further materials on the impact of the coronavirus pandemic generally, take a look at our Coronavirus (COVID-19) toolkit. For related news, guidance and other resources to assist practitioners working on restructuring and insolvency matters, see: Coronavirus

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