Senior pay controls for colleges
Updated 10 July 2025
Applies to England
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This publication is available at https://www.gov.uk/government/publications/bite-size-guides-to-aid-colleges-in-meeting-new-requirements-following-reclassification/senior-pay-controls-for-colleges
The Education and Skills Funding Agency (ESFA) closed on 31 March 2025. All activity has moved to the Department for Education (DfE). You should continue to follow this guidance.
Purpose
1: This document is to help colleges understand:
- when and how to seek approval from the Department for Education (DfE) for senior pay when required.
- what they must consider before submitting an application
2: It is one of a series of guides to be issued by the Education and Skills Funding Agency (ESFA) following the decision of the Office for National Statistics (ONS) in November 2022 to classify the English college sector to central government.
Status
3: This document explains requirements for colleges which arise from their status as central government bodies as well as providing guidance in respect of those requirements. The overall requirements for senior pay controls for central government bodies are set out in HMT guidance for approval of senior pay: senior pay controls process. This publication seeks to explain those requirements in the context of the college sector.
4: The requirements set out in this publication will remain in force until such time as it is withdrawn or superseded.
Who is this publication for
5: This guide is primarily for use by:
- college finance directors and accounting officers,
- senior leaders responsible for HR
- college governors as charity trustees
- governance professionals
6: Colleges include further education colleges, sixth for colleges and institutions designated under the Further and Higher Education Act 1992 (‘designated institutions’). This guidance also covers their subsidiaries.
Background
7: We recognise and value the skills and expertise of college leaders within the Further Education sector, and the importance of supporting governing bodies in their decisions on recruitment, reward, and retention whilst ensuring value for money.
8: When ONS decided that English colleges were to be classified to the central government sector this meant that colleges would be subject to senior pay controls for remuneration meeting or exceeding the thresholds as set out in the HMT guidance.
9: For senior pay approvals, colleges will be required to submit a single form for each clearance request. The application will be subject to approval from DfE and HMT.
What to consider before making an application for senior pay approval
10: You should refer to the HMT guidance which sets out the principles of senior pay controls and the requirements for application. Failure to complete an application thoroughly is likely to result in delays to approval or possible rejection.
11: On the HMT application form, you are required to provide justification for the proposed remuneration. The Department’s financial benchmarking tool may help inform your application. Information about principals’ remuneration by college is provided on the Total population tab from columns NI to NP. You should consider factors such as region and provider type/size when assessing whether the proposed remuneration is consistent with that of other providers.
12: The Principal and senior post-holder recruitment section of the governance guide may also be of use. It provides information about good practice when recruiting senior appointments.
Key dates for the DfE approval process
13: To ensure quality of recruitment and appropriate remuneration, the principles set out in the HMT guidance should be applied with immediate effect.
14: Information on how to submit applications is provided in our FE senior pay controls process guide for colleges.
15: From 26 June 2025, remuneration for appointments newly advertised above £174,000 or performance related pay above £25,000 (paragraphs 2.1 to 2.2 of the HMT guidance) must have already been approved. This requirement applies equally to new roles and to new appointments to existing roles previously paying above the HMT threshold.
16: New approval does not need to be sought if the role has had previous approval from HMT and the total remuneration and performance related pay are the same or below what the incumbent receives, or involves an increase of no more than 2%, and the previous HMT approval placed no conditions on the incumbent or subsequent recruitments (paragraphs 2.3 to 2.6 of the HMT guidance).
17. Colleges must notify the department and HMT of their use of the flexibility in paragraph 17 within one month of the appointment being made via email to FE.SENIORPAY@education.gov.uk and provide the information specified in paragraph 2.5 of the HMT guidance.
18: For existing staff whose remuneration exceeds the threshold approval is required for pay awards above 6% (subject to paragraphs 2.10 to 2.13 of the HMT guidance). For remuneration below the threshold approval is required where a pay award of over 6% takes it above the threshold (subject to the same paragraphs in the HMT guidance).
Timeframe for clearance decisions
19: For planning purposes, colleges should allow a minimum of two months for clearance decisions.