The recession has driven up the number of school children staying on for further education after the age of 16 and has taken the government by surprise with demand far outstripping the budget. The current level of funding would not even cover the same number of pupils who registered in September 2008 and the 2009 figures are expected to be far in excess of this.

The budget for post 16 education was cut by 3.7% for sixth forms and by 2% for FE colleges. The situation changed dramatically and quickly from March when institutions were reassured by the LSC that their budgets were probably safe.

But the LSC was depending upon additional funds from the Department for Children, Schools and Families (DCSF), which never materialised.

Local authorities are duty bound to offer a place in education or training to all 16 year olds that want one and this decision seems at odds with both that pledge and the guaranteed funding for an additional 37,000 apprenticeships this year.