Croydon Council is recommending its entire adult education service is outsourced to third party providers, putting nearly 200 roles at risk.
Council officers are favouring the option after an independent review warned the service will run out of money unless anything is done.
The recommended move comes after Croydon Adult Learning and Training (CALAT) was told it must relocate its services from its former base at the Croydon Clocktower earlier this year.
CALAT is currently run by Croydon Council, and provides adult education and training for residents across the borough. However, external consultants have warned the service’s current financial model is unsustainable.
Of the £4.6 million in Mayor of London grant funding provided for the training, consultants found that £4.5 million was projected to be spent on CALAT staff wages. The council says this leaves little funding to cover other costs, such as premises and running expenses, resulting in an estimated 20 per cent budget deficit.
In reports published ahead of next week’s Cabinet meeting, council officers considered four options to deal with the issue, before recommending a full outsourcing of the CALAT service to colleges, charities and community training groups.
The other alternatives included keeping classes in-house, adopting a split model, or scrapping the service altogether and returning the funding to the Mayor of London.
While the council insists no final decisions have yet been made, the recommended outsourcing of the service could impact 197 CALAT workers, including 49 permanent employees, four temporary workers and 144 casual tutors.
These staff members now face potential redundancies, restructuring, or transferral over to external private or charity training operators via the TUPE regulations.
Teaching unions and frontline staff have expressed concern over the proposed changes, warning that handing classes to outside contractors will threaten job security and damage learner support.
Reports say staff also fear breaking up the council-run team could damage teaching quality and disrupt trusted relationships built up over decades.
Despite this, the council reports have rated the risk to vulnerable people as low, adding that any future teaching contracts will legally require new providers to maintain standards.
Thousands of local residents rely on CALAT’s courses each year, including nearly 600 learners with disabilities and many adults learning English.
Around 70 per cent of students on skills courses come from ethnic minority backgrounds, with more than half living in Croydon’s poorest neighbourhoods.
The Local Democracy Reporting Service understands CALAT is in the process of relocating most of its classes to Strand House in Thornton Heath after the forced move from Croydon Clocktower.
The council told the LDRS the move represents “a sensible use of the council’s estate” which aligns with its transformation plans. The council also said it remains fully committed to adult learning in Croydon.
However, at the time, Labour Shadow Cabinet Member for Children & Young People, Brigitte Graham, accused the council of keeping workers in the dark about the future of more than 500 courses.
The recommendations will go to Cabinet on October 14, launching a three-week public consultation before a final decision is made.
Announcing the planned changes, Executive Mayor Jason Perry said: “My priority to restore pride in Croydon means backing our residents’ aspirations and helping them get on in life.
“CALAT has helped thousands of people gain skills, qualifications and confidence, and we want to make sure it continues to support local needs.
“The independent review recommends bringing in specialist providers to strengthen the offer for learners and put the service on a sustainable footing. Under the recommended model, the council would continue to set priorities and oversee delivery, whilst drawing on specialist expertise to improve opportunities for residents.
“Our focus is on high-quality learning that meets local needs and delivers good value for public money.
“We will listen carefully to learners, staff and residents through the consultation before making a final decision.”
