LEADERS at Derwen College have spoken for the first time about the financial pressures which have forced a transformation in specialist teaching establishments around the country.

In Derwen’s case, the implications following the implementation of the Children’s and Families Act 2014 have been severe.

Receiving fees is now such a trial that governors are currently considering writing off a debt of £400,000. A total of £65,000 which is owed by current leavers is still unpaid and will also have to be written off, and £1.1m is still owed this term from local authorities which should have been paid by now.

Ruth Thomas, the college chief executive, said: “The essence of the Act is great, putting the young person at the heart of everything we do.

“We have no problem with that at all – it’s the unintended consequences that followed that have caused some concerns.

“At the same time there were funding reforms. Local authorities are now responsible for young people placed in specialist colleges.

“Before the funding reforms, all the money came to us centrally. Students came from all over the country and were paid for from a central pot. Now, local authorities are responsible.

“In terms of late payments, the vast majority are the responsibility of the local authority where the student lives.

“But within a local authority, we might be dealing with three departments: education – which usually pays the greater sum – followed closely by social care, and occasionally health.

“We are finding they don’t talk to each other and then have wrangles internally about who is paying for what, and why.

“None of that existed before 2014. We did not have that problem at all.”