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Julie Mercer, a director in the consulting practice at Deloitte commenting on the new Public Service Agreements (PSAs) for education announced in the comprehensive spending review said "A real challenge facing education is the delivery of the new PSAs. These now put a greater emphasis on promoting equality and life chances for those most disadvantaged. They refocus the balance between social cohesion and economic growth.  The Further Education system will need to play a major role in driving this agenda forward working with partners across government including the Department for Work and Pensions, Ministry of Justice and Communities and Local Government, businesses and the third sector.

"Following these changes higher education also faces a challenge in meeting the Government’s declared objective of closing the gap in participation in higher education rates between young people from the top three and the bottom four socio-economic groups.  This is further complicated against the backdrop of changes to how universities are funded and the need to compete on the international market as we move towards 2011.

"Another key challenge for education will be to deliver the government’s aim to ‘increase the number of children and young people on the path to success’. Whilst there has been some progress in the past on a number of the child welfare outcomes such as the recently recognised reduction in teenage pregnancy - departments have often struggled to deliver outcomes where a coordinated multi-agency approach is required.   To deliver this PSA, departments will need to look outside their traditional working boundaries to deliver integrated proposals and improve their understanding of the drivers that effect choice for both young people and their families.

“For both the Department for Innovation, Universities and Skills and The Department for Children, Schools and Families, working across government departments and delivery partners is a common theme running through all of the PSAs. A key challenge will be to identify and implement flexible and innovative approaches that successfully engage and deliver positive outcomes for those hardest to help.”

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