College heads have called for a higher education-style fees system to help them hit Government training targets, as ministers urged them to charge more for their courses.
Further education colleges will be expected to ask adult students and employers to pay 40 per cent higher fees from next year under the Government's five-year plan for the sector.
Charles Clarke, the Education Secretary, told delegates at the Association of Colleges annual conference on Tuesday that further education institutions will need to put up fees and diversify their income if they are to meet local training needs.
Mr Clarke said that a £1.37 billion funding increase for further education over the next three years may not be enough to fund growth to meet demand.