A poor track history in getting good results means further education colleges will have to meet targets similar to those set for schools.

Under the new efficiency drive, colleges in England which excel will be given rewards, but those which fall short will see "firm intervention", which could lead to closure.

There is not enough good quality overall and standards are not as high as learners deserve

Estelle Morris

The government strategy will also see lecturers receiving extra training to brush up on their teaching skills.

It is believed the government decided to take action because drop-out rates for the further education sector - which serves four million students - are running at one in five.

And only 56% of students who started a long course, such as A-level, are leaving college with a qualification.

The Education Secretary Estelle Morris gave details of the scheme at a conference of the Learning and Skills Development Agency at Lords Cricket Ground in London on Wednesday.

She said there would be �43m funding to support the initiative, including an average of �50,000 per college for new equipment and improved classrooms.

The FE sector caters for about four million students

Ms Morris also announced a review of post-16 education, which will see the creation of new institutions and more training opportunities for local businesses.

Further education and training was "absolutely central" to the government's education and skills priorities, said Ms Morris, but improvements must be made.

"We have some world-class colleges, which we should not hesitate to celebrate," Ms Morris said.

"But there is not enough good quality overall and standards are not as high as learners deserve.

"There has been a history of weak accountability in the learning and skills sector. Too many colleges were allowed to coast for too long."

Best practice

Plans to give lecturers more training were welcomed by the Association of Colleges.

"Putting more research and effort into finding the best ways of teaching in many areas can only be helpful," a spokeswoman said.

"But it has got to be done with the very closest co-operation with the people actually doing the teaching now."

But the announcement could antagonise lecturers who are currently in dispute over pay and conditions and have rejected a new improved pay offer of 2.3%.

General secretary of the lecturers' union, Natfhe, said the union was "always prepared to engage in discussion to improve the quality of further education".

He added: "College staff are already over-burdened, de-moralised and burnt out with new initiatives."

"Any plan to address standards in colleges must tackle the massive 12% pay gap between schoolteachers and FE lecturers as a matter of urgency."

Call for funding

On Tuesday, peers called on the government to close the funding gap between school sixth forms and further education colleges.

Labour peer Lord Dormand of Easington said FE lecturers were paid �2,000 a year less than teachers in sixth forms for teaching the same subject.

At Lords' question time, he called on the government to address the "glaring anomaly" between the two sectors.