(1)The Polytechnics and Colleges Funding Council shall have power to make payments, subject to such terms and conditions as the Council think fit, to—
(a)any local education authority; and
(b)the governing body of any institution designated under section 129 of this Act;
in respect of relevant expenditure incurred or to be incurred by that authority or body of any class or description prescribed for the purposes of this section.
(2)In subsection (1) above “relevant expenditure” means—
(a)in relation to a local education authority, expenditure in making payments to or in respect of persons employed or formerly employed at an institution which provides or (in the case of an institution which has ceased to exist since the employment in question came to an end) formerly provided higher education or further education (or both); and
(b)in relation to the governing body of any institution so designated, expenditure in making payments to or in respect of persons employed or formerly employed at the institution.
(3)The reference in subsection (2)(a) above to higher education or further education (or both) shall be read, in the case of an institution which ceased to exist before the date on which section 120 of this Act comes into force, as a reference to further education within the meaning of section 41 of the 1944 Act as that section had effect immediately before that date.
(4)Each of the following, that is to say—
(a)a local education authority; and
(b)the governing body of any institution so designated;
shall give the Council such information as the Council may require for the purposes of the exercise of their power under subsection (1) above.