Recently Britain has manifested its ambitions to improve the level of skills and qualifications of the labor force by enhancing the vocational education and training. It shows in the transition from the Department for the Education and Employment(DfEE) to the Department for the Education and Skills(DfES) in the U.K government. The further education colleges in Britain which have been the major provider of vocational education and training are now being faced with the task to fulfill the national aim. The post-16 education sector, however, has been a complicated sector with vocational education and training as well as academic programs. Based on the Education Reform Act 1988 and Further and Higher Education Act 1992, further education colleges have experienced substantial changes in their adminstration, funding and management. The role of FEFC(the Further Education Funding Council) which has been critical in the shaping of the characteristics of the colleges has been analysed as a part of relating government policies. A DfEE(1999) Technical Consultation Paper, Learning to succeed; A new framework for post-16 learning has been analysed to provide an overview of the government policies with emphasis on their impact on the further education colleges.