MPs attacked education department permanent secretary Michael Bichard for his department's "disgraceful" failure to predict growth in further education.
At a meeting of the Public Accounts Select Committee this week Geraint Davies said the sudden withdrawal of demand-led element funding had had "devastating effects on the ground".
Mr Bichard admitted growth had been "very much more than expected" but said the spending had to be reined back. The committee is looking at the management of growth in further education.