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The phrase 'Cinderella service' was coined by the ex-Minister of Education, Kenneth Baker, in 1989 reflecting the lack of government attention and focus on the further education (FE) sector. This position underwent significant change as a consequence of the Further and Higher Education (FHE) Act of 1992 and the subsequent formation of the Further Education Funding Council (FEFC). The purpose of this chapter is to examine the consequences of incorporation for colleges relating to their changed status with focus on the funding methodology which facilitated independence. This is compared to the previous system which operated through Local Education Authorities. The discussion is based on the author's field research into the policy-making aspects of the FHE Act and seeks to discover whether what has happened in practice is what was originally intended. The implications of funding in terms of the effects they have on middle managers are also discussed using one college as an example.