A historic women’s college in Surbiton could have most of its funding cut unless it drastically improves its education standards.

Hillcroft College has been told by the Skills Funding Agency (SFA) – which contributes more than £1.5m a year to the South Bank institution – that progress on student achievements has been “insufficient”, and has now sent in consultants to turn the college around.

But if the college continues to flounder, the agency has the option to withdraw its funding, suspend recruitment or terminate its contract.

The move comes more than a year on from the SFA issuing the college with a notice to improve, and five months after an Ofsted inspection deemed Hillcroft to be inadequate.

An SFA spokeswoman said: “Hillcroft is now required to present the agency with recommendations based on a review of the most effective way to deliver education and training.”

Hillcroft was opened in the 1920s by the YWCA, as attitudes towards women changed following the First World War.

It is the UK’s only residential college exclusively for women, offering a range of courses for students of all abilities, including those with dyslexia or dyspraxia.

But the college has been beset by problems in recent years, including in 2010 when it spent £443,000 to cover the cost of a fundraising concert that sold just 3,000 of its 14,000 tickets.

Kingston and Surbiton MP Edward Davey, a patron of Hillcroft, said he would speak to principal Michael Wheeler to offer assistance.

Mr Davey said: “It is important the SFA recognises the unique nature of Hillcroft and the opportunity it provides. As a national residential college for women, it won’t always fit with the pro forma of bureaucrats.

“While it is important the college provides quality teaching, it is also important the FSA recognises the distinct nature of Hillcroft.”

Liberal Democrat Councillor Shiraz Mirza, another patron, said: “I have every faith in the college.

“It is nearly 100 years old and they have had challenges before, and I am confident they will overcome this.”

A Hillcroft spokeswoman said: “The SFA, which provides the majority of our funding, has commissioned external consultants to work with us to identify how we can make improvements.

“This is to ensure the agency’s funding is being provided to courses which are of continuing good quality.

“The governors, the principal and staff will work with the consultants in order to continue to support students in successful studies.”