A government investigation has found that a well-known Birmingham-based training provider enrolled two learners onto courses without their knowledge and claimed public funding without evidence the learners existed.
Pathway First Limited, which trades as Pathway Group, also issued qualifications to the learners even though they had not studied the course.
The provider, which pressed that this was an “isolated” incident, did not hold sufficient evidence to support the funding claimed for 30 learners in total.
Clawback of £54,000 has since been repaid to the Department for Education.
Pathway First has operated in the skills sector for 22 years and holds adult skills fund contracts with multiple public authorities. It was rated ‘requires improvement’ by Ofsted inspection last summer when it had over 800 adult learners on programmes, nearly 300 of which were funded through advanced learner loans.
The DfE’s investigation examined the provider’s compliance with the government’s AEB funding rules in 2023-24 – a year in which Pathway First held a national adult education budget contract of over £2.4 million.
An investigation outcome report, published today, said: “There were two instances of non-compliance with the AEB funding rules 2023-24 where two learners were enrolled onto a funded learning aim without their knowledge.
“The same two learners were also issued with a maths entry level 3 certificate without undertaking any learning.”
The report added that evidence in evidence packs “did not assure” the DfE’s funding agency the learners “existed”, nor was there evidence that learning was “taking or had taken place”.
This was related to two learners, but inaccurate information was reported for 30 students in total which resulted in an overpayment of the funding claimed.
‘Pathway First cooperated fully’
Investigators said Pathway First has informed the DfE that it has implemented several “activities to improve compliance”, including to “internal processes and procedures in areas such as compliant enrolment, learner attendance and absence management review”.
Staff training has also “been identified as a measure to support improvement”.
Pathway First Limited is led by chief executive Safaraz Ali, a well-known figure in the skills sector who founded the Multicultural Apprenticeships Awards and was awarded an MBE for services to diversity and inclusion in business in the King’s New Year Honours 2026.
A Pathway First spokesperson said: “Pathway First Limited acknowledged the publication of the DfE’s investigation outcome report.
“The investigation related to an isolated element of historic learner activity within our adult education budget provision.
“Pathway First Limited cooperated fully throughout the process. The DfE have acknowledged our remediation and have thanked us for our co-operation and transparency during the whole process.
“Pathway First Limited has operated as an education and skills provider for over 22 years and remains focused on widening participation in skills and employability, particularly within diverse communities.”
Pathway First currently holds adult skills fund (ASF) contracts with devolved authorities such as West Midlands Combined Authority, which awarded it £471,000 this year, a significant drop from £1.8 million awarded in 2024-25.
In 2025-26, it was awarded a grant from the Greater London Authority for £162,040 and it also holds a three-year contract until 2028 worth £1.9 million with East Midlands Combined County Authority.
Cambridgeshire & Peterborough Combined Authority awarded Pathway First £100,000 in 2024-25 but it has not been named in this year’s allocations.
FE Week understands Pathway First has not faced any contract terminations as a result of the DfE’s investigation.
Your thoughts