Influential group of MPs demand action over lack of apprenticeship assessment organisations

Government apprenticeship policies have come in for stern criticism in a new report by MPs, that insisted standards should have at least one approved assessment organisation in place before they’re delivered.

The sub-committee on education, skills and the economy, formed from the education and business select committees, gave a total of 36 conclusions and recommendations in the comprehensive report out today, which looked at all aspects of the apprenticeship reforms.

One of the key issues raised was that “apprentices should not have been allowed to begin their training without an assessment organisation in place and a clear idea of how their success will be measured”.

The committee, chaired jointly by MPs Neil Carmichael and Iain Wrightrecommended that “standards should have at least one approved assessment organisation in place before they can be delivered”.

It comes as latest FE Week analysis, comparing the Statistical First Release (published March 23) with the Register of Apprenticeship Assessment Organisations (published March 28), found 1,720 (14 per cent) of 12,200 total starts on standards up to January this year still had no apprenticeship assessment organisations.

Former top skills civil servant Dr Susan Pember, now director of policy for adult learning provider membership body Holex, turned on government planners last October over this issue.

Dr Sue Pember

She described the situation as “diabolical”, after FE Week analysis at that time showed no approved awarding organisations for over 40 per cent of learner starts on new apprenticeship standards.

Now responding to the today’s report, Dr Pember said although the content was welcome, she did not “feel it goes far enough” on the recommendation of having at least one approved assessment organisation in place before a standard can be delivered, adding that that “should be the minimum”.

Mark Dawe, chief executive of the Association of Employment and Learning Providers, added: “An approved assessment process itself should also be in place first with an agreement on its price.”

Mark Dawe

Another aspect of the new apprenticeship system that was denounced in the sub-committee’s report was the government’s plan for the external quality assurance of standards.

On March 17, FE Week reported that the new Institute for Apprenticeships was proving the most popular choice for EQA for so far – even though it was only set up as a “last resort” option.

Of the 162 apprenticeship standards currently approved for delivery, 26 had chosen the IfA as their EQA route, compared with just 15 that had gone with the government’s official qualifications regulator Ofqual.

Furthermore, while Ofqual would be overseen by the IfA in delivering quality assurance, the Institute itself will not have an organisation regulating its delivery of this role.

The MPs report said: “The integrity of the apprenticeships undertaken under new standards depends on the consistency and reliability of EPA. We are unconvinced that the government’s current model of EQA will achieve this.”

It recommended that to rectify this “Ofqual should be given responsibility for the EQA of all EPAs”.

But Phil Beach, Ofqual’s executive director of vocational and technical qualifications, told FE Week yesterday: “The important thing here though is not the action of any one body.

 “We are committed to working with the IfA, and to partnering with industry on external quality assurance.”  

The MPs’ report also raised concern about quality being sacrificed in the drive for three million apprenticeship starts, and found that while the government “is right to give employers greater influence within the apprenticeship system”, the voices of smaller businesses were being “drowned out”. 

Stephen Evans, chief executive of the Learning and Work Institute, said: “The committee is right to be concerned that we risk hitting the target but missing the point.”

Petra Wilton, director of strategy for the Chartered Management Institute, agreed there was a need to “raise the quality and prestige of apprenticeships”, but defended employers’ involvement.

She said: “Employers are not investing their time and resources just to meet a government target of three million apprenticeships, they are genuinely employing new talent or upskilling their managers, to ensure they’re competitive and can access the skills needed to grow.”

Responding to the report, a Department for Education spokesperson said: “The government’s focus is on building a world-class education and skills system.

“It means we are not just concentrating on apprenticeship starts, but on employment opportunities, employer take-up and quality.

“In addition we are investing over £500 million a year of new funding for technical education and the apprenticeship levy will double the annual investment in apprenticeships to £2.5 billion by 2019-20.”

Annual Apprenticeship Conference 2017

The FE Week Annual Apprenticeship Conference – now in its third year – shone a spotlight on the importance of quality being maintained and hopefully improved as the system is transformed.

Held just days before the launch of the apprenticeship levy – and shortly after the announcement of the controversial Register of Apprenticeship Training Providers – it was a welcome opportunity for attendees to get up to speed on all the latest developments.

This souvenir supplement features just some of the many highlights from the three days.

Click here to download the AAC 2017 supplement

Quality was the common theme throughout AAC, which saw an array of prominent key note speakers from top politicians, civil servants and more, alongside over 65 indepth practical workshops.

Kirstie Donnelly, City and Guilds managing director, insisted quality had to be at the heart of reforms, which she fears are being pushed through too fast, in her speech on the opening day (page 3).

The Department for Education’s director of apprenticeships David Hill urged attendees not to “do a deal at a price you can’t deliver quality for” (page 4), while Keith Smith, director of funding and programmes at the Skills Funding Agency revealed the agency’s “uncompromising” stance towards delivering a “world-class” apprenticeship system (page 6).

Quality was also among the burning issues debated by a panel of sector leaders – you can read what they said on page 5.

An Ofsted double-header on page 7 looks at apprenticeships from the perspective of the education watchdog, while on page 14 Ofqual boss Sally Collier explains the work the exams regulator will be doing to support reforms.

Apprenticeships and skills minister Robert Halfon was unable to attend the conference, due to the terrible attack that took place in Westminster on the Wednesday. His sincere apologies were conveyed by his Labour counterpart Gordon Marsden, who used his appearance on the Thursday to set out his party’s five apprenticeship policy objectives (page 15).

Also on page 15, Shakira Martin, NUS vice-president for FE, spoke about the need for apprentices to be properly represented by the Institute for Apprenticeships. Peter Lauener, shadow chief executive of the IfA and chief executive of the Skills Funding Agency and Education Funding Agency revealed that the IfA board had “seized upon” quality “in all its aspects” in its first meeting (pages 16 and 17).

Page 18 is given over to WorldSkills UK – which represents quality in its highest form, with vox pops and tweets from throughout AAC opposite.

None of this could have happened without the support of our exhibitors and sponsors. Particular thanks to our headline partners AELP, the DfE and City and Guilds, and our conference sponsors Pearson, NOCN and Smart Assessor. And thanks to all the speakers who made time to provide useful key note speeches and workshops. Enjoy!

Job advertised for new Education and Skills Funding Agency boss

The search has begun for Peter Lauener’s replacement as head of the Education and Skills Funding Agency.

The job of chief executive of the funding agency, which will be formed through a merger of the existing Skills Funding Agency and Education Funding Agency on April 1, is advertised through the government’s civil service jobs recruitment site.

The job, which comes with a salary of up to £142,000, is described as “one of the department’s most senior leadership roles”.

It comes after FE Week reported on Tuesday that Mr Lauener would retire as chief executive of the newly-merged SFA and EFA once a permanent replacement had been found.

That news came after FE Week exclusively revealed the moves at the beginning of March.

The chief executive of the merged agencies will be an “additional accounting officer” for “the vast majority of the Department for Education’s £66 billion programme and capital spend”.

Applications are invited from people with “successful experience as a proactive, strategic leader operating in a large and complex organisation” and “a track record of delivering demonstrably successful organisational change”.

Among the agencies’ key responsibilities are to “manage the system to operate the apprenticeship levy”, to “manage a programme of post-16 area reviews” on top of managing school funding for children up to the age of 16.

The deadline for applications is April 25, with final panel interviews scheduled for early June.

Mr Lauener, who is also shadow chief executive of the Institute for Apprenticeships, has led the EFA from its inception in 2012 and the SFA since 2014.

According to the job advert, he had “pursued an agenda of developing shared services and joint teams over the last two years, even while the agencies were in separate departments”.

Consequently, “ministers have now decided that the agencies should be merged to maximise scope for further savings and for improving the quality of customer services and the effectiveness of all its functions”.

But, as reported by FE Week, the merger has raised concerns that skills and adult education could now drop down the list of priorities at a merged agency also focused on schools.

Lords amendment to extend child benefit entitlement for apprentices

Peers have passed an amendment to the Technical and Further Education Bill, which would extend child benefit and financial support available to higher education students to make it accessible to apprentices.

The amendment – passed this week at reporting stage – is designed to ensure that any person taking an apprenticeship can apply to qualify for child benefit or access a one-off bursary of £2,000 for care leavers.

It was moved this week by Lord Watson and Lord Hunt, opposition education spokesmen, during the House of Lords reporting stage on the bill, which still needs to go back to the House of Commons for third reading approval.

The peer insisted during the debate that if the government’s target of three million new apprenticeship starts by 2020 is to be reached “it cannot be in anyone’s interest for doors to be closed to young people keen to embark on an apprenticeship”.

He added: “In some circumstances, parents may prevent young people taking up apprenticeships because the economic consequences for the family of loss of benefit payments in various forms could be considerable.”

This comes after the Liberal Democrats’ House of Lords education spokesperson Lord Storey tabled an amendment to the bill to protect future learners from being left with huge debts but no qualifications – a key aim of FE Week’s #SaveOurAdultEducation campaign

Lord Storey

Under the existing system, families lose child benefit for children who take up apprenticeships, on the grounds that they are in paid employment.

In contrast, the families of A-level students continue to receive benefit payments if they qualify, even when the child is earning in their own time. 

The new amendment would change these rules to enable families eligible for child benefit to receive it for children aged under 20 on an apprenticeship.

It would also benefit care leavers by opening access to a bursary traditionally only applicable to university students.

Currently, young people in local authority care who move into higher education can apply for a one-off bursary of £2,000 from their local authority. The amendment would ensure that care leavers who take up apprenticeships would be able to access this financial support as well.

Responding to Lord Watson’s proposal, parliamentary under secretary of state for schools Lord Nash said he welcomed the sentiment behind the amendment, but added that “sufficient safeguards and support” had already been established.

“From April this year, undertaking an apprenticeship at minimum wage will pay more than five times the maximum child benefit rate,” he said.

“Therefore, an apprentice’s parents are not eligible for child benefit for supporting that employed young person.”

Lord Nash added that “is not correct to equate being on an apprenticeship to being in higher education, where a student is making a substantial investment in their education and has appropriate access to student finance”.

He said: “Apprenticeships, by contrast, are real jobs and those undertaking them are employees who earn a wage.”

Speaking to FE Week about the amendment, Lord Watson said: “We are basically trying to make sure through this that young people don’t have to give up apprenticeships because of financial hardship.

“It will also hopefully help ensure that as the government pushes for its target of three million starts by 2020, a good number of people doing them will be from disadvantaged backgrounds with a fair level of financial support.”

Lord Hunt  said many members of the Lords had remarked on how young people are treated differently when they go to university, compared to choosing FE and apprenticeships.

“This amendment is about achieving parity of esteem,” he said.

Shadow skills minister Gordon Marsden told FE Week the amendment covered an “issue which needs to be addressed”, adding that the currently system is “unfair”.

Shane Chowen

“It will be over to the minister Robert Halfon and others to do the right thing,” he said.

Shane Chowen, head of policy and public affairs at the Learning and Work Institute, said: “There are currently participation penalties for low income and disadvantaged young people who take an apprenticeship compared to an academic pathway.

 “This amendment would help towards treating apprentices and students in further and higher education equally in the student support and benefits system.”

The amendment will now go back to the House of Commons for its consideration before it can be fully approved.

 

First major principal leadership programme unveiled since LSIS closure

A new FE principals’ leadership programme has been announced – backed with more than £1 million of government cash.

The new training programme, which will be delivered by the Saïd Business School on behalf of the Education and Training Foundation, was unveiled today by the foundation’s associate director for leadership, Sir Frank McLoughlin.

It is designed to boost the capacity of individual principals and CEOs, as well as their colleges or training providers and the sector as a whole, and funded to the tune of £1.27 million for the first year by the Department for Education, although participants will have to pay an additional fee, estimated to be around £3,000.

It’s understood to be the first new leadership programme specifically for the FE and skills sector since the demise of the former Learning and Skills Improvement Service in 2013.

Former City and Islington College principal Sir Frank told FE Week that the DfE’s investment in the programme reflected the growing importance of FE and skills to government policy.

“Skills are centre stage, colleges are centre stage, training organisations are centre stage,” he said.

“This is a recognition that the key to the success of any organisation is its leadership, and if you’re going to get the best leadership you need to invest in it.”

He described the involvement of Saïd Business School, one of the top-ranked business schools in the world according to the Financial Times, the Guardian and Times newspapers, as a “major coup” for the sector.

Involvement in the programme is designed to boost participants’ skills in a number of key areas, including an enhanced capacity to operate at a senior level in a complex and fast-changing environment, and a greater ability to plan, lead and implement strategy for long-term sustainable advantage.

The exact programme is still being worked out, but will include input from the FE commissioner, among others.

It’s being developed in partnership between the business school and the ETF and will include three modules.

The first and third of these will be three-day residential units at the business school, while the second unit will be delivered digitally.

There will be some extra work for participants “to optimise their learning”, Sir Frank said, “but we don’t want so much that it becomes onerous”.

Participants will also benefit from additional coaching and mentoring support, as well as peer support through ongoing ‘action learning sets’, made up of fellow principals and CEOs.

A total of 100 people will be able to take part over the first year, split into three cohorts.

A start date for the first cohort is expected to be announced around Easter, Sir Frank said, along with details of how to apply to the programme.

LSIS, which came out of the former Centre of Excellence for Leadership, ran a number of programmes for FE leaders including a senior leadership and management development programme and a new principals’ programme.

A programme for Chief Finance Officers to help them to become commercial leaders was also announced by the ETF today.

That programme, which is funded through a £0.5 million investment from the DfE, is being run in partnership with the Institute of Chartered Accountants in England and Wales.

Delegates on that programme will also be expected to pay a fee, although this has yet to be set.

An ETF spokesperson said: “We are charging for the programme because DfE grant funding is only year by year, and we wish to develop the programmes the sector needs.

“The sums raised will help us refine and deliver the programme in future years.”

Breaking: SFA and EFA merger confirmed and Lauener retiring

The Skills and Education Funding Agencies are merging and Peter Lauener is stepping down as boss of both, the government has just confirmed.

The moves, which FE Week exclusively revealed would be happening back on March 3, have been announced online by the Department for Education.

The new, single body – to be called the Education and Skills Funding Agency – will sit within the DfE and begin to operate from April.

Current chief executive of both agencies, Mr Lauener (pictured above), has announced that he intends to retire following the merger and plans to recruit a successor at the new agency are under way. He will also stand aside as shadow chief executive of the Institute for Apprenticeships, once a permanent replacement has been found.

A DfE spokesperson said: “Mr Lauener will carry on as chief executive of the Education and Skills Funding Agency until a permanent replacement has been recruited and is in place.”

Education Secretary Justine Greening said: “Creating the Education and Skills Funding Agency will mean we are able to provide a more joined-up approach to funding and regulation of schools, colleges and other providers, with improved accountability and better service.

“We will be working closely with our staff, unions, stakeholders and the education sector to finalise and deliver our plans for the new agency.”

The EFA previously managed funding for 16 to 19 provision, while the SFA financed training for older learners. The merger to a single agency, which will also cover the management of school building programmes, has been broadly welcomed by FE sector leaders who hope it will help cut out confusion and duplication that previously existed between the two agencies.

But the timing of the move, before huge administrative changes coming with the April apprenticeship levy launch, has also caused consternation – with concern expressed that skills and adult education could now drop down the list of priorities at a merged agency also focused on schools.

Justine Greeening
Sue Pember

Former top skills civil servant Dr Sue Pember, who is now director of policy at adult learning provider membership body Holex, told FE Week: “It was inevitable that the ‎SFA and EFA would merge and is the right way forward for managing 16-19 funding.

“However, there is a risk that adult funding will be marginalised and lose focus. It is important that the new chief executive prioritises and re-energises the work on the adult education budget, including creating the right framework for devolution.”

She added: “Peter has been a wise and secure leader of funding. He holds the corporate funding policy memory and will be hard to replace.”

David Hughes

Former SFA provider services director David Hughes, now chief executive of the Association of Colleges, said: “Merging the EFA and SFA provides the perfect opportunity to simplify the system and make it more efficient and cost-effective.

“The reality is though that the two agencies have been operating as a shared service for two years so we don’t expect colleges to see much difference.

“We are keen to work with DfE and the newly-merged organisation to address some of the overlaps, inconsistencies and differences between regulations, rules and policies which have grown up across the old EFA and SFA divide. Streamlining some of the rules will help students, some will save money.”

Commenting on the chief executive of EFA and SFA stepping down, he added: “I would like this opportunity to thank Peter Lauener for his work at EFA and SFA. He has always been a true champion for FE .”

Another former senior skills civil servant Mark Dawe, now chief executive of the Association of Employment and Learning Providers, also told FE Week: “The merger makes a great deal of sense particularly for providers delivering apprenticeships and traineeships for both 16 to 18 year olds and adults.

“All of us have to make sure however that FE and skills are not overwhelmed by the combined agency dealing with the challenges faced by the school sector.”

Mark Dawe

He added: “Our sector is indebted to Peter [Lauener] for many years of uninterrupted service and dedication to working with providers and colleges, to transform the working lives of thousands of people across England though education and training.”

Stephen Evans

The DfE announced that Mr Lauener had been appointed shadow chief executive of the IfA, the new policing body for reformed apprenticeships, last September.

The IfA will play a key role in policing the development of new standards, as well as the quality assurance of apprenticeship assessments, once widespread reforms come into effect from May.

Stephen Evans, chief executive of Learning and Work Institute, told FE Week: “Merging the two funding agencies makes sense, and I hope the transition to a single organisation will be seamless for providers and learners.

“We hope this is the first step in a much needed simplification of the learning and skills system – we look forward to clarification of next steps and clear delineation between the responsibilities of different bodies so providers, employers and individuals know who is responsible for what.”

Reflecting on Mr Lauener’s departure, he added: “Leading two major public funding bodies at a time of such significant change in education and skills, not to mention also establishing the IfA, would have been unenviable challenges for three chief executives.

“Peter Lauener has successfully steered the sector through political and financial turbulence and has done so expertly.”

Mr Lauener reflected on the possibility of an SFA and EFA merger during an interview with FE Week editor Nick Linford in February last year, saying at the time he was trying to put the question “to one side”, although he accepted that “at some point we may come back to question of whether there should be a merged agency”.

 He had already overseen significant moves to share workloads between the SFA and EFA.

Previous comings-together between the agencies have so far come via a joint area review delivery unit and intervention team.

The SFA press office effectively ceased to exist last July, when ownership for older FE learners passed from the former Department for Business Innovation and Skills to the DfE, which already spoke for the EFA.

The number of permanent staff at the SFA fell from 1,241 in April 2014, to 899 by October 2015, though staff numbers increased at the EFA over the same period, from 753 to 837.

Government decides to retain Applied General qualifications

A serious blow has potentially been dealt to plans for a rigid post-16 divide between academic and vocational education, after it emerged the government is retaining Applied General qualifications.

The Department for Education had privately briefed stakeholders on the decision, and confirmed it to FE Week this afternoon.

Retaining AGs, for example BTECs that lead to university in creative industries, will be viewed by many as a blow to the academic and vocational divide at 16 concept, introduced through Lord Sainsbury’s influential review that inspired the subsequent new skills plan last summer.

The apparent change of heart over AGs, which had been widely tipped for the chop, will be welcomed by awarding organisations that provide BTECS.

Rebecca Grayson, OCR head of vocational products, said: “OCR welcomes this latest DfE announcement.

“AG qualifications, such as Cambridge Technicals, give learners the option of a broader post-16 programme of study, equipping them with the relevant knowledge and skills that they need to succeed in higher education and beyond.”

Rod Bristow, president of Pearson in the UK, said: “We are pleased by the support that BTEC and other AG qualifications have received from schools, colleges, universities, employers and Government. 

“BTEC AG qualifications provide a broad but highly applied, career-driven education which delivers skills that will be vital in adapting to the jobs of the future.

“The new BTEC Nationals, designed alongside employers and universities include task-based external assessments, not just exams. In setting higher standards, they will ensure even greater success for BTEC students when they progress to university or into work.

“Around 100,000 students enrol at university every year with a BTEC, and these students are more representative of society than A level so this is a good decision for social mobility. 

“We look forward to working with the government and Ofqual to ensure that all AGs meet high standards. “

When asked about the decision, a DfE spokesperson told FE Week today that its “current position” is to retain the AGs category in official performance tables, but a review this is “ongoing”.

Catherine Sezen, senior policy manager for 14-19 and curriculum at the Association of Colleges, said: “We are delighted that the government has made the decision to retain AGs.

“Qualifications, such as BTECs, meet the needs of a variety of students in subjects such as performing arts and sport.

“They allow for a broader range of study of a particular subject, and these qualifications are vital in improving social mobility and raising young people’s aspirations.

“AoC will continue to work closely with the DfE and Ofqual to ensure that the value of AGs continues to be recognised.

“It’s vital that these qualifications continue to be robust in providing appropriate skills and knowledge.”

It had been anticipated that AGs would be scrapped, as the government moves towards a two-pronged post-16 education landscape – with learners channelled to either academic A-levels or vocational T-levels.

Officially in the Post-16 Skills Plan, unveiled last July in the wake of the Sainsbury Review, AGs are in the academic route – because of their link to university entry.

However, it’s not really that clear cut. Currently the biggest number of students not following an A-Level route is AGs, actual true technical provision is currently very small.

Reflecting on the value of AGs, Association of Employment and Learning Providers boss Mark Dawe said: “You could argue that they are qualifications that develop a range of generic skills in a more vocational context.

“Many rightly argue that many learners need a mixed economy of academic A levels and applied qualifications at school and that they lead to progression for many to university.

“This is the role of the AG, as we see the technical qualifications becoming 900 hour full time programmes in their own right.

“What we must watch out for, however, is that learners are not persuaded that these qualifications are full vocational options and therefore the student can stay at school, when actually they would be better off in an apprenticeship or full time TPE course [T-levels].

“It emphasises once again how vital independent advice and guidance will be to underpin the success of the government’s education and skills reform programme. Without it the whole agenda is likely to fail.”

Why is the NHS London Procurement Partnership charging fees to apprenticeship providers?

The NHS London Procurement Partnership responds to FE Week’s questions about new charges it plans to implement for apprenticeship procurement services.

The LPP response – from which quotes for the news story ‘NHS defends apprenticeship brokerage fees‘ were taken – has been published here in full for the sake of clarity.

NHS London Procurement Partnership

Thank you for forwarding the questions you sent originally to Health Education England. To be clear, the procurement you are referring to is an NHS London Procurement Partnership activity, not a project run jointly with HEE or the Skills Funding Agency. To refer to a ‘no win no fee’ percentage is also to misunderstand what Activity Based Income is, and how public sector frameworks are managed. I hope what follows explains the process more clearly, but if not please do come back to me.

I think it would be helpful to give you some background to LPP. LPP is an NHS membership body – we are funded and governed by our members, primarily NHS organisations, but much of our work is now accessible by the wider public sector. (Doing so magnifies the benefit the public sector can realise from our work, as it is no longer limited to our membership.) We are not an independent or commercial entity, and we do not make a profit. Our running costs are covered by membership fees – and since we were set up in 2006, we have saved the NHS and the taxpayer more than £950 million.

Apprenticeship Dynamic Purchasing System

LPP is developing the Apprenticeship Dynamic Purchasing System at the request of HEE and our members. The aim is to give public sector bodies a route to contract with apprenticeship training providers which complies with the EU procurement rules laid down for the public sector. Currently, a public sector organisation sourcing an apprenticeship training provider from the SFA list of providers is not complying with the EU rules.

The new DPS also ensures that apprenticeship training providers used by the public sector provide a service of a suitably high quality. Many stakeholders – including would-be suppliers – have been involved in developing the DPS. HEE has provided valuable insight into, for example, the type of categories of apprenticeship available, and provided guidance on suitable criteria for evaluating would-be providers. The Skills Funding Agency was invited to take part but has not done so. Consequently your query about SFA ‘approval’ or sanctioning the method of managing the DPS is not relevant and neither is it one we can comment on.

Activity Based Income

As you will note from the slide you forwarded to me (pictured left), ABI ‘covers management and further administration by LPP of the overall DPS and associated documentation with surplus being fed back to members’. In other words, once a framework or DPS is established, ABI is used to cover the costs of the ongoing management and running of the framework or DPS for the life of the framework (or DPS). A DPS takes a significant amount of management – by its very nature, it has a continually growing and changing number of suppliers – unlike a framework, providers can apply to join a DPS at any stage during its life. To put this in context, there are several hundred potential providers of apprenticeship training – 1,500 on the current SFA list alone. Any surplus over and above those costs is handed back to LPP members at the end of the financial year based on their use of our frameworks and DPSs.

A management charge is a common way of covering the costs of running a framework or DPS, once it has been established. ABI has different names in different procurement organisations, and may be managed in a variety of ways. Crown Commercial Service, for example, has a Management Charge – like LPP, CCS requires suppliers to provide it with Management Information on a monthly basis. These charges are well established methods of supporting the public sector to manage contracts.  Managing contracts ensures the NHS is getting best value for taxpayers from its contracts with strategically important suppliers, ensures that public money is not misappropriated, and that public sector expenditure is transparent, in line with the procurement regulations.

The slide you have forwarded to me states that ABI must be accounted for in a supplier’s tender to be awarded a place on the framework. This is to ensure that there are no ‘surprise’ extras for public sector organisations – the price proposed by the would-be supplier at the time of tendering must be the price they then charge the public sector for using their service (if they are successful in being awarded a place on the framework and are subsequently commissioned by a public sector body). How the supplier covers the cost of the ABI is up to the supplier. Legally LPP is unable to stipulate to suppliers where the ABI payment comes from or how to manage this cost internally.  The onus is on the supplier. To comply with any SFA rules, suppliers should ensure that the 1% is not taken directly from the levy funds.   

NHS Shared Business Services

You’re right that the Apprenticeship Training Services Framework will run from May 2017 to April 2021. It has been developed to provide NHS – and other public sector – organisations with the means to procure high-quality and compliant services quickly and easily, whilst at the same time offering suppliers access to a significant market and thousands of potential customers.

The 0.95 per cent levy is charged to service providers to cover the up-front investment of establishing an OJEU[Official Journal of the European Community]-compliant framework and the costs associated with the on-going management of the contract. It means that, for example, if a supplier wins a place on the framework, they would pay £95 for every £10,000 they receive in orders.

Exclusive: DfE will scrap forced resits for GCSE English and maths

The government will make a major u-turn over the much-derided condition of funding rule, FE Week can reveal.

From August 2015 all 16 to 18-year-old students with a GCSE grade D have had to study and resit the GCSE as part of the condition of funding, rather than a functional skills qualification at level two. But once this policy has been scrapped, no student will be forced to resit GCSE English and maths.

The latest revelation follows scathing criticism of the policy from Ofsted in December, and publication of a letter from education secretary Justine Greening to Neil Carmichael, chair of the Education Select Committee, advising on changes to the numeric GCSE grading system.

The letter revealed very little new, but FE Week has been told by multiple sources that the current policy to force some students to resit GCSEs will be scrapped – so all students can study functional skills, as was the case before 2015. Although not mentioned in the letter, this will be confirmed in the funding guidance for 2017/18, due for publication shortly.

It comes just a few weeks after the government finally confirmed another u-turn on the requirements for early years educator apprenticeships. Currently early years learners must achieve at least a grade C in English and maths GCSE to pass the level three course, but FE Week reported in early March that from April this will be broadened to include functional skills.

Reflecting on the latest news of an end to forced GCSE resits, Association of Employment and Learning Providers boss Mark Dawe told FE Week: “If there is going to be a U-turn on this, then we welcome it.”

He added: “The new chief inspector for Ofsted has quite rightly joined many stakeholders in the FE and skills sector and employers, in raising the possibility of the policy being abandoned altogether, and we feel that Ms Greening could have responded to this challenge more positively [in the letter].

“Young people without good grades should be encouraged to carry on learning the core subjects, but with the option of doing so via functional skills.”

Ofsted was highly critical of forced resits in its 2016 annual report published in December, as reported in FE Week.

It said: “While the policy’s intention to improve literacy and numeracy levels is well intentioned, the implementation of the policy is not having the desired impact in practice.

“Inspection evidence shows that, for some students, having to retake their GCSE can be demotivating and that attendance at these lessons is lower.

“For many students, an alternative level two qualification may be a more appropriate means of improving their English and mathematics and ensuring that they are ready for work.”

Commenting today on Ms Greening’s letter, Catherine Sezen, senior policy manager at the Association of Colleges, said it was useful to “finally have clarity” over the new GCSE grading.

“This will give guidance to colleges on entry requirements and GCSE resit policy and to universities and employers for their entry and job role requirements,” she said.

Ms Greening said in the letter that “under the new system, a grade four and above will be equivalent to a C and above.

“Where employers, FE providers and universities currently accept a grade C we would expect them to continue recognising a grade four.”

She previously gave strong hints about a change of heart towards the English and maths resit policy, at last November’s AoC conference (pictured).

As reported in FE Week, she told delegates that students must not be spending “time running upwards against a brick wall that they’re not going to get over.”

Apprenticeships and skills minister Robert Halfon also conceded to delegates that GCSEs are not always the best option for FE students.

“It is clear that we need a credible, high-quality option for students for whom GCSEs are not appropriate or achievable,” Mr Halfon said.

“This is why we are reforming Functional Skills to make sure that they are genuinely relevant to employers, and consequently have credibility and prestige in the jobs market.”