Half the levy will be paid by just 400 employers – but who are they?

Around half of the upcoming apprenticeship levy will be paid by just 400 employers – but the Skills Funding Agency won’t say who those companies are.

The revelation came during a breakout session on funding at the Association of Colleges annual conference earlier this month.

Keith Smith (pictured), the director of funding and programmes at the SFA, said that while 20,000 employers were expected to fall within the scope of the levy when it launches in April 2017, just 400 employers, or two per cent, will cover “about half of the entire levy”.

“The top 400 carry a big load,” he said. “Some of those bigger employers will be paying over £30 million a year, in terms of the apprenticeship levy.”

But he later admitted it was “not as simple and straightforward as being able to just publish a list” of the names of those firms that would bear the brunt.

He said that while the SFA did know which companies would be paying the levy, the agency couldn’t share that information as it was “a tax matter”.

Information published by the Department for Education in August on the number and size of employers who would be paying the levy in 2017/18 said there would be 19,150 businesses in scope, but it made no mention of this smaller figure of 400 companies paying half the levy.

Peter Lauener, head of the SFA and the Education Funding Agency, and the shadow chief executive of the Institute for Apprenticeships, also referred to this figure during his conference session on November 17.

I don’t know the precise figures, but it’s around 20,000 levy payers. About 450 of those will pay about half the levy

“I don’t know the precise figures, but it’s around 20,000 levy payers. If you look at it in a bit more detail about 450 of those will pay about half the levy,” he admitted in response to an audience question.

More than half of the top 400 employers in the UK currently have fewer than 200 apprentices, and some have none, Mr Smith admitted, though he hopes the levy will to lead to a “significant market shift” in apprenticeship delivery.

Business administration and health and safety currently account for a quarter of current apprenticeships – but “going forward the actual single biggest sector that’s going to be involved in the apprenticeship levy is the education sector”.

“In terms of understanding the employers and the sectors that you’re in, this type of market analysis is really important to understand what you’re doing, who you’re pitching to and where you’re going,” he said.

Chichester College’s principal Shelagh Legrave later asked Mr Smith how colleges could identify which companies will be subject to the levy, as without this information she said she was “left scrabbling around trying to work out who is actually paying”.

Mr Smith explained that the SFA was talking to levy-paying employers about whether “they’d be happy for us to share their information more widely across the sector” but that “those conversations are patchy – some for obvious reasons are a little bit relaxed about that, others are not”.

He added that there were “companies out there that do know” and “some databases that operate in the commercial sector, particularly those that offer tax advisory services” that would be able to provide this information “if you’re willing to make a small investment”.

“There’s no really easy answer, or easy fix for this,” he said.

 

Student crowned ‘all-round inspiration’ at awards for extensive volunteering work

A student at Salford City college has won the title of ‘all-round inspiration’ at the Greater Manchester Care Leavers’ Awards.

Robert Wright took the top accolade, along with £100 worth of vouchers, for his volunteering work.

He has volunteered for five years with young people at the YouCan Community Club and also volunteers at the British Heart Foundation in Eccles. Alongside this, he is also a member of the Salford Youth Council.

It isn’t the first award Robert has won for his extra-curricular work; he has previously received an award for ‘outstanding volunteer’ from the Salford City College Annual Awards, as well as a medal for his involvement with YouCan community club, which won the Queen’s Award – the equivalent of an MBE for voluntary groups.

Held at the Royal Northern College of Music, the awards aim to recognise the achievements of young carers across the region.

Award categories included community and volunteering, sport, leisure and apprenticeships, with the ceremony culminating in the final award for being the ‘all-round inspiration’.

Speaking of his newest accolade, Robert said: “All-round inspiration is a very prestigious award and it’s another reason why this has been such a brilliant year!”

 

Featured picture: Robert Wright with his award

 

Arrival of baby corn snakes make history at college

The arrival of two baby corn snakes at a college in Gloucestershire have made history as the first reptiles ever to be hatched on site.

Hartpury College has a collection of over 70 different species of snakes, but never before has a reptile been successfully hatched at the college.

The corn snakes needed a specialised incubator to keep them at the correct temperature, with the eggs kept at a toasty 30 degrees and an 80 per cent humidity.

The new babies will provide a new learning experience for students at the college, who have so far had experience only in caring for a range of adult snakes.

The snakes are expected to grow to between four and six feet in length, and have a lifespan of around 15 years.

The animal collection manager at the college, Aleksandra Lipinska, said: “It has been a great learning experience for all the students involved and we are really pleased it has been a success.

“Now that we have successfully bred and hatched our first reptiles we are planning on doing some more breeding. We have plated lizards here that are quite rare so we are looking at getting a programme in place to breed them as well.”

 

Featured picture: The new baby corn snakes at Hartpury college

 

Lewisham Southwark College still wants Newcastle merger despite local offers

A struggling London college is still trying to engineer a merger with a group based almost 300 miles away in Newcastle, despite rejecting offers from both a neighbouring college and a nearby university.

Lewisham Southwark College, which last year became the first college ever to receive two ‘inadequate’ ratings from Ofsted in a row, has explored a number of what it called “potential options” to improve in the wake of the London (central) area review, according to a spokesperson.

Options under consideration included separate mergers with two nearby institutions: London South Bank University and Lambeth College.

Both options were deemed unviable by the bosses at Lewisham.

The college is instead revisiting its “preferred” proposal – of merging with Newcastle College Group, based in the north-east of England.

Lewisham first approached NCG last autumn and representatives from both colleges have confirmed to FE Week that “active discussions” are ongoing.

LSC said it had carried out “extensive work and engagement” on a merger with LSBU, but governors concluded that joining an HE institution was not a “strong way forward”.

In reaching this conclusion they considered the examples of failed HE/FE mergers

A Lewisham spokesperson said: “In reaching this conclusion they considered the examples of failed HE/FE mergers, the fear that FE would be lost in the bigger university, and the belief that most of the strengths of the proposal could be achieved through good partnership work and without the risks of a merger.”

Dave Phoenix, the chancellor of London South Bank University said a collaboration with Lewisham would “not be a merger”, but would “bring together a formal group structure of educational bodies such as schools and colleges, respecting the importance and specialist nature of each”.

Lewisham also considered merging with Lambeth College after former FE commissioner David Collins asked it to explore the option last October, but concerns were expressed about the potential risk of merging two colleges that are in financial and quality recovery.

LSC was the first college to receive two ‘inadequate’ ratings in a row from Ofsted, after an inspection in February 2015, while Lambeth retained a grade three the month before.

The spokesperson for Lewisham said the colleges had “agreed to look at” the option of a merger, but it would “require a significant financial package” to reduce the financial risk.

She said that Lewisham’s “preferred” option is therefore for a merger with NCG.

“A merger with NCG doesn’t need a financial package to go ahead, and would see Lewisham Southwark College fully retain its local identity within this national group.

“At the same time we have agreed to do some further work on whether a merger with Lambeth College could be an option if suitable finances were available.”

A Lambeth College spokesperson said there is “only an expressions-of-interest stage at present” from LSC.

Lewisham Southwark College is led by Carole Kitching, who took on the role last summer after leaving Newcastle College, where she was in charge from 2013.

NCG is made up of three FE colleges, one sixth form college and two independent training providers.

Of these, two are based in Newcastle: Newcastle College, and Newcastle Sixth Form College.

The remaining four members are based in other parts of the country: Kidderminster College, West Lancashire College, Manchester-based Rathbone, and Sheffield-based Intraining.

A spokesperson for NCG said: “We are pleased that NCG remain the preferred merger partner of the board of Lewisham Southwark College, however we of course recognise their requirement to consider all options as part of the London area review.”

 

Ron Dearing UTC expands a year before opening

A University Technical College (UTC) scheduled to open in Hull next year has expanded to accommodate an extra 50 student places in its first intake, in response to huge demand.

The Ron Dearing UTC will focus on engineering and digital skills and is backed by the University of Hull and a number of employers, including communications provider KCOM, engineering business Spencer Group, and Siemens.

The new UTC had planned to take on 150 students for its first year, beginning September 2017, but applications have already outstripped that target, so a successful application to the Department for Education will allow it to increase this intake to 200 students.

Principal Sarah Pashley (pictured) said the news was “really encouraging”.

If we receive sufficient demand to take us over the new level of 200 places, we can choose to reapply to the DfE to request a further increase

“We expected the UTC to be popular, but we’ve been surprised by how quickly the applications have come in,” she said.

Almost 200 applications have already been received for the 100 places each available in years 10 and 12, but Ms Pashley stressed that students who want to attend should continue to apply up to the end of January, as “places will not be allocated on a first-come, first-served basis”, and capacity might even expand further.

“If we receive sufficient demand to take us over the new level of 200 places, we can choose to reapply to the DfE to request a further increase,” she said.

“We want to stress we will not go over more than 150 in any year group and 600 in total.”

FE Week asked Mrs Pashley what she felt set her UTC apart from certain others which have closed amid reports of low student numbers, such as UTC Lancashire, Central Bedfordshire UTC, Hackney UTC and Black Country UTC.

“The biggest positive about Ron Dearing UTC is that our employer sponsors and Hull University are extremely proactively involved in the whole project,” she added.

“They’re not paying lip service to this; they are involved from leadership and governance right down to choosing the qualifications, developing the projects.”

A DfE spokesperson said: “UTCs have a vital role to play by providing young people with the technical knowledge and skills employers are after, and it is encouraging that the Ron Dearing UTC is proving so popular.”

 

Providers found ignoring apprenticeship register application guidance just hours from critical deadline

Organisations wanting to deliver apprenticeships from next May are failing to follow instructions from the Skills Funding Agency just hours before a critical deadline.

The new Register of Apprenticeship Training Providers, which providers have to be on if they want to deliver apprenticeship starts from May 1 next year, closes for applications at 5pm today (November 25).

The SFA has been clear that providers can only register under one of three routes – the main route, the supporting route and the employer-provider route.

But at lunchtime today it issued a message to all providers via its BRAVO e-tendering portal that not everyone was following instructions.

The message (pictured below), which had the subject line ‘Important message’, said: “The SFA has noticed that some organisations have submitted multiple PQQs (Pre-Qualification Questionnaires) despite clear guidance.”

“Organisations are reminded that only one PQQ route must be submitted. Please check that this is the case.”

Providers that have applied for more than one route should decide which one is their preferred route, and decline the other, the message continued.

Mark Dawe, chief executive of the Association of Employment and Learning Providers, said: “The SFA’s guidance is very clear on this, so it is a little surprising that there is confusion about it. 

“It just goes to show that in the few remaining hours until the deadline, providers and employers must thoroughly check and recheck their applications against the guidance before they hit the Send button.”

The supporting route is an “entry route to the apprenticeship market for organisations that offer a specialism, and providers who only want to deliver as a subcontractor”, according to the SFA’s guidance.

The employer-provider route is for companies that wish to deliver apprenticeship training to their own staff.

Providers and employers must thoroughly check and recheck their applications

The SFA’s guidance clearly stated that providers “must apply through one of the application routes”.

And, in a separate ‘important message’ on its BRAVO e-tendering portal at 13:31 today, the SFA has also highlighted that providers tendering for funding to deliver training to non-levy-paying employers also need to submit a main route PQQ.

It said: “We would like to remind applicants that if you are submitting an ITT application, this MUST be submitted in addition to a main route PQQ. Failure to submit a main route PQQ will lead to your ITT submission being automatically excluded as we will be unable to process your application without a main route PQQ submission.”

bravo-message

Nescot appoints principal but controversial former head Sunaina Mann stays at Saudi subsidiary

LATEST: Nescot accepts former £360k a year principal was unfairly dismissed

Nescot, which has been dogged by scandal throughout 2016, has appointed a new chief executive officer and principal, but representatives are refusing to reveal what’s happened to its previous leader since she stepped down in June.

The college was eager to share the news that Frances Rutter currently chief executive at Epsom and Ewell Borough Council, had been appointed to its top role, but was reticent to provide an update on the whereabouts of its controversial former head Sunaina Mann (pictured).

A spokesperson for the college declined to comment on whether Ms Mann had maintained any working relationship with the group after stepping down in June, when FE Week reported her husband had been paid hundreds of thousands of pounds for a contract of which governors were unaware.

However, Ms Mann herself told FE Week that she still holds the headship of the Surrey college’s Saudi Arabian project, the Jeddah International Female College.

The Jeddah Female College opened in 2013 as part of the Saudi government’s Colleges of Excellence programme, which was established to promote technical and vocational education in the region.

Ms Mann said: “I remain CEO and principal of Jeddah International Female College.

“After spending 18 months working at Jeddah International Female College, we are now the top provider in the Colleges of Excellence Performance table.

“I wish Frances well in her new appointment and hope she can continue to build on the many achievements of the college under my leadership.”

I wish Frances well and hope she can continue to build on the many achievements of the college under my leadership

Ms Mann left her job as CEO and principal of Nescot on June 2, after it was revealed that her husband, Jaswinder Singh Mann, had been paid almost £200,000 over the course of a contract with the Saudi Arabian college subsidiary that Nescot’s board of governors were ignorant of for 18 months.

In 2014/15, she received a salary of £363,000, making her the most well-remunerated college principal in the country.

Her successor will join Nescot in the spring, when she will take over from Cliff Hall, the interim CEO and principal.

Mr Hall said: “The senior management team and I are delighted Frances will be taking over, and we know she’ll do a really great job.

“All the staff at the college are looking forward to working with Frances to help the college realise our vision.”

Ms Rutter was appointed from a shortlist of five outstanding candidates on November 10, following a two-day process of interviews and assessments involving students and staff from across the college.

A qualified solicitor, she has been in charge at Epsom and Ewell Borough Council for the last eight years.

She was with Elmbridge Borough Council for 13 years before that, with two years spent as assistant chief executive.

Mrs Rutter also previously served as a governor at Nescot, before stepping down in 2013 when the college sought planning permission to redevelop its site.

“I’m honoured to be given this role, and I can’t wait to get started,” she said.

“This is a really exciting time for post-16 education, with plenty of opportunities for Nescot.”

Professor Sam Luke, chairman of Nescot Corporation, said: “Frances is a proven leader, and she will bring a wealth of relevant senior-level experience and expertise to this role.

“We’re absolutely confident that Frances is the right person to lead Nescot on to the next phase of our journey.”

 

Scotland and Wales dominate Skills Show 2016 medal table

Around 200 of the UK’s top vocational learners were rewarded with gold, silver and bronze medals at the closing ceremony of the Skills Show on November 19.

Medals were awarded to the best entrants in 61 different skill areas, with a further 29 young people highly commended for their efforts.

It was colleges from Scotland and Wales which emerged as the big winners of the night, with the two countries claiming the top three places on the official medal table.

New College Lanarkshire took the top spot with 32 points, bagging the most medals with an impressive haul of four gold, two silver, four bronze and two highly commended.

City of Glasgow College, which was best overall in 2015, came second, followed by Coleg Sir Gar in third.

Speaking after the medal presentation Neil Bentley, chief executive of WorldSkills UK, said: “It has been an incredible, inspiring and hugely successful Skills Show culminating in a ceremony to honour the very best young talent Britain has to offer.”

I congratulate every one of the competitors and wish them every success, especially in their future jobs

The closing ceremony marked the end of this year’s national skills competitions finals and Skills Show 2016, which saw more than 90,000 people walk through Birmingham NEC’s doors from November 17 to 19.

An abundance of careers advice from leading employers such as Dyson and Jaguar Land Rover was on offer at the show, as well as the chance to have a go at more than 50 different skills, and the opportunity to speak to past WorldSkills UK competitors.

More than 500 talented young people took part in the national finals where winners were presented with awards at a special evening event, attended by around 1,000 people, which featured an opening speech by Carol Stott, chair of organisers WorldSkills UK and hosted by TV Presenter Will Best.

Daniel Pickering, aged 17, won a gold medal in mechatronics for UTC Sheffield, who finished in joint fifth position with 12 points, taking home one gold, two silver, and one bronze medals.

Daniel said winning the competition was one of his “greatest ever” achievements.

“I really had to draw on all of my problem solving skills,” he said. “I am so proud to be recognised as one of the best in the UK.”

Abigail Buckingham, an apprentice with The Goldsmiths’ Centre, won gold in fine jewellery making. She said: “It’s been a great competition, an amazing opportunity a totally different experience. You find out for yourself what you like about the trade and this will help you in your future career.”

Skills and apprenticeship minister, Robert Halfon (pictured above), visited the show on the Thursday and dubbed it as the “future of Britain”.

Speaking with FE Week after the results of the national finals he congratulated the competitors and all involved.

“The Skills Show is the future of Britain. It is the competitors that make the show so special and important.

“I congratulate every one of the competitors and wish them every success, especially in their future jobs as examples of all that is best that skills can offer.”

All eyes are now turning to Sweden, where 22 of the country’s top apprentices and learners will be going for gold at EuroSkills 2016.

They will compete against the top European talent under the age of 25, from more than 30 countries in over 35 different skill areas between December 1 and 3 in Gothenburg.

You can download our Skills Show 2016 supplement here. Keep an eye out for our coverage of EuroSkills live from Gothenburg next week.

 

Jaguar apprentices rescued after provider collapses

Training provision has been saved for thousands of learners, including those on a high-profile scheme with Jaguar Land Rover, after the Skills Funding Agency oversaw a last-minute buyout of one of the biggest training providers in the country.

Pera Training had looked like it was just days away from going bust despite holding a huge SFA contract, leaving around 2,400 apprentices, including around 1,200 at Jaguar Land Rover alone, without a provider.

But Talent Training stepped in with a last-ditch rescue by purchasing Pera’s assets, including staff and its multimillion-pound contract with the SFA.

Sam Morgan (pictured), chief executive of HarperCo Limited, which owns Talent Training, told FE Week that his company stepped in after the administrators called in the debt.

“We purchased Pera Training’s assets, including the SFA contract, but not the shareholding, so the provision will now be run directly by Talent Training,” he said.

“The biggest employer was Jaguar Land Rover, and we had to confirm that they were happy with the transition – and they were.

“Their learners are still being taught by the same people at the same place. That was really important.”

Pera Training was previously a company with a turnover of £30 million.

Most businesses go into this sort of arrangement with the aim of making money, but this will not be the case for us

It had been trading for 16 years and was a prime contractor for the SFA, allocated just under £7 million by the agency for adult apprenticeships in 2016/17 as recently as September.

An application to strike the company off was published on November 21, the same day a resolutions agreement was published confirming the takeover.

Talent Training, which was rated ‘good’ by Oftsed in 2013, said the acquisition would include 62 members of staff, and confirmed there would be no job losses.

It confirmed that 100 per cent of the students previously on training programmes with Pera, including those with Jaguar LandRover which is often lauded by ministers as a standout apprenticeship scheme, will be transferred.

Mr Morgan said “a lot of work went on” with the SFA to ensure “everything worked out best for learners and staff”.

“Most businesses go into this sort of arrangement with the aim of making money, but this will not be the case for us,” he confirmed.

“It was a moral question of doing the right thing. I live near the Jaguar Land Rover plant in Solihull and have friends and family who have trained with them.

“We wanted to act in their best interests.

“The acquisition of the assets of Pera Training provides us with the opportunity to draw on the wealth of experience and professionalism of the team,” he said.

“The team members who are transferring will be crucial in helping us maintain continuity of service for 51 employers and more than 2,000 students currently enrolled on programmes delivered by Pera Training.”

An SFA spokesperson told FE Week: “In line with our established procedures designed to ensure continuity of training for learners and to minimise any disruption to employers, we have arranged for the transfer of 2,400 learners covered by Pera’s contract with SFA to Talent Training.”