Management apprenticeships – solving the productivity puzzle

FE Week’s report on the “unstoppable rise of management apprenticeships”, should be a cause for celebration as opposed to concern. For far too long management training has been a blind spot for employers – with 71 per cent of firms admitting that they fail to offer management training to first-time managers.

This is a huge mistake that urgently needs addressing. Currently UK productivity stands at 21 per cent lower than the rest of the G7, and according to OECD analysis, poor management and leadership is the number one factor affecting this total productivity gap. And research highlights how time wasted by bad management is estimated to cost business £19bn a year. This cost clearly overshadows the government’s £2.5bn budget that is pledged across the entire apprenticeship agenda by 2020.

As a nation post-Brexit, we need to be far more competitive and start investing far more in UK talent as opposed to turning to foreign workers to fill skills shortages. We clearly lack skilled managers, with historic and systemic low investment in the higher level management skills needed to drive growth. Nearly half (43 per cent) of UK managers are rated as ineffective by the people they manage, due to a lack of training.

For the sake of transparency, we must declare an interest here. The delivery of apprenticeship programmes will be through approved FE colleges, private training providers and universities, and Chartered Management Institute (CMI) qualifications and chartered status can be embedded to support these programmes. The CMI will be looking to offer an independent end-point assessment service to employers. However, as a not-for-profit professional body, we will reinvest funds from this work into our ongoing development of professional standards, in accordance with our charitable mission of creating better-led and managed organisations.

For far too long management training has been a blind spot for employers

As the only chartered professional body for management and leadership, the CMI has been supporting a strong employer-led group to pioneer the development of the trailblazer standards in management and leadership. The apprenticeship agenda offers a great opportunity for both FE colleges and private training providers, as these new standards offer pathways from level 3 team leader apprenticeships through to a chartered manager degree apprenticeship. Also in development is a masters-level degree apprenticeship for senior leaders to ensure those at the top of organisations are equipped for leading change and high performance cultures.

These programmes are being used by employers for both school leavers and for those already in the workplace. Investing in upskilling existing managers will also ensure those entering the workforce have the trickle-down impact of working for a good manager.

The rise in the number and relevance of management apprenticeships shows that leading employers are now recognising how best to drive growth. As such, it is important that the government does not restrict access to these programmes to non-levy payers. Indeed, according to the Insolvency Service statistics, poor management skills is the key reason for the high failure rate of SMEs.

As Mark Dawe, CEO of the Association of Employment and Learning Providers, rightly points out, the government needs to be careful to ensure that “critical apprenticeships such as higher level management skills for new and existing employees are also available for all employers including non-levy-payers, and those exceeding their levy pot.”

It is also important to reflect that the new high level trailblazer standards are very different to the previous apprenticeship frameworks, and require far more employer commitment to providing high quality work-based learning for the apprentices. So scaling up numbers on the new standards may take longer than the initial flurry of uptake suggest. But management will be a prize worth investing in and waiting for – if it means truly tackling our productivity puzzle.

Petra Wilton is Director of Strategy at the Chartered Management Institute

Commons debate request over funding cuts exposed by FE Week

A backbench House of Commons debate has been called for by David Lammy MP over drastic funding cuts exposed by FE Week, which inspired our #SaveOurApprenticeships campaign.

Mr Lammy (pictured above) has applied to the Backbench Business Committee to hold a three hour debate based on the findings of FE Week’s exclusive analysis, which showed that funding for 16- to 18-year-olds in some of the most deprived areas of the country could be slashed by up to 50 per cent.

The committee meets every Tuesday at 2:30pm to consider representations from members for debates in backbench time, and Mr Lammy tweeted details of his application this morning ahead of the hearing over his application.

Other members who have put themselves forward to speak, if the debate is approved, include Neil Carmichael, chair of the Education Select Committee, Meg Hillier, chair of the Public Accounts Committee, and former shadow education minister Nic Dakin.

Mr Lammy said in his tweet that there were “serious questions” for the government to answer on the issue.

The motion for the debate made a point of noting “the vital role that apprenticeships play in equipping young people with the skills they need”, and welcomed “the Government’s commitment to social mobility.

However, it expressed regret that “the Skills Funding Agency’s proposed funding rates for apprenticeships from May 1, 2017, equate to cuts of around 30 per cent on average” and “that these cuts rise to around 50 per cent for those apprentices living in the most deprived areas”.

It called for a reversal of the cuts because they “directly contradict the Government’s commitment to social mobility and will jeopardise the Government’s plan to create 3 million apprenticeships by 2020”.

The application for the debate follows a letter written by Mr Lammy to apprenticeships and skills minister Robert Halfon in early September, calling on the government to reverse the funding cuts.

The letter, which was motivated by FE Week’s research, was co-signed by 50 members of parliament.

Then, on September 14, the FE Week #SaveOurApprenticeships campaign against the devastating cuts was launched at the Houses of Parliament to a packed gathering of sector leaders and senior politicians.

Mr Lammy delivered a rousing speech at the launch, and responded to Theresa May’s comments from Prime Minister’s Questions, which she said she did not recognise the situation in apprenticeship funding.

He said: “It’s an absolute scandal for the PM to say she doesn’t recognise the figures. It’s her funding agency, they’re her figures.

“They are launching a two-tier system. If you are 16 to 18 in Tottenham, if you live in poorer areas, you will get a very different product indeed from those living in the leafy shires.”

He also insisted “we will force a U-turn.”

Gordon Marsden, the shadow HE and FE minister, who hosted the event, warned that the cuts are “an elephant trap in his [Mr Halfon’s] in-tray”.

Shadow education secretary Angela Rayner also backed #SaveOurApprenticeships during an FE Week rally at last month’s Labour Party Conference.

The campaign was also repeatedly name-checked during Commons education questions yesterday, by Mr Marsden who called the funding plans a “shambles”.

Apprenticeships and skills minister Robert Halfon replied: “We’ve been saving two and a half million people on apprenticeships over the past five years.

“If that’s not saving apprentices, I don’t know what is.”

 

Update: Mr Lammy put his case for the backbench debate to the Backbench Business Committee shortly after 2.30pm.

He was thanked by members for the application and told a decision will be made on whether or not to hold the debate in due course.

 

Government set for u-turn on apprenticeships funding cuts

Controversial plans to slash apprenticeship funding rates for young people in deprived areas are set to be reconsidered by the government, in what would be a huge success for FE Week’s #SaveOurApprenticeships campaign.

Jonathan Slater
Jonathan Slater

FE Week understands the Skills Funding Agency has gone some way to address the framework rate cuts in their final plans, due for publication later this month .

The u-turn follows growing anger expressed by politicians, employers and providers since FE Week analysis of the provisional rates, published in August.

These showed funding for 16- to 18-year-olds in some of England’s poorest areas could drop by up to 50 per cent for starts from 1 May 2017.

The message has been driven home by our campaign launched last month in the Houses of Parliament.

It comes as a number of the most senior civil servants involved with FE and skills are preparing to answer questions before the House of Commons Public Accounts Committee.

martin-donnelly
Sir Martin Donnelly

The eagerly anticipated oral evidence session will begin at 2.30pm tomorrow, with a key witness set to be Sir Martin Donnelly, who is now permanent secretary for the Department of International Trade, but headed-up the Department for Business, Innovation and Skills until June this year.

Jonathan Slater, permanent secretary for the Department for Education, will also face questions, with David Hill, director of apprenticeships at the Department for Education, and Peter Lauener, chief executive of the Skills Funding Agency and Education Funding Agency, also set to face a grilling.

AAC 2016 at Birmingham's ICC.
David Hill

They are likely to be questioned over the findings of a damning report from the NAO, published last month, which highlighted a catalogue of failings over apprenticeships reform planning.

It urged the DfE to “do more to understand how employers, training providers and assessment bodies may respond to ongoing reforms, and develop robust ways of reacting quickly should instances of market abuse emerge”.

The NAO also urged the government to develop contingency plans for key parts of the reforms – particularly the introduction of the levy next April.

The committee hearing will come after Robert Halfon made his first appearance at Commons education questions since he became apprenticeships and skills minister in July.

peter-lauener
Peter Lauener

He was accused of dodging questions from shadow skills minister Gordon Marsden and Mary Glindon, Labour MP for North Tyneside, on what assessment had been made of the potential effect of the Department for Education’s proposed change to apprenticeship funding rates.

He was only willing to say: “We’ve continued to engage with employers and providers and we plan to publish the final policy shortly.”

Then Mr Halfon got his figures wrong, telling the House: “We will be spending more than double by 2020 – £2.5bn extra on apprentices.”

FE Week checked with the DfE what was meant by an “extra” £2.5bn, as it went against the government’s previous projection that the total levy yield in England will be £2.5bn by 2019/20 – which will be a £1bn increase from the current £1.5bn spending.

A DfE spokesperson admitted: “The minister worded this incorrectly. It came out incorrectly – the word extra should not have been added”.

What FE can expect from the autumn statement

If the prime minister’s vision of a fairer economy with better opportunities for everyone is to become reality, says Julian Gravatt, the government needs to carefully review FE funding.

The Treasury’s next autumn statement on November 23 this year will be Philip Hammond’s first as chancellor. The statement matters for everyone in FE because treasury decisions set the overall budget and direction.

What he will say in the statement is still a bit of a mystery, because Mr Hammond has kept his cards close to his chest. He told the Conservative Party conference this week that it will be hard for the government to deliver a budget surplus by 2020, but also that “fiscal consolidation” will continue. This is Treasury code for spending reductions or increases in tax, but it doesn’t necessarily mean new decisions to cut budgets. When the economy grows, fiscal consolidation happens simply because earnings rise and people pay more tax. Unfortunately we may not be facing good times.

The cornerstone of every big Treasury statement is the official economic forecast from the Office for Budget Responsibility . This includes projections for tax, spending and the deficit. The 2015 spending review turned out better than everyone expected, partly because the OBR revised its forecasts upwards and decided the country would be £27bn richer. This gave George Osborne, the former chancellor, room to revise spending cuts down from the 20 per cent target to something closer to 10 per cent. For colleges, this meant stabilisation in the two main budgets (16-to-18 and adults) and the promise of more money for apprenticeships.

A year on, times have changed. The referendum vote has caused the pound to fall in value and is expected to put a brake on economic growth in 2017 and 2018. Downward revisions to the forecasts spray red ink all over the spending plans, which may in turn require some fiscal consolidation in response.
Last year’s spending review could yet be rewritten 363 days after it was supposedly fixed for four years.

Everyone in the government talks about long-term planning, but they’re shackled to short-term targets. Brexit adds to the uncertainty but it may also force the government to behave differently when it comes to domestic policy.

The spending review could be rewritten 363 days after it was supposedly fixed for four years

For the last 15 years, the official growth forecasts benefited from a rising population of migrant workers buoyed by immigration. The prime minister’s vision of an open economy with higher borders will require something different, including a stronger focus on post-16 education and skills. AoC’s pitch in the autumn statement is that the government needs to increase spending in the short-term to move the country as a whole to a different setting.

We have made a number of specific proposals. The 16-18 funding rates should be increased to avert a funding crisis in academic and technical education. Apprenticeship funding rates and the GCSE funding condition should be reviewed. Tough issues related to pensions should be tackled rather than left to fester.

These are just some of the actions the government can take if it chooses. Without them, the economic and social problems exposed – and reinforced – by the Brexit vote will get worse rather than better.

 

AoC’s autumn statement submission is available on its website. Julian Gravatt will be hosting the AoC Funding Forum on November 17 at the AoC Annual Conference.

FE Week campaign against apprenticeship funding cuts raised in Commons

Major cuts exposed by FE Week to apprenticeships funding for 16- to 18-year-olds in some of the most deprived areas of the country has been raised during education questions, with our #SaveOurApprenticeships campaign repeatedly name-checked on the floor of the House of Commons.

Mary Glindon, Labour MP for North Tyneside (pictured above), asked during education questions what assessment had been made of the potential effect of the Department for Education’s proposed change to apprenticeship funding rates on the take-up of apprenticeships?

The question was answered by apprenticeships and skills minister Robert Halfon, who said: “The proposed apprenticeship funding policy has been designed to support an increase to the quality and the quantity of apprenticeships.

“Incentives and support for providers are included in our proposals. These will encourage the take up of many more apprenticeship opportunities by people of all ages and backgrounds, giving many people the first step on the employment ladder of opportunity.

“We’ve continued to engage with employers and providers and we plan to publish the final policy shortly.”

Shadow skills minister Gordon Marsden was then dismissive of the minister’s answer and called the plans a “shambles”.

He pushed his government counterpart for a response on the issues, and referred to FE Week’s Save our Apprenticeships campaign launch on September 14 in his question.

“He knows it’s a shambles. It’s nearly a month since he and I spoke to a full house of sector leaders in the commons and heard it from them,” Mr Marsden said.

He continued: “So with no proper impact assessment of these cuts and government’s credibility on the line, why, a month on, has he still no solutions to those cuts or funding?”

In his response Mr Halfon name-checked the campaign.

He said: “I notice that he called his campaign ‘save our apprentices’. Well, we’ve been saving two and a half million people on apprenticeships over the past five years.”

Mr Halfon continued: “If that’s not saving apprentices, I don’t know what is.

“The honourable member is ignoring the STEM uplifts, he’s ignoring the extra money spent on the apprenticeship standards, he’s ignoring the £1,000 that’s going to every employer and every provider when they hire a 16 to 18-year-old.”

The stark drop in funding exposed by our exclusive analysis had already prompted a furious backlash – with more than 600 people posting written messages pledging support for FE Week’s first official campaign.

Our findings on the impact of apprenticeship funding reform also provoked Mr Marsden and more than 50 other MPs led by Tottenham’s David Lammy to write to the government begging for a change of heart.

Mr Marsden told Labour delegates at conference that the government needed to be “very clear” that they were being “watched very carefully”, and warned they had form when it came to “disappointing 16 to 18-year-olds over apprenticeships”.

Senior politicians from across the political divide, including skills minister Robert Halfon, who defended the cuts, previously spoke at the launch of the campaign.

It took place on the same day that Theresa May was asked about the issue during Prime Minister’s Questions, when she told the Commons that she “does not recognise” that there will be cuts of 30 to 50 per cent – even though the numbers come from her own government.

EU students will be eligible for English FE loans in 2016/17

Students from the European Union who want to study with an English FE provider in 2017/18 will still be eligible for advanced learner loans, regardless of when Brexit takes place.

The government announced this morning that EU learners applying for a place at an English “FE institutions or universities in 2017/18 will continue to be eligible for student loans and grants – and will be for the duration of their course”.

FE Week checked with the Department for Education if this will apply to advanced learner loans, which were launched for 24-plus FE learners in 2013 and extended for 19 to 23-year-olds from May, as well as borrowing for higher education courses run at colleges.

A spokesperson confirmed that it “does cover advanced learner loans”.

A DfE spokesperson said: “The decision will mean that students applying to study from 2017/18 will not only be eligible for the same funding and support as they are now, but that their eligibility will continue throughout their course, even if the UK exits the European Union during that period.”

She added the move would help give “colleges certainty over future funding, while assuring prospective students applying to study at one of the UK’s world leading universities that they will not have the terms of their funding changed if the UK leaves the EU during their studies.

“The same assurance will be available for EU students studying in FE.”

The announcement comes after prime minister Teresa May said earlier this month that she would trigger Article 50, the clause needed to start the process, by the end of March 2017.

That means the UK is unlikely to fully leave the EU by mid-2019, but the government acted now to provide clarity over FE and higher education funding for next academic year.

Julian Gravatt, assistant chief executive at the Association of Colleges, said: “The Government’s confirmation that they will continue funding for EU students studying in further education institutions in 2017/18 to continue their course is reassuring to prospective students and helpful to colleges, especially as they have already started recruiting for September 2017.‎

“Many EU nationals enrolling in college already live here.The education and training students get from college helps UK companies and public services fill skills shortages which provides wider benefits. The EU exit negotiations create lots of uncertainty about the future so it is helpful to have some short-term certainty.”

Mark Dawe, chief executive of the Association of Employment and Learning Providers, told FE Week: “This announcement is good news for the sector if it applies to advanced learner loans in particular, as any moves to provide stability over funding at the present time are to be welcomed.

He added: “The government has consulted on loans for FE and we’ve said that it should really start looking at loans for higher and degree level apprenticeships.

“The timing is right with the levy on the horizon and loans for apprentices will support ministers’ social justice agenda.”

Around 10 per cent of total advanced learner loan funding paid out last academic year by the Student Loans Company went to non-UK citizens from across the EU (£10.1m of £100.1m).

Uncertainty remains over what will happen to European Social Fund contracts as a result of Brexit negotiations— with the current round running from 2014 to 2020 worth about €3bn (£2.3bn) across England.

The ESF is cash that the UK receives, as a member state of the EU, to increase job opportunities and help people to improve their skill levels, particularly those who find it difficult to get work.

It is partly administered through the Skills Funding Agency (SFA) and its allocations in 2014/15 showed that 107 different providers received a combined total of £305,267,633 in ESF cash.

Which Party conference was more focused on apprenticeships and skills?

Skills and apprenticeships were centre stage at one of the party conferences, says Gemma Gathercole, while being relegated to the wings at the other.

By any stretch of the imagination it’s been a busy summer, from the referendum to leadership elections to the machinery of government changes. So conference season, at the start of the autumn –when almost every part of the further education system is undergoing some form of revision or review – should have been the perfect time to discuss these issues. The reality, however, was a tale of two halves.

For me the key take-away from the Labour Party conference was an internal message: a lack of focus on the issues of the day, particularly in relation to FE. Arguably, due to the need to restore party unity following a divisive summer, attention was elsewhere. In the exhibition hall, there were fewer corporate exhibitors than even last year; there appeared to be fewer fringe meetings in general and certainly the MPs were less visible. With one exception.

I must recognise and single out Gordon Marsden, who appeared to be the hardest working MP across all the fringe events. Gordon attended events covering all parts of his expansive skills, business and higher education brief. No mean feat.

However, this extraordinary effort to cover so many events masks an underlying message. The lack of visibility of other MPs indicated a lack of engagement from Labour MPs in general, over key issues that affect education, skills and productivity.

The lack of visibility of other MPs indicated a lack of engagement from Labour MPs in general

In three years of attending party conferences, we have always struggled to timetable events and to be able to cover the plethora of fringe events (seminars, debates, workshops and receptions that typically take place across the conference site and host city). This year, the number of events that were relevant for us to attend was relatively fewer and where there were a number of events on relevant topics, they tended to clash in the conference plan.

There was also limited reference to apprenticeships in speeches: just one mention from Angela Rayner and none from Jeremy Corbyn. While the broader education system was of course mentioned in their speeches, the lack of reference to approaches to current policy initiatives is a concern.

In contrast, at the Conservative conference this week education, skills and especially apprenticeships couldn’t have been higher on the agenda. As delegates ascended the staircase to the exhibition hall at the ICC, they could not miss the large space dedicated to the apprenticeship zone with FE colleges, apprentices and employers all represented. Within the exhibition hall itself, Pimlico Plumbers put their support for apprenticeships clear on their stand.

Within the fringe programme, there was an abundance of events discussing the impact of reform of the further education system. Brexit, social mobility, skills and apprenticeships were the buzzwords of conference. Robert Halfon, the new skills minister, devoted time to meeting apprentices and attended a number of
fringe events to discuss his priorities for
the role.

In her first conference speech as Education Secretary, Justine Greening was introduced by one of the apprentices from the apprentice zone, Jessica Shaw from Fujitsu. Justine Greening’s speech stated her intention to make the skills plan a big priority.

And there was one reference to apprenticeships in the Prime Minister’s speech; it may have only been about the target but words are critical real estate in conference speeches and it was important for it to be included.

There is clearly much detail still needed from the government about the massive ongoing reform programme for apprenticeships final details on levy implementation being first and foremost in this list, and critically, much more detail on the implementation of the skills plan.

But the evidence from Liverpool suggests that challenge on these issues may have to come from the sector rather than the opposition.

Movers & Shakers: Edition 185

Your weekly guide to who’s new, and who’s leaving.

 

Saboohi Famili has joined Epping Forest College in London as its new principal.

She joins the college following a two-year stint supporting the government of Guernsey in reshaping post-16 education in the Bailiwick.

Prior to this, Ms Famili held the position of principal at Sutton College, a provider of further and adult education, for just over four years.

Ms Famili plans to launch a programme that encourages stakeholder engagement, in order to develop a strategy for Epping Forest that works alongside the regional economy, and meets the needs of the wider community.

She hopes to create a culture of openness, innovation and enterprise, and is also keen to celebrate the diverse nationalities and faiths in the college, through planning diversity showcases and setting up displays engaging students with the Prevent agenda.

A refugee from Iran, she was forced to remain in the UK over 17 years ago, which is something she claims has shaped her “can-do” approach.

Speaking of her plans to transform the college, Ms Famili said: “My role is to turn high hopes into reality. It is what our learners, employers and community deserves, and we are going to deliver.”

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Meanwhile, Edd Brown has been appointed as operations director for quality improvement at Further Education Associates (FEA), a FE consultancy.

Headquartered in Bristol, FEA works with senior leadership teams across the FE sector to deliver services ranging from developing strategies and plans for long-term changes, to providing colleges with interim leadership and management solutions.

Mr Brown’s role will involve project-managing support programmes for colleges aiming to improve their teaching, learning and assessment practice.

He joins the FEA from his role as a teaching and learning manager at Weston College in Weston-super-Mare, which he held for six years. He spent a total of 13 years at the college, holding various roles – his first being a lecturer in sport and public services.

Speaking of his new appointment at FEA, Mr Brown said: “As a teacher I could develop the learners in my class, which was thrilling. That became thousands when I was responsible for developing teaching and learning across the college. At FEA we can now support colleges and have an impact on tens of thousands.”

Mr Brown says he is most looking forward to bringing his skills to “a national platform” in his new role.

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Jonathan Godfrey is set to retire from his position as principal of Hereford Sixth Form College at the end of the academic year, after 19 years of service.

Mr Godfrey has been at the helm of the Folly Lane campus since 1997, and during his leadership has overseen funding cuts, area reviews and a number of college accolades.

The sixth form is currently rated as ‘outstanding’ by Ofsted, and in 2006 it was awarded the prestigious ‘Learning and Skills Beacon’ status by the secretary of state for education.

Mr Godfrey says his biggest challenge during his time at the college has been dealing with funding cuts, while still maintaining a high level of education at Hereford sixth form.

Following retirement, Mr Godfrey intends to keep busy, and he’s even considering the possibility of a whole new career path. He said: “I plan to go on to something else when I leave the college. Whether that’s pursuing teaching or something else entirely, I don’t know yet.”

Area reviews: either publish guidance or extend timescales

DfE officials should be applauded, under the circumstances, for trying to support colleges as best they can by letting them see the area review guidance in draft form.

I would like to encourage them to keep the sector as informed as they possibly can, as area reviews and apprenticeship reforms press on at breakneck speed.

But Sally Hunt is also right to complain that delays with ministers signing-off on crucial documents are creating a cloak and dagger culture, with civil servants forced to covertly reveal as much as they can in advance of information being officially published.

It isn’t an ideal scenario. I understand that Robert Halfon and other ministers involved with skills want to give everything that comes before them thorough consideration, following the example of our famously careful prime minister.

But area reviews are running way behind and their own deadlines for apprenticeship reforms are incredibly tight.

Ministers either need to hasten their signing-off process, or delay implementation.