Counter-fraud measures underway for apprenticeship funding programme

Counter-fraud measures are to be set up for the apprenticeship funding programme, the government has insisted, amid warnings from the National Audit Office that not enough care is being taken to prevent a repeat of the Individual Learning Accounts fiasco.

Worried about a repeat of the multimillion-pound fraud 15 years ago, the NAO has found that the Department for Education (DfE) still has no contingency plan if levy and funding reforms do not work out as planned.

The DfE has now defended itself against the accusations, with a spokesperson telling FE Week: “We are working closely with colleagues from across government to implement counter-fraud measures for the new funding system.”

The failure of the Individual Learning Accounts scheme – which was scrapped in 2001 after abuse by unscrupulous providers led to a reported £67m fraud – was blamed on poor planning and risk management by the government.

But a damning report from the NAO published on 6 September has raised concerns that lessons have not been learned, raising the risk of “market abuse” as it warned that the DfE had not done enough to identify how providers, employers and assessment bodies might react to the apprenticeship reforms.

“DfE now needs to expand its work on behavioural risks,” it said, “and also ensure it learns lessons from previous initiatives which have not turned out as planned, such as Individual Learning Accounts.”

The report found that although a delivery team had been set up to “consider the risks of fraud and gaming”, it is “too early to say what impact this group will have”.

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

As previously reported by FE Week, the government has so far been silent on the matter of contingency planning if levy systems don’t work out as planned.

The NAO found that the “DfE believes that, in general, initiatives are progressing sufficiently well that no contingency plans will need to be drawn up before October 2016”.

Mark Dawe, chief executive of Association of Employment and Learning Providers, said: “The NAO is right to highlight that further progress is needed to manage the risks involved in the reform programme, because if we don’t get the transition process right, there’s a real danger that quality of apprenticeships will be adversely affected.”

Skills minister dismisses calls to delay apprenticeship levy launch

The new skills minister has dismissed widespread calls to delay the apprenticeship levy launch, even after 10 major professional bodies called on him to rethink.

Robert Halfon (pictured) dismissed the findings of an FE Week investigation, claiming any hold-up past next April’s launch date would delay “millions of opportunities for both business and people”.

Yet none of the 10 organisations that responded to FE Week’s call for views supported pressing ahead with the current super-tight timescale for rollout of the levy and associated funding reforms.

Views came from a broad spectrum of employers in key sectors, which run apprenticeships from horticulture, manufacturing and engineering, tech, oil and gas, and youth work, to water, tourism, construction, beauty, motor, and accountancy.

Tim Thomas, the director of skills and employment policy at the manufacturing and engineering body EEF, said the plan “lacks flexibility”, while the boss of the Institute of the Motor Industry, Steve Nash, complained that guidance had so far been “sporadic and untimely”.

Other concerns over unresolved issues included new funding bands which were described as “uneconomical”, particularly for 16- to 18-year-olds, the impact of Brexit, and the way the system will work across different countries within the United Kingdom.

The National Audit Office brought up significant worries about poor government management of apprenticeship reforms, and called on the DfE to “expand its work on behavioural risks implementation”, in a new report published on Tuesday (September 6).

The NAO blasted the government’s lack of contingency planning for funding reform, including the introduction of the levy, if things do not work out as planned.

FE Week asked the DfE if it had any contingency plan that included potential for a delay. The department declined to answer directly, instead providing a statement Mr Halfon.

“The apprenticeship levy is a game-changer,” he wrote. “It will create a ladder of opportunities for millions of people and give businesses the skills they need now and for the future. The levy allows us to invest more than ever in apprenticeships. Delaying the apprenticeship levy would mean delaying millions of opportunities for both business and people.”

He added: “While it is true some businesses want us to delay – there are many who want the levy to go ahead. Organisations such as the Chartered Management Institute (CMI) and the Association of Education and Learning Providers (AELP) have been vocal in their support.

“We have been working closely with employers of all sizes to determine how the levy will work for them and will continue to do so. We will listen to what they have to say to ensure the levy will work best for them.”

Mark Dawe, chief executive of AELP, told FE Week that he supports pressing ahead with the launch of the levy, but wants to delay other apprenticeship reforms.

“We can’t afford to wait longer because the levy is even more vital following the Brexit vote and the need to develop our own skills base, with the likely ending of the free movement of labour,” he said.

“However there are other aspects of the apprenticeship reforms such as the standards, the provider register and this autumn’s non-levy payers’ procurement exercise, where the transitional risks are very high, and where a pause for further deliberation would be welcome.”

Petra Wilton, director of strategy at CMI, which specialises in management and leadership development across the public and private sector, confirmed that she supported the current levy timetable.

“In the uncertainty of post-Brexit, it has become very clear that the UK needs to invest far more in skills to boost its productivity and international competitiveness. Now more than ever, businesses need more certainty around the levy, as opposed to further delays.”

FE Week asked a range of professional sector employment bodies if the apprenticeship levy should be delayed:

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Save our apprenticeships campaign

Click here to download the campaign event briefing.

 

Our first ever official campaign will oppose damaging cuts to apprenticeship funding exposed by FE Week over the summer.

Exclusive research that we published last month showed proposed funding changes could mean rates being cut by up to 50 per cent for the most deprived 16 to 18-year-olds.

It provoked a huge national backlash.

Damning letters were sent by more than 50 Labour MPs led by David Lammy and shadow skills minister Gordon Marsden to new apprenticehips and skills minister Robert Halfon.

The issue was also raised in parliament and has been taken up by national papers the Guardian, Independent and Mirror.

save-our-apprenticeships

We agree the debilitating affect that this would have on the life chances of young people in poorer areas across the country is simply unacceptable.

It is why FE Week has decided to cast aside our usual impartiality and call for common sense and decency to prevail.

We’re confident this paper’s investigative reporting and editorials have influenced government policy in the past.

For example, there’s little doubt our first ever edition’s expose of 12-week call centre apprenticeships – published five years ago – and subsequent stories on disgraceful “hothousing” were driving factors behind the decision to increase minimum duration from 12 weeks to 12 months.

But this is FE Week’s first ever official campaign, which hopefully reflects the hard-won maturity of the title.

These planned cuts appear to be the result of rushed policy making surrounding next April’s levy launch, and it feels right to appeal for a change of heart to a new minister who has been rightly praised for his own campaigning to promote apprenticeships and cut fuel duty.

So come on Mr Halfon, show us that prime minister Theresa May’s promise on taking office to ‘help anybody, whatever your background’ wasn’t empty jargon. Save Our Apprenticehips!!

FE WEEK CAMPAIGN LAUNCH EVENT

FE Week will be holding a campaign launch event in the Houses of Parliament on Wednesday.

It will be hosted in Committee Room number nine by our editor Nick Linford and shadow skills Minister Gordon Marsden, with David Lammy and many other MPs in attandance.

The idea is to give sector leaders in the audience from colleges, training providers and third sector organisation, as well as small and large employers involved in apprenticeships, who subscribe to FE Week, the opportunity to talk to politicians about the impact of the proposed apprenticeship funding rate cuts and how we can all work together to pressure the government into changing its plans.

Here’s how we covered the story online over the summer:

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August 19, Funding rates cut by up to 50 per cent for the most deprived 16-18 apprentices

Proposed funding for 16 to 18 year-old apprentices will result in current rates to colleges and training providers being cut by around 30 per cent, rising to over half for those apprentices living in the most deprived areas of central London, FE Week can exclusively reveal.

Astonishingly, this compares with the funding for many learners aged 24 and over going up, particularly those living in affluent areas outside the South East and working for large employers.

The analysis for some of the most popular apprenticeship frameworks was conducted by FE Week.

It is based on new proposed new ‘upper limit’ funding levels and a £1000 16 to 18 incentive paid to the provider, for apprenticeship framework starts from 1 May 2017 published by the Skills Funding Agency.

Aug 23, Former minister asks PM why she is ‘shafting’ future of young people with apprenticeship reforms

The former minister for HE has slammed the Prime Minister for “shafting” the future of working class kids in his constituency, after seeing FE Week research into proposed apprenticeship funding cuts.

David Lammy said the impact of potential funding cuts for 16 to 18 year-old apprentices would be “devastating” for young people in deprived areas like his own area of Tottenham, where unemployment rates are already almost double the national average.

He said: “I have one question for the government in response to these cuts: why are you shafting working class kids?”

Mr Lammy added the cuts would “hugely undermine” the government’s target to create 3m apprenticeships by 2020, and “entirely contradict” Theresa May’s promise to boost social mobility.
 
September 2, Concern over FE Week funding cuts findings raised by shadow minister

Serious concerns about funding cuts for 16-18 year old apprentices have been raised by shadow skills minster Gordon Marsden, in a letter to apprenticeships and skills minister Robert Halfon based on FE Week research.

He referred directly to our analysis, published last month, which showed that proposed funding for apprentices from that age group would lead to current rates to providers being cut by around 30 per cent, rising to over half for those living in most deprived areas of central London.

The letter warned that the proposals “offer a damaging lack of support for young apprentices”.

Mr Marsden added that he was “extremely concerned at the potential adverse effects for social mobility stemming from the proposed new apprenticeship funding methods”.

September 4, MPs use FE Week analysis to demand funding cuts reversal

More than 50 Labour MPs have urged skills minister Robert Halfon to reverse apprenticeships funding cuts exposed by FE Week.

The group led by David Lammy, former minister for higher education and MP for Tottenham, have all signed a letter to apprenticeships and skills minister Robert Halfon describing the potential cuts as “devastating” for apprentices in deprived areas.

This follows publication of FE Week research last month, which exclusively revealed that proposed funding changes could mean a fall of around 30 per cent in funding to providers for 16 to 18 year-old apprentices, and over 50 per cent for those in the poorest areas of central London.

It called on Mr Halfon “in the strongest terms to think again and reverse them”.
 
September 6, Greening challenged over apprenticeship funding cuts

The first day back from parliamentary recess saw education secretary Justine Greening challenged over widespread apprenticeship funding cuts uncovered by FE Week.

Shadow skills minister Gordon Marsden lodged a series of written parliamentary questions yesterday, following up on FE Week research which revealed proposed funding reforms would mean around 30 per cent cuts for 16 to 18 year-old apprentices, rising to over 50 per cent for those in the poorest areas of central London.

Mr Marsden asked if Ms Greening would “discuss with the treasury the potential to fully fund apprenticeships for 16-18 year olds from savings accrued as a result of the introduction of the apprenticeship levy”.

This echoed comments by FE Week editor Nick Linford on September 4, when he wrote: “The Treasury will make a £1.5bn annual saving by switching the total source of apprenticeship funding to an employer levy. Perhaps half of this could be used to improve social mobility by fully-funding 16 to 18-year-old apprentices?”

See Nick Linford’s expert piece on why Halfon should ask the Treasury to hand back the savings

NCG fighting to avoid dropping to a damaging Ofsted grade 3

An Ofsted report into the nation’s largest college has still not been published more than four months after it was inspected due to a row over the result, FE Week has discovered.

According to several sources who wish to remain anonymous, NCG (formerly Newcastle College Group) is actively disputing the overall grade-three, or ‘needs improvement’, rating it is understood to have received.

In public, neither Ofsted nor NCG is commenting on the dispute, which has meant a delay of 118 days and counting to the release of the final report.

FE Week understands that the week-long process involving 15 inspectors went smoothly, and that the college had been told to expect a second consecutive overall result of grade two, or ‘good’.

Inspections all go through Ofsted moderation, and concerns raised during this process meant the overall grade was lowered to a grade three at best.

The delay – 118 days when FE Week went to press on Thursday, September 8 – is double the previous longest wait for an Ofsted report since the new common inspection framework (CIF) was launched last September

A delay of this length is especially unusual as Ofsted typically publishes its reports before the complaints procedure has been concluded.

In a statement, the spokesperson for NCG simply said: “We are in the quality assurance process.”

For its part, Ofsted stated that it “does not comment on an inspection while it is going through quality assurance processes”.

The inspectorate’s handbook says, however, that “providers will receive an electronic version of the final report within 17 working days of the end of the inspection”, while “in most circumstances, the final report will be published on Ofsted’s website within 19 working days”.

In cases where Ofsted decides that a report “requires further quality assurance, or finds the provider is provisionally inadequate, the provider will usually receive an electronic version of the final report within 26 working days”.

The final report, it explains, will in such circumstances “usually be published within 28 working days”, although Ofsted does not normally delay publication of an inspection report “while complaints are investigated”.

This previous longest wait after inspection under the new CIF was 59 days, for a report on Ealing, Hammersmith and West London College. The average wait is just 35 days.

This is not the first time NCG has clashed with Ofsted.

NCG national achievement rates. Source: Skills Funding Agency
NCG national achievement rates. Source: Skills Funding Agency

FE Week revealed in July 2012 that Ofsted inspectors had been asked to leave Newcastle College, after staff complained of “troubling incidents” during an inspection.

Ofsted’s visit had to be cut short, although they returned several weeks later, eventually downgrading the college’s overall rating from grade one to two.

The body’s former principal Dame Jackie Fisher is understood to have lodged a formal complaint running to over 600 pages.

An inspector subsequently told FE Week that “it was never going to be easy inspecting a college that had outstanding etched into its windows”.

Since then, Ofsted has introduced new scrutiny panels for complaints about inspections, but this mechanism is unlikely to have been the cause of the current delay; a spokesperson for the inspectorate said that such panels “would normally take place following publication of the inspection report”.

The delay is more likely down to disappointing recent retention and overall achievement rates.

For example, NCG’s overall retention rate for level two 16- to 18 year-olds in 2014/15 stood at 15.6 per cent below the national average for a general further education college, while the overall achievement rate at level three (formerly known as the success rate) for that age group was negative 7.5 per cent.

NCG insisted that this data was “misleading” because it was “for all NCG provision including national charity Rathbone, which works exclusively with young people not in education, employment or training, and national private training provider Intraining, both of which have national performance benchmarks lower than those of FE colleges.

“The disaggregated data for the four NCG colleges shows performance is at the national level for FE colleges.

“Rathbone and Intraining were not in scope for the inspection. Intraining was inspected separately in May and provision was found to be grade two.”

That which does not kill us makes us stronger (Nietzsche)

After his eight year reign at the helm of the Association of colleges ended last week, Professor Martin Doel provides his thoughts on the state of the sector as he starts in a new post as the Further Education Trust for Leaderships’s professor of FE and skills.

If Nietzsche was right, then after all that the trials and tribulations they have suffered over the past eight years, colleges should be the strongest institutions in education.

In one sense this is right; colleges have developed survival skills of the highest order.

In comparison to schools and universities they are outstandingly resourceful, flexible and responsive.

On another level, however, Nietzsche’s aphorism doesn’t work.

The overhang of the capital crisis in 2009 when the then Learning and Skills Council overcommitted a capital budget by £3bn, with the consequences being borne by colleges, sustained and drastic cuts to funding for young people and for adult and constantly shifting ministerial initiatives have had an effect.

Professor Alison Wolf was right to say in the summer of 2015 that colleges were heading for the precipice.

Professor Alison Wolf was right to say in the summer of 2015 that colleges were heading for the precipice.

The outcome of 2015 Spending Review that Professor Wolf’s report anticipated was better than most expected (an outcome for which I think AoC can claim some justified credit).

Funding for young people was protected for the life of the Parliament, the adult education budget was similarly protected, albeit with the prospect of devolution to Combined Authorities or similar, and an employer levy was proposed to fund apprenticeship growth.

But in the case of young people and adults, this served only to stabilise funding and not to redress cash cuts of 14 per cent for young people and 40 per cent for adults over the preceding years.

The consequence is that signs of stress are inevitable within the further education sector, with area reviews underwritten by a restructuring cash facility being seen as a means of securing a sustainable pattern of provision.

At the outset of the new academic year there did seem to be the prospect of colleges having the breathing space to regroup and be able to respond to the challenges and opportunities laid out by the new Prime Minister and her team of ministers.

These include promoting social mobility, improving productivity and preparing for a world outside the EU. There are, though, fresh challenges ahead.

One of the most dispiriting questions every incoming minister for skills that I have spoken with has asked me is ‘what are we going to do about underperforming colleges?’

On each occasion that this question has been asked, I have replied with suppressed anger that the number of underperforming colleges is relatively small.

If some colleges were not performing as well as others that was natural and the causes were more often to be found outside colleges than inside them.

Analysis of high performing skills systems elsewhere in the world indicate that they benefit from adequate funding and a stable policy environment that then promotes high levels of trust between skills providers, government and employers.

Despite the lack of these elements in England, we still have a high performing college sector that compares well with others and from which other nations seek to learn.

That this is so is due to the quality of leadership in colleges more than the policy environment in which they operate.

The task that new ministers should address is to ensure in the forthcoming Autumn Statement that adequate funding is secured, that the coherent way ahead plotted in the Skills Plan is delivered by competent and consistent policymaking and that apprenticeship reform, in particular, does not run ahead of itself.  If these elements are in place, then colleges can be properly questioned as to their part in delivering the plan.  

 

To finish a few aphorisms of my own based on eight and a half years at AoC:

Keep the message simple as possible.

Repeat it many times.

Fight only when you know you can win, or you have no alternative.

Don’t fight simply to make yourself feel better or to look big.

See each battle, whether won or lost, as a part of a longer campaign.

Presume the best in people and not the worst.

Never underestimate the power of saying thank you.

UTC will not open despite DfE spending over £8m

A University Technical College (UTC) developed in partnership with Burton and South Derbyshire College will never open, despite the government spending more than £8m setting it up, the Department of Education (DfE) has confirmed.

Approval for the Burton and South Derbyshire UTC was withdrawn “following low pupil recruitment numbers” a spokesperson for the department said, adding that the institution would have been “financially unviable for the taxpayer”.

The latest set of accounts for the year ended August 31, 2015  show that that UTC was given over £8m of funding by the Education Funding Agency, all of which was subsequently spent. 

Built in Burton on Trent, it included a range of new equipment for learners and was set to specialise in biomedical science and engineering.

The DfE spokesperson added: “We will be undertaking a full assessment of future plans for the site looking at all possible options while taking into account local circumstances.”

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Burton and South Derbyshire UTC’s profile on http://www.utcolleges.org/ remains incomplete, but lists the original partners for the project

Alongside lead sponsor Burton and South Derbyshire College, other partners of the UTC project included Coventry University, Nestle, and hospitals in Burton and Derby.

According to the Burton Mail, the de Ferrers Trust, which oversees the de Ferrers Academy in Burton, has expressed an interest in taking on the building previously assigned to the UTC. 

FE Week contacted Burton and South Derbyshire College for comment, but was told that the college “no longer handles media enquiries for Burton and South Derbyshire UTC” and this responsibility has now been handed over to the DfE.

A spokesperson for the Baker Dearing Trust, the organisation established to develop and promote the concept of UTCs, commented: “The minister took the decision not to proceed with this project in May 2016. Baker Dearing regrets this but accepts this was the right course of action on this occasion.”

In July Ofsted’s former chief inspector Sir Michael Wilshaw slammed UTCs, telling them that they need to make “radical improvement” if the model is to survive.

It followed FE Week research in February, which found that forty per cent of UTCs opened between 2010 and 2013 saw student numbers fall for the last academic year.

Many have now been forced to close, such as UTC Lancashire which said in a statement on May 3 that it would close for good just three years after it opened — due to difficulties in enrolling enough students “to secure future financial viability”.

Meanwhile Central Bedfordshire UTC had announced in March that it would close in August — after admitting it had not been able to attract “sufficient pupils”.

Hackney UTC closed in July 2014, also following problems attracting learners, and Black Country UTC shut in the summer of 2015 after a “disappointing” Ofsted inspection and, again, low student numbers.

In April, Burton and South Derbyshire College fell from an Ofsted grade 2 to a grade 3, due to factors such as the quality of teaching, learning and assessment being “not consistently good across the range of the college’s provision”, and leaders and managers failing to “use self-assessment sufficiently well to identify aspects of teaching, learning and assessment that require improvement”.

College investigated head of curriculum’s racist tweets yet he kept his job until FE Week started asking questions

A curriculum head at one of London’s largest colleges sent a string of racist, homophobic and abusive tweets but was allowed to keep his job despite an internal investigation.

Glen Maybury, who was head of leisure, health and public services at the City of Westminster College, used his personal Twitter account to make a number of unpleasant public posts, as well as retweeting a number of Islamophobic and anti-Semitic comments made by others, for several years.

According to the college’s senior leadership, a disciplinary investigation was launched in May this year after other members of staff made complaints about Mr Maybury’s conduct.

However, while the former curriculum lead is no longer an employee at the college, evidence seen by FE Week appears to prove that he had been allowed to return to his full-time role until at least September 7 this year, almost exactly around the time that this paper got in touch.

Senior staff were told suddenly on September 8 that Mr Maybury would be leaving at “lunchtime”, just a couple of hours after FE Week rang the college, anonymous whistleblowers have said.

These same sources confirmed that Mr Maybury had been seen in college this month, though its principal Keith Cowell insisted that this would just have been while he packed up his desk.

“I can confirm to you that he is not an employee at the college. He may have been in college to hand over and pick up personal effects. I don’t know what his movements are, but he is not employed by us,” said Mr Cowell.

When pressed as to whether Mr Maybury was no longer an employee of the college on the morning of September 8, Mr Cowell replied: “Yes. Yes. That’s what I said.”

Graphic tweets sent by Mr Maybury, seen by FE Week, include him insulting other Twitter users with comments like “you f****** r*****asaurus c***” and “you p***o”, as well as slurs against London Mayor Sadiq Khan and Jewish people, and offensive images of black people and genitalia, which were posted from 2013 to 2015.

The City of Westminster College, which has 7,000 students at two sites in Paddington and Queen’s Park in north London, is ethnically diverse, with 17 per cent of students coming from an Asian background, seven per cent from an Arab background, and 26 per cent from an African, black or Caribbean background.

“When these types of action take place in an institution that is meant to prevent discrimination, radicalisation and promote British values, how can these students have faith in the system?” asked the whistleblowers, speaking to FE Week.

Mr Cowell admitted that a disciplinary process had been launched earlier this year to investigate the incidents, and confirmed that this was “concluded in July”. The principal insisted that he could not confirm the outcome of the investigation owing to “data protection” issues.

Despite this, one source told FE Week that Mr Maybury had been working in his usual role from the start of term on August 23, at least until September 7 and possibly even on the morning of September 8.

This claim is backed up by an email sent to staff and seen by FE Week, which shows a “Glen Maybury” discussing college matters from an official account on September 8 – possibly indicating that any disciplinary procedure that had been carried out by the college earlier this year had indeed not led to him losing his job.

Lyndon Sly, the director for culture, media and sport – whose department Mr Maybury belonged to – also called for an emergency staff meeting on a “private” matter which was scheduled for the morning of September 9, FE Week can confirm.

Mr Cowell told FE Week that staff were confused about the situation surrounding Mr Maybury’s position.

“What I’m saying is it’s perfectly feasible that he might have been in the building,” he said. “But your contacting today has been useful as far as that’s concerned, because it seems we were unaware that there was confusion on the issue.

“If there is a sense of confusion we can certainly clarify that with the relevant staff.”

Greening challenged over apprenticeship funding cuts

The first day back from parliamentary recess saw education secretary Justine Greening challenged over widespread apprenticeship funding cuts uncovered by FE Week.

Shadow skills minister Gordon Marsden lodged a series of written parliamentary questions yesterday, following up on FE Week research which revealed proposed funding reforms would mean around 30 per cent cuts for 16 to 18 year-old apprentices.

That figure could rise to over 50 per cent for those in the poorest areas of central London.

Mr Marsden asked if Ms Greening would “discuss with the treasury the potential to fully fund apprenticeships for 16-18 year olds from savings accrued as a result of the introduction of the apprenticeship levy”.

This echoed comments by FE Week editor Nick Linford on September 4, when he wrote: “The Treasury will make a £1.5bn annual saving by switching the total source of apprenticeship funding to an employer levy.

“Perhaps half of this £1.5bn saving could be used to improve social mobility by fully-funding 16 to 18-year-old apprentices?”

Mr Marsden also called on Ms Greening to release the publication date for the impact assessment produced by the Department for Education (DfE) in developing current proposals for changes in the apprenticeship funding rates for colleges and providers.

He asked Ms Greening in particular “what discussions she has had with large employers” about the impact of the new funding arrangements on their take-up of apprenticeships.

He requested she “make a statement about the implications for apprenticeship take-up by 16-18 year olds as a result of the Department’s current proposals for changes”.

Finally, Mr Marsden sought information about what assessment Ms Greening has made of the “disproportionate impact” of the department’s proposals on both small employers and young people in deprived areas.

He also wrote to apprenticeships and skills minister Robert Halfon earlier last week, warning the funding proposals “offer a damaging lack of support for young apprentices and further weaken proposed attempts to widen participation”.

Mr Marsden claimed the plans showed “little awareness of the equality implications” or the risk of “potentially putting off more small employers from taking on young people in this age range”.

A further 53 Labour MPs signed another letter to Mr Halfon, urging him to scrap the same apprenticeships funding cuts.

The group, led by David Lammy, former minister for higher education and MP for Tottenham, called on the minister “in the strongest terms to think again” and “reverse” the cuts, which could be “devastating” for apprentices in deprived areas.

It sparked widespread national media interest with the issue reported on by The Guardian, Independent and Mirror over the weekend.

The Association of Colleges joined calls for a rethink, with assistant chief executive Julian Gravatt warning the “funding reductions currently go too far and need more consideration”.

“We urge the government to spend time working through and examining all the funding options,” he added.

Speaking on behalf of the government, Mr Halfon said: “We want to encourage employers to take on young people.

“That’s why they won’t have to pay more to give a 16 –to 18-year-old their first step on the career ladder and why we’re proposing to give employers an extra £1,000 for every young apprentice they take on.”

The DfE was unable to comment by the time of publication.

NAO apprenticeship report warns of history repeating itself over fraud

The apprenticeship reform programme risks repeating the fraud that plagued Individual Learning Accounts without more robust risk planning, the National Audit Office (NAO) has warned.

The stark message came in a damning report from the NAO, published today, on delivering value through apprenticeships – which revealed the Department for Education (DfE) has still has no contingency plan for if levy and funding reforms do not work out as planned.

The failure of the Individual Learning Accounts scheme – which was scrapped in 2001 after abuse by unscrupulous providers led to a reported £67m fraud – was blamed on poor planning and risk management by the government.

But today’s NAO report raised concern that lessons had not been learned — as it warned the DfE had not done enough to identify how providers, employers and assessment bodies might react to the apprenticeship reforms, raising the risk of “market abuse”.

It said: “DfE now needs to expand its work on behavioural risks, and also ensure it learns lessons from previous initiatives which have not turned out as planned, such as Individual Learning Accounts.”

Phil Hyde, one of the team behind the report, told FE Week: “We’ve flagged this [behavioural risk] up as a separate section, because we do think from past experience that this is something that’s very important for them to be on top of.”

The report found that although a delivery team had been set up to “consider the risks of fraud and gaming” it was “too early to say what impact this group will have”.

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 report urged the government to develop contingency plans for key parts of the reforms – particularly the introduction of the levy.

As previously reported by FE Week, the government has so far been silent on the matter of contingency planning if the levy systems don’t work out as planned.

But according to the NAO report the “DfE believes that, in general, initiatives are progressing sufficiently well that no contingency plans will need to be drawn up before October 2016”.

It said that in July a team had been commissioned “to prepare contingency plans if elements of the programme should not progress as expected”.

It continued: “However, the contingency planning for funding reform, including the introduction of the levy, needs to continue to be developed.”

Mark Dawe, chief executive of Association of Employment and Learning Providers, said: “The NAO is right to highlight that further progress is needed to manage the risks involved in the reform programme because if we don’t get the transition process right, there’s a real danger that quality of apprenticeships will be adversely affected.”

Sally Hunt, University and College Union general secretary, said: “We have to avoid the unfortunate scandals of private for-profit firms ripping off the taxpayer that we have seen in higher education.”

Apprenticeships and Skills Minister Robert Halfon said: “Our apprenticeship reforms give young people a ladder of opportunity, provide employers with high quality apprentices and deliver real benefits to the economy.

“The new Institute for Apprenticeships will ensure that apprenticeships are even more closely tailored to the needs of employers.”

A DfE spokesperson said it would consider the NAO’s recommendations.