Charities are caught in a “conflict of legislation” over the government’s apprenticeship levy, a senior sector figure has warned.

The requirement for charities to ensure their funds are spent directly on their missions will put them in conflict with the levy, according to Beth Brook (pictured above), the chief executive of Fair Train, the group training association for the voluntary and community sector.

Speaking at FE Week’s parliamentary debate on the levy in the Palace of Westminster on Tuesday (May 3) , she said: “There seems to be a conflict of legislation — charities and charity trustees need to make sure charity funding is spent on beneficiaries, and now we have a tax that is coming in that means that charities then need to be spending their money on something else.”

Sponsored by awarding organisation OCR, the event was hosted by Shadow Skills Minister Gordon Marsden and chaired by FE Week interim editor Nick Linford.

It included contributions from Martin Doel, chief executive of the Association of Colleges; Mike Cox, operations director of the Association of Employment and Learning Providers; and Gemma Gathercole, head of policy at OCR.

The concerns raised by Ms Brook at the debate echoed points raised by the Charity Finance Group (CFG), a third sector body with over one thousand members, in a letter sent to Skills Minister Nick Boles on December 1, 2015.

Caron Bradshaw, the group’s chair wrote: “Redistribution outside of the charity sector of apprenticeship levy funding could call into question whether money given for public benefit should be allowed to leave the sector in order to subsidise private sector employers and support private benefit.”

Mr Boles subsequently “accepted that there were difficulties around volunteering” in a meeting with the CFG in March this year, but “could not immediately offer a solution to this challenge”, according to CFG minutes.

The meeting covered a number of issues, including the risk of the levy incentivising charities to employ apprentices in place of volunteers — a point that Ms Brook also raised in Westminster on Tuesday (May 3).

Three apprenticeship frameworks that had been developed specifically for the voluntary and community sector, covering fundraising, campaigning, and volunteer management, had also fallen off the agenda, she told legislators.

She said: “At the moment there’s no apprenticeship specifically or the voluntary and community sector. “We’ve got an issue there with supply and demand — we are expecting these organisations to pay the levy but there’s nothing for them to buy.”

Furthermore, she said, “neither civil servants nor ministers are referring to the voluntary and community sector in guidance”, while messages have been “conflicting”.

She claimed that while the Department for Business, Innovation and Skills (BIS) was pushing charities to pay the levy, Rob Wilson, minister for civil society, had been “castigating” them for being inefficient, and urging them to spend less.

“Despite raising these issues with both politicians and civil servants, no one within government has even acknowledged them, let alone done anything to engage with us to address them,” she told FE Week after the event.

“I am not at all confident that the issues will be addressed in advance of the introduction of the levy next year.”

Following the debate, shadow skills minister Gordon Marsden wrote to Mr Boles, asking “what discussions he has had with the Cabinet Office on the liability of charities and voluntary organisations to pay the apprenticeship levy”.

BIS declined to comment.

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> Leaked report plan exposes stark choice at 16
> 15 new ‘professional and technical’ routes with apprenticeship or substantial work experience

The first skills white paper in a decade will bring an end to mixed provision and make 16-year-olds choose between academic courses leading to university or a new technical professional education (TPE) route into work, FE Week can exclusively reveal.

The document, which it emerged last week had been delayed, is likely to be controversial for fear the plans will create a two-tier system between academic schools and vocational colleges.

It will reflect the recommendations of an independent panel, led by Lord Sainsbury and set up by the government to look into TPE reforms, which FE Week understands should be published later this month.

Jonathan Simons, head of education for the Policy Exchange group of FE and skills experts, said this could be “hugely significant” for post-16 education — particularly for school sixth forms that rival colleges in many areas.

“It will mean a dramatic change to the majority of schools’ post-16 provision, where they offer a mixture of A-Levels and vocational options, such as BTECs, and may mean some schools pulling out of post 16 provision all together — particularly if the minimum size of 200 pupils is enforced or promoted for existing schools as well as for new ones,” he told FE Week.

FE Week understands there will be 15 TPE routes, delivered either full-time over two years or through an apprenticeship.

A three-year course could also be an option, with the first year preparing students to start on TPEs.

There will be a substantial work experience element within each college-based TPE “pathway”, within its relevant industry.

Bridging courses at the higher levels between academic and vocational pathways is also being considered.

FE Week further understands that each of the 15 TPEs will be overseen by a panel of industry experts, potentially by the new Institute for Apprenticeships.

Professor Lady Alison Wolf, who is part of Lord Sainsbury’s panel, has been a firm advocate of reforming post-16 education and training.

She was highly critical of schools diverting low-attaining pupils onto courses and qualifications not recognised by employers, or accepted by colleges for progression purposes, in her landmark 2011 Review of Vocational Education.

The former Secretary of State for Education Michael Gove agreed with her findings, stating that “courses which offer no route to higher levels of education or the prospect of meaningful employment” were “not just unacceptable but morally wrong”.

The department for education said last November: “New professional and technical routes will be created, leading up to employment or degree-level study, which will be as easy to understand as academic routes.”

Skills Minister Nick Boles also announced on April 29 that schools could soon be fined if they sign students up to inappropriate A-level courses that they later abandon.

He evaded a question about the delay to the skills white paper five days later, from Labour’s Gordon Marsden during Commons business, innovation and skills questions, after this was exclusively revealed by FE Week.

The shadow skills minister subsequently requested explanation from the Department for Business, Innovation and Skills (BIS) of the hold-up, in a written question that had not been answered at the time of going to press.

The Department for Education and BIS also declined to answer FE Week enquiries over the leaked details of the white paper.

We understand that the government hopes to publish the white paper ahead of EU referendum purdah restrictions which begin on May 27.

————————————————————————————————————-

Editorial: Simpler at what cost?

The recent schools white paper was essentially geared at simplifying the system by making them all academies.

It seems that simplification is planned for post-16 academic and vocational learning.

The FE sector’s very own skills white paper will strip away many post-16 qualifications to make way for the introduction of 15 technical and professional education (TPE) routes.

But in an effort to funnel young people into a university or recognised work-related route the government should avoid creating a two-tier system and restricting choice.

It should think very carefully about provision below level two as well as bridging courses between the pathways at level two and beyond.

And in the creation of 15 routes, Ministers could go as far to seek simplification in accreditation, by tendering for a single awarding organisation for each.

It was considered by the previous Secretary of State for the new GCSES and A Levels, but quickly dropped in 2013.

So this might be a once in a generation opportunity to reorganise who accredits TPE routes, but surely the single point of failure problem is unsurmountable?

Nick Linford

The boss of Hull College has been accused of trying to bully a member of the shadow cabinet for supporting a staff strike action.

Karl Turner, who is the MP for Kingston upon Hull and the shadow attorney general, joined “angry and demoralised” Hull College workers on the picket line this week in a row over pay and a controversial new lesson observation system.

He addressed striking members of the University and College Union (UCU), and urged the college to listen to their concerns.

Now however, Mr Turner is calling for an investigation into the college’s chief executive Gary Warke, after he was allegedly sent a “threatening and derogatory” letter.

The MP uploaded a copy of the letter to his blog, in which Mr Warke allegedly wrote to “express my sincere disappointment that you chose to address striking UCU members without the courtesy of informing me”, adding: “We find your actions, two days before local elections highly inappropriate and disrespectful to the Hull College Group.”

Mr Turner wrote back: “I am too extremely disappointed that you have chosen to use veiled threats against me. I expect that these are the same bullying tactics that you have clearly used on your staff.”

He has now chosen to take the matter further, writing to Patricia Tomlinson, the chair of the college’s governors, calling for an investigation into the chief executive’s “threats”.

In his blog, Mr Turner added: “While Mr Warke may feel that he can bully and intimidate his staff at Hull City College, he cannot do it to me. He might pay himself more than the Prime Minister while his staff are effectively on pay freezes, but not even the Prime Minister would dare to use threats on an elected MP.”

 

Mr Warke has declined to comment any further on the matter. However, a spokesperson for Hull College spokesperson confirmed that Mr Turner has requested an investigation into his conduct.

This is not the first time Hull College has been accused of bullying behaviour. John Giddins, UCU’s Yorkshire and Humberside regional branch development organiser, told FE Week before the strike that the college had conducted its industrial relations in an “appalling and threatening” manner.

The strike action, which was backed 85 per cent of UCU members at the college, also received support from Jeremy Corbyn, leader of the Labour party, who also joined more than 120 members of staff on the picket line.

The college spokesperson said: “The group management team and UCU continue to meet to resolve the issues of dispute, recognising the need for its overall financial position to be protected in a challenging funding climate for the FE sector, as well as ensuring the high quality of our teaching and learning is maintained.”

More than 50 MPs have urged Chancellor George Osborne to clarify VAT rules that could see sixth form colleges (SFCs) who convert to academy status being hit with even larger tax bills.

Mr Osborne announced in his November budget speech that SFCs could convert to academy status “so they no longer have to pay VAT”.

But a new letter, signed by chair of the all-party parliamentary group on SFCs Kelvin Hopkins (pictured above), and supported by 51 other MPs from across the political divide, said SFCs that academise could still have to repay VAT relief they received on buildings completed since 2011 under current HMRC rules.

It warned this could result in some SFCs paying “significantly more” VAT than ever as a result.

The letter called on the Chancellor to address the “unintended consequences” of his decision.

“This could mean that a policy introduced to reduce the VAT burden on SFCs would actually see some paying significantly more,” it warned.

“SFCs require formal confirmation that they will not be subjected to a retrospective VAT charge if they decide to academies.”

James Kewin, deputy chief executive of the Sixth Form Colleges’ Association (SFCA) agreed.

He said: “It would make little sense if a policy introduced to reduce the VAT burden on SFCs actually saw them pay more VAT.

“We are pleased that so many MPs have urged the Chancellor to address this issue, and a swift resolution is essential if SFCs are to make sensible, well-informed decisions about their future,” he added.

Mr Osborne’s announcement in November came after a long-running campaign by the SFCA for SFCs to be exempt from paying VAT.

More than 18,000 people, including actor Colin Firth, signed the SFCA’s petition calling for SFCs to brought in-line with school and academy sixth forms, which receive a refund on the VAT they pay.

Such a move would save SFCs on average £318,000 a year, according to the SFCA.

A spokesperson for the Treasury said: “We are aware of the concerns raised and will provide further guidance shortly. The government remains committed to putting the FE sector on a sustainable footing.”

The Department for Education was unable to comment on the letter ahead of publication.

An ex-Wales international footballer is one of six men facing charges following a Serious Fraud Office (SFO) investigation into the activity of a defunct training company Luis Michael Training Ltd (LMT).

Mark Aizlewood (pictured above), aged 56, from Aberdare, who played for Wales 39 times between 1986 and 1994, was called before Westminster Magistrates’ Court yesterday (May 4).

He appeared alongside Christopher Martin, 51, from Newbury, Keith Williams, 43, from Anglesey, Paul Sugrue, 55, from Cardiff, Steven Gooding, 52, from Bridgwater, and Jack Harper, 29, from Southport.

They were charged with offences ranging from conspiracy to commit fraud by false representation, to fraud and using a false instrument.

It is alleged LMT, which went into liquidation in 2011, claimed payments from several FE colleges for training and education services they did not, in fact, provide, according to the SFO.

Aizlewood, Sugrue, Martin and Williams were directors and shareholders of the firm.

Gooding and Harper are said to have been employed as recruiters of learners for this company.

It is alleged that a separate but linked attempt to defraud an FE college was committed by Harper, through a company called FootballQualifications.com, which has also ceased trading.

It comes after FE Week reported back in December 2013 that Aizlewood, Sugrue, Williams, and Martin had been barred from directorships for up to eight years for failing to comply with apprenticeship rules with LMT.

It worked as a subcontractor for eight FE colleges including Sparsholt College and South Thames College.

The six defendants will make their next appearance at Southwark Crown Court on June 1.

Skills Minister Nick Boles ducked a question about delays to the first skills white paper in more than 10 years — after Labour’s Gordon Marsden raised the issue in parliament.

The exchange, during House of Commons business, innovation and skills questions, came after FE Week exclusively revealed last week that the first skills white paper in more than 10 years has been delayed.

After quizzing Mr Boles (pictured right) yesterday about cuts to the adult skills budget, Shadow Skills Minister Mr Marsden (pictured above) asked: “Why is the government’s key white paper to address technical skills shortages being delayed?”

But Mr Boles’ response focused on government funding for FE and did not answer the question about the white paper directly.

He said: “We are increasing total funding available for further education by 40 per cent in cash terms during this parliament.

“He talks about last year because he doesn’t like this year, because this year tells a story of a government investing in skills for the future,” Mr Boles added.

This prompted Mr Marsden to table a parliamentary question about government plans for the skills white paper.

He asked the Secretary of State for Business, Innovation and Skills “when his Department plans to publish its skills white paper”.

The question, tabled on May 3, has yet to be answered.

As reported by FE Week, the Skills Funding Agency released a document in February called ‘The Legal Entitlements for 2016 to 2017’ which referenced an upcoming skills white paper that it said would be published in the spring.

But this reference to when it would be unveiled had been removed in version two of the document, updated in March.

The delay to the white paper may be because the independent panel on reforms to technical and professional education (TPE), set up by the government and led by Lord Sainsbury, has not yet reported its findings.

The panel, which was set up to help the government create “up to 20 specific new professional and technical routes, leading up to employment or degree-level”, was due to have completed by March.

But FE Week understands the panel will now not be reporting its findings until mid-to-late May.

A spokesperson for DfE said the report from the Lord Sainsbury review would be published in due course, but declined to comment on the planned briefing for awarding organisations.

“Angry and demoralised” staff at Hull College have voted to go on strike in a row over pay, and a controversial new lesson observation system.

The University and College Union (UCU) said the college had offered staff a 0.7 per cent pay rise last September, and had also promised to make changes to unannounced lesson observations, which have been heavily criticised by teachers.

But the college went back on its promise to increase pay, while staff have complained that changes to the lesson observation system are leaving them more stressed and anxious than ever, the union has claimed.

John Giddins, UCU’s Yorkshire and Humberside regional branch development organiser, branded the situation as “appalling financial management”.

He told FE Week: “The staff have had no pay rise for the past couple of years while other colleges in the region have implemented pay deals to reward their staff. Hull College is unwilling to do that even though they were forecast to make £103,000 surplus.”

Mr Giddins said staff were “rightly anxious” that a “judgement based upon a snapshot”, such as the college’s observations process, could affect their career, type of pay, or even leave a “massive slur on people’s professionalism, which demonstrates a lack of trust in their staff”.

He added: “Part of the issue is that observations are flawed in essence. A whole raft of academic evidence shows that big decisions should not be predicated on the results of classroom observations because of the lack of reliability and validity.”

Hull College currently uses lesson observations to make a variety of decisions on staff, including peer progression, selection for redundancy criteria, and capabilities.

Mr Giddins said: “The consequences of these unannounced observations is that people could be waiting all year for them, and instead of focusing on teaching and learning, they are actually wondering when someone is going to walk in with a clipboard and use quite a restrictive notion of what is good teaching practice to measure them by.

“Staff really want to play a part in owning an observation teaching and learning policy rather than having it done to them.”

Julie Kelley, one of UCU’s regional officials, said strike action was always a “last resort” but staff at Hull College felt they had no choice.

Mr Giddins added that the way Hull College had conducted its industrial relations was “appalling and threatening”.

He said: “They have issued a statement on their staff portal that is unequivocal in that any action short of a strike would be deducted at full pay, and the language that they use is appalling.”

A spokesperson for Hull College said that less than 12 per cent of the college’s overall workforce voted for the strikes.

The spokesperson said: “The management team and UCU are continuing to meet to resolve the issues which ensure the group’s overall financial position is protected in a challenging funding climate for the FE sector, as well as ensuring the high quality of our teaching and learning is maintained, as highlighted by Ofsted in our most recent inspection.”

The college was rated as good by Ofsted in its latest inspection which took place in November 2015.

Picture caption:
Hull College staff during strike action, in February, over the Association of Colleges’ recommendation for a zero per cent pay rise in 2015/16