No guarantees on apprenticeship budget, Boles says

The government “can’t make any guarantees” it will be able to fund all apprenticeship growth requests, Skills Minister Nick Boles (pictured above) has said.

His remarks, at the Education and Training Foundation Leadership Summit on at Westminster Kingsway College on March 9, came a month after many training providers were left short-changed following the Skills Funding Agency’s (SFA) overdue announcement in February of extra cash for delivering 16 to 18 apprenticeships.

“You will understand that we’ve had the position where we’ve been agreeing every growth bid, more or less, every quarter, and there is a limit to how much we can carry on doing that given that we do have a fixed budget,” Mr Boles said.

He continued: “We will do our absolute level best to meet any growth bid that we possibly can, but I can’t make any guarantees, because the budget does have to be limited.”

On February 5 the SFA announced £25m of additional funding to deliver 16 to 18 apprenticeships.

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The extra cash, which should have been announced on January 8, was in response to growth requests submitted by colleges and training providers to help fund apprenticeships and traineeships in 2015/16.

However, many providers received much less than they had asked for, and no requests for traineeship growth had been funded — a situation that led to fury from providers.

As exclusively revealed by FE Week on January 29, the delay in announcing the funding was due to the Department for Education (DfE) over-allocating its discretionary fund for 2015/16.

Mr Boles acknowledged the pressure on 16 to 18 apprenticeships in his remarks to ETF delegates.

“And in 16 to 18 the budget was more constrained than the adult budget,” he said.

“And I was a bit puzzled as to why also, it seemed to me, we were getting more growth bids at 16 to 18 than we were for adults in the last 12 months in a way that hadn’t been the case in the previous 12 months, which I don’t quite understand,” he continued.

“I understand the frustration because you want to be able to recruit people, and indeed some of you go ahead and recruit them anyway, and find your budget bid isn’t approved and in effect you’ve had to subsidise them,” Mr Boles said.

The introduction of the apprenticeship levy would mean that “by the end of the parliament it’s going to be completely different”, the Skills Minister said.

“All of the money, all £2.5bn, will be in digital accounts, either by companies who pay the levy or by other companies who don’t pay the levy but who want to have apprenticeships,” he said.

“So by the end of the parliament, everybody – every employer of an apprentice – will be controlling the money and then deciding which training provider they want to work with.”

 

Support for UTCs as another shuts its doors

University Technical Colleges (UTCs) have been told they will get a new source of financial support, as another of their number is forced to close due to recruitment problems.

Skills Minister Nick Boles wrote to the chairs and principals of UTCs on March 3, to inform them of the “new centrally funded package of educational and financial support”, which will be accessible to UTCs in their early years.

It will be available to those that have not yet been judged good or better by Ofsted, but not to those that are subject to intervention. The letter was delivered only a week before Central Bedfordshire UTC announced that it would have to close in August this year — just four years after it first opened its doors.

Leaders at the struggling 14 to 19 vocational institution admitted it has not been able to attract sufficient pupils to provide a “financially viable experience” after this year.

It is the third UTC to close since the programme began, with Black Country and Hackney UTCs shutting last summer following problems with recruitment and viability.

The Skills Minister’s intervention in the UTC programme comes after FE Week found that 40 per cent of UTCs opened between 2010 and 2013 saw student numbers fall for the current academic year.

Exclusive research by FE Week through Freedom of Information requests found that six of the 15 UTCs opened between 2010 and 2013 saw their learner numbers decrease for 2015/16.

Central Bedfordshire UTC had only 101 students for 2015/16. This was an increase of nine on the previous year, but still meant that the UTC was only 16.8 per cent full.

Meanwhile, the new funding stream and educational support for UTCs will be delivered through a range of different channels, to help them to bed in during their preliminary years.

These include sources of advice such as an experienced mentor for the principal; support for UTCs’ trust boards through a National Leader of Governance (or equivalent); and enhanced education advisor visits in term two for all new UTCs.

The letter also describes “increasing educational and financial capability with up to two years intensive support from a Teaching School, organised via the National College of School Leadership, under similar terms as the current school to school support fund”.

The Department for Education was unable to confirm to FE Week how much this new funding would be worth per UTC or per year in total.

The Government’s focus on offering support for UTCs has been manifold. Alongside further financial provision, Mr Boles told the House of Commons last week that UTCs should function as part of multi-academy trusts (MATs) to make them stronger.

This point is also addressed in his letter, which says that “all future UTCs should be established as part of a strong MAT or within a partnership of similar depth, strength and permanence”.

It refers to “crucial educational, financial and pupil recruitment benefits” from these partnerships, and says this will be helpful in overcoming the “current hostility which some UTCs face from other local education institutions” which “makes working as a single stand-alone institution more difficult”.

For UTCs already approved for pre-opening and planning to open from 2017 onwards, the letter says “the Secretary of State will not agree to enter into a funding agreement” unless the UTC is part of a MAT or has arranged other partnership arrangements.

In response to this recommendation, Alice Barnard, chief executive of the Edge Foundation, a charity dedicated to technical, practical and vocational learning, commented: “There’s no evidence that being in a multi-academy trust guarantees better performance, but it does provide the opportunity to share resources and expertise.

“However, a lot of stand-alone academies perform very well and there are many ways to collaborate less formally with other schools, colleges and academies.”

Charles Parker, chief executive officer of the Baker Dearing Trust, which supports and promotes UTCs, said: “UTCs exist because they are needed locally and they are controlled by the employers and the university that have backed them from the very beginning.

“UTCs are always looking for robust local partnerships with supportive educational providers. These come in many forms and depend on local circumstances. One size does not fit all.”

He added: “The key factors which lead to successful UTCs are profound employer engagement and really good leadership.”

 

Institute gets first boss as UKCES reveals closure plans

The first appointment to the new Institute for Apprenticeships (IfA) has been made in the same week that the fate of the UK Commission for Employment and Skills (UKCES) was revealed.

Rachel Sandby-Thomas, currently director general for skills, deregulation and local growth at the Department for Business, Innovation and Skills (BIS), was named as the shadow chief executive of the IfA on March 8.

Sir Charlie Mayfield, UKCES chair, wrote to stakeholders on March 7 to outline what would happen to several of its key functions, including the Employer Skills Survey and national occupational standards (NOS).

Ms Sandby-Thomas, who will take up her new role at the IfA on April 4, said: “I’m very excited to be appointed. Over the next year we’ll be working to ensure the organisation is ready to launch in April 2017.”

BIS Permanent Secretary Martin Donnelly said: “Building on her in-depth knowledge of the apprenticeship programme as DG for skills, Rachel will play a major role in establishing the IfA, which is due to launch in April 2017 and be an essential part of ensuring the quality of apprenticeships in support of the Government’s target of delivering 3m apprentices by 2020.”

The creation of the IfA, which will help police employers as apprenticeship reforms take effect, was announced as part of the government’s spending review and autumn statement, at the same time as it was revealed that the UKCES would have its funding cut.

At the time, a spokesperson for the Treasury told FE Week the UKCES would be “ceasing” from 2016/17, due to the creation of the new Institute for Apprenticeships.

In his letter, Sir Charlie said the UKCES was working with BIS and others in government “to review our functions to see how they can be brought to a close, or continued via other routes”.

He confirmed that the Employer Skills Survey (ESS) would continue, but managed by BIS.

There had been question marks over the future of the ESS, with comments from Skills Minister Nick Boles suggesting that responsibility for gathering labour market information could fall to local enterprise partnerships (LEPs).

The future of the NOS is “still under discussion”, Sir Charlie wrote, adding that he was “hopeful it will be continued via the devolved administrations”.

“BIS have concluded that they do not consider NOS as a mandatory requirement in England although employers may wish to use them if they so choose,” Sir Charlie wrote.

According to the UKCES, NOS are developed “for employers by employers through the relevant Sector Skills Council or Standards Setting Organisation” and are “statements of the standards of performance individuals must achieve when carrying out functions in the workplace, together with specifications of the underpinning knowledge and understanding”.

As reported in FE Week in December, Nigel Whitehead, a UKCES commissioner, warned that the government was in danger of bypassing NOS in the development of Trailblazer apprenticeship standards.

“Employers are free to refer to national occupational standards to support the development of their Trailblazer apprenticeships — most have chosen to do something different,” said a BIS spokesperson.

 

Skills to pay the bills

Kirstie Donnelly explains why she thinks the teaching of soft skills need to be incorporated more into apprenticeships and wider vocational training.

Soft skills get little respect but can make or break your career, according to American leadership coach Peggy Klaus in her book ‘The Hard Truth about Soft Skills’, and it’s a mantra we would do well to adopt over here.

The jobs market in the UK may be picking up, but employers tell us that they are still struggling to find young people with critical skills they need, such as creativity and problem-solving.

It’s no secret that our education system is not currently preparing young people adequately for the world of work.

Somehow we have lost our way and education and employment has become disconnected — it’s time that we resolved this.

We know that this conundrum is partly why the currently the Government has put such a huge amount of effort into remaking the current apprenticeship system.

Currently we have a crazy situation where we have people without jobs and jobs without people — this has to change

The theory is that allowing employers to take control and reshape the system will help them get the skilled workers they need.

However, to make this work we must make sure that core transferable skills are embedded into these apprenticeships giving young people the skills they need to progress throughout their careers.

Additionally, teens need at least basic employability skills to even enter into an apprenticeship in the first place.

‘Employability’ is the buzzword of the moment — even our friends in higher education have begun to track their success at finding jobs for their young people.

Coming out of education with a piece of paper is no longer enough, young people really do need to have the ‘skills to pay the bills’.

And the current NEET [Not in Education, Employment, or Training] stats ably demonstrate that — one in 10 young people is still locked out of employment.

We can’t allow this to continue.

The City & Guilds Alliance commissioned Bill Lucas and Ellen Spencer to carry out research to consider how we embed employability skills in an FE setting, from traineeships to apprenticeships and beyond.

‘Learning to be Employable’ identifies the key attributes employers look for and a set of supporting transferable skills such as communication, self-management and problem-solving.

Similarly to the apprenticeship reforms, ‘Learning to be Employable’ identified that the biggest catalyst for change will be joint action from business, educators and the Government.

Developing partnerships will be key to sharing best practice, learning from mistakes, and ultimately demonstrating joined up thinking to ensure that young people are properly prepared for the modern work environment.

And this is something we desperately need to get right.

Currently we have a crazy situation where we have people without jobs and jobs without people — this has to change.

It’s why we have worked with employers to rework apprenticeships during the reforms and create curriculums such as our new TechBac which have those all-important employability skills baked in.

With the Government’s increased focus on the apprenticeship agenda through their target of delivering 3m by 2020, there has never been a better time to continue to stimulate debate.

This should be around the quality and delivery of apprenticeships, and other vocational routes, to ensure they are providing young people with a successful pathway into the career of their choice and equipping them with the most vital employability skills. That’s why we are all here after all.

Visit www.cityandguilds.com/learningtobeemployable to read the research.

 

Kirstie Donnelly is the managing director of City & Guilds UK

Demand-led funding needed to hit apprenticeship target

John Hyde calls for as demand-led apprenticeship funding allocation system.

The Government’s target for 3m apprenticeship starts in this parliament was well trumpeted throughout the election campaign.

One would have assumed the civil servants concerned with apprenticeships would have planned how to implement this election promise by securing funding from the Treasury to meet this growth.

Internal systems for contracting and funding should have been reviewed to ascertain if they were suitable to manage and deliver this growth, and any barriers to achieving this target removed.

Given the current state of affairs, the Conservative electoral victory was as a big surprise to them as it was to the rest of us, including the pollsters.

However, that was last June and it would appear the opportunity to obtain funding to meet a manifesto promise and to review the systems needed to guarantee the delivery of the election promise has been missed.

The failure at the first growth review last month to fund additional 16-18 year old apprentices sent shock waves around the sector.

The main deterrent to achieving growth is the current allocation system

Ironically growth funding was available for the 19+ group, but internal rules prevented funding being transferred.

So do internal processes and procedure take precedent over a manifesto promise and political will?

To persuade an employer to involve their business with the apprenticeship programme usually takes considerable time.

It is a big decision for any company, whether small, medium, or large employer, involving most decision makers within the organisation.

From the initial consultancy meeting to an apprenticeship actually starting their programme usually takes several months, especially if the recruitment of an apprentice is also involved.

Planning ahead, training providers usually have a pipeline of future leads and potential starts as well as detailed charting of current apprentices progress and completion dates.

Let’s hope they are not just trusting to luck the 3m will be achieved in the final two years when the levy has kicked in, or failing that by the public sector being coerced to help meet the target.

Two thirds of apprenticeships are delivered by small and medium sized companies and they will be need to contribute to this growth, although currently we have no idea how they will be funded in the brave world of the apprenticeship levy.

The main deterrent to achieving growth is the current allocation system which does not provide for any growth.

Funding is allocated each year based on a formula applied to the volumes achieved in March at period eight.

Therefore, any growth achieved in the final quarter is not added to the new contract from August onwards.

This means every year a provider, who has achieved growth in the final quarter of the previous year, will start the new contract year with insufficient funding for their current cohort and have to wait until the first growth point, four months in, before even considering any additional growth.

This puts all the risk onto providers to achieve this growth and we hear this allocations system will remain in place for at least two years after the levy is introduced.

This problem is further compounded by the reduction of contract management staff at SFA with no one available to discuss a growth case on its merits, just allocation by computer.

To further complicate the situation, the SFA seems reticent to claw back under-delivery from certain providers, and in so doing has created a market in sub-contracting.

Many providers refused growth now have insufficient funding to support apprentices already on programmes.

Unscrupulous brokers, who exist to take advantage of a system that is not managed effectively, appear by magic.

How do these brokers find out the names of providers who have had their growth cases refused? They offer, usually for a 3 to 5 per cent one-off fee. Is this any way to run an allocations system?

Unless the SFA/EFA can implement a demand led system of funding allocation, there could be a serious problem that the current methodology will defeat the manifesto promise.

 

John Hyde is the chairman of HIT Training

More focus needed on basic skills

Harvey Young explains why, in his view, the Government is wrong to obsess over apprenticeships and should look to improving basic skills to improve national productivity.

The BIS Select Committee’s report on the Government’s productivity plan raised several concerns about the lack of focus on a variety of policy areas, including apprenticeships, but what has escaped most attention was the call to address the poor level of basic skills in the workforce.

The committee concluded that the plan “does not provide specific or measurable actions to solve the problem of the lack of basic skills in the economy”.

It recommended that the Government should outline what policies will be put in place to improve basic workforce skills and to clearly state how they will contribute towards enhanced productivity.

This was the very first recommendation of the report, aptly reflecting the fact that the basis of all productivity is founded on having good competencies in both English and maths.

There are millions of employees who will not be suitable for an apprenticeship

The recent trend in skills policy development to tackle sluggish productivity appears geared towards putting all the eggs in the apprenticeships basket.

I frequently meet with employers who tell me their workforce lack critical skills, and that an apprenticeship is often not appropriate for their workers, many of them middle-aged with families.

If the Government is serious about raising the country’s productivity, there needs to be recognition that there are millions of employees who will not be suitable for an apprenticeship.

A comprehensive strategy must be launched to tackle this, as the committee explicitly pointed out.

The productivity gap between Britain and our international competitors is estimated to be the biggest since records began in the 1990s.

Recent Organisation for Economic Cooperation and Development (OECD) figures suggest 9m working age people in England do not have sufficient literacy and numeracy skills.

The Government argues the surge in new apprenticeships will help improve literacy and numeracy proficiency.

This fails to acknowledge that they are aiming to create 3m new apprenticeships by 2020 which, if all assigned to the current workforce with poor literacy and numeracy, would still leave out 6m people in desperate need of basic skills training.

There is no doubt apprenticeships bring significant advantages, helping young people move into work, thereby bringing down stubbornly high rates of youth unemployment.

However, solely relying on apprenticeships fails to address the millions of older workers who form a huge chunk of the labour market.

Furthermore, many apprenticeships require a minimum standard of English and maths, meaning workers with existing poor functional skills cannot be considered for a training position.

There must be firm policies in place to cater to this group, otherwise we run the risk of a generational gap between older employees and those entering the workforce for the first time.

English and maths training for adults in the workplace is a great way of boosting employees’ basic skills without disrupting their day to day work.

Employers tell me how their staff are more motivated and time taken to carry out basic tasks is slashed.

In research commissioned by BIS, Ipsos Mori found that 11 per cent of employers with a basic numeracy skills gap reported that they incurred costs through lower sales or lower profit margins. Furthermore, 52 per cent of employers said that following basic skills training for their employees, they were able to introduce new, more technical processes which help increase efficiency.

Workplace learning clearly increases the performance of businesses across the UK, which contributes to a more productive workforce.

The Government needs to support this part of the skills sector through ring fenced budgets and support for colleges who would like to fund this critical element of training.

Critics argue that previous workplace learning programmes have not led to any notable gains in literacy and numeracy.

As someone who has been involved in these programmes, I would argue it is not that they necessarily failed, but that in-work learning was poorly targeted and there was not a comprehensive strategy to deal with the sheer scale of the problem.

 

Harvey Young is chairman of the National Consortium of Colleges and Providers

Royal Treatment for college

Bridgwater College representatives received the Royal treatment when they travelled to Buckingham Palace to collect their Queen’s Anniversary Prize for Higher and Further Education.

It was awarded to principal Mike Robbins and vice-principal Andy Berry by the Prince of Wales and Duchess of Cornwall with chair of governors Derek Randall and a number of staff and students also in attendance.

The prize, which forms part of the UK Honours system, is awarded every two years to colleges and universities whose achievements in terms of creativity, innovation and impact are considered to be exceptional.

Recognition for Bridgwater College came as a result of its pioneering” work with business, awarding bodies, universities and government at all levels to put in place high quality skills training.

Speaking after the ceremony, Mr Robbins said: “It is an absolute privilege to receive this highly prestigious award, which is testament to the commitment, dedication and passion of our students and our staff.”

Pic: Bridgwater College principal Mike Robbins (right) and vice-principal Andy Berry being presented with their Queen’s Anniversary Prize for Higher and Further Education by the Prince of Wales and Duchess of Cornwall

 

If the Cinderella shoe fits…

A stunning large scale silver and glass slipper produced by Northbrook theatre students has been installed as a permanent feature at the college.

Cinderella’s slipper was created by the learners before Christmas as part of a fairy tale project commissioned and funded by local acting company, Worthing Theatres.

It was originally used as an eye-catching display for local shoppers at Worthing Assembly Hall during the holidays before being wheeled out to the high street to publicise the theatre’s production of Cinderella at the Pavilion Theatre.

The second year level three production arts students worked as a collaborative design company to produce the slipper, following an industry model.

Sadie Anderson, course leader for theatre production arts, said: “The students who worked on the shoe are rightly very proud and it has been a valuable experience for all involved.”

It has now been installed as a permanent feature at the college to advertise theatre production courses.

 

Featured: Gloucestershire gets its house in order

More than 400 students at Gloucestershire College will be given the chance to hone their construction skills — after it became the first FE college in the country to buy a house to renovate, writes Billy Camden.

Colleges are always looking for new challenges for their students — but it is probably fair to say that buying them a rundown house for them to renovate is a first.

Gloucestershire College purchased a two-bedroom terraced house in nearby Tredworth for £71,500.

The aim is now to renovate the property over the next three months and sell it on, using the money for another house.

AT WORK: Gloucestershire College students stripping a wall at the house. From left: level two carpentry students Harry Dibden, aged 18, and Juwan Tinnie, 17
AT WORK: Gloucestershire College students stripping a wall at the house. From left: level two carpentry students Harry Dibden, aged 18, and Juwan Tinnie, 17

Principal Matthew Burgess said: “It has been a little while bubbling this one, trying to get it off the ground, getting the right people involved and to find the right property, but we’re now really excited about the whole project. This is relatively low risk, financially for sure.”

He added: “It has really caught the imagination of some of our local business suppliers who are providing some of the [renovation] materials.”

More than 400 students studying electrical, plastering, brickwork, plumbing, painting and decorating, carpentry and bench joinery courses will be getting stuck in with work on the house.

Key tasks are set to include reinstating some of the original Victorian characteristics, as well as installing a modern kitchen and bathroom and renovating the garden.

The two-bedroom terraced house in Tredworth
The two-bedroom terraced house in Tredworth

Mr Burgess explained: “As we work through the different phases of the building, we will bring in the different people to do it.

“Some weeks it will be our plastering students in there, then the electricians, then plumbing, brickwork, and so on.”

Interior design students will also be chipping in their creative ideas, while photography students will produce a portfolio of timelines to see the progress being made.

On site, the college’s project manager, Rachael Capener will provide employability coaching and mentoring in her role as the “boss” and “client”, while other lecturers will provide practical support and supervision.

While Mr Burgess is keen to point out that the college is not in the business of becoming a property tycoon, he hopes the project will give the students the experience and skills that employers desire.

“When I talk to employers it is not so much the qualifications when they’re looking to recruit, it is about attitude and that is about having experience of having to turn up on time and being self-motivated, reliable and a good communicator,” he said.

“While we do a good job in the workshops there is nothing like actually being out on a site.”

Main pic: BUILD: Principal Matthew Burgess with Gloucestershire College students at the two-bedroom terraced house in Tredworth. From left: level two carpentry learner, Paul Bond, aged 16, level two plastering student, Megan Harford, 17, level two carpentry student, Juwan Tinnie, 17, principal Matthew Burgess, and level two carpentry student, Harry Dibden, 18