Britain would need to make an additional £1.15bn cut in education spending to fill the £30bn black hole in public finances that would be caused by Brexit, the Chancellor has warned.
However, George Osborne’s claim was immediately dismissed as scaremongering by dozens of eurosceptic MPs from his own party.
His warning was echoed by skills minister Nick Boles, who has claimed that leaving the European Union could kill off the apprenticeship levy.
Osborne’s Brexit Budget report spelled out harsh money-saving measures he claims would be needed from 2018-19 if the public votes to leave the EU in the June 23 referendum.
He said: “One plausible scenario shows health spending would be cut by £2.5bn, defence spending by £1.2bn, and education spending by a similar amount.”
It was more specific in a subsequent table which indicated the government would need to cut £1.15bn from education spending.
This provoked an angry reaction from a group of 60 Eurosceptic Tory MPs, who reportedly said it had “destroyed” his credibility.
Mr Boles had previously entered the Brexit debate during an event in Westminster, organised by Policy Exchange, warning: “As skills minister I am responsible for the introduction next April of a new apprenticeship levy on large employers.
“But do you think the chancellor will feel it is prudent to introduce a new payroll tax in the middle of a recession, when business confidence has been shattered by a decision to leave the single market and unemployment is rising?”
Julian Gravatt, assistant chief executive of the Association of Colleges, expressed wider concerns about FE prospects if Britain leaves the EU.
He said: “This could lead to further public spending cuts and if the government cuts or postpones the levy, then the consequences for college funding in 2017 and afterwards could be pretty serious.”
But a spokesperson for the Vote Leave campaign disagreed with these concerns, claiming the government would ultimately have more to spend on the sector if it stood alone.
He said: “We send £350m to the EU each and every week. After we vote to leave we can take back control of this money and spend it on our priorities such as supporting apprenticeships and investing in FE.”
It is believed that there would be a two-year negotiating period after the UK notified the EU of its intention to leave, in the event of Brexit.
This has raised questions, reported on by FE Week in February and still unresolved, over what would happen to European Social Fund (ESF) contracts— 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, including colleges and independent training organisations, received a combined total of £305,267,633 in ESF cash.
There is widespread support for renaming the government’s traineeships scheme, according to a new FE Week survey, which found that over half of respondents wanted it to called a ‘pre-apprenticeship’ or ‘access to apprenticeship’ scheme.
A total of 70 per cent of FE stakeholders we surveyed said traineeships should be renamed, with 29 per cent favouring the ‘pre-apprenticeship’ label, and 25 per cent choosing ‘access to apprenticeships’.
However, only 16 per cent of respondents supported the idea of creating a whole new pre-apprenticeship programme in addition to the existing traineeships scheme.
Judy Taylor, apprenticeship manager at Southend Adult Community College said of a potential rebrand: “’Pre-apprenticeship’ clearly promotes the pathway to apprenticeship, and gives value and purpose to a traineeship, rather than just completing a programme with no specific end point.”
The survey results come after FE Week exposed severe weaknesses in the progression rate from traineeships to apprenticeships on June 3.
Figures obtained by FE Week through a freedom of information request revealed that just 450 (nine per cent) of 19- to 24-year-olds who finished traineeships in 2014/15 went on to start an apprenticeship, out of 5,200 completions.
The figure was slightly higher for under-19s — with 2,280 (31 per cent) of 7,400 completions progressing — but this still means that overall progression to apprenticeships stands at just 22 per cent.
Concern about poor progression onto apprenticeships was also reflected in the results of the survey, with 78 per cent of respondents agreeing that they saw it as a problem.
Shadow skills minister Gordon Marsden raised the issue at an FE Week parliamentary debate on June 7, where he also criticised the government for failing to raise awareness of the traineeships scheme.
Our survey results supported this — with only nine per cent of respondents saying they felt the government had done enough to promote the programme.
Jessica Rexworthy, head of learning and skills at charity and employer Fair Train, said: “The majority of learners and their parents/carers don’t know what a traineeship is.
“The push on marketing campaigns for apprenticeships should be opened up to include traineeships.”
The survey covered a number of issues around traineeships, and received responses from 204 FE Week readers from a range of backgrounds, including independent training providers, colleges, local councils and charities.
Funding proved a topic that respondents were particularly concerned about, with 80 per cent saying the government should create a single funding pot for traineeships, as they have done for apprenticeships.
A further 71 per cent answered that different funding arrangements from the Education Funding Agency (EFA) and the Skills Funding Agency (SFA) make traineeship funding overly complex.
Jim Clarke, chief executive of Key Recruitment and Training, said: “We can only receive funding from the EFA pot which is highly restrictive in growth.
“The SFA continues to fund 16-18 without growth restrictions. However, the EFA funding is far better for cashflow.”
The survey also asked participants whether they thought it was a good idea to devolve the funding decisions for traineeships for 19- to 23-year-olds as part of the Adult Education Budget, but only 26 per cent agreed with the suggestion.
In response, a government spokesperson concentrated on funding.
He said: “Traineeships is a programme for 16- to 24-year-olds that spans two different departments’ funding arrangements.
“The funding arrangements are in line with the wider funding approach for each age group 16-18 and 19+.
“By fitting traineeships within the existing arrangements it actually simplifies administration and data requirements.”
A college has gone back on its “threat” not to pay part-time agency staff over delayed student assessment work — after FE Week made senior leaders aware of the dispute.
Twelve self-employed agency workers from FE Resources, a “sub-company” of Lincoln College, received an initial email on June 7 telling them they wouldn’t be paid until additional work had been completed.
The email complained that student assessments had not been “completed, marked and tracked to schedule”, and warned that the college would not authorise their May timesheets “until your respective learning skills leads have identified that [they] are up-to-date in relation to marking and tracking”.
George Reid, a public services lecturer who received the email and has worked with the college for eight years as an agency worker, alerted FE Week to the upset it had caused him and others.
A college spokesperson said on Monday (June 13) that senior managers had not been aware of the “unauthorised” email.
He said: “Although well intentioned and motivated by improving learner outcomes, this email communication to a small number of staff did not reflect appropriate action in terms of managing performance. The email was not authorised by the senior management team.
“Payment will be processed without delay and the issue of incomplete student assessments will be picked up through our recognised performance management channels.”
The initial “unauthorised” email complained that “there are cases where student progress cannot be accurately established at this point as assessments haven’t been completed, marked and tracked to schedule.
“It is imperative that student assessment work is marked and tracked as a matter of urgency at this point.”
It stressed that the warning over non-payment for May was not designed to be “threatening or to scaremonger”.
But Mr Reid told FE Week that he disagreed.
He said: “I’m really upset and disappointed by the email because this job is my livelihood.
“I have two young children and potentially losing out on that money was going to have a drastic effect on my finances for the next three months.”
Mr Reid added it was “out of order” given the “threat” was only made to agency workers, not full-time employees.
He said: “It is totally unfair that we are being treated differently to full-time staff. It is picking on agency staff, and if you kick off then you won’t get any agency work next year.
“We’ve been treated really poorly. I go out of my way to help and put the extra effort in and yet all what happens is you get threatened.”
Sue Davis, a University and College Union regional official, said she was “not surprised” that “such an appalling incident” had occurred, when staff were “stuck on casual and insecure contracts”.
She added: “These staff find themselves in a hire and fire culture more associated with Sports Direct than an education system.
“College staff should be on permanent contracts to allow them to plan their lives properly and be treated with respect at work.”
It is no secret that many colleges have struggled to come to terms a perfect storm of funding cuts and extensive government reforms to our sector.
This has been exposed through a succession of dire Ofsted reports, since the launch of the new common inspection framework.
The change that colleges have struggled with most has to be compulsory maths and English GCSE resits.
The government was right to highlight past numeracy and literacy failings across education and legislate to improve things.
But a little more leeway in how colleges are inspected over this wouldn’t go amiss.
It isn’t fair that maths and English should be having an overriding influence on the inadequate ratings — when there are so many other elements to take into account with judging colleges’ overall performances.
A good solution would be to create a headline field for this area of provision. Then maths and English could be judged in its own right, but wouldn’t necessarily drag down everything else.
The number of general further education colleges to have been branded ‘inadequate’ by Ofsted since September has hit double figures, exclusive FE Week analysis has revealed.
College leaders have blamed the government’s increased focus on English and maths, pinning what they call “unfair” expectations on colleges for the rise in grade fours.
Ten colleges have now been handed the lowest possible grade from the education watchdog since the introduction of the new common inspection framework in September, compared to five in the same period last year.
The most recent of these was Telford College of Arts and Technology (TCAT), which had its Ofsted report published on Tuesday (June 14).
All 10 colleges were slammed by inspectors for their English and maths provision, with criticism in these areas appearing in the key findings on all 10 reports.
When shown FE Week’s figures, Gill Clipson (pictured), deputy chief executive of the Association of Colleges said: “It is unfair to expect colleges to help young people achieve the necessary grade C in GCSE English and maths in one year, when they have not been successful after 11 years in school.”
She added that “it is expected” Ofsted would focus on English and maths as improving standards in these areas “is a key government policy”.
“The colleges that do well in inspections are those that can prove that their students, regardless of their starting point, have progressed during their studies,” she continued.
David Russell, chief executive of the Education and Training Foundation, agreed that Ofsted was “placing more emphasis on maths and English in the 16-to-19 phase”.
“It is a huge government priority, and an area where colleges have a massive challenge,” he said.
“Ofsted has no alternative but to say what they see; and in our view many colleges are under-resourced in key ways to deliver the high expectations that government rightly has of them,” he continued.
Mr Russell said that, while funding was an issue, “the bigger challenge is recruiting, training and retaining enough teachers with the right skills and experience to teach maths and English to young people who have not yet succeeded in them”.
Mark Dawe, chief executive of the Association of Employment and Learning Providers, also criticised Ofsted’s inspection methods of maths and English within traineeships.
He complained about providers “being given ‘required to improve’ gradings by Ofsted based solely on English and maths outcomes, as Ofsted is not willing to accept destination data as robust evidence”.
Since 2013, colleges have been required to enrol all learners who don’t already have at least a grade C in English and maths on courses in these subjects.
The requirement is part of the study programmes, which were introduced following a recommendation by Professor Alison Wolf in her 2011 review of vocational education, the Wolf Report.
FE Week’s analysis also showed that four colleges had lost their top grade since September – including Accrington and Rossendale College, which dropped to grade three on Tuesday (June 14).
The quality of English and maths provision is an issue for three out of those four colleges.
This comes at a bad time for FE, after chief inspector Sir Michael Wilshaw caused uproar in the sector when he told MPs he believed 16 to 19-year-olds should be taught in schools, not colleges.
The unrepentant Ofsted boss is likely to feel that these grade fours vindicate his comments to the Commons education select committee in March, when he said the FE sector was “in a mess — that’s why the government is reviewing it”.
There have so far been 51 full inspections of general FE colleges since September, a rise of 13 on the same period last year.
Of these, 20 colleges have been rated ‘good’ – an increase of seven from this time last year.
TCAT’s interim principal Jo Lomax said the college was “extremely disappointed” by its inadequate grading.
Accrington and Rossendale’s principal Sue Taylor told FE Week: “We accept the outcome of Ofsted’s visit”.
Almost two thirds of sixth form colleges have registered an interest in converting to an academy, FE Week can exclusively reveal.
Around 60 of the country’s 93 SFCs have taken this first step, according to James Kewin (pictured), deputy chief executive of the Sixth Form Colleges Association.
Registering an interest with the Education and Skills Funding Agencies is the first stage in the process of converting to an academy.
The news comes after two SFCs in Hampshire unveiled plans on June 9 to set up a multi-academy trust (MAT).
Richard Taunton SFC in Southampton, and St Vincent College in Gosport, announced a new “working partnership” between the two, with a view to launching the new MAT by September 2017.
Both SFCs are part of the Solent area review, which has yet to publish its final recommendations.
Richard Taunton principal Alice Wrighton said: “We are really excited about this opportunity.
“As we are the first colleges in the South to set out to develop an SFC MAT framework, we will be defining our own unique working model.”
Matt Atkinson, the St Vincent’s principal, who formerly held the top job at Richard Taunton, said: “I know from my roles at both colleges that they share the same vision, ethos and values, so when I learned about MATs, I immediately thought this would be a perfect fit.”
The chancellor George Osborne announced in November that SFCs would be able to convert to academy status which would allow them to no longer have to pay VAT.
Guidance published by the Department for Education in February said that academisation would only be available to SFCs as part of the area review process.
Applications for academisation would be judged “alongside other recommendations arising from the review”, the guidance said.
SFCs have the option to convert either as a standalone academy (SAT), or as a MAT – either by joining an existing MAT or setting up a new one.
Mr Kewin told FE Week that it was “too early to say” how many SFCs would be setting up a MAT.
He said: “In terms of the detail of whether that’s a MAT or a SAT, or whether it’s with schools, you have to give an indication of that through the area review process, but there’s an additional process you have to go through about actually applying.”
But he said most SFCs that decide to academise would “probably look at” the option of setting up a MAT.
He said the advantages of that option were twofold: “Firstly you’re establishing it on your terms and secondly you’ve got scope then for other institutions to join you over a period of time.”
Mr Kewin, who said the SFCA gathered the information on registrations of interest from discussions with members, was not aware of any SFCs having applied to convert to an academy.
As previously reported by FE Week, East Norfolk SFC, Lowestoft SFC and Paston SFC – all part of last year’s pilot area review in north east Norfolk and north Suffolk – are in talks about forming a MAT in the future.
Middlesbrough College has acquired the training arm of the North East Chamber of Commerce (NECC), which currently delivers around 1,000 apprenticeships per year.
NECC Training has a £3m turnover and provides courses in a range of subjects, including engineering, professional services and dental nursing across the north east region.
Middlesbrough College already offers around 1,000 apprenticeships, which cover the technical, professional and service industries.
The combined organisations will create one of the largest apprenticeship providers in the north of England and will aim to offer a wider range of services, including higher apprenticeships, traineeships and grant support for businesses.
When the takeover is complete, 70 NECC Training staff will move to join the Middlesbrough College group.
It comes after Skills Minster Nick Boles urged colleges to increase their apprenticeship provision to compete with training providers, in speaking at the Association of Colleges (AoC) conference in November 2015.
He commented that “37 per cent of all funding for apprenticeship training will go to FE colleges in 2015/16, but 60 per cent goes to private training providers”, adding: “Why on earth are you letting these guys nick your lunch?”
Mr Boles entreated colleges to “sign up to a shared ambition that by 2020 FE colleges will be responsible for two thirds, not one third, of all apprenticeship training and will receive two thirds of what will be a much larger pot of funding”.
Middlesbrough College is the only provider in recent years to have made the move to acquire a training provider, in order to extend its offer.
In August 2012 for example, Chesterfield College purchased Training Services 2000, a Derby-based private training provider that offers apprenticeships, and in September 2015, The Manchester College bought Total People, an apprenticeship training provider in Cheshire.
FE Week raised this with the AoC, but it declined to comment on whether it saw colleges acquiring training providers as a growing trend.
Commenting on Middlesbrough College’s purchase of NECC Training, James Ramsbotham, chief executive of the NECC, said: “NECC campaigns strongly for improvements in the delivery of skills for North East businesses, which is a key focus of our members.
“The decision to sell NECC Training was not taken lightly, but our board agrees this move offers the best possible future for both our core membership business and NECC Training.
He added: “In Middlesbrough College, NECC is confident that we have found a training provider that shares our commitment to the north east business community and who will provide the infrastructure and support needed to ensure this business is fit for purpose in in the years ahead.”
Zoe Lewis, principal and chief executive of Middlesbrough College (pictured above), said: “This marks a significant milestone in the college’s development as we welcome the 70 NECC training staff into the Middlesbrough College group.
“NECC Training is a perfect fit for Middlesbrough College as we continue to adapt, expand and bespoke our training solutions and continue to support the LEPs [local enterprise partnerships] and combined authorities with their inward investment training needs.”
In recent years Middlesbrough College has secured a number of contracts with local companies and also invested £20m in the development of science, technology, engineering and maths (STEM) training facilities and programmes.
Three members of Team UK have followed up last year’s success in WorldSkills São Paulo with recognition in the Queen’s Birthday honours list.
Beauty therapist Rianne Chester, plumbing and heating competitor Gary Doyle, and cabinetmaker Edward Harringham, winners of Team UK’s three gold medals in Brazil, have all been awarded British Empire Medals for their services to skills.
And Christian Notley, head of furniture studies at Chichester College and WorldSkills UK training manager for cabinet making, received an MBE for services to WorldSkills Leipzig 2013 and Sao Paulo 2015.
Edward, 22, told FE Week: “When I received my letter I felt quite overwhelmed by what had been offered to me and I feel very proud.
“This is something that will be with me for the rest of my life and my family felt the same when I told them the news.
“I hope that this also raises awareness of the WorldSkills competition to younger people pursuing a career in skills.”
Gary, 21, said: “It was a complete surprise to find out that I was receiving honour, I certainly didn’t expect it.
“It was this time last year that I found out that I was going to Brazil, it’s a great way to top off what has been an amazing 12 months.”
Christian Notley
Mr Notley said his MBE was “a huge honour”.
“I am passionate about the value of vocational training and apprenticeships as being equal to academic courses, so it’s great to have skills training recognised in the honours list and hopefully this will help others to realise its value as well.
“It is humbling to be recognised on this level but I’m very much aware that it’s something I could not have done on my own.
“The success we have had at WorldSkills would not have been possible without the support we have received from Chichester College, especially the lecturers in the furniture department who have covered my lessons over the years to allow me the time to commit to WorldSkills.”
Neil Bentley, WorldSkills UK chief executive said: “Christian, Rianne, Gary and Edward helped to deliver the UK’s best ever result at WorldSkills São Paulo 2015, sending out a strong message that apprenticeships and vocational training really can lead to great career success.
“It is a privilege to work alongside them to show other young people, from all backgrounds, that there has never been a better time to consider an apprenticeship.”
Rianne, 23, was unavailable for comment ahead of publication.
John Hyde, executive chairman of HIT Training – and FE Week’s regular Raw Hyde columnist – was one of 20 FE and skills figures recognised in this year’s Queen’s Birthday honours list.
He was given a CBE, along with Margaret Serna, Lincoln College chair, and Malcolm Trobe, interim general secretary of the Association of School and College Leaders.
Mr Hyde’s award came as recognition of his services to the FE and training sectors in a career that has lasted more than 30 years, most recently at HIT.
He co-founded the hospitality and care sector training and apprenticeship provider, alongside managing director Jill Whittaker, in 2006.
He said: “I am delighted to accept this award on behalf of all my staff at HIT and other colleagues working to deliver apprenticeships and upskill the country.
“The satisfaction for me is seeing employees in the hotel and catering sector gain skills, confidence and competence through their apprenticeship to improve their life chances and earning potential.”
Margaret Serna, Lincoln College chair
Ms Serna’s CBE was for services to FE.
She told FE Week: “I am deeply honoured and very proud that I am being recognised for a role that I consider it a privilege to be able to undertake.
“I have been a board member for eight years and chair for five years now and have found working towards enriching the lives of young people through training and education a deeply rewarding and life enhancing experience.”
Mr Trobe also received his CBE for services to education.
He told FE Week: “I am delighted to have received this honour both personally and in terms of the recognition it gives to ASCL’s work in representing the voice of school and college leaders across the UK.
“It is a great privilege to represent an organisation whose members work incredibly hard to provide an excellent education for millions of young people.”
Bobbie McClelland, deputy director, reforming FE provision, BIS
Roberta (Bobbie) McClelland, deputy director for reforming FE provision at the Department for Business, Innovation and Skills (BIS), was awarded an OBE for services to further and vocational education.
She said: “I was surprised and delighted to receive this award, which is recognition of the contribution made by all those I have worked with to support further education.”
A BIS spokesperson said: “We are delighted that Bobbie has been awarded this well-deserved honour, in recognition of her work on further education.
“Bobbie has been instrumental in the drive to ensure this vibrant sector creates life changing opportunities for learners and delivers the skills our economy needs to grow.”
Two sixth form college principals are among those to have received an OBE.
These are Julian Appleyard of Rochdale SFC and Pauline Hagen of New College Pontefract, both of whom were recognised for services to education.
Mr Appleyard said: “I was surprised to hear the news and was shocked to receive a letter from the Cabinet Office about six weeks ago asking whether I would accept the honour.
“I thought it was a wind up! It is truly humbling.”
Ms Hagen said she was “proud” and “grateful” for her honour.
“I’m also grateful to the team at NEW College Pontefract, for their talent, their drive and their profound commitment to our vision. This recognition will inspire us to climb more mountains!”
An OBE also went to former chief executive of the Association of National Specialist Colleges (Natspec) Alison Boulton, for services to education.
She said: “My work has always been about improving access to meaningful further education for young people with learning difficulties in order to improve their quality of life and opportunities.
“I hope it has made a difference, though I know there is still a long way to go.”
Here’s our list of FE and skills-related who have been awarded:
CBE
John Allan Hyde, executive chairman, Hospitality Industry Training – for services to the FE and training sectors
Margaret Joan Serna, chair, Lincoln College and managing director, Thames Group (UK) Ltd – for services to FE
Malcolm James Trobe, interim general secretary, The Association of School and College Leaders – for services to education
OBE
Julian Charles Appleyard, principal, Rochdale Sixth Form College, Lancashire – for services to education
Simon Paul Blagden, MBE Chairman, Fujitsu UK – for services to the economy and skills.
Alison Margaret Boulton, lately chief executive, Association of National Specialist Colleges – for services to education
Pauline Hagen, principal, North East Wakefield College, Pontefract – for services to education.
Anthony Gerard Larkin – lately director of business and enterprise, Royal National College for the Blind – for services to FE and disability sport
Roberta Ann McClelland, deputy director, reforming FE provision, Department for Business, Innovation and Skills – for services to FE and vocational education
Oluseyi Oluyemi (Seyi) Obakin, chief executive, Centrepoint, commissioner, UK Commission for Employment and Skills – for services to youth skills, employment and homelessness
Enid Josephine (Josie) Teasdale, lately chair of governors, Barnsley College – for services to education in South Yorkshire
Mark White, The Chair Designate of Stockton Riverside College, for services to education particularly in Teesside.
Members of the Order of the British Empire
Keith Charles Brown, chair, College of North East London – for services to FE
Sally Anne Evans, co-founder, Trinity Specialist College, Birmingham – for services to education
Jennifer Johnson, chief executive officer, Kids Allowed – for services to apprenticeships
Andrew Paul Morris, Teacher, Westcroft Sports and Applied Learning College and founder, Timken Vocational Training Centre and Sunbeam Enterprises – for services to special education.
Christian James Notley, UK Training Manager, Worldskills – for services to the World Skills Competitions in Leipzig 2013 and Sao Paulo 2015.
Sally Ann Obertell, director of marketing, relationships and communications, John Ruskin College, South Croydon – for services to Education
Medallist of the Order of the British Empire
Rianne Lee Chester, Worldskills 2015 gold medal winner in beauty therapy – for services to skills
Gary Doyle, Worldskills 2015 gold medal winner in plumbing and heating – for services to skills
Edward William Harringham, Worldskills 2015 gold medal winner in cabinet making – for services to skills
