Bankrupt founder of Elmfield could face charges

Criminal charges could be brought against the founder of a controversial former apprenticeship provider, who has been disqualified from acting as a director for six years.

Manchester-based Elmfield Training was one of the country’s largest providers of apprenticeships, which received more than £100m in public money before it was wound up in 2013 owing 180 companies more than £11m.

The company had previously been subject to extensive investigations by FE Week that revealed alleged malpractices at the firm founded by Gerard Syddall, who was subsequently declared bankrupt in April 2015.

FE Week reported on January 30 that Mr Syddall, of St Helens, Merseyside, had been disqualified from acting as a director until February 2022 after insolvency investigators found he paid himself nearly £1m while his firm was going into administration.

This newspaper has since learned that further investigations by the Insolvency Service, which has the authority to bring its own criminal cases, could lead to him being charged. FE Week also asked the Serious Fraud Office (SFO) if it was investigating the case on Monday.

A spokesperson said in response that it could neither confirm nor deny interest in the matter.

Mr Syddall was still listed on Thursday by Companies House as a director for the St Helens-based scientific and technical consulting firm Marad Ltd.

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Ged Syddall giving evidence to the Business, Innovation and Skills select committee in 2012

FE Week asked the Insolvency Service why this was possible, bearing in mind it announced on January 29 that he had “been disqualified for a period of six years for breaching his fiduciary duty” to Elmfield.

A spokesperson said in response: “As is normal with undertakings, it doesn’t take effect for 21 days after signature, so February 9 is when the disqualification comes into effect.”

In a scathing investigation report, the Insolvency Service said Mr Syddall had told the Elmfield board of directors he would not use company funds for his own benefit in March 2013 because the firm was experiencing cashflow difficulties.

But investigators found Mr Syddall, along with “individuals connected to him, and another company of which he was a director” whom the Insolvency Service declined to identify, went on to receive nearly £954,000 from Elmfield.

By the time it went into administration in October that year, Mr Syddall owed the company £2.6m.

Robert Clarke, group leader of insolvent investigations north at the Insolvency Service, said: “Mr Syddall clearly put his own interests ahead of those of the company.”

The controversial businessman was hauled in front of the Business, Innovation and Skills select committee in 2012 and accused of paying himself “rip off” £3m dividend payments two years previously, all from government funding.

Then, after FE Week revealed the firm’s “appalling” pass rate – just 47.5 per cent of leavers in 2011/12 walked away with an apprenticeship certificate – it was given a grade four Ofsted rating, leading to Mr Syddall’s resignation as chief executive in July 2013.

A BBC Newsnight report, supported by FE Week, alleged three months later that Elmfield had received public money for courses that Morrisons employees had declined to take.

But an SFA investigation cleared the company the following April of falsely claiming for learners although it found “weakness in their controls that were not good practice”.

FE Week was unable to contact Mr Syddall for a comment ahead of publication.

 

Ann Limb, chair, South East Midlands Local Enterprise Partnership

Achieving promotion through the ranks to the role of college principal is still a tough task for anyone in FE – but it must have appeared a particularly daunting prospect for a gay woman starting out in the 1970s.

Yet Dr Ann Limb achieved rapid promotion to the position of college principal by 1987, when she was only 34 years old. She recalls having to overcome a lot of prejudice to get there, even if she chose to keep her sexuality secret at the time.

“Did I encounter chauvinistic and sexist behaviour? Oh boy, did I – in bucketfuls,” she says. “There were some women principals, but I was both young and a woman.”

“And I’m a gay woman too, although I wasn’t open about it at the time.

“We worked in the era with section 28, where the promotion of anything other than white, Anglo-Saxon maleness was an offence. It was against the law.

“Against that backdrop, is anyone in a leadership position going to own up to anything?” she says.

“That’s just how it was, and you worked with how it was.”

Born in 1953, Limb was the first child of Norman and Elsie Geraldine “Gerry” Limb, who ran a butcher’s shop in Manchester’s Moss Side.

Limb describes it as a “very small family business when rationing was still on and meat was still important – particularly for the working classes”.

Did I encounter chauvinistic and sexist behaviour? Oh boy, did I – in bucketfuls

Sister Julie, who Limb says is “very important to me”, was born when Limb was four.

It was a home birth, Limb recalls. “I was taken out the morning she was born by my godmother and I came back at lunchtime and I had a little sister.”

The family moved to Stockport shortly afterwards, where Limb went to school – first at the local primary, and then, after passing her 11+ exam, at Marple Hall Girls’ Grammar School.

Having shown a talent for languages, Limb packed her bags for Liverpool in 1971 to read French at university, with a view to becoming a French teacher.

This was “a kind of unusual choice for somebody who had come from the kind of background I had”, Limb acknowledges, but says her parents encouraged her.

“The idea of having a steady public sector job with a pension at the end of it was really something that was beyond what they did as small business people,” she says.

After finishing her degree in 1975, Limb embarked on a PhD at the same time as teaching part-time at the Wythenshawe College, in Manchester (now part of Manchester College).

The PhD soon fell by the wayside after Limb “got so involved in FE teaching, and my FE career started”.

She then followed what she calls a “very rapid, curriculum-led career” – rising through the FE ranks from teacher through head of department, then vice-principal before becoming Milton Keynes College principal.

At just 34 years old, at the time of her appointment, she was the youngest ever FE principal.

“I don’t think at the time I was proud of it, but I’m happy to own that pride now,” she says. “I was pleased I became an FE college principal, and I did so really without any of the support that people get these days. I had no mentor. I had nobody providing coaching.”

Limb stayed at the helm at Milton Keynes for 10 years ¬– during which time she met her partner, Maggie Cook – before moving on in 1996 to take over at Cambridge Regional College.

She remained there until 2000, at which point she “fulfilled an ambition I’d formed in Milton Keynes College, which was that I didn’t want to work full-time in FE until I was on my knees – I’ve never been motivated to work for money”.

A five-year stint as chief executive of Learndirect kicked off the second half of Limb’s career.

She says she was “attracted by the innovation” of the role “because online learning, no matter what people say, was not being taken up in FE”.

Since moving on from Learndirect in 2005, Limb has been in the enviable position of not working full-time.

Instead, she says she’s done “a brilliant range of non-exec work with some coaching and some consultancy thrown in”.

Among her many roles, which include being appointed the first ever female chair of the Scouts, in October 2015, she chairs SEMLEP and the Skills Funding Agency’s funding reform and localism steering group.

It is from this perspective that she says she’s positive about the future of FE.

“The old battles have been won,” she says. “The Prime Minister talks about schools and colleges. It doesn’t get better than that.”

It’s perhaps indicative of what she calls her Quaker values that, when asked about her greatest achievements looking back to her 25-year career in FE, all the examples Limb cites are about how she’s helped other people.

She talks with passion about the work she did in the mid-1980s helping women return to education.

These women returner courses – “women in technology, women into management” – were particularly significant during the miners’ strike.

Limb describes working in pit villages, in which the men weren’t working and the women hadn’t previously worked.

“Those were the women returners to IT courses, particularly, and they were an example of what FE does at its best. And it was life-saving and life-changing in the extreme,” she says.

Another example of her impressive moral compass came back in 1998, not long after Limb had taken on the role of principal at Cambridge Regional College, when the Labour government introduced £1,000 up-front university tuition fees.

This policy, Limb says, “clobbered FE students, particularly FE returners, the women-returners, the ladder of access to HE”.

So she decided to do something about it. “I got a salary increase when I changed college, so I decided to put the difference in my salary into a charity,” she says, “to provide bursaries to offset these upfront tuition fees”.

That charity was the Helena Kennedy Foundation, named after the Labour peer who wrote the Learning Works report in 1997, and it still supports disadvantaged students today.

Click on the image for a larger version

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It’s a personal thing

What’s your favourite book?

Testament of Friendship, by Vera Brittain. My mother gave me this book when I was quite young. It’s important to me because it talks about friendship, particularly friendship between women, and because I’m a Quaker, and Quakers are known as the religious Society of Friends. I met Vera Brittain’s daughter, Shirley Williams, and I asked her if she would inscribe it. And then I asked my mum to write in it, which she did exactly a year before she died

What do you do to switch off from work?

If I could go skiing every day I would, but I’m not in the right place for that, so I do meditation, yoga, swimming, walking, birdwatching and going to the theatre and opera

What’s your pet hate?

Litter and flippancy

If you could invite anyone to a dinner party, living or dead, who would it be?

Angela Merkel, Hilary Clinton and Eleanor Roosevelt. I want some comedy and theatre, so I want Victoria Wood, Julie Walters, French and Saunders, and Judi Dench. I want some music from Aretha Franklin and Carole King. They’re all strong, lovely women

What did you want to be when you were growing up?

A theatre director, orchestra conductor or an opera singer

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Curriculum Vitae

1953: Born in Moss Side, Manchester

1958: Norbury Church of England Primary School, Stockport

1964: Marple Hall Girls’ Grammar School

1971: Degree in French at the University of Liverpool, including a year abroad in France

1977: Began teaching career at Wythenshawe College, Manchester (now part of the Manchester College)

1980: Head of modern languages at High Peak College, Buxton

1984: Head of business and management studies, North East Derbyshire College

1986: Vice principal, Milton Keynes College

1987: Principal, Milton Keynes College

1996: Principal, Cambridge Regional College

2000: Chief Executive, Learndirect

2005-present: A variety of non-executive roles, coaching and consultancy

2011-present: Chair, South East Midlands Local Enterprise Partnership

 

Time to get proactive in order to promote vocational training

Luke Johnson says colleges should be more proactive about publicising the benefits of vocational training to their communities, with help from employers.

Time and time again employers like myself will tell you that young people just aren’t equipped with the skills they need to succeed in the world of work.

Whether it’s their lack of social skills, enterprise skills or basic maths and English ability, employers are often the first to point the finger at colleges, schools, and universities for the worrying skills gaps that almost all UK industries are facing.

This problem is going to get worse as the world of work is changing dramatically.

The most
effective way to tackle the skills shortage is for employers to get involved with their future workforce much earlier

New technologies mean that while many traditional roles will not be needed in the next 10 to 20 years, many new jobs will be created that need completely different skills and expertise.

Colleges will need to flex, ensuring that the courses and study programmes they are offering are fit for purpose.

And to do this effectively, they need to have a thorough understanding of industry’s requirements, which is no mean feat in such a rapidly changing world.

My own businesses regularly face recruitment challenges, but rather than sit back and bemoan this problem, I want to encourage a rather more proactive approach.

To be fair, employers are attempting to tackle the issue in various way. One example is the recent news that both Penguin books and EY are now welcoming applications from non-graduates – no longer seeing the “degree” as a minimum or indeed necessary requirement.

This widens the talent pool and indeed, can identify more diverse candidates with varied skillsets.

It also highlights to young people and their parents that the traditional A-level/degree route is not the only option to a successful and fulfilling career, which is important.

FE colleges should capitalise on this message, using it as an opportunity to promote the many vocational pathways on offer, including apprenticeships, which are the top of our current government’s agenda.

However, there is no doubt that the most effective way to tackle the skills shortage is for employers to get involved with their future workforce much earlier, engaging with schools, colleges and students directly.

Many FE colleges are no strangers to working with employers in some way.

Through my work with the Career Colleges Trust, I have seen a new level of employer-college partnership — with businesses helping to design and deliver curriculums and achieving great outcomes.

Colleges in our network work directly with local and national businesses within particular industries, enabling them to offer masterclasses, work shadowing opportunities and live project briefs to students.

I was at Harrow College last week, for the launch of their two new Career Colleges, which are housed in a spectacular £6.5m Enterprise centre.

Alongside speeches from employers, I was extremely impressed to hear from a few of the students themselves — all of whom spoke passionately about their courses and how inspiring it is to have support and coaching from real employers.

Such intrinsic involvement ensures that an employer can be assured that the skills and knowledge being taught are fully relevant to the industry.

It also means that the student is ready to walk into the world of work, avoiding the need to re-train or start from scratch.

I think we can all agree that the current education system is not perfect. A heavily-academic focus is a real disadvantage to many young people and simply does not provide a clear line of sight to jobs and careers.

I would urge colleges to ask more from local employers. Ask for their support and their input. Ask them what it is they need from you and your students.

The world of work is changing and this must be reflected in both the courses being run by colleges and a bigger emphasis being put on technology and enterprise.

Ultimately, employers, colleges and students all want the same thing, so let’s continue to work together to ensure our young people and our industries can thrive.

 

Luke Johnson is chairman of the Career Colleges Trust

Reading is for life – but also good grades in the FE setting

Reading for pleasure can transform motivation and attainment. Genevieve Clarke explains how The Reading Agency is achieving results for FE colleges with its Reading Ahead programme.

Every week, the subject of FE Week’s profile page is asked to name their favourite book. It’s a great advert for reading for pleasure, but can we take enjoyment of reading among staff and students in the FE sector for granted?

At The Reading Agency, a national charity with a mission to inspire more people to read more, we’re currently working directly with around 100 FE colleges across the UK to promote reading for pleasure and indirectly with several more through their local public libraries.

The stock of
reading material, print and digital, has to take account of course priorities. But it should facilitate reading for fun too and be able to lure in reluctant readers

College staff, including librarians, often tell us that engaging their learners in reading of any kind is impossible. They can read but they won’t — or, more worryingly, they can’t without a painful struggle.

All is not lost however. Our annual Reading Ahead programme has proved itself as a motivational trigger, helping students to discover that reading can be both habit-forming and enjoyable.

It invites students to pick six reads of their choice and log, rate and review their reading in a small diary in order to get incentives and ultimately a certificate. They can choose any kind of text, print or digital, as long as they challenge themselves and try something new. The aim is to engage students in a virtuous circle whereby the everyday practice of reading becomes a pleasure while also increasing their proficiency.

And it works. Formerly the Six Book Challenge, the programme has reached nearly 200,000 people over the last eight years through public libraries, learning providers, prisons and workplaces, with colleges well ahead in terms of participation.

In 2015, 92 per cent of survey respondents of all ages said they felt more confident about reading after taking part, rising to 93 per cent for 16 to 19-year-olds and 96 per cent for 20 to 24-year-olds. Northampton College has been with us from the start with Ofsted having remarked on the involvement of male students in particular. Newcastle-under-Lyme College, also praised by Ofsted for use of the programme, has integrated it into all Functional Skills classes. Many others are using it extensively to support Esol learners and GCSE students.

Reading Ahead succeeds because of two main ingredients that most colleges already have to make reading for pleasure part of their culture, with all the associated benefits of higher attainment, motivation and confidence.

First is a library or learning resource centre right at the heart of the college community that draws people in for work and pleasure. Friendly staff are essential, ideally with a passion for reading that they can take beyond the library walls. Obviously the stock of reading material, print and digital, has to take account of course priorities. But it should facilitate reading for fun too and be able to lure in reluctant readers with magazines, graphic novels, poetry and books such as the Quick Reads or even shorter texts for students who need an easier way in to reading. Even better if staff also link with public libraries to make students aware of the wealth of free resources on offer for them and their families.

Just as important are teaching staff who recognise the value of reading as fundamental to a learner’s progress, not just in terms of skills but their whole approach to the life ahead of them. We work with tutors who, with library support, weave all kinds of reading into courses as varied as hair and beauty, building studies and GCSE English. They can see at first hand the improvement to reading, writing, speaking and listening and ultimately to exam results and employability — surely a reason to promote reading for pleasure as part of the current review of Functional Skills. They also report how their students grow in confidence as they become independent learners, mentors to their peers and willing participants in college life.

There’s still time to get your students involved in Reading Ahead this year. With pressure on for all young people to work towards grade C English GCSE, what better way to support their progress and turn them into lifelong readers at the same time?

 

Genevieve Clarke is programme manager for Reading Ahead, The Reading Agency

Why aren’t former apprentices advising the Government over apprenticeships?

John Hyde accuses the government of hypocrisy through ignoring the group of people who are likely to have the best understanding of related demands and benefits of the vocational training programmes when forming the Institute of Apprenticeships — ex-apprentices.

We now know the identity of the employers forming the Institute of Apprenticeships, all graduates.

Not an ex-apprentice among them, which is a great pity when some of our most successful business are led by ex-apprentices.

One hopes one
of their first moves will be to co-opt some practitioners who actually understand the minutiae of apprenticeship delivery

Each industry will have its heroes, but from the hospitality sector, Jason Atherton, an ex-YTS trainee has grown a chain of 14 restaurants around the world from New York, Sidney, Hong Kong, Shanghai and Dubai with five in London, 3 with Michelin stars.

Despite the Department for Business, Innovation Skills’ (BIS) own research that inviting apprenticeship practitioners to join employers trailblazer groups substantially improved their effectiveness, this evidence seems to have been ignored when creating the membership of the Institute of Apprenticeships.

One hopes one of their first moves will be to co-opt some practitioners who actually understand the minutiae of apprenticeship delivery and employer engagement.

While I am very sceptical about the trailblazer apprenticeship standards
adding any quality to the current frameworks, being totally reliant on an end test, the substantial number of apprenticeships in new sectors and new careers is encouraging.

However I haven’t seen any reduction in my bank charges, now the government is paying for banking qualifications through the apprenticeship route.

This government came to power pledging to increase apprenticeship numbers to 3m starts.

It’s ironic that the first growth requests to the Skills Funding Agency and Education Funding Agency have been turned down.

It may be arguable the 3m will be achieved by the end of this parliament, when the levy is fully in place and the public sector hit their imposed targets.

Yet not funding growth now sends out mixed messages both to the sector and potential employers and apprentices alike.

Opportunities missed now may not be replaceable later.

Concerns are also being expressed about the low take up of trailblazer standards.

Sectors with current high volumes of apprentices, i.e. retail, care, customer services, business administration, hospitality and catering do not yet have trailblazers in place.

Many of the approved trailblazers are at higher levels, where take-up is bound to be lower.

Funding, especially for end testing has not been agreed for most standards, so providers are reluctant to commit without knowing the financial consequences.

But most providers, especially in the high volume areas are concerned about the impact of end testing on completion rates.

The current completion rate of around 70 per cent means just under 1m of the 3m starts will fail.

However, replacing continuous assessment of skills and knowledge with an end test is bound to drop completion rates, as providers get used to the new system.

Many learners took the apprenticeship route because of the practical skills and not the written testing, so for many they will fail in the new system.

It would damage apprenticeships’ reputation if the completion rates fell drastically, or learners or employers decline to personally fund retakes.

Headlines of 50 per cent failure rates in apprenticeships, or only half of the 3m apprentices pass would make political capital for the opposition parties as they emerged towards the end of this parliament.

Retention of SASE frameworks as an insurance to ensure this does not occur until we have actual results from trailblazer completions, makes sense.

 

Moral purpose drives academic success

Rochdale Sixth Form College topped this year’s performance table, published last month, for value added A-Level performance for a third year in a row. Julian Appleyard explains the secret of their success.

If someone asked me in 2010 to predict the success of Rochdale Sixth Form College and where it would be in 2016, then I would say that the achievements to date have surpassed all expectations.

Over the last six years, the tremendously dedicated and committed students and staff have been on a journey resulting in national recognition and history being made.

For the third successive year, the college has topped the Department for Education performance tables for A-Level value added.

The position
in the tables shows that students at the college make more progress given their start point

The position in the tables shows that students at the college make more progress given their start point.

Prior to 2010, Rochdale as a local authority was ranked in the bottom 10 per cent for value added performance for A-Levels and in the bottom five local authorities for student progression to higher education.

Since then, the transformational reversal in fortunes has not only changed perception of prospective students and parents, but the college is an educational beacon for the town itself.

When I look back clearly, the pivotal moment was the outstanding report by Ofsted in 2013, but putting such accolades aside, it is the moral dimension to our work that drives us.

Fundamental to the college’s success is the moral purpose in which all our daily work is rooted.

There is no doubt that energetic and inspirational teaching is great to see, but it is the attitudes and beliefs of staff that have helped drive performance.

It is their desire, day in and day out to inspire, motivate and believe in our young people, so that they have the self-confidence and self-worth to face A-Level study.

We have tried to keep a simple mantra of high expectations, an exclusive focus on individual one-to-one work in and outside of the classroom and a relentless focus on the core business of teaching and learning.

It sounds very clichéd when put like that, but we simply have processes that ensure no student gets left behind.

The one-to-one approach is a central feature. The context is such that there are only seven sixth-form colleges that have less qualified students.

We work in a community where our largest partner school is in the 10th most deprived ward in the country.

It is easy to talk about the challenges of financial poverty and poverty of aspiration, but this is our reality.

Our approach to teaching and learning has been such that we have ensured these have been no barrier to achievement.

My staff appreciate and understand this; when I recruit I ensure that they are rooted in the moral dimension of our work.

It means being ambitious and aspirational for our young people.

Precise tracking, powerful intervention and an unstinting belief in the ability of our students have been critical.

Our approach to teaching and learning is one that has not been initiative-led.

We essentially are happy for our staff to focus upon lessons that ensure every student makes progress in an environment where pace and active participation are non-negotiables.

Our commitment to valuing the individuality of each of our students and providing personalised pastoral support through a bespoke pastoral structure is a crucial feature of what we do.

Staff appreciate that preparing students for the next step means getting to know them really well and ensuring that they have the skill set necessary to make the transition to the post-18 world.

The life-changing outcomes at the college and the leadership and its systems are now going beyond the college gates.

The college as a designated National Support School has supported other institutions across the country with tangibly improved outcomes and the college looks to continue this work.

The college, while proud of its success so far, is far from complacent and is even more determined to sustain its success.

By building on our powerful ethos and culture, we aim to ensure the future generation of Rochdale students receive a first class deal – they deserve nothing less.

 

BIS accused of FE brain drain over Sheffield office axe plans

The Department for Business, Innovation and Skills (BIS) has been accused of launching an FE “brain drain” through the planned closure of its Sheffield office that could lead to almost 250 people losing their jobs.

The Public and Commercial Services Union (PCS) told FE Week on Monday that 240 civil servants, with a vast combined knowledge of the FE and skills sector, had been warned by BIS that they stood to lose their jobs through plans announced by the department last week.

A 90-day consultation was launched with staff on January 28, a PCS spokesperson said, over the BIS plans to close the office in St Paul’s Place, Sheffield, and centralise policy making to London.

A BIS spokesperson said: “The move will create a combined central headquarters and policy centre in London”, with about six business centres also set to be established across the country with each one focusing on a key business activity.

A former senior employee at BIS told FE Week that the plan to lay off so many experienced staff based in Sheffield, where they produce most BIS data on FE and skills, was crazy.

“They all have a huge amount of FE expertise in Sheffield and it looks like everyone is going to lose their jobs,” the source said.

“It will mean a brain drain at a key time for the government and the sector as a whole, with post-16 area reviews and apprenticeship reforms all pushing forward.”

Lois Austin, the PCS full time official for BIS covering the Sheffield office, told FE Week: “BIS management told us on Wednesday that the loss of expertise that would come with closing Sheffield is a risk worth taking.

“They stand to lose a lot of FE specialist knowledge at a crucial time.

“Sheffield staff provide a crucial function, including building the IT model being used to work out how college restructuring funding can be used [through area reviews].

“The statistical first release and all other key FE-related statistics that inform the sector are also produced from Sheffield.”

She added: “The majority of people who work here tend to be a little bit older and have a lot more experience.

“They brief other civil servants and policy makers on how to improve policy, for example relating to apprenticeship reforms.”

Martin Donnelly, the BIS permanent secretary, said on January 28: “The decision to close Sheffield by 2018 has not been taken lightly.

“It is my top priority that all our staff are fully briefed and consulted on the process. We will provide comprehensive support to all those facing a potential change or loss of job.”

However, BIS declined to respond to FE Week requests for a comment on concern at what effect losing so many civil servants with FE expertise could have on the apprenticeship and skills reform programme.

It also declined to comment on whether it had started recruiting replacements for the Sheffield staff to work in London, which FE Week understands is already happening, or provide more details about how the new business centres will serve FE.

 

Cameron to break bank fine pledge?

George Osborne has been challenged to reveal in Parliament whether a proposed apprenticeship fund created from Libor fines – promised by the Prime Minister in the run-up to last year’s election – has been scrapped.

David Cameron pledged last April that if he won the election, his government would fund 50,000 apprenticeships and traineeships for unemployed 22 to 24-year-olds using a £200m pot from fines paid by bankers in the wake of the Libor scandal.

Since then no further detail about the proposed fund has emerged, leading the Shadow Skills Minister Gordon Marsden to table a parliamentary question to ask for an update.

He lodged the question after repeated enquiries from FE Week on the fund were met with a wall of silence from government.

“What progress has been made by Treasury officials on incorporating the proceeds of the £227 million fine, imposed on Deutsche Bank in relation to their Libor activities, into a new three year fund to create 50,000 apprenticeships, as outlined by the Prime Minister in his April 2015 announcement? ” he asked the Chancellor on Friday.

The key election promise was widely reported at the time, with coverage from major news outlets including The Sun, the Financial Times and the BBC.

When asked by FE Week if the Government had scrapped plans for the fund, a Treasury spokesperson refused to confirm or deny it.

“Further announcements that support the Government’s commitment to delivering employment opportunities for young people will be announced in due course,” the spokesperson said.

A spokesperson for the Conservative party also refused to confirm whether the pledge had become government policy, adding that it was “something you need to talk to No 10 about”.

However, a spokesperson for No 10 then told FE Week that a response would be “better off” coming from the Treasury.

A spokesperson for the Department for Business, Innovation and Skills also directed our enquiry back to the Treasury, which declined to comment for a final time on Wednesday.

A number of banks were hit with fines for rigging the London interbank offered rate (Libor).

These include Business Secretary Sajid Javid’s former employer Deutsche Bank, which was fined $2.5bn (£1.7bn) in April 2015, of which the UK received £227m.

When he announced the fund last year, Mr Cameron said: “We’re going to take the fines from the banks who tried to rig markets – and we’re going to use it to train young people and get them off the dole and into work.

“This is about taking money off those who represent Labour’s failed past, and giving to those who through their hard work and endeavour can represent a brighter Conservative future.

“This is about offering hope, spreading opportunity, sharing prosperity – it’s about securing a better future for you, your family and for Britain, and from now until polling day I’m going to fight for that future with every ounce of energy in my body.”

The Chancellor has three working days to respond to Mr Marsden’s question.

Exclusive: National Audit Office to examine provider topslicing scandal

The National Audit Office has said it will “look into” the issue of lead providers skimming outrageous management fees from subcontractors, FE Week has been told.

The Public Accounts Committee chair, Meg Hillier (pictured) had vowed last December to raise the issue with the NAO following FE Week’s ongoing investigation into topslicing, which found evidence of providers keeping 40 per cent of government funding before dishing out contracts.

Ms Hillier told FE Week on Wednesday that she had received a letter from the NAO, which said: “We propose to look into this issue further to determine the facts.

“We intend firstly to review the Skills Funding Agency (SFA)’s recent compliance work, which aimed to make providers more transparent about their management fees.

“Once we have a fuller picture I will take a view on whether a full investigation would be justified.”

topsliceweb

Topslicing has been the focus of an FE Week campaign since its launch in 2011 (see right), and was the subject of “recent compliance work” by the SFA.

The practice involves lead providers retaining government funding – usually called management fees – before finding a subcontractor to do the training for the remaining sum.

In one case, as reported by FE Week in November, Learndirect retained more than a third of its total government funding in management fees, pocketing nearly £50m.

And this week, FE Week uncovered evidence that one college was grading its potential subcontractors by the size of management fee they were willing to accept – the higher the fee, the higher the score.

Cambridge Regional College issued a tender document on December 16 inviting subcontractors to bid for four lots – 16-18 apprenticeships, 19+ apprenticeships, 24+ learning loans and adult skills budget.

The criteria on which all bids would be judged, included in the document, gave the proposed management fee offered by the subcontractor a massive 35 per cent weighting.

It then outlined the scoring methodology that the college would use to grade bids.

“Management fees retained by the college are a pass/fail criteria and the fee passed on must be a minimum of 20 per cent, which will be scored as a 3,” it said.

Anything lower than 20 per cent “will be marked as a fail”, it said, while bids of 22 per cent “score 4” and 24 per cent “score 5”.

When asked about its methodology, Paul Skitt, assistant principal employer engagement at Cambridge Regional College, said its higher management fees were the result of stringent contract management controls required by the SFA.

“The weighting we give to management fees reflects the increasing costs of administration associated with sub-contracting – the closer involvement and the increased demand on resources – required by all colleges with sub-contracted provision.

“Our sub-contracting processes and procurement have been approved by the SFA,” he added.

The SFA declined to comment on the college’s tendering process.

“As independent corporations they are responsible for their own business models, modes of operation and financial health,” it said.

A spokesperson for the NAO confirmed it had sent a letter to Ms Hillier, but declined to comment further.