Concern at ‘tight’ 18-month ESF delivery timescale

Sector leaders have reacted with concern to a “tight” Skills Funding Agency (SFA) timetable for handing out £650m of delayed European Social Fund (ESF) cash — with delivery completed in just 18 months.

It was exclusively revealed on feweek. co.uk that the SFA was planning to run a “sequence of procurement” that must be finished by the end of September next year at the very latest to allow a minimum delivery period of 18 months (see timeline below right).

The delivery period, up to March 2018, was determined with ministers unable to say the SFA would oversee anything other than apprenticeships beyond then.

It follows a summer in which ESF-funded providers were forced to lay off staff amid delays in issuing 2014-202 contracts as the government sought to iron out regional devolution issues with local enterprise partnerships (Leps).

Stewart Segal, Association of Employment and Learning Providers chief executive, said: “These further delays will mean that the gaps in provision for those people who need the most help continue.

“The shortening of the timescales also means that these complex and often expensive tendering processes need to be managed effectively.esf1

“The SFA, DWP and the Leps need to work closely with the sector to make sure the tender process is clear, simple and transparent.”

He added: “We now need a clear timetable from the funding agencies to allow providers to put their bidding plans together.”

An Association of Colleges spokesperson said: “It took longer than expected to get EU sign-off for the UK ESF programme so there’s a good case for pushing ahead with procurement.

“Ideally, the government would consult on its devolution plans via a green paper so issues like this can be properly discussed in advance.”

Details of the timetable featured in a letter, leaked to FE Week, to Lep and European Structural and Investment Fund (ESIF) committees from Mike Bell, SFA deputy director for localism policy implementation.

“The attached timeline shows the tight deadlines we will have to meet so that all contracts are at least 18 months long,” he wrote.

He said the SFA would, however, introduce a “simplified procurement initiation document which will capture the required local input to be inserted into themed specification frameworks”.

“We will work … to ensure the local input fully reflects requirements as we draft the specifications so that they can be finalised and approved without any undue delay,” he wrote.

“We believe this approach enables us to ensure minimal disruption in the transition of skills budgets to localities.”

An SFA spokesperson said it had nothing to add to Mr Bell’s letter in response to timescale concerns.

Network for Black and Asian Professionals to close ‘due to lack of funding’

The Network for Black and Asian Professionals (NBAP) is to close “due to lack of funding,” FE Week can exclusively reveal.

Its chief executive, Rajinder Mann OBE (pictured above), delivered the blow to members today and said closure was the “result of the current political environment and the austerity cuts in the public sector”.

In a heartfelt letter, she wrote: “It is with deep sadness and regret that I am writing to inform you that the NBAP board has reluctantly resolved to close down the NBAP organisation and dissolve the company.”

It comes just months after Ms Mann outlined in FE Week how the NBAP was struggling financially amid question marks over the promotion in the sector of black, Asian and minority ethnic (BAME) principals.

The NBAP’s accounts for 2013-14, with Companies House, show that it had nearly £300k in members’ funds – down £60k on the previous year.

But, said Ms Mann, ever-tightening public purse strings meant “organisations which we have previously worked with over the past two years have not renewed their contracts, either due to their own lack of finance or not seeing the importance of positive action work for race equality”.

“Despite numerous attempts to mitigate closure by cutting our staff and costs to the bone we can no longer sustain the organisation,” she wrote.

“Over the past year we have attempted to find a partner organisation which might ensure the sustainability of our work but this has been without success, as the core issue of funding remained.”

The Wolverhampton-based organisation was set up in 1998 to address under-representation of black staff in FE, particularly in teaching, management and senior positions.

Ms Mann listed a number of achievements since then, including winning the Queens Diamond Jubilee Volunteering award for the 13-year-old Black Leadership Initiative (BLI) mentoring programme and engaging “one third of the FE sector leaders as BLI mentors”.

Ms Mann, who took over as NBAP (previously called the Network for Black Professionals) chief executive in 2013, described the closure as “hugely regrettable”.

“The NBAP has punched above its weight since 1998 and it has made a profound difference to the lives of many individuals and stakeholders, not only in the FE sector, from where it emerged, but also across a range of public, private and third sectors, including schools, universities and the Civil Service,” she wrote.

“The work has significantly increased the number of black principals, head teachers and middle managers in FE and schools over the last decade, a figure that cannot be matched in other public sector bodies.

“Most importantly over the last eighteen years, we have provided support and guidance on race issues for both individuals and organisations.”

She said the NBAP had “won hearts and minds, engaged both black and white staff across education and beyond in order to ensure that the race equality agenda was being addressed”.

“Our vision of being the collective voice for black staff providing professional development activities to unlock their talent has been significantly achieved, enabling the FE and other sectors to make progress in diversifying their workforce at all levels,” wrote Ms Mann.

“Although the NBAP will be closing, the important work on race equality has not ended.  More than ever before, there will be a continuing need to increase race awareness, to combat prejudice and to develop role models for our staff and all our learners.”

The NBAP’s final annual meeting is expected to take place at the Association of Colleges annual conference on Tuesday (November 17) at the ICC Birmingham between 2pm and 3pm.

‘We hope the DfE-appointed group will have an open mind to solutions’

If the Department for Education (DfE) wants to get more 17-year-olds onto apprenticeships then it will need to consider the role that the independent learning provider sector can play, says Stewart Segal.

In placing a focus on the development of technical and professional skills, it is good that the DfE review is of a wider set of skills than just technical skills and it should include the IT, finance, legal and managerial skills which are required across many different sectors.

The focus on getting more people on to an apprenticeship applies to all providers

In AELP’s view, the biggest skill shortage in the UK is managerial skills.

We hope the review will look carefully at the existing delivery systems and not jump to a conclusion that we need a ‘new system’.

Clearly there are improvements we can make to the current system and we know we need to encourage more people to take new routes to higher level skills but everyone in our sector knows that constant change can confuse our customers, so we need to be careful about the implementation of any ‘ground breaking reforms’. We are certainly not against change but it has to build on what works.

High quality technical and professional training is the key for both young people looking at job and career options as well as older people looking at career development.

Everyone will have a different entry point and that may be at all levels in the qualifications system. We need to ensure everyone has a chance to climb the ladder of opportunities including apprentices to give them a route to higher level skills.

For young people the routes into the world of work look complex and AELP has long proposed a stop to the constant changes to work preparation programmes and instead much more of a focus on traineeships and apprenticeships as the key routes, but not the only routes into work.

We are not sure about the target to create ‘up to 20 new specific routes’ into work or education because it sounds like a pre-conceived solution before we know what the problem is.

We hope that the DfE-appointed group will have an open mind to the solutions and that they will be customer focused and not focused on particular structures or institutions. Many different types of providers are involved in delivering technical and professional training and the solution must recognise that choice for learners and employers.

We support the option of apprenticeships as an important choice for young people and older workers looking to get the higher level skills that will move them into sustained employment.

Many young people in particular will need the support of the traineeship programme to get them their first step on the ladder.

As the DfE press release says, only 6.9 per cent of 17-year-olds take an apprenticeship which could be a lot higher if young people were given better information about their options at school.

There are many of those young people in jobs who are not apprentices and we need to ensure more of them participate in the programme.

The focus on getting more people on to an apprenticeship applies to all providers. Independent learning providers and colleges can deliver more apprenticeships, but it takes time and effort to get more employers to make the big commitment to employ an apprentice. We welcome the support of the Confederation of British Industry and the Federation of Small Businesses in doing this, but we must have a responsive contracting and funding system that supports that growth.

Many technical and professional apprenticeship programmes are delivered by partnerships of private and college providers where the college might provide some of the technical training.

These partnerships need to be recognised by the review and we will therefore want to work closely with the review group to ensure they consider all of the issues across the sector.

Future of Fisss uncertain as BIS plans new system for apprenticeship certificates

The future of the Federation for Industry Sector Skills and Standards (Fisss) was today uncertain with the government looking at a new system of issuing apprenticeship certificates.

More than 7,500 providers and 500,000 apprentices in England, Scotland and Wales work with Fisss as it verifies that programmes have been finished successfully before handing out final paperwork.

However, the position of Fisss, which has certificated nearly 320,000 apprenticeships in the last year, was put into question with the Deregulation Act 2015.

A Department for Business Innovation and Skills (BIS) spokesperson the Act meant it was “considering options for a system for the issue of apprenticeship certificates for new approved standards”.

The Act was designed to simplify existing statutory arrangements and allow employers to design Trailblazer apprenticeship standards, with the post of Business Secretary responsible for issuing certificates — a responsibility that can be delegated.

Mark Froud (pictured above), managing director of Fisss, said: “We remain committed to ensuring high quality standards and certification with minimal bureaucracy in both the current and the new system. “We have been discussing how to achieve this going forwards with BIS and a number of Trailblazer groups, the Association of Colleges (AoC), Association of Employment and Learning Providers (AELP), Federation of Awarding Bodies and a number of large awarding organisations over the last year.

“In terms of the future we await decisions from the Minister.”

Teresa-Frith-e107Teresa Frith (pictured left), senior skills policy manager for the AoC, said: “We are pleased with Fisss taking a collaborative approach to the development of a new issuing system for apprenticeship certificates that will fit with the reforms and will work for colleges and other providers.”

Stewart Segal, chief executive of AELP, said: “Certification of the apprenticeship programme is an important step as part of the overall assurance process.  AELP has worked with Fisss to ensure that this is an effective and simple process.  There are still a lot of details to be resolved around the assessment plans and the systems will need to be flexible but consistent.”

The work of Fisss is funded through charging providers for the issue of certificates and Mr Froud said Fisss had been working to achieve efficiencies.

“We charge £22 per apprenticeship certificate issued under the current framework system,” he said.

“This is a 25 per cent reduction on the previous fee and saved the system and training providers over £7m in the last two and a half years.”

 

Colleges can meet new policy for young apprenticeships — but are the jobs there?

The Department for Education’s plans to get 16-year-old classroom-based vocational learners into apprenticeships after a year are assessed by Dame Asha Khemka.

Skills Minister Nick Boles’ announcement of a “ground-breaking” overhaul of technical and professional education last week represented the latest in a long line of reforms to the FE and skills sector.

The major issue with this policy agenda rests with the availability of high-quality apprenticeship places for 16 to 18-year-olds that lead to real jobs

The proposed reforms provide us with some interesting questions, perhaps some opportunities and almost certainly several challenges – not just for the sector but for government in its implementation.

The cynical view is that this is yet another erosion of colleges; that this policy is a way of diverting funding from the full-time study programme to achieve the 3m apprenticeship target, which will be challenging to meet and even harder to fund.

Apprenticeships are not inherently ‘cheaper’ in funding terms, yet around 70 per cent are currently not delivered within colleges.

Take this to its ultimate conclusion and there is a risk that college funding will be reduced — particularly if we lose our 16 to 18-year-olds to other providers from the age of 17.

Some of our young people already progress from a one-year level two course onto an apprenticeship, or leave their study programme early to pursue one — so having a system that recognises this as a valid and intentional route is no bad thing.

If the policy works as it should, then colleges will be best placed to offer that progression route. It will also enable us to extend our provision of directly-delivered apprenticeships and create opportunities for strategic relationships with more employers, providing the pipeline for their future workforce in a structured way.

Who knows, this may redress the balance and see more apprenticeships delivered by colleges within this parliament which, in turn, may well enhance the sector’s reputation with government as we become a key leader in meeting this major priority for skills. This could finally be an opportunity to create a vocational pathway that is as highly-valued as the academic.

There are, however, pitfalls. The major issue with this policy agenda rests with the availability of high-quality apprenticeship places for 16 to 18-year-olds that lead to real jobs. There seems to be an assumption that if young people want and are ready for an apprenticeship, they will be able to access one. Yet this ignores the essential ingredient — an actual vacancy.

We already know that the number of apprenticeship vacancies is the single biggest limiting factor in young people following this pathway. What will be different under these reforms to change that?

The risk is we create a two-tier system whereby the brightest progress and the rest are left behind. If the government uses some kind of financial ‘bribe’ to encourage employers to take on an apprentice, there becomes a real danger that no sustainable and long-term employment is available for them once they complete their training — potentially leaving us with a cadre of young people without a job at the end of their apprenticeship.

How will these latest reforms affect the viability of courses within colleges?

If only half of students can progress, then surely the second year of a full-time study programme suddenly looks a lot less viable than before. What about the readiness of young people to progress?

We all know that not all 17-year-olds are the same. Some are more than ready to take on the challenge of work while others need more time learning the softer skills needed to be a great employee. What will the 20 vocational routes looks like? And where do ‘hybrid’ subjects like creative media sit?

If all this seems as though there are far more questions than answers, it’s because there are.

However, one thing is certain. The sector that emerges from the current reforms will be very different to the one we know. Will it be stronger? If the vision being set out is realised and we take the opportunities on offer, then yes — I believe it will be.

Colleges face threat of further strike action as UCU looks to ‘next steps’ in AoC pay row

Colleges face the threat of further strikes after the University and College Union (UCU) told FE Week it planned to consult members about the “next steps” in its dispute with the Association of Colleges (Aoc) over pay.

A UCU spokesperson said that 207 colleges had been affected by the strike action on Tuesday (November 10), which was called after talks last month between the two over the AoC’s proposal for a pay freeze in 2015/16 failed to reach agreement.

He told FE Week that the union “remained open and willing” to enter into talks with the AoC to avoid further industrial action, but warned it “would be consulting with members in the coming weeks about the next steps in the campaign”.

And the AoC indicated that it was in no mood to compromise, when a spokesperson told FE Week: “We haven’t got any plans to reopen negotiations.”

The UCU announced on October 28 that it would strike after a ballot of members on the pay freeze proposal resulted in 74 per cent of those who voted (4,184) backing industrial action.

The UCU claimed that the vote came after employers, represented by the AoC, rejected a request for £1 per hour extra for staff.

Marc Whitworth, the AoC’s director of employment policy and services said before Tuesday’s strike, which the UCU claimed almost 20,000 people took part in nationwide, that its pay offer reflected the “stringent financial circumstances in the sector” and “significant external pressures” on colleges.

The proposal had also been based on feedback from AoC members, he added.

“Strikes are very disruptive for colleges and more importantly for students. We would encourage UCU to consider how we might better work together to represent our respective members collectively,” he said.

“There is a willingness from the employers’ side to work together to protect the prospects of FE, its skilled workforce and the students it serves,” he added.

The UCU held rallies on Tuesday to coincide with the strike at the Emmanuel Centre, Westminster, and the Birmingham and Midland Institute, Birmingham, with speakers including Shadow Chancellor John McDonnell.

The AoC declined to comment on how many people took part in Tuesday’s strike or how many colleges were involved.

Main image: Picket line at Truro College

Skills Show challenge laid down by former BBC Dragons’ Den investor Theo Paphitis

The Skills Show gets under way on Thursday (November 19) at NEC Birmingham and celebrity entrepreneur Theo Paphitis wants to see as many FE providers as possible.

Vocational education and careers are hot right now. Open any newspaper or magazine, watch TV or listen to the radio, and the talk is all about apprenticeships, traineeships and suitable careers for young people which involve earning while they learn — all music to my ears.

I have always been passionate about skills. Leaving school without any meaningful qualifications can make you really appreciate the learning that you do in the workplace and the skills that you pick up.

Make sure that you get involved with The Skills Show in some way to keep spreading the inspiration

I was lucky, I know, to discover the retail sector early in my working life — it inspired me, and motivated me to make the best of myself that I could. So how can we provide similar inspiration for young people to ensure they can make a meaningful contribution to the economy when they are actually out there working?

The government’s call to establish 3m apprenticeships during the life of this Parliament has shone a light on the sector, and is providing a great opportunity to showcase how varied and interesting FE is. It should also be a great chance for educators to link up with employers and provide a real link to the workplace for young people. So how can colleges take full advantage and change the perceptions of some parents that the sector is not for their children?

This month sees the fourth annual Skills Show at the NEC in Birmingham. I am delighted to be patron of this event, which showcases the very best in skills, apprenticeships and careers to more than 75,000 young people, their parents, teachers and other educators. I always make time to fit in a visit to the event, however busy my diary, because it inspires me and I find out new things — so how much more exciting must that be for a young person seeking a future career?

Every year, the college personnel that I talk to at the event say how inspiring it is for them to see so many young people finding their own passions — whether that be in manufacturing, engineering, accountancy, floristry or one of the other many different careers on show at the event. Seeing their peers demonstrate their skills in WorldSkills UK competitions, or hearing the successful Team UK representatives from WorldSkills São Paulo talk about their experiences earlier this year can only be motivational for visitors.

Of course it is a great opportunity to sign up new students. One college principal last year told me he filled an entire intake for one subject simply by staging a Have-a-Go at the event — that’s what I call a marketing budget well spent.

For 2015, event organisers at Find a Future have established a Future Skills zone, showcasing some of the careers which will be vital to sustained economic growth in the future. When I started work, mobile phones were like bricks, and about as agile — technology has moved the world of work to new heights since then.

But careers of the future are not just about space-age technology — the way we live our lives is constantly changing, with new opportunities in all sorts of traditional areas from engineering and manufacturing through to catering and design, and this will undoubtedly create new careers and training opportunities for all.

Working together at The Skills Show, FE colleges have the chance to change the way people think about skills and vocational education as a whole.

As a collective, the Premier Colleges group has shown how collaborative working can raise the profile not only of their individual colleges but of FE as a whole.

The event showcases the next generation of talented young people, who will be the backbone of our future workforce, and it is up to all of us to give them the inspiration they need.

My challenge to the FE sector is to make sure that you get involved with The Skills Show in some way to keep spreading the inspiration — I look forward to seeing you there.

‘Marketing for a college also promotes the wider FE cause’

Competitive marketing between neighbouring colleges was criticised by FE Commissioner Dr David Collins when he wrote to principals and chairs with his view of a collaborative future. However, Andy Wilson explains how marketing has played its part in his college success story.

Even by the Alice in Wonderland standards the sector has become accustomed to, the FE Commissioner’s recent letter was particularly noteworthy.

I only knew the October 30 letter existed through an FE Week tweet on November 10. Yet its main wisdom, apart from that large class sizes are more efficient, is that FE colleges spend too much money on individual marketing rather than taking a collective approach.

We can all learn and benefit from the more successful college brands.

Following the commissioner’s practice it seems we should all post on a Department for Business, Innovation and Skills website and hope the press pick the message up.

The effectiveness and efficiency of marketing or, more specifically, publicity are an area of regular soul searching at Westminster Kingsway.

We sit at the centre of London and maintain a comprehensive offer for local students by attracting others from all 32 London boroughs and beyond.

We were a regional specialist centre for hospitality long before it was fashionable. However, young people not in education, employment or training (Neet) escaping postcode wars and A-level students wanting to feel close to prestige universities travel considerable distances to us.

Maintaining this wide reach requires buying in the most expensive advertising market in the country.

We use the Evening Standard and commercial radio, albeit sparingly, because it is more cost-effective than the alternative network of local outlets.

Our strategy has helped us grow 16 to 18 numbers by 50 per cent in six years, hit almost all our funding targets and maintain financial reserves which provide some hope of continuing survival. Oh yes, and we have an average class size around 19.

Nobody wants to spend large sums on marketing and everybody believes they are an expert in marketing.

Course marketing is always guaranteed to generate lively debate at meetings of teaching staff. Westminster Kingsway has a small team of well-regarded marketing professionals who regularly contribute to sector events and win awards.

My prejudice is that most of our students initially select us following word of mouth recommendations. However, our research is clear that these tentative decisions are reinforced through publicity be it open days, school liaison or radio adverts.

More than ever, FE is required to create its own markets. We have been at the forefront in reducing Neet numbers and widening access to higher education.

We must now encourage more people in to science, technology, engineering and maths (Stem) subjects, apprenticeships and routes to employment.

Even the government acknowledges the ‘Green Cross Code Man / Clunk Click / AIDS iceberg’ approach to advertising no longer works. Today brands and identities matter.

The successful promotion of a brand increases sales across competitors as well as for the brand itself. Where would tablet computing be without the IPad?

We know that FE itself lacks that strong identity but we can all learn and benefit from the more successful college brands. The challenge I now pose our marketing team is to understand how to promote Westminster Kingsway to employers as successfully as they have done to 17-year-olds.

Last month’s survey of FE marketing activities by Carthy Communications found an average spend of 1.8 per cent of turnover, a drop in the ocean compared with the cuts we are suffering, or even the public sector ‘rule of thumb’ of 3 per cent.

In the private service sector a spend closer to 10 per cent is common.

My biggest beef with the commissioner is his willingness to pick a soft target when the issues we face are so much greater.

Like many others, Westminster Kingsway has seized the challenge to develop a commercial mindset and adopted business strategies to succeed in a difficult market place with uncertain trading conditions.

Am I the only one to detect a nudge away from this back to an old-fashioned, public-sector view of deferential colleges? As the Mad Hatter said: ‘Why is it you’re always too small or too tall?’

Taking out insurance against further cuts

Changes to the handling of physical currency, paper-based invoicing and unpaid fees could just be key to financial survival as FE colleges look for savings in every area of business, explains Holger Bollman.

The government has taken every opportunity to affirm and reaffirm its overriding economic goal — to eliminate the nation’s budgetary deficit.

Whether this is a worthy or unworthy cause is ultimately a matter of opinion, but as those working in FE know all too well, that it has caused some collateral damage is not.

There are certain areas in which FE colleges can make significant savings without compromising academic integrity

In 2015, FE colleges have to contend with some brutal realities. They face a 20 per cent decrease to overall spending, and the Skills Funding Agency has stated that, in-year, public sector financing will diminish by 3.9 per cent.

Already, the damage has been felt in educational institutions across the country, and as the Conservatives are only a few months into a five-year parliament, there is every possibility that there will be more to come.

Barring a sudden and inexplicable change of heart, the only option available is to adapt to these new circumstances. Happily enough, there are certain areas in which FE colleges can make significant savings without compromising academic integrity.

Firstly, physical currency. In the UK, using cash for payments is no longer the norm — not only is ‘plastic’ ubiquitous, but with the advent of contactless technology and increasingly seamless authentication methods, it’s more convenient to use than ever.

Despite this, cash offices are still prominent in FE colleges throughout the country, and even in smaller organisations, they can still accumulate around £1m per year.

Handling this cash always proves burdensome in the extreme. Firstly, it has to be counted more than once to ensure there are no discrepancies — and if the cash is present in quantities exceeding a certain amount you’ll often need at least two staff members available to avoid any potential loss. And the money needs to be protected — this involves either investing in on-site safes (which need to be monitored), or organising secure collections.

It’s a time and labour-intensive process, but it can be avoided. If you remove your college’s cash office and instead take payments online you could save up to £30,000 per year.

Secondly, paper-based invoicing. Paper invoices are a pain for educational institutions in many different respects. They always require a substantial amount of effort to process.

In many cases, time expended in their pursuit can exceed the value of money owed in the first place; it’s estimated that the average paper invoice costs £37 to pursue, so when it comes to lower-value transactions, colleges are almost always losing money.

Because they cannot charge students for these administration costs, paper invoices put colleges in an uncomfortable position — they can either enjoy the insignificant victory of recouping these minor debts, or not pursue them at all — and therefore encourage this behaviour (and possible further losses). By ditching paper invoices in favour of real-time online payments, colleges will save time and money. It’s as simple as that.

Third, unpaid fees. While these minor sums are certainly an inconvenience, they pale in comparison to the cost of outstanding debt on graduation. This is something of an epidemic across further and higher education. It is rarely purposeful — students tend to compartmentalise their time in education, and once they move on, they tend to move on in all respects.

That said, whether it occurs because of forgetfulness or intentional non-payment, it causes problems for FE colleges. Again they are presented with an awkward choice — to assume a giant administrative burden chasing debtors, or to allow them to default. There are ways to automate both the process of payment and its pursuit — and FE colleges would be well-advised to take advantage of them.

The current political climate means that financial pressure will be a part of colleges’ reality for at least the next few years. But where they may not be able to influence policy, they can influence processes.

By increasing efficiency (whether that comes in the form of reducing paper invoices, getting rid of cash payments or automating debt collection), FE colleges are not just mitigating the damage of cuts that have already happened — they’re insuring themselves against the cuts of the future.