Apprenticeship reforms remain on the agenda and could be even more important as the government seeks to hit its 3m starts target. Rebecca Rhodes outlines the reform situation.

The importance of apprenticeships to productivity and growth in the economy is evidenced by the government’s continued commitment to ensure employers lead the development of high quality apprenticeships, and have the purchasing power to decide where investment is made.

With the government now setting a target of 3m apprenticeships in the next five years, and recent commitments announced to make the apprenticeship brand enshrined in law, it is even more important that everyone with a role in delivering the new apprenticeship programme works together.

More than 1,200 employers are directly involved in developing the new apprenticeship standards as part of the Trailblazer programme.

Providers are at the heart of ensuring that apprenticeship delivery through employers is a reality

The apprenticeship standard is the foundation of apprenticeship reform. So far, 24 standards, developed by employer groups, have been approved and made available for delivery. The next announcement of new standards ready for delivery, plus those to be developed, by August, with more to follow in the new academic year.

Employer groups are working on more than 260 standards, and this rolling development process will continue throughout 2015 and 2016, ensuring coverage of key occupations in a wide range of sectors over the next academic year.

As the longer-term model for apprenticeship develops over the summer, for employers and providers wanting to start delivering apprenticeship standards, the funding model used in 2014 to 2015 has been extended to cover the 2015 to 2016 academic year.

A key principle of the future of apprenticeships is that employers invest financially, and in the 2014 to 2016 model, the government will match this employer investment up to a cap set by the SFA — in the ratio of one third employer financial investment matched by two thirds government investment.

Employers are also, where eligible, entitled to up to three incentive payments, paid directly to them through their chosen lead provider. Providers starting delivery of apprenticeship standards in 2015 to 216 will, as now, use existing data collection routes as the underpinning payment and earnings system. Providers also use the apprenticeship standards funding rules, developed for the Trailblazer apprenticeship.

Providers are at the heart of ensuring that apprenticeship delivery through employers is a reality. Employers will continue to want the advice and expertise available from their apprenticeship provider to guide them. The lead provider is the employer’s key partner in every aspect of apprenticeship delivery; agreeing a price for training and assessment and subcontracting with other providers involved in delivery, and managing payment processes, including the incentive payments paid to employers.

From 2017 onwards, the future mechanism for apprenticeship funding for employers will be through a new online voucher. This will set out the discount for each apprentice. The funding policy that will define the value of each voucher is under development.

This new apprenticeship funding mechanism is part of a larger, employer-facing, digital apprenticeship resource.

The SFA is working with employers and providers to ensure that the new system design includes all the resources and tools to help employers make decisions about taking on an apprentice.

For example, employers will not only be able to register their apprentices and access the new voucher, but they will also use the system to gather information about all apprenticeship standards and search for details of suitable providers.

 

Jason Holt’s 2012 report for government on getting more businesses taking on apprentices puts him in good position to assess the situation today. He considers the programme’s current situation and its future.

When I spoke to members of the AELP at their annual conference, I was asked to give an employer’s perspective on the future of apprenticeships and traineeships.

With a background as an employer, running my family’s jewellery business, but also now as a provider, running an academy offering diplomas, short courses, traineeships and apprenticeships, I feel well-equipped to comment on the sector, and the issues surrounding it.

As an employer I’ve always seen the value of apprenticeships. In my jewellery business almost half our staff are apprentices. At Holt’s Academy, the not-for-profit training enterprise I set up to reinvigorate the jewellery industry, we have seen hundreds of jewellery, business and technology apprentices go through our doors.

Transformation of apprenticeships through Trailblazers has been supported and investment has increased

This commitment and passion for apprenticeships, led me to accept a role as the apprenticeship ambassador for small business. I found that while 99 per cent of businesses in the UK are small and medium-sized enterprises, only 10 per cent of those have apprentices.

If we can get that to 20 per cent we would have the lowest rates of unemployment in Europe. It is a challenge well worth tackling.

In the last few years there have been great improvements.

The government’s commitment to apprenticeships was strong and consistent through the last parliament and the Ministerial appointments recently don’t seem to have dampened it. The transformation of apprenticeships through Trailblazers has been supported and investment has increased.

Introducing and retaining the AGE grant has been a very visible example of that, helping more small businesses take on their first apprentice. The introduction and expansion of higher apprenticeships allows young people to have a credible alternative to university and we are seeing employers like PWC, Lloyds Banking Group, Rolls Royce and BAE offering apprenticeships alongside graduate programmes.

We have seen the four big employer bodies; the CIPD, FSB, BCC and the CBI all actively working to raise awareness of the benefits of apprenticeships with their members. Employers are not just listening, they are talking to each other to learn what works and get tips and advice under the Apprenticeship Makers scheme. But, as ever, there is always more to do. The ambition is to create 3m apprentices. We have done really well to get small businesses thinking about apprenticeships and we’ve seen large employers engaging in greater numbers than ever before. Our next challenge is the medium businesses. We will only succeed in this if we get to a steady state quickly, and stay there. We have had many changes over the years and we need time for these to bed in and take effect. Changes not only disrupt well-working systems but confuse employers and risk disengagement.

This consistency theme continues around funding. The economy and the funding challenges faced by the FE sector require us to be prudent with investment. I remain convinced that we need a clear and consistent message to all businesses on the required level of employer investment, cash and in-kind, if we are to make it easier for them to engage.

 

The SFA has been entrusted with meeting the government’s target of 3m apprenticeships starts in England during this Parliament. Peter Lauener outlines measures to help reach the goal.

One of the government’s key manifesto commitments is to create 3m apprenticeships by 2020 in England. Last week, Richard Harrington MP was announced as the Prime Minister’s apprenticeships adviser to help the government achieve this commitment.

Creating 3m apprenticeship starts in the next five years is a challenge. But it’s achievable and meeting the target is an economic imperative. My team will be supporting the Prime Minister’s new apprenticeships adviser in his drive to secure greater engagement of employers in delivering more apprenticeships.

Providers must continue to improve the quality and responsiveness of the training to better meet employer needs

If we are to meet this Parliament’s 3m target, it is essential that apprenticeships are really owned and driven by employers.

More than 1,200 employers in over 100 sectors are already involved in the Trailblazer programme, which sees groups of employers designing new apprenticeship standards themselves. The aim is to increase the numbers and sectors involved, giving greater control to more employers, focusing particularly on new occupations where there have not been apprenticeships before.

And on both apprenticeships and traineeships, we need to work closely with all our partners to make both programmes a success.

There is a strong role for both FE colleges and independent learning providers in helping to stimulate demand from employers for apprenticeships. They must continue to improve the quality and responsiveness of the training to better meet employer needs.

But we also need more employers to get involved in apprenticeships for the first time. We have a successful base to build from — the number of workplaces involved in apprenticeships has grown from 173,600 in 2010/11 to 240,900 in 2013/14.

But there is definitely room for improvement — this still represents less than 14 per cent of the employer population.

As well as securing more apprenticeships in the private sector, the public sector has a key role to play.

Skills Minister Nick Boles has announced proposals for public bodies to lead by example and recruit more apprenticeships.

Everyone involved in apprenticeships will support the ambition for we want apprenticeships to be seen on an equal footing with university as routes to a successful career. That’s why the government is increasing the number of higher and degree apprenticeships, allowing apprentices to gain a full Bachelor’s or Master’s Degree while working and employers to shape the graduate/post-graduate level skills they need.

It is important that young people make informed choices about their future careers and are made aware of all of the options available. The National Careers Service ensures that young people are provided with advice about the benefits of and routes into apprenticeships and traineeships.

Achieving the 3m target will increase productivity growth in the economy by raising the overall level of skills and ensuring that the skills of the workforce best match the needs of employers.

The SFA will be doing everything we can to support the achievement of this critical ambition.

 

Ofqual recently outlined its plans for closing the unit databank as part of its ongoing work to withdraw the regulatory arrangements for the Qualification and Credit Framework (QCF). Andrew Gladstone-Heighton outlines his concerns.

Just to make it clear at the outset; I’ve been in the sector long enough to remember the introduction of the QCF (which means my FE career has now outlived two qualifications frameworks), so I’m fully aware that the QCF is in need of some reform.

However, from reading their plans, there are a number of things that need to be taken into consideration about what the proposals outlined will mean for the sector.

I do agree that removal of some the restrictions of the shared unit databank (and the regulatory arrangements of the QCF in general) will enable awarding organisations (AOs) to provide more creative and innovative responses to employer and learners needs — this is where AOs really add value to our qualification framework.

However, we have to bear in mind that this has been published in the middle of an ongoing Ofqual consultation, and following a period of intense and ongoing reform for vocational qualifications. Having previously set out their aspiration to withdraw the QCF rules in the 2015/16 session; I can’t help but get the impression that these reforms are being rushed through.

As they are currently set out by Ofqual, any changes or restrictions to AO accessing the unit databank may, in my opinion, lead to a situation where qualifications may have to be redeveloped as the shared content within them may be restricted to the original unit submitting body, should they choose to withdraw their content.

I can’t help but get the impression that these QCF reforms are being rushed through

 While it’s currently unclear as to whether this would mean the qualification would have to be resubmitted to the Ofqual register (with the new Qualification Accreditation Number that this usually entails), it may mean that learners and other stakeholders will face further changes to qualifications they are interested in studying.

There may be disruption in the qualifications available to learners as some component units of qualifications are no longer ‘available’ as shared units.

Also of concern is a potential increase in the volume of units available, as a version of each (now shared) unit becomes owned by each AO that offers it. Transferability between qualifications (a key concept of the QCF that I strongly support) may become harder to achieve as a consequence, as they will no longer be made up of transferable common content. This will place additional burdens on providers, AOs and employers when agreeing to and recognising any prior learning.

I have concerns, shared by SquareOneLaw, that the disentanglement of ‘ownership’ of shared and co-created units currently on the unit bank introduces the potential complexities posed by possession (or otherwise) of Intellectual Property Rights (IPR). While it is acknowledged that IPR cannot be retrospectively attached to a product, there is no doubt some AOs may feel somewhat aggrieved that their hard work and financial investment channelled into shared unit development may now not be rewarded with reciprocal rewards, should some AOs choose to withdraw their content.

It is highly unlikely that small to medium-sized AOs have the appetite or the resources to fight one another over ownership. Ideally, we would want an industry-wide solution with perhaps contractual agreements between AOs and/or an open source arrangement, perhaps with Ofqual’s facilitation.

Another thing that is currently unclear is to what extent Ofqual’s reforms have been linked to the various funding agencies’ plans for qualification approval. From what I’ve heard, Ofqual is working with the relevant agencies where appropriate, and it would be a missed opportunity to align a new qualifications and unit funding system with the removal of shared units and withdrawal of the QCF rules more widely.

All of this may seem quite geeky and technical to the layperson, but if we are to secure confidence in vocational qualifications as a rigorous and responsive high quality alternative to academia with employers, learners and policy makers, then I fear the some of the unanswered questions above may undermine this noble aspiration.

 

The people have voted, the government has been formed and now the policies must be enacted. Martin Dunford outlines how the skills sector should respond to the challenges ahead, and how sector funding must also be looked at.

The AELP national conference is the first opportunity we have had to debate the plans that the new government has for employment and skills programmes.

Whatever your own political views, the result of the General Election means that we have some clear understanding of what is coming in policy terms and even the same Skills Minister in Nick Boles.

Our preference is for early confirmation of key policies and the changes that they will entail, and then hope for a period of real stability in terms of policymaking.

The reappointment of Mr Boles is very encouraging because, as City & Guild’s ‘Sense and Instability’ report last year showed, responsibility for skills has been bedevilled by numerous machinery of government changes and an endless succession of ministers. Nevertheless, announcements in the last couple of weeks around budgets and programme growth show the focus on government spending will mean that overall budget levels for employment and skills will be under constant pressure over the next five years.

Many of the key proposals AELP made in our own manifesto are reflected in this government’s plans but as always the devil is in the detail and it is how these issues are implemented that will be the key factor on whether these policies will be successful. It is important that the organisations delivering these programmes are involved in the policy development and definitely the implementation of those policies.

The ten points in the AELP manifesto still remain our key drivers and the highest profile policy push has been the drive to increase the numbers of apprenticeship starts. Employment and skills were also very high profile in the election campaign and they were one of the first things the Prime Minister listed in his acceptance speech and at the first Cabinet meeting. These policy areas have arguably never had such a high profile and it’s the efforts of providers and employers that have got them to the top of the agenda. We know that apprenticeships will be at the core of the challenge for us but providers will also be involved in the delivery of full employment and the new approach to getting young people into work.

The challenge has been underlined by recent announcements about £900m cuts from next year’s budgets and deferral of growth proposals. But if we are to be at the centre of these policies’ implementation, then we have to be positive and constructive about what we need to deliver for employers and individuals. There is now an understanding that spending on employment and skills is an investment and not a cost to individuals, employers and the UK economy but we know that investment will be under huge scrutiny. We know there will continue to be a drive to deliver more for less but we need stability of policy, longer term contract commitments and more realistic funding to be able to take that longer term view and develop plans that build confidence in our sector.

Contract reform means addressing the Skills Funding Agency’s guidance that providers over-deliver at their own risk, ie they won’t necessarily get funded for any additional delivery. To achieve 3m apprenticeships, more delivery has to be encouraged by providers with a proven track record.

We have a real opportunity to build on the growing confidence employers and learners have in vocational pathways. Young people and their parents are now considering different routes to high level skills.

We have to build on this change and working with government, we can together continuously improve delivery, outcomes and penetration of the employer market.

 

Women from across the FE and skills sector were at the Department for Business, Innovation and Skills conference centre in Westminster on June 17 for the WLN annual conference. Sara Mogel gives an overview of the event.

Women leaders in FE were told by Anne Doyle, journalist, author and former director at Ford Motor Company, to ‘embrace and exert our women power’ in a reflection of Michelle Obama’s recent assertion about girl power.

Anne, a renowned international speaker on women’s leadership, was addressing at this month’s annual conference of the Women’s Leadership Network entitled ‘Women mean Business’.

She compared women leaders in the UK with the rest of the world and pointed out to delegates that only 20 per cent of UK leadership positions were held by women whereas Russia has 43 per cent and China 38 per cent, which underlined the business case for having more women in leadership roles.

She outlined strategies women can use to ensure they are given a fairer chance of leadership and gave some practical advice from her own career.

At a time of great challenge in the FE sector the need for women leaders to both step forward and be given the support, especially by men, to do so was well set out by Anne as she challenged delegates to ‘dare to lead’.

At a time of great challenge in the FE sector the need for women leaders to both step forward and be given the support, especially by men, to do so was well set out

 Delegates also heard from Julia Von Klonowski, director of education for Europe, Middle East and Africa at Oracle, and her daughter Lauren Best, PR manager at the Lawn Tennis Association, about the power of being a role model where they discussed their views, sometimes differing, about not just being a role model but current good and bad role models.

During the day workshops and other speakers covered a wide range of topics including confederations, growing apprenticeships in challenging time, developing an online profile, delivering organisational change through wellness, managing and developing talent, being a connected leader and meeting the challenges currently facing the sector.

There was also a chance for delegates to get a taste of coaching in the WLN’s ‘speed coaching’ sessions throughout the event.

The WLN’s Star Award for 2015 was also announced at the conference. This annual award, sponsored this year by AA Projects, went to an outstanding woman leader in the FE sector.

The recipient was Sue Middlehurst, principal and chief executive of Grimsby Institute Group. In the award citation, Sally Dicketts, WLN chair, said Sue had “come through the ranks of FE, from teacher to principal, in both the North and the South East of England”. She had also seen life from the other side of the fence as a well-respected inspector for both the FEFC and Ofsted, said Sally.

Throughout Sue’s career she has developed and demonstrated a coaching style that has seen her managers and staff succeed through empowerment and trust. She has done this while taking on some of the most challenging roles in FE and in particular has made her name in successfully managing change.

She is known for saying ‘how it is’ and not hiding difficult messages and because of this is respected and trusted both within the sector and outside of it by stakeholders. She is steadfastly unwavering in her ‘learner first’ ethos which underscores her passion for the core business of FE and the importance of the sector for people’s life chances and choices.

This was reflected in Sue’s acceptance speech where she urged delegates to be true to their values in all they do.

The conference was attended by more than 120 women leaders and future leaders, including 40 aspiring leaders who were the recipients of conference bursaries from the Education and Training Foundation.

The principal of a large and well-established FE college writes about life at the top — the worries, the hopes, the people and the issues they have to deal with every day.

Wake up and smell the coffee

Professor Alison Wolf, architect of the government’s vocational education plans and labour market guru, says cuts to FE colleges and growth of universities could see the UK lose a valuable source of technicians and mechanics.

Britain’s supply of skilled workers may “vanish into history” if looming budget cuts in FE and the unchecked expansion of universities are allowed to continue.

She adds that “unstable, inefficient, untenable and unjust” funding is destroying education provision for school-leavers outside of universities. But let’s not get into the ‘University or us’ debate (we’ll lose that one) and ask the government to think long and hard about the value of FE and ‘who pays’.

FE provides the bulk of the UK’s post-secondary training and faces collapse and the loss of a valuable source of professionals and technicians.

Whither lifelong learning?

Adult education and training funding has been in freefall for some years with millions fewer learners and forced redundancies — averaging more than 100 staff per college since 2010 and climbing. A 24 per cent cut is pending for 15/16 and we’ll see another double digit cut in 16/17 unless Osborne pulls a budget rabbit out of the hat and/or the Comprehensive Spending Review throws us a lifeline in October.

FE colleges — already under budget pressures — face a further threat if the government takes resources from the FE budget to fund its plans to expand apprenticeships. The last remaining vestiges of the Adult Single budget (other) will be raided to feed apprenticeships, moving money away from where there’s abundant demand to where money has to be spent on marketing and advisers to boost demand.

Some solutions

FE colleges are the best place for technical and professional training that is business-facing and rooted in the local economy.

The FE sector has taken more than its share of the austerity cuts. Many colleges are in deficit and selling off the family silver just to survive. Please support us.

And consolidation (aka merger) doesn’t necessarily solve anything — witness the financial blackholes in some of the bigger colleges.

And I don’t sense any pressure to make schools more effective and efficient. Why are there more than 1,100 schools in this country with fewer than 100 learners in their sixth forms? Where’s the value for money and what’s the quality and learner experience like?! Wouldn’t these learners be better served in FE and sixth form colleges which offer a wider range of courses which relate to UK PLC? This would save money and reduce over-supply.

Less money more freedom

Reduce hypothecated funding which leads to underspend or rushed work. We want freedom to follow demand, let the customer decide. They know best not ministers (or principals).

If the taxpayer won’t pay then we’ve got to get the customer (or their bosses) to, so extend FE loans to level two and adults 19+ and above uncapped.

You do it for higher education so do it for FE

Let us charge for maths and English — if they are that important, learners should pay. We have discretion to waive fees for those who can’t afford to.

Don’t give the money to employers — there’s a conflict of interest, let them use their own training budgets; and scrap nonsense schemes like the Employer Ownership pilots and put them into FE budgets.

Governments should also switch other training budgets for example those at the Department for Work and Pensions to education and skills to avoid waste and duplication.

Liam Byrne, Shadow Skills Minister, said Wolf’s report is a wake-up call for the “brutal neglect” of the UK’s FE sector. He also famously left the ‘there’s no money left’ note for the incoming Coalition government in 2010. That’s still the problem. Everyone says they love FE, but no one wants to pay for it.