Labour should use extra funding pledged to reduce university tuition fees to help support the FE sector, Association of Colleges (AoC) chief executive Martin Doel has said.

Responding to Labour leader Ed Miliband’s announcement today that his party would reduce the cap on tuition fees charged by higher education institutions from £9,000 to £6,000 a-year, Mr Doel welcomed assurances from Labour that FE funding would not be diverted to fund the cut, a possibility the AoC has warned of before.

But Mr Doel said Labour should go further by using extra cash to support the FE sector. His comments come after FE Week exclusively revealed providers faced a budget cut of up to 24 per cent in 2015/16.

Mr Doel said: “All young people should be supported on whatever pathway they choose post-16 and this is why we would like to see the extra money that the party is finding to support a traditional university education equally used to benefit the higher professional and technical education that equips people with the skills for the workplace.

“We previously had concerns about where the new money would be found to fund a cut in university fees and we’re pleased that they will not be taking it away from FE which has already seen massive cuts in the past few years.”

Announcing the tuition fee policy, Mr Miliband said: “These are fair choices, fair choices that allow a better future for our young people, a better future for Britain. Britain must not penalise the young, if we’re going to prosper in the future. Our economy and our country can’t afford to waste the talent of any young person.

“Let me say to Britain’s young people: I made you a promise on tuition fees. I will keep my promise. I don’t simply want to build your faith in Labour, I want to restore your faith that change can be believed. I owe it to you. We owe it to our country.”

Labour has said the £2.7bn cost of the cap change will be funded by reducing tax relief for people on very high incomes paying into pension schemes so it is set at the same rate as for basic rate taxpayers, capping the total eligible for tax relief in a lifetime at £1m and limiting the annual sum eligible for tax relief at £30,000.

Dr Lynne Sedgmore today announced plans to retire from her executive director’s role at the 157 Group later this year.

She has served in the role for seven years and her retirement will bring to an end 35 years working in the FE sector.

She told FE Week: “I have loved my 35 years in the sector and have never wanted to be anywhere else.

“The work that FE colleges do for a huge cross spectrum of students is totally amazing, we truly transform lives for the better.

“I will miss colleagues and professional friends but in my 60th year, it feels time for a new and different life. I have plenty of things I want to do, places to go and adventures still to be had.”

Before leading the 157 Group, Dr Sedgmore was chief executive of the Centre for Excellence in Leadership between 2004 and 2008 and has also served as principal of Guildford College, vice principal of Croydon College and head of Croydon Business School.

She was award a CBE in 2004 and this year was  featured on the Debrett’s list of the UK’s 500 most influential people.

She is also a fellow of the Royal Society of Arts, the Institute of Directors and is a Chartered Marketer and the University of Surrey.

Sarah Robinson, 157 Group chair and principal of Stoke on Trent College, said: “Under Lynne’s leadership, the 157 Group has become established as a major organisation in the sector, an influential body fulfilling Sir Andrew Foster’s vision that principals of large, successful colleges should play a greater role in policymaking.

“Lynne has been instrumental in helping to raise the profile of further education, highlighting the social and economic mission of FE colleges and the important role they play in collaborating with employers and others to develop local economies.

“She has stimulated debate, supported research and facilitated the sharing of effective practice across the sector, especially in teaching and learning.”

Dr Sedgmore is expected to step down once a chief executive has been appointed to replace her.

“Her contribution to the 157 Group, and to the wider further education and skills system, has been enormous,” said Ms Robinson.

“Part of her legacy will surely be the increasingly positive light in which further education is viewed as an alternative gateway to sustained employment and a successful life.”

You can read FE Week’s profile of Dr Sedgmore here.

Visit here to take part in the 2015 survey.

It’s that time again!

The second annual FE Week survey launches today with the aim of taking the sector’s pulse and delivering the results just in time for the general election on May 7.

And just like last year you could win an iPad Air and an FE Week subscription just for taking part.

The state-of-the-nation survey, again just like last year, is a joint project with the Policy Consortium and is open for a fortnight, closing on March 17.

“With the General Election less than ten weeks away, how has the Coalition Government fared in its stewardship of the FE and skills sector?” said Ian Nash, Policy Consortium member, freelance writer and journalist.

“The second annual survey by the Policy Consortium and media partner FE Week, launched today, will provide some measure of what staff and managers at all levels and all types of institution think.”

The wide-ranging survey embraces issues of governance, funding, Ofsted, learners, curriculum, local enterprise partnerships and plenty more besides.

It is aimed at, but by no means limited to, support staff, lecturers, directors, principals, chief executives and beyond, including those who work in unions, professional bodies and agencies.

Chris Henwood, FE Week editor, said: “The astounding success of last year’s survey meant there was no option but to do it again this year, especially with the promise of being able to deliver the sector’s message to political parties ahead of the election.

“What better reason to determine the views, priorities and moods of those in our sector about what is happening to it, what really matters and, indeed, what keeps those who work within it up at night.”

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Survey offers opportunity for ‘considered critique of current policies and strategies’

The first survey, Taking the pulse of education — the Great FE and Skills Survey of 2014, drew attention to serious shortcomings and misgivings, writes Ian Nash.

People responding used it to give a considered critique of current policies and strategies, not as an opportunity for a whinge-fest.

It is, therefore, worth reminding FE Week readers of some key findings (reported in edition 100 of FE Week, dated April 28, 2014 — see right) in advance of the 2015 survey.

Three concerns stood out, in well over a thousand responses, as meriting serious attention.

First, there were extremely high levels of concern over institutional funding, notably among the most senior staff best placed to measure the impact of spending cuts.

With pre-16 budgets protected, universities funded through fees and apprenticeships a priority, the already least-well resourced FE and adult provision was taking the greatest hit.

Second, there was considerable concern over the pace of change, whether in funding mechanisms, curriculum content or institutional arrangements.

The survey revealed a picture of sheer frustration as staff said they had little or no opportunity to get on and do a good job before the rules were changed yet again.

Third, there were serious criticisms of the way funds were being switched away from colleges and other providers, partly as an effort to cut costs, apparently without due regard for the consequences. Notable among such concerns was the greater use of large contractors and a proposal to transfer apprenticeship funding to employers.

Providers echoed concerns expressed by national organisations over the impact on engagement of small and medium-sized enterprises.

Also, the shift of funding for learners with costly, high-level special needs from the colleges to local authorities was attacked for dismantling a system that was understood and worked reasonably well, in favour of one that threatened to destabilise provision and restrict opportunities for vulnerable learners.

Ofsted came in for criticism too, with many respondents sceptical that it was independent of government and damagingly inconsistent in its judgments at local level, despite the inspection framework.

Overall, FE staff did not see government changes to the sector as educationally legitimate, but rather as politically inspired.

Survey respondents talked frequently of political “interference” or “meddling”. They said that too often there wasn’t a partnership with other stakeholders but a sense that the sector was being “used” by politicians for their own, often short term ends.

Did ministers respond sufficiently to your criticisms 12 months ago? Government rowed back on some issues, such as direct funding of apprenticeships by employers.

But what of other issues such as the status of Local Enterprise Partnerships (Leps), the impact of academies and free schools on the sector, the state of careers guidance and the future role of digital technology following the recent House of Lords report? Let us know.

The survey will be conducted over the next two weeks — the closing date for responses is noon on Tuesday, March 17, and the findings will be reported in FE Week on Monday, April 27.

Visit here to take part in the 2015 survey.

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The FE and Skills Survey of 2015 has today (March 2) been launched and you’ve got a fortnight to have your say.

That’s also two weeks in which to make sure you’re in with a chance of winning a shiny new iPad Air and a year’s subscription to FE Week.

The 10-minute survey closes at noon on Monday, March 17, and the findings will be reported in FE Week on Monday, April 27.

Respondents can provide contact details within the survey in order to be in with a chance of winning.

Winners will be chosen at random and will be notified within a month of the survey results being reported in FE Week.

A detailed report by the Policy Consortium with full analysis will also subsequently be available online.

Those who opt to provide their contact details — so that either the Policy Consortium can email a copy of the analysis of the survey or to enter the FE Week prize draw — will have them treated in strict confidence. No-one will subsequently be contacted without their express permission.

The number of young people not in education, employment or training (Neet) fell by almost 10 per cent in the last three months of last year compared to same period in 2013.

Figures for the period from October to December were released today by the Office for National Statistics (ONS) showing that 963,000 16 to 24-year-olds in the UK were considered to be Neet.

The figure was 8 per cent down on the 1,041,000 Neets recorded for October to December 2013. However, the 2014 figure represented a 1 per cent increase on the 954,000 Neets recorded the previous three months.

There were 59,000 16 to 17-year-old Neets recorded between October and December last year, down 8,000 (7 per cent) from the same period in 2013 but up 3,000 (5 per cent) from July to September last year.

There were 905,000 Neets aged 18 to 24 during the final quarter of 2014, down 70,000 (7 per cent) from a year earlier but up 6,000 (1 per cent) from the third quarter of 2014.

The next ONS Neet statistics are due to be released on May 21.

Colleges and independent learning providers are set for a national funding cut of up to 24 per cent next academic year, FE Week can exclusively reveal.

The Department for Business, Innovation and Skills (BIS) this morning released details of its 2015-16 (financial year) adult FE and skills funding budget, which will fall 5 per cent overall to £3.91bn — in line with indicative plans published in February last year.

However, alongside the letter from BIS, FE Week has seen a letter from Skills Funding Agency (SFA) chief executive Peter Lauener (pictured right) to providers, who are expecting their allocations in just over a fortnight, outlining how this will apply to the 2015/16 academic year.

He warned that the adult skills budget line in the SFA grant was being cut by 11 per cent, translating to a 17 per cent cut to the 2015/16 academic year. This, he said, would mean after protecting apprenticeship funding there would be cuts to provider allocations of up to a quarter — even bigger than last year’s 15 per cent cut.

He said: “At headline level, our initial modelling suggests that the total skills budget that we have available for allocation for the 2015 to 2016 funding year will be around 17 per cent less than in 2014 to 2015.

“Within this, the allocation budget for apprenticeships will initially be set at £770m and we will continue to work to ensure that every high quality apprenticeship opportunity can be funded.

“As a result of this continuing commitment to apprenticeships, the primary impact of the reduction is on the funds available for allocation as non-apprenticeship (other) adult skills which we estimate could reduce by around 24 per cent.

“The overall impact of our funding allocations will vary significantly between individual colleges and training organisations, depending on the mix of training provision delivered.

“Reductions will be higher where colleges and training organisations deliver low numbers of apprenticeships, traineeships, English and maths.”

The cut was attacked by the Association of Colleges (AoC) and the Association of Employment and Learning Providers (AELP).

Martin Doel, AoC chief executive, said: “The Government cannot continue to reduce this provision and at the same time expect adults to have sufficient opportunity to retrain for new or future job opportunities.

“By 2020, if the next Government continue to cut at this rate, adult FE will be effectively a thing of the past.”

He added: “This situation is now urgent. This could be the end of this essential education in every city, town and community in England and the consequences will be felt by individuals and the economy for years to come.”

Stewart Segal, AELP chief executive, said: “This is another major cut in budgets for the employment and skills sector while the funding for higher education continues to increase. This is the wrong focus while we are trying to give vocational learning the status it deserves.”

Nearly 100 providers issued with a shock clawback warning that caused “sleepless nights” for their staff over Christmas will be asked to repay 2013/14 funding.

The remaining 601 providers contacted by Una Bennett (pictured inset above), deputy director for funding systems for the SFA, late last year telling them they might have to repay against “provision that has been incorrectly claimed” will not face a reclaim.

Providers were later emailed by funding and programmes director Keith Smith (pictured right), who apologised for the “premature” warning and asked them to go over submitted ILR data and tell the SFA before the end of last month if they needed to make any repayments.

The apology saw the SFA come under fire once more on Feconnect, an online forum administered by the SFA, where one user complained that she had suffered “sleepless nights” over the issue.

However, the SFA has now revealed that a total of £500,00 from 98 providers could be reclaimed over mistakes over the minimum length of 16 to 18 and 19+ apprenticeships and eligibility for 24+ advanced learning loans.

It also said the work to find out how much should be reclaimed “highlighted the need for simplifying the system”.

A total of 699 colleges and independent learning providers (ILPs) had been warned about potential issues in their ILR data.

“Over the last couple of months, we have received responses from those who received a letter and have resolved the identified issues with the majority (601) of college and training organisations,” said an SFA spokesperson.

“We have written to these to notify them that no further action is needed and to thank them for their cooperation.

“We are working with the smaller number of college and training organisations (98) where data errors have been identified and have not been resolved to advise of the next steps.

“This includes college and training organisations having the opportunity to provide further information. Where errors cannot be rectified we will seek to reclaim funds.

“We will agree a suitable repayment schedule with individual college and training organisations. We estimate the total amount of funds to be reclaimed is £500,000, subject to final contractual discussions with these college and training organisations.”

She added: “We would like to thank the sector for working with us to ensure that ILR data submitted is accurate. This is important to ensure that any funds incorrectly claimed in error can be recycled back into the system, under our performance management processes, to ensure all public funds are maximised.

“We continue to work with the sector to seek feedback on our funding rules, to ensure they are as clear as possible so that colleges and training organisations have a full understanding of our rules which are a contractual requirement.

“This work has also highlighted the need for simplifying the system further and we will be working with the sector to do this.”

Apprentices look set for a 7p rise in their national minimum wage of £2.73 an-hour while proposals to shift them up onto a par with 16 and 17-year-olds have been rejected as too expensive for businesses by the Low Pay Commission (LPC).

The call to increase the minimum wage by 2.6 per cent to £2.80 came with an LPC rejection of Business Secretary Vince Cable’s proposal to give apprentices a pay rise of more than £1.

He suggested the apprentice minimum wage be brought into line with the non-apprenticeship minimum for 16 and 17-year-olds, currently at £3.79 per hour.

The LPC said such a move could affect 200,000 apprentices with the cost to employers hitting at least £160m each year, possibly “much more”.

But the LPC agreed with Mr Cable that higher-level apprentices should earn the ‘normal’ worker national minimum wage, which is set to rise from £6.50 to £6.70, from October.

In its report to Dr Cable (pictured), the LPC said: “You asked us to consider this option as part of a broader review to see whether the structure of the apprentice rate could be simplified in order to improve compliance, and also to consider whether the apprentice rate should continue to be applied to higher levels of apprenticeship.

“We recommend that the apprentice rate should not apply to higher apprenticeships. But in terms of other possible structural changes, we believe there would be significant risks in a merger with the 16 to 17-year-old rate.

“It would mean an unprecedentedly large increase in the value of the rate, of between 39 and 88 per cent.

“It would affect over 90,000 and possibly as many as 200,000 apprentices — up to a quarter of all apprentices — with significant impact in low-paying sectors that provide many apprenticeships and are of particular value to low-skilled 16 to 17-year-olds.

“The cost to employers would be at least £160m each year and could be much more. That would be around half the total cost of the recommended increase in the adult rate, and at a time when there are other funding pressures on employers in England from possible mandatory cash contributions to training. We discuss these and other concerns in our main report.

“As you requested, we have considered phased introduction, but it would not remedy these issues.”

A BIS spokesperson said: “The government will now consider the LPC’s recommendations and respond next month. Once the government has responded, the regulations to change the rates will be debated in Parliament before the new rates are introduced on October 1.”

The process for establishing new FE colleges could be out of date, the government has warned after reviewing the first general FE college incorporation in more than 20 years.

The Department for Business, Innovation and Skills (BIS) has published a report outlining how Essex-based independent learning provider Prospects Learning Foundation (PLF) became Prospects College of Advanced Technology (PROCAT), in August last year.

It was the first college incorporation since 1992 and FE Week exclusively revealed how the process was under way just over a year before it concluded.

Nevertheless, in the BIS report, which sets out the requirements the PLF had to meet in order to become a college, including a good or outstanding Ofsted judgement, a business plan and a satisfactory provider financial assurance audit review, BIS said the current system for incorporation, which dates back to the early 1990s, might not be “appropriate” for future projects.

The report said: “An important element of the project was to identify, address and learn lessons from the processes, recognising that the legislation and regulations under which they were being conducted were from a different time and were not designed to support the establishment of a new, specialist technical college within the FE sector. 

“This project was a first in the sector for over 20 years and so as the project developed we were clarifying legislation, regulations, policy and processes internally with PLF and in relation to obtaining ministerial approval.

“The project was also completed within a very short timescale (from the first Project Board meeting to incorporation was 10 months). The process has highlighted lessons learnt in two key areas: the process undertaken and the policy and legislation in place.

“The process currently in place for new incorporations and entrant funding may no longer be appropriate. This is being reviewed as part of a wider project assessing the longer term implications of government policy reform for the FE/skills provider market.”

BIS said the report also served to clarify the criteria for applications for incorporations, and concluded that this project had succeeded due to a “shared commitment to achieving the project outcomes and overcoming obstacles” and said the policy and processes for a new college wanting to incorporate from scratch were now “much clearer”.