EXCLUSIVE: UTCs running at 10 per cent full as enrolment plummets

A number of University Technical Colleges (UTCs) were running at around 10 per cent capacity last academic year — while the overall enrolment figure plummeted to just 30 per cent, FE Week can reveal.

Figures, supplied to FE Week under the Freedom of Information Act, indicate there was a total capacity of around 9,500 places in UTCs, but fewer than 3,000 were filled [see below].

All of the 17 UTCs operating in 2013/14 were undersubscribed, with the highest running at 81 per cent capacity before the next highest was half empty.

A Department for Education (DfE) spokesperson said that with most UTCs having only opened last year, they were “not expected to reach their capacity for a number of years”. But despite this, and despite the low enrolment numbers, he insisted the “recruitment picture is improving dramatically”.

Nevertheless, the poor figures will also come as a huge blow to the Baker Dearing Educational Trust, which oversees UTCs, having seen overall enrolment in 2012/13 at 55 per cent. And Hackney UTC has already revealed it will not be reopening next September having attracted just 29 of its target of 75 pupils for 2014/15.

A spokesperson for the Baker Dearing Trust said she was “confident that as the UTCs themselves become more established… recruitment will increase.”

The UTC project was launched in 2011 — two years before colleges were able to recruit full-time learners from the age of 14 — and has enjoyed cross-party support. Chancellor George Osborne described them as “a key part of the government’s long-term economic plan,” while Shadow Education Secretary Tristram Hunt called for “considerable growth” in the number of UTCs.

However, their Ofsted grades have not justified such positive backing. Of the five inspections to date, one resulted in an inadequate rating, two were deemed to require improvement, while the fourth and fifth were graded as good.

And with a further 13 UTCs having opened this month, and a planned total of 57 by 2016, the Association of Colleges (AoC) called for a rethink on UTCs. Gill Clipson, AoC deputy chief executive, said: “The government should assess how well the current UTCs are working before announcing the creation of even more.” She added: “Some local councils have been less than enthusiastic about advertising UTCs to their local community.”

Lynne Sedgmore, executive director of the 157 Group, said: “These figures would suggest most UTCs are significantly under-recruiting against targets, which considering the publicity and resources put into them is most surprising. I would be interested to know the reasons, particularly as Hackney closed due to such low numbers.”

University and College Union head of FE Andrew Harden said: “Many UTCs may offer similar courses and curriculum to existing FE colleges. At a time when our colleges are facing huge budget cuts it is essential that vital funding is not diverted at the expense of institutions already providing key vocational training. Considering the considerable expense and fanfare that has surrounded UTCs it must be disappointing for all involved that take-up has not been better.”

The DfE spokesperson said: “UTCs, their university partners and businesses should work together to ensure they are offering an attractive and distinct alternative to other schools.”

The Baker Dearing Educational Trust spokesperson said: “The technical education pathway offered by UTCs is wholly new to the English school system and we expected it would take time for them to reach their maximum capacity.

“We are confident that as the UTCs themselves become more established, as the JCB Academy has done since it opened in 2010 [as an academy, before becoming a UTC in January last year], recruitment will increase. The majority of UTCs opened in 2013 and it is a challenge to recruit students to a new school at the non-standard age of 14, even though this is the right age.”

Editorial

Capacity for review

With 2012/13’s UTC enrolment figures showing they were running, in total, at 55 per cent capacity, you would have expected a hint of caution in the corridors of power.

And armed with last year’s even lower figure of 30 per cent, you might even expect serious questions to be raised by government ministers and officials.

But not so, it would seem — to the extent that a DfE spokesperson said UTC recruitment was “improving dramatically”.

It’s hard to see this as a comment made in light of the facts, but regardless, UTCs continue to count on the support of Labour and the  Conservatives.

But then there’s also the quality argument. And on this UTCs don’t stand up particularly well either — certainly not when, as previously stated in this column, compared to the offer from general FE colleges, where inspections of 14 to 16 provision have yielded complimentary reports at Hull College and Middlesbrough College, among others.

And although it seemed former Education Secretary Michael Gove appreciated this when he called on Bedford College to step in and rescue the grade four-rated Central Bedfordshire UTC, we appear no closer to a critical analysis of the UTC  project.

But the AoC has called for such an assessment. So does FE Week.

Chris Henwood, editor

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College wins second round in VAT fight – third round next

Hopes of a multi-million pound VAT rebate for principals have been boosted by a Hampshire college’s second legal win against the taxman over a training restaurant — but a third courtroom battle is on the cards, FE Week can reveal.

Brockenhurst College was awarded around £55,000 in February after it was found the supplies for its on-site training restaurant, MJ’s, were integral to educating students — and so should have been exempt from VAT.

Her Majesty’s Revenue and Customs (HMRC) appealed against the ruling (see cartoon, right) — with the figure representing a refund of four years’ worth of tax payments on supplies to the 50-seater training restaurant staffed by students and open to the public — but lost.

The defeat for the taxman has prompted calls for principals to get their claims for cash in now with a four-year time limit to refunds, before HMRC lawyers take up the case for third time, at the Court of Appeal in five months.

Brockenhurst College principal Di Roberts (pictured) has said she planned to plough the windfall back into the college, but she declined to comment on the latest development.

With more than 160 colleges in England operating similar facilities, plus other training enterprises such as hair salons, spas and theatres, successful payback campaigns in the vein of Brockenhurst’s could therefore net the college sector tens of millions of pounds.

Ruth Corkin, an accountant with James Cowper, which represents several colleges, said: “There is a four-year time limit in which colleges can make their claim, and, for instance, if HMRC loses at the Court of Appeal and decide to take it further, for example, to the European Courts, it could be a number of years before it is finally settled.

“Providers should be making claims for the last four years now and then making top up claims until the matter is resolved.”

Association of Colleges assistant chief executive Julian Gravatt previously described the HMRC’s initial appeal as “disappointing,” but declined to comment on the HMRC’s Court of Appeal move.

Association of Employment and Learning Providers chief executive Stewart Segal said his members might also be affected.

He said: “In the independent sector every company has a different structure in terms of how VAT laws apply to them ranging from large PLCs where there may a group structure to small charities.

“As a result, it is very difficult to know what the impact of any changes to the interpretation of VAT laws would be.

“In this specific case, independent learning providers do not tend to run training facilities that sell their services as they are more likely to place trainees with employers, but there may be some specific cases where this will have an impact.”

HMRC said it was appealing again having lost, but admitted it would have to consider refunds for colleges “in the same position” as Brockenhurst.

A spokesperson for HMRC said: “We have appealed the decision of the upper tribunal to the Court of Appeal. The court has listed the case to start on February 16, 2015.”

They added: “As the matter is under appeal, HMRC will also issue assessments in such cases to protect their position if ultimately HMRC is successful in the litigation.

“HMRC will issue a revenue and customs brief to explain how any colleges in an identical position can make claims as well as provide further guidance.”

IfL JOBS AT RISK

The future of more than a dozen Institute for Learning (IfL) jobs was today looking uncertain as it prepares to transfer assets to the Education and Training Foundation (ETF) before closing.

A spokesperson for the IfL told FE Week that there was no guarantee that any of its 15 workers would keep their jobs following the move, voted through by its non-executive board two months ago.

The transfer is expected to be complete by the end of next month, and an HR consultation is underway to determine the fate of IfL employees.

However, an Ifl spokesperson told FE Week: “The ETF is not taking over the IfL organisation and staff — the plan is for IfL to transfer its legacy, assets and membership to the ETF through a deed of gift before closing its operations.”

She was unable to guarantee that any IfL jobs would be saved, adding: “In view of the current HR consultation process, IfL does not consider it appropriate to make comments about staff and potential redundancies at this time.”

The transfer was triggered by fears the 33,500-member IfL did not have enough cash to keep going. It has seen huge numbers of members desert in the face of increasing membership fees in response to government funding being withdrawn.
However, the vote in favour of transfer was later hit with claims IfL had failed to consult rank-and-file members.

A number of IfL members complained that they were not involved in the decision, before IfL elected chair Sue Crowley (pictured) defended the process.

She said members, who generally paid £63 annual fees, were democratically represented by the advisory board members who took the vote.

It comes just a week after it was revealed the IFL’s Qualified Teacher Learning Status (QTLS) programme would continue under the ETF. The news came in a live webcast by Dr Jean Kelly, IfL chief executive, and ETF chief executive David Russell.

Dr Kelly said: “It will still be called QTLS, it will stay as it is for the foreseeable future. It’s there for people to apply and it will remain the status it has been since it has been in existence.”

Mr Russell announced the next window for members to apply to begin the QTLS process would open from December.

He added it was likely teachers who transferred from IfL would need to remain as fully-paid up members of the ETF to keep their QTLS.

The ETF declined to comment on the potential job losses among IfL staff.

Tributes to ‘exceptional’ late principal Paul Head

A London college principal described as “exceptional” and “outstanding” has died after a long illness.

FE sector leaders have paid tribute to Paul Head (pictured), who had been principal of the College of Haringey, Enfield and North East London since 2009, and its predecessor, the College of North East London, since 2002.

According to the college, Mr Head died on Wednesday with his family by his side following an extended leave of absence from work. He had battled with cancer.

Jane O’Neill, interim principal of Haringey, Enfield and North East London College, described him as a “warm, vibrant and hugely personable”, adding: “Paul was passionate about raising the educational aspirations and opportunities for young people and adults living in North East London.

“Paul’s energy and commitment extended beyond the College and he had an impact on the sector as a whole.”

Mr Head joined the College of North East London in 2001 having worked in the higher education sector for 15 years, latterly at Thames Valley University.

Martin Doel, chief executive of the Association of Colleges, said: “Paul was an exceptional man and an outstanding principal who, through his superb work at the College of Haringey, Enfield and North East London, changed thousands of Londoners’ lives.

“He was also a powerful advocate for college students on a national basis. For example, in 2011 he worked exceptionally hard to ameliorate Government decisions on ESOL which would have affected the most vulnerable students. Paul was one of our best leaders and he will be sorely missed by us all.”

Lynne Sedgmore, executive director of the 157 Group, said: “Paul was a key and committed member of 157 group. I knew Paul primarily through his courageous leadership in Conel from 2008 and  his fabulous support of the Centre for Excellence in Leadership.

“His dedication to his college through staff and students was exemplary, and legendary. His intelligence, his humour and his quickness were impressive but most of all his integrity was profound.

“He advised me on many occasions and I always learned from and listened to his wisdom. Along with many others I miss him hugely and give thanks that such a wonderful professional and human being graced my professional life.”

Student services leader criticises DfE over ‘costly’ handling of FE free meal top-ups

Education Secretary Nicky Morgan has felt the full force of college student service leaders’ frustration over her department’s handling of FE free meals top-up rules.

Polly Harrow, chair of the National Association for Managers of Student Services (NAMSS), has written a powerful email (copy of email below) to Ms Morgan outlining how a Department for Education (DfE) U-turn on the policy had proved “extremely costly and time-consuming” for colleges.

The DfE issued new guidelines on Monday (September 15) stating that the FE free meal figure of £2.41 per learner could be boosted from the 16 to 19 Bursary Fund and other sources — just a fortnight after telling colleges they couldn’t.

“I can tell you there is widespread frustration with the Department for Education’s U-turn over FE free meals funding,” wrote Ms Harrow, whose correspondence was seen by FE Week.

She added: “All this planning and re-planning has been extremely costly and time-consuming to colleges from an administrative perspective. It is also extremely frustrating.”

A DfE spokesperson, who confirmed “there has been a change in the policy,” said it would now be possible, for example, for a learner in receipt of the FE free meal £2.41 to be given a further 59p from other sources, including the 16 to 19 Bursary Fund, to have a meal to the value of £3.

The change in policy, he said, had been “decided to give them [providers] more freedom to their budgets for what they want to use them for”.

It means colleges that had originally been planning to top up the FE free meals handout before the Education Funding Agency told them they couldn’t, are reconsidering.

Among those told FE free meal top-ups were not allowed, before being told they were allowed, was Kingston College. Its principal, Peter Mayhew-Smith, told FE Week: “The recent change to the guidance on free meals has caused us some challenges as we now have to change the communication we’ve shared with our students again. We will do this and make sure we give our students the very best support and financial assistance we can offer.”

New College Durham confirmed it would top-up free meal funding to £2.50 and a Middlesbrough College spokesperson said: “Staff are now exploring funding sources for topping up”.

However, Ms Harrow told Ms Morgan that further clarification was needed on this point to determine how much topping up was acceptable.

She wrote: “We have been told we will have to ‘consider the value for money and reasonableness of such an enhancement to the £2.41 rate and must be able to justify this’.

“But are we supposed to know what a reasonable cost is before we think about justifying it?”

A DfE spokesperson declined to comment on criticism of its handling of FE free meals top-up rules, but said: “All colleges are free to use up to 5 per cent of their bursary to cover the admin costs of verifying students’ eligibility for free meals.”

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Fraudster cash goes toward apprenticeships return

A council in Bedfordshire will use the ill-gotten gains of a junk mail fraudster to bring back its apprenticeship programme.

Bedford Borough Council has announced it will partner with Bedford College to use £450,000 of the money confiscated from Hendrick Meniru (pictured) to employ 15 apprentices.

The 49-year-old was found guilty by Luton Crown Court jurors in April last year of two charges of unfair trading, two charges of fraud and one of failing to comply with money laundering regulations after an investigation by the local authority. He was sentenced to three years behind bars.

The probe was launched after the council uncovered details of his involvement in a junk mail scam, which involved conning members of the public, usually the elderly or vulnerable, out of money through a number of bogus claims and promises.

And at a proceeds of crime hearing this month, Meniru was ordered to pay back £3m along with £200,000 in costs — £762,500 of which was received by the council.

The council has announced that £450,000 will fund the apprenticeships, with the remaining £312,500 going back into the council’s budget for fighting fraud.

Dave Hodgson, Bedford council’s directly-elected mayor, said: “We want to ensure that something positive can come out of this appalling, callous crime.

“This funding will be put to good use and shared between two vital purposes — providing training and employment opportunities, and the prevention of, and enforcement against, such crimes in the future.”

A council spokesperson said it had not employed apprentices for “several years,” adding: “The council has put forward plans to allocate £450,000 to fund 15 apprenticeship places annually over the next three years.

“The places will be working within the council which will partner with Bedford College as its training provider.

“These apprenticeship places are available to all but will be especially promoted to groups which might particularly benefit from the scheme such as ex-servicemen and looked after children.”

Ian Pryce, principal of Bedford College, said: “We are happy to be the council’s first choice for the training of its apprentices.

“We support young people into employment in a wide range of ways, including via apprenticeships for a wide range of organisations.”

REVEALED – the new FE Insider columnist for FE Week

Like the next Dr Who or latest James Bond, the world has been waiting with bated breath to learn the identity of the new FE Week columnist to pen the monthly FE Insider articles.

And we can today officially unveil a former 157 Group policy officer and ex-Warwickshire College executive assistant to the principal as the person taking over from previous FE Insider Ben Nicholls.

Ben, a former House of Commons Education Select Committee specialist and ex-Newham College head of policy and communications, left the FE and skills sector this summer in a bid to become the Liberal Democrat MP for Romsey & Southampton North.

Ben-Nicholls
Ben Nicholls

His shoes will be filled by… Gemma Knott (pictured), director of marketing, communications, admissions and sales at Stratford-upon-Avon College.

“I’m delighted to be the next FE Insider columnist for FE Week,” she said.

“I’ve been in the sector for more than five years years now since graduation and in this time I’ve experienced all manner of chopping and changing — both on the front line in my roles at Warwickshire and Stratford-upon-Avon colleges and in the policy remit at 157 Group.

“But it never ceases to amaze me how responsive, innovative and dynamic our colleges are, and it frustrates me that we are often forgotten about at government level.

“We are all doing more for less and the repercussions impact on the next generations — talk about false economies.”

Leicester-raised Gemma featured in the pages of FE Week as the subject of our ever-popular profiles back in April 2012, where her drive and passion for the sector were laid bare.

And they’re what our readers can look forward to in her FE Insider articles that appear in editions dated the first Monday of every month we’re in production.

She said: “I’m hoping more young readers will be picking up copies of FE Week and I’m very passionate about lobbying colleges to invest more time and effort in progression and development for their young and talented teams.

“We are tasked with nurturing our students so why don’t we invest in our own young, vibrant and energetic staff too? We often talk about the ‘Student Voice’ but we don’t listen to our biggest asset — the staff that we are employing, at all ages.

“We want students to follow our example, and we need to lead from the very top down.

“There’s definitely a talent vacuum in this sector and I’ll be writing more about this in my column — as well as life in the fast lane in my new role.”

Minister to rule on Barnfield split after public say

Skills Minister Nick Boles will rule on plans for Barnfield College to leave the Barnfield Federation once a public consultation on the proposed split finishes next month, FE Week can reveal.

The Bedfordshire-based federation announced in July its plans for the college to leave the group and its associated schools in a move that would mean the end of the eight-year-old federation.

The final decision rests with Mr Boles, but the Department for Business, Innovation and Skills (BIS) confirmed that no ruling would be made until a six-week public consultation on the split finishes on October 10. The split is expected to take place by December should the proposal win ministerial approval.

A BIS spokesperson told FE Week: “The Barnfield Federation wrote to ministers on July 28 setting out its plans to bring all five of its academies under one single Multi-Academy Trust (MAT) and for that MAT to legally separate from Barnfield’s sponsorship.

“The Skills Funding Agency [SFA] and Education Funding Agency [EFA] continue to supportthe college and the academy trusts and have advised on the steps required to bring about such a separation. A public consultation on the proposed change has started and will run until October 10.”

The move continues to leave a question mark over the future of federation interim chief executive Dame Jackie Fisher, who replaced previous federation leaders Helen Mayhew and Stephen Hall in February. She is to continue in her role until the possible split, at which point the two organisations were expected to appoint their own chief executives.

The announcement of the split proposals came after the SFA and EFA both published critical findings of their investigations into the federation in February.

FE Commissioner David Collins also visited and called for at least half the governors to be replaced and for “significant changes” to the federation’s leadership.

The Barnfield Federation was unavailable for comment, but in a statement released in July, a spokesperson said the decision to split the organisation was “not taken lightly”.

She said: “We are grateful for the hard work and exemplary commitment of our staff who can now put the past behind them and look forward to the future.”

And the consultation document says: “The Boards of each Academy Trust and the Board of Barnfield College are jointly of the opinion that to best service the educational and training needs of the people of Luton two wholly separate organisations should be put in place.

“Barnfield College would cease being the sponsor of the Academy Trusts… Barnfield College would revert to an FE college able to focus all its energies on further and higher education provision. This process is planned to be completed over the next few months with a view to establishing a single stand-alone Barnfield Multi Academy Trust by December 2014.”

Visit http://moorlands.barnfield.ac.uk/ for more details and to take part.

BREAKING: AoC goes ahead with pay deal despite UCU opposition

The Association of Colleges (AoC) is to proceed with its pay deal despite plans by the University and College Union (UCU) to strike over the offer.

According to the AoC, the other five of the six unions involved in the national joint forum (NJF) on colleges’ pay – AMiE, the ATL, GMB, UNISON and Unite the Union – have agreed to the offer.

But the deal, which includes the removal of the lowest pay grade, a 2 per cent rise to £7.65-an-hour for staff on the lowest remaining grade and a 1 per cent rise for all other grades, has failed to satisfy the UCU. It was holding out for a 3 per cent rise and is expected to proceed with industrial action on October 14.

An AoC spokesperson said: “Decisions of the NJF are made on the basis of agreement between the AoC and the majority of the signatory unions, therefore I am pleased to confirm the final recommendation of the NJF for 2014/15 has been agreed.”

See edition 111 of FE Week, dated Monday, September 22, for more.