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The number of colleges paying out upwards of £200k on their principal posts rocketed threefold last academic year, FE Week can reveal.

The Skills Funding Agency (SFA) published the 2013/14 college accounts during the Easter holidays and FE Week analysis shows that a dozen colleges handed over more than £200k in salaries to principals — up from just four colleges the previous year.

Andrew Harden, the University and College Union’s head of FE, said his members would “understandably be unhappy” to learn of this “considerable increase” — particularly as they were now being told there was “not the money for a fair pay rise”.

He told FE Week: “There cannot be one rule for them [principals] and one for everyone else.”

But the salary payments were defended by Martin Doel, chief executive of the Association of Colleges, who said: “The role of principal has become significantly harder in a number of ways and it is important that their pay reflects their senior business management role.”

The three highest sums that the 2013/14 college accounts said had been spent on principals’ salaries were £331k by Birmingham Metropolitan College (BMet), £291k by the College of Haringey, Enfield and North East London (Conel), and £238k by Warwickshire College.

A spokesperson for grade two Ofsted-rated BMet, which received £21.3m adult skills budget (ASB) funding in 2013/14, said: “The pay settlement for BMet’s principal in 2013/14 reflects two salaries for an overlapping period of time [May to July 2014]; both that of outgoing principal Dame Christine Braddock DBE and incoming principal Andrew Cleaves.

“In 2013/14, the outgoing principal was paid £271k. Of this, the base salary was £189,946. The balance consisted of a bonus payment and a further payment related to handover. The incoming principal was paid £60,000 for the period May to July [while Dame Braddock was still in-post].”

A spokesperson for grade two Ofsted-rated Conel, which received £21.6m ASB funding in 2013/14, said: “The figure of £291k relates to a period when the college employed an interim principal [Jane O’Neill] to cover during the period of the principal’s [Paul Head] illness last year, prior to his death in service [last September].”

A spokesperson for grade two Ofsted-rated Warwickshire College, which received £5.5m ASB funding in 2013/14, said: “The change in the salary of the previous principal [Mariane Cavalli] was primarily to do with the way in which pension contributions were paid.

“The 2013/14 salary figure, minus this additional contribution, for the previous principal was £196,365 and was agreed with the governing body.”

The SFA’s college accounts for 2012/13 stated that Ms Cavalli’s salary for that academic year was £197k, which the college has now told FE Week did not include pension contributions.

Sue Georgious, who was previously the college’s chair of governors, was appointed interim principal after Ms Cavalli stood down at the end of 2013/14.

The SFA’s 2012/13 college accounts also showed salary payments to principals amounting to £206k for BMet and £145k for Conel during that academic year.

Editor’s comment

Victory for ‘them and us’

It’s a well-publicised fact, at least within the sector, that budgets are getting ever and almost unmanageably tighter.

Courses will be cut, buildings will be sold, mothballed or simply remain a pipedream, and staff will lose their jobs — some at risk of unemployment might be lucky enough to cling onto a post, but at lower pay.

The warnings of industrial action and their even uglier fruition often utilise the issue of principals’ to capitalise on a ‘them and us’ attitude.

So to learn of a threefold increase in the number of colleges paying out in excess of £200k on the salary of their principal’s post comes as a huge blow in light of the unquestionably dark days we face.

Nobody’s denying the stress of the top job warrants just financial reward. Indeed, the stresses over the next few years will be such that it’s likely many at the top may think it not worth the worry (and in so doing add to the number of opt-out principals accepting pay while their interim replacement also gets paid).

But what we have been left with by this increase, sadly, is the impression of a sector in which those at the top move ever further away from those looking up.

For FE — with its rich social mobility pedigree — of all sectors, this is not how it was meant to be.

Chris Henwood

FE Week editor

Labour remains committed to scrapping level two apprenticeships despite the absence of the pledge from the party’s education manifesto, it has been confirmed.

Speaking to FE Week following the launch of the document at Microsoft’s offices in Victoria, central London, Shadow Business Secretary Chuka Umunna confirmed his party still wanted all apprenticeships to be at level three or above.

It comes despite the fact the policy did not feature in the manifesto document itself, and was not mentioned by party leader Ed Miliband in his speech.

Mr Umunna said: “We want all our apprenticeships to be level three and above. That is not to say that we don’t see a place for level two qualifications — we absolutely do.

“In and of themselves, there are important qualifications that are level two and of course they are an important stepping-stone to do a level three apprenticeship or other qualification.”

When asked why the policy was not included in the manifesto document, a spokesperson said the party did not comment on process issues, adding that manifestos were only meant to provide an “overview” of policy.

A number of FE organisations have come out against the policy including the Association of Employment and Learning Providers, where chief executive Stewart Segal said: “We share the view of Confederation of British Industry, Unionlearn and the Commons Education Committee that high quality level two apprenticeships should remain part of the programme because they offer a ladder of opportunity to further progression.”

However, the National Institute of Adult Continuing Education (Niace) has backed the policy.

Steve Mulligan, Niace assistant director for policy and public affairs, said: “At a time when we need to do all we can to boost productivity and people’s career prospects and incomes, the last thing we should be doing is capping opportunities at level two where, currently, most apprentices stop learning.

“No one would say that stopping learning once you’ve done your GCSEs is a good idea. The same should be true for apprenticeships.

“Apprentices have the right to a working and learning experience that sets them up for a successful career and life of learning. Raising the bar to level three, while of course maintaining level two training, is a sensible way forward.”

Mr Umunna also told FE Week that the details of which qualifications would qualify learners for his party’s proposed “apprenticeship guarantee” would be announced once his party is in office. The party has so far only said that those with two A-level passes or equivalent qualifications would be eligible.

He said: “In terms of the detail around that we will announce that when we get into government. I’m not going to go through the list right now because I can’t.

“Of course, when you put in place a guarantee you have a set of criteria that you reference your guarantee to, but I can’t give you a whole list of the qualifications now if that’s what you’re asking me to do.”

Labour also used the event to announce plans to divert £50m from the government’s widening access and participation fund to pay around 1,000 trained careers advisers, who will each work with clusters of two or three schools, in order to guarantee “face-to-face” careers advice for all learners from the age of 11.

Main pic: From left: Labour leader Ed Miliband,
Shadow business secretary Chuka Umunna.
Picture Chris Radburn/PA

Labour’s manifesto pledges for skills

Deliver a new gold-standard technical baccalaureate for 16 to 18-year-oldsEnsure all young people study English and maths to 18

Raise standards in FE, with new institutes of technical education

Guarantee all young people face-to-face careers advice

Give every young person that gets the grades has the right to a high quality apprenticeship

Introduce new technical degrees delivered by universities and employers

 

The Conservatives will put a University Technical College (UTC) “within reach of every city” and increase the use of destination data about FE courses if they form a government again in May, the party has announced.

Alongside existing pledges to create 3m apprenticeship starts over the course of the next Parliament and “improve” FE by opening new national colleges, the Tories included plans in their manifesto to expand the network of UTCs despite concerns about their popularity and quality.

Launching the manifesto at UTC Swindon this morning, Prime Minister David Cameron said: “Our ambition is to make Britain the best place in the world to start and grow a business, and we have a plan to get there.

“We will deliver 3m apprenticeships and open more great new UTCs.”

In the manifesto document itself, the Tories simply pledge to ensure “there is a UTC within reach of every city”, without explaining what distance they consider “in reach” to mean. They have also stopped short of setting out a timetable for the expansion or a final number they are aiming for.

The document also commits the Conservatives to publishing “more earnings and destination data for FE courses”, but does not say how the roll-out of such data would be handled.

Three London colleges have announced plans to form a federation in a bid to combat budget cuts.

Newham College, Tower Hamlets and Redbridge College have formed the Federation of East London Colleges, due to have its first working group meeting this month.

College leaders said they hoped the move would allow them to share resources and facilities and to submit joint funding bids.

Di Gowland (pictured above left), principal of Newham College said the federation would “enable strategic collaboration to maximise opportunities… in the face of devastating cuts”.

The colleges, which employ a total of 1,366 staff and cater for 29,320 students, have a combined income of £82m, they claimed.

Redbridge College chief executive Theresa Drowley (pictured above centre) told FE Week the 24 per cent cut to the Adult Skills Budget announced last month was “unsustainable” for her college. “We felt we needed to take our college destiny into our own hands,” she said.

“As a group together we could be more efficient, get the best from each college and have a bigger voice within the national agenda.”

The news comes just months after the federation formed by Middlesbrough College and Gateshead College was disbanded in its first year after failing to offer additional value to learners.

However, all three East London college leaders insisted each institution would maintain its own independence and governance. Tower Hamlets College principal Gerry McDonald (pictured above right) said: “We’re not creating a Middlesbrough-type situation. Middlesbrough failed because it didn’t properly articulate the relationship between the colleges and the overarching structure. This is a soft federation — we’re not appointing an overarching chief executive, there will be equal status between the three colleges.”

The federation company would not have any dedicated staff “at this stage”, but would be a “vehicle” for bidding, said Mr McDonald.

“The Local Enterprise Partnerships don’t want to work on a borough by borough basis, they want to see real collaborative partnerships across the whole patch,” he said.

“It makes sense for us to put together bids for the European Social Fund as a strong partnership, rather than independently.”

Ms Drowley said cutting jobs “wasn’t the intention” behind the federation, but redundancies at management level were “likely”.

It is understood that a merger of Redbridge and Tower Hamlets colleges has not been ruled out, depending on both colleges’ individual strategic options reviews.

 

Providers have been warned to be vigilant after another attempted scam hit the sector.

Andy Cole (pictured), principal of the College of North West London, told FE Week how this month he was invoiced for a fictional United Nations (UN) programme.

And just two days before Christmas another phoney invoice, claiming to be from within the college, had demanded more than £100,000.

“I’m seeing a lot more stuff like this happening and hearing about it from other principals” Mr Cole told FE Week.

“It’s not just scams but stuff that’s getting past firewalls — we’ve got a pretty good one but we’re still seeing it.”

On Wednesday March 11, Mr Cole received an email claiming to be from the UN, asking for payment for a programme he had made an “irrevocable” commitment to — despite Mr Cole never having heard of the programme.

And on December 23, the college received an invoice claiming to be from within the college itself for £100,440 for money spent on railway engineering equipment — a key area of business for the college.

“It wasn’t college paperwork, but it was very convincing,” said Mr Cole. “If I was new to the college, I’d think ‘that’s credible, maybe that’s our paperwork’.”

The case was handed over to police but FE Week understands no further action has been taken.

“Our controller won’t let anything from anybody – including me – through if it isn’t 100 per cent compliant with our policies and procedures,” said Mr Cole.

He added: “The greater concern is the potential for electronic messages that get through any firewall containing a virus.”

Mr Cole’s comments follow a string of attempted scams to have hit the sector.

Last month, FE Week reported on a fraudulent email sent to Westminster Kingsway finance staff, claiming to be from college principal Andy Wilson, requesting an urgent payment.

And the Colchester Institute was hit around the same time by con artists posing as the contractors carrying out £5.8m worth of building work actually being carried out on campus.

In January at least eight colleges were targeted by a man calling himself Brian Hall who claimed to be a bailiff on the way to collect a fictional £7,000 debt. It is understood no colleges handed over money.

 

Apprenticeships were on the agenda as David Cameron hit the campaign trail in West Yorkshire on Thursday (April 9).

Mr Cameron met Cory Hurst, a level two fashion and textiles apprentice at Camira Fabrics in Huddersfield.

He also announced deals which had been struck with large employers including Costa to create 16,000 apprenticeships. The Tories have pledged to create 3m starts in the next Parliament if they form a government again in May.

The visit took place on the same day that Labour leader Ed Miliband was at Microsoft’s offices in Victoria with Shadow Education secretary Tristram Hunt and Shadow Business Secretary Chuka Umunna to launch Labour’s education manifesto.

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Picture: Stefan Rousseau/PA