Apprentice funding plans rejected in consultation

The full results of the government’s apprenticeship funding consultation last year have been released for the first time — revealing the vast majority of provider and employer respondents did not support the government’s proposed reforms.

The consultation ran from July until October and in November Skills Minister Matthew Hancock announced the government would be seeking to fund apprenticeships through the PAYE system, just one of the options suggested in the consultation.

Some consultation results were released in March with the launch of a new, technical consultation on how the new PAYE system might best work.

However, it has emerged that PAYE funding, where employers would claim funding through the tax system, had been supported by just 29 out of 366 respondents from businesses, providers and other stakeholders according to the results — and even where it had the highest support, among medium-sized business, it was supported by less than one-in-four.

The current system of channelling funding through providers was the most popular option, enjoying support from 213 of the 366 respondents, but was not mentioned in proposals laid out as part of the second consultation.

Chief executive of the Association for Employment and Learning Providers (AELP) Stewart Segal called for changes to be “based on evidence”. He said: “There is no overwhelming support from employers to move to mandatory cash contributions or direct funding to employers. In fact many smaller businesses have said they will not recruit apprentices if they have to manage the funding directly.

“Our interpretation of the consultation results was that employers of all sizes expressed a greater preference for the current provider funded model than any other option. Employers should have a choice of direct funding where they can meet the criteria or to work with a provider of their choice that would manage the funding.

“The frustration is that the option many employers want has not been included in the latest consultation.”

It comes as apprenticeship forum body Apprenticeships 4 England described the consultation as “a farce” in a formal complaint to BIS after the 744 responses it submitted were counted as just one response.

Apprenticeships 4 England chief executive Lindsay McCurdy said: “It worries me that we submitted a range of responses from across our membership, but if they only counted it as one, whose response did they use?”

She added: “There should be two options — we should keep the system as it is unless an employer says they specifically want to take on responsibility for directly handling apprenticeship funding — in which case, let them.”

A Department for Business, Innovation and Skills (BIS) spokesperson said: “We are reforming apprenticeship funding to give employers direct purchasing power to drive up the quality and relevance of training.

“Responses to the July 2013 consultation made it clear that this is unlikely to be achieved by simply adjusting the current system, which routes funding through the training provider. We are therefore consulting further on employer-routed funding as part of a fundamental overhaul to make the new system as simple and user-friendly as possible for all employers.”

The current technical consultation closes on May 1.

Hancock hits back over FE funding cuts

Skills Minister Matthew Hancock (pictured above) has hit back at criticism of government cuts, claiming it was “misleading” to say funding for adult skills faced a 19 per cent fall in the next two years.

In an exclusive interview with FE Week, he defended his record with the sector.

It comes after the annual Skills Funding Statement (SFS) revealed the Adult Skills Budget would fall from its current rate of £2.467bn to £2.004bn by 2016 — a cut of more than £463m, or 19 per cent.

Mr Hancock blamed “difficult financial constraints” for the cuts he has presided over, and said the adult skills budget cut would be mitigated by an increase in the amount of funding for advanced learning loans from £129m to £498m.

He said: “I am standing up for colleges extremely robustly. The idea that funding is being cut by as much as 19 per cent is inaccurate — it is a switch in funding from one type to another, and for good reason.

“For instance, keeping hold of the loans budget, even when we took apprenticeships out of loans, I think was really important for the sector.

“So of course we have to live within difficult financial constraints, and we all know why that is, and it very clearly dates from before 2010, and anybody in this job would be having to live within those constraints.

“The question is, do you do what is necessary to support the colleges to get through that? And I think that we are.”

It follows the release of a report, 16-19 Education Stripped to the Bare Bones, from the Association of School and College Leaders (ASCL), Association of Colleges (AoC), Sixth Form Colleges Association (SFCA), Independent Academies Association (IAA), Freedom and Autonomy for
Schools (FASNA) and Principals’ Professional Council (PPC).

It says that funding for post-16 education was now just over a half (58 per cent) of what it was when today’s 17 year-olds were born, and called on Education Secretary Michael Gove to take action.

But Mr Hancock defended Mr Gove. He said: “The policy is that funding is ring-fenced from five to 16. So, whether you are in a school sixth form, a sixth form college or an FE college, you are treated exactly the same, and the new funding formula is the same per pupil for every pupil except for more support for those from disadvantaged backgrounds, more support for those with learning difficulties and more support for more expensive courses like vocational courses.

“So if you actually look at the policy you will find a progressive policy of support for people from less well-off homes, and those who need extra support because, through no fault of their own, because of a disability or learning difficulty, and people on vocational courses. So if you want to call that ideological, it’s progressive and it’s supportive of those most in need.”

Indy wins college plan go ahead

An Essex-based independent learning provider is one step closer to opening the first new FE college in 20 years after receiving the backing of the government.

Prospects Learning Foundation has revealed it has been given permission by the Department for Business, Innovation and Skills to incorporate as an FE college.

The independent learning provider (ILP), which has a current Skills Funding Agency allocation of £2.6m and already brands itself as Prospects College, launched a consultation on its plans to get FE college status in January.

Chief executive Neil Bates (pictured) has previously said he hopes the move will unlock government money and allow Prospects set up new bases — potentially competing with existing colleges.

Speaking to FE Week this week, Mr Bates said: “We are delighted that the Minister has approved our application. The consultation resulted in overwhelming support from employers and employer organisations, local authorities, Members of Parliament and students.

“The Minister will open the new college in September. This will include the opening of a new railway engineering academy where the majority of funding for this new facility is coming from major employers in the rail sector.

“We also had an OfSTED in December which judged the college to be good in all areas with outstanding features and outstanding visionary leadership.

“Our ambition is to be outstanding within three years and to have 1,000 advanced and higher technician apprentices at the college supporting key sectors of the economy.”

It could be the first new FE college in more than 20 years, and comes after the government separately unveiled proposals for a new FE college to train engineers for HS2.

In an interview with FE Week in January, Mr Bates said he was “very keen” to talk to the government about Prospects, which already trains engineers for the rail industry, being involved in the HS2 college plans, but the government has yet to unveil its preferred location.

Sharp rise in degree starts at FE colleges, HEFCE report shows

The number of students starting degree courses at further education colleges in England has risen by almost 60 per cent in the past three years, a report has revealed.

According to data published by the Higher Education Funding Council for England (HEFCE), the number of people starting undergraduate study at FE colleges (FECs) in 2013/14 was 10,000 higher than in 2010/11, a 57 per cent rise.

In the same period, the number starting at higher education institutions (HEIs) fell by 16,000.

It also shows that the larger decreases in starts at higher education institutions were at those with medium of low average tariff scores.

HEFCE

The report says: “Figure 23 shows that overall there has been a shift between 2010 and 2013 of increasing numbers of entrants going into institutions asking higher grades for entry.

“There has also been growth in numbers of entrants registered at further education colleges, reflecting broader shifts away from provision franchised from HEIs towards more colleges offering higher education directly.”

Traineeships are making a difference despite slow uptake

Traineeships should not be dismissed just because of low take-up rates, says Fiona Aldridge.

We now know that in the six-months between August and January, 3,300 16 to 23-years-olds have enrolled on to a traineeship. Compared to the ongoing high levels of youth unemployment – 912,000, according to latest figures – it is no surprise that many have criticised this ‘flagship’ policy as failing to address youth unemployment.

Whilst it is off to a slower start than many hoped for, development work recently undertaken by NIACE – in consultation with over 50 staff, employers and trainees – demonstrates that the programme is making a difference and has real potential to deliver the focussed and individualised support that many young people need to make the transition into stable employment.

These include young people such as Ross, who spoke at a recent NIACE event – Traineeships: Learning from Practice. Before starting his traineeship at Weston College, Ross struggled with English and was not prepared for the world of work.

He said: “When I went for the first interview at Weston College I couldn’t even look the tutors in the eye, I had no confidence, no idea what to wear to a job interview or how to talk to employers. I thought I’d never be able to improve my English and didn’t know how to improve my job prospects.”

Following a period of work-preparation training, tailored support around English and maths, and a work experience placement with Sainsbury’s, things have really changed. Ross has started work, has aspirations to teach and has the confidence to speak publicly about how his traineeship has helped him.

Ross is not the only traineeship success story. During the last few months NIACE has spoken to many young people who are making significant progress on their journey to employment as a result of a traineeship.

Importantly, many employers welcome the opportunity to give a young person a chance and to see what potential they have, before offering them a job or apprenticeship. They recognise that young people are part of their local community and often their customers too – so it makes good business sense to engage them.

Providers across the sector recognise that traineeships meet a real need; the programme has a clearly defined outcome, yet provides a flexible approach to meeting Trainees’ needs. For many providers, traineeships have filled the gap in provision – targeted support for young people who were not quite ready for an apprenticeship, many of whom were knocked back time and time again, with little support to develop the skills, experience and attributes that they need and that employers are looking for.

Our work has shown two main models for delivering traineeships emerging within the sector. Firstly, a re-engagement model – where providers develop provision to bring young people back into learning, offering work placements with a range of employers, across a range of occupational areas and sectors. Secondly, a business-led model – focused around working with a single employer or group of employers to design and deliver a traineeship programme, which meets their specific needs and the needs of young people.

However, a number of factors have emerged that are hindering the success of the Programme.  Firstly, the different eligibility criteria for 16 to 18-year-olds (prior achievement must be below level three) against those aged 19 to 23 (prior achievement must be below level two).  Almost all of the providers we spoke to reported turning away young people aged 19-plus from Traineeships because they had already gained a level two qualification.

Secondly, benefits rules affecting JSA claimants are also restricting take up of the Programme. Whilst the removal of the 16-hour rule for Trainees from March is welcome, traineeship policy and benefits policy are not yet fully in-sync, particularly around the length of work experience placements – limited to eight weeks for JSA claimants, with a possible extension to 12 weeks.

Similarly, providers continue to report differing levels of support from Job Centre Plus across the country. Some recognise the value of traineeships, have a good understanding of the programme and work in partnership with providers to refer the right young people. Others, however, show a lack of awareness (often referring ineligible young people) or unwillingness to engage with the programme and with providers who are seeking to recruit young people as trainees.

The traineeship programme has the potential to enable a wider range of young people – including care leavers, ex-offenders and young parents – to gain a foot on the ladder and a route into stable and rewarding employment. There is enthusiasm and commitment from employers, providers and most importantly, from young people. Taking the action now to widen rather than limit the scope and potential of traineeships, will enhance the employment chances of some of our more disadvantaged young people considerably and set them on the way to fulfilling and rewarding careers.

Dr Fiona Aldridge is Head of Learning for Work at the National Institute for Adult Continuing Education.

Schools to be forced to tell learners about FE and skills options

Schools will be forced to tell learners about vocational study and apprenticeship options by law after the government published statutory guidelines on careers advice.

For the first time, schools have been told they have to offer independent, impartial careers advice including the full range of options available to learners, and prove they are doing so in the best interests of pupils.

The guidance, published this morning by the Department for Business, Innovation and Skills, is directed at governing bodies, school leaders and school staff in maintained schools and local authorities which maintain pupil referral units.

Announcing the guidance in the Commons, Skills Minister Matthew Hancock said: “Building links between the worlds of education and work is a vital part of our reforms and I can announce to the House today that we are publishing the revised statutory guidance for schools on careers guidance and inspiration.

“This will drive links between schools and colleges and employers to inspire and mentor pupils and there will be no excuse for schools and colleges not opening their doors to employers and no excuse for employers not to engage with schools and colleges.”

The document says: “The statutory duty requires governing bodies to ensure that all registered pupils at the school are provided with independent careers guidance from year eight (12 to 13-year-olds) to year 13 (17 to 18-year-olds).

“The governing body must ensure that the independent careers guidance provided is presented in an impartial manner, includes information on the range of education or training options, including apprenticeships and other vocational pathways [and] is guidance that the person giving it considers will promote the best interests of the pupils to whom it is given.”

It also says: “The duty on schools, to secure independent careers guidance for all year eight to 13 pupils, is intended to expand advice and guidance for young people so they are inspired and motivated to fulfil their potential.

“Schools should help every pupil develop high aspirations and consider a broad and ambitious range of careers. Inspiring every pupil through more real-life contacts with the world of work can help them understand where different choices can take them in the future.”

The document clarifies that when the word “must” is used, as in the case of independent impartial advice, it means the school, body or organisation in question is required to do something by law.

The guidance has been cautiously welcomed by Rob Wall, head of education and employment policy at the Confederation of British Industry.

Mr Wall said: “The new guidance is a step in the right direction, but it’s a long road to mend our broken careers system and inspire the next generation of engineers, entrepreneurs and scientists.

“All of us – schools, Government and businesses – have a role to play in fixing the problem, but it is the Government that must lead from the front to make it a reality.

“We need a new system to build relationships between schools, colleges and local companies, allowing firms to get more involved.

“Vocational training should never be seen as second best, as it offers many young people routes to high-quality, well-paid and skilled careers.”

Former chair Hughes calls for equality and diversity action at ETF

Former Education and Training Foundation (ETF) chair and board member David Hughes has called for more to be done to promote equality and diversity in the new organisation.

Speaking as the chair of a panel at the ETF-sponsored equalities consultation live debate at Morley College on Tuesday, Mr Hughes, also chief executive of the National Institute for Adult Continuing Education (NIACE) said some groups bidding for work from the Foundation might need more leeway to tick diversity boxes.

It comes after the ETF and NIACE’s equalities pop-up tour – a consultation and awareness-raising exercise focused around a yellow campervan – finished today at the National Union of Students annual conference in Liverpool.

Speaking on Tuesday night, Mr Hughes,  said he wanted to see more action from the ETF board.

He said: “One thing the foundation should do is get its commissioning right. It has got to allow for the fact that some organisations need some extra space to be able to win contracts, in order to get the diversity in delivery right and we need to make sure there is diversity in delivery.

“Progress for me will be when the board of the foundation talks about equality and diversity, not because it is the 13th agenda item on a 13-item agenda, but when somebody on the board says we really do need to start addressing this issue, and we have a proper conversation about it.”

Kathryn James, ETF team Leader for leadership governance and management, who was also on the panel, said she welcomed Mr Hughes’s comments.

She said: “We welcome board members like David Hughes being vocal on the need to push equalities and diversity up the agenda. It’s already embedded in our strategic plan and the championing of this by our board members ensures we don’t lose sight, become complacent or tokenistic.

“The equalities pop up tour finished today at the NUS conference in Liverpool, and the whole thing has been really enlightening. Now we have the important job to do to make sure it genuinely informs what we do next whether this be the way we procure work, structure agendas, or recruit.

“We are taking equality and diversity seriously through our current expert panels and are extending this approach to our own staff, and collection of data so that we can see how effectively we are being inclusive in the delivery, take up and impact of the support and development we provide to the sector.”