Level 3 announcement is a shot in the arm for sector unity

Yesterday’s announcement on the reform of Level 3 qualifications has brought the sector some much-needed good news.

One of the Protect Student Choice campaign’s three recommendations for the Level 3 review was to scrap the plan to introduce constraints on combining different types and sizes of qualification.

That recommendation was accepted in full, and colleges will retain responsibility for deciding the combination of qualifications that can be included in study programmes. There was a welcome acknowledgement from ministers that colleges and schools are best placed to “devise the best mix for individuals”.

It was also good to see that 13 of the 21 applied general qualifications (AGQs) prioritised by the campaign will not be scrapped next year. That means, for example, one more year of enrolling students on the diploma and extended diploma in health and social care, applied science and IT.

That’s one more year than would have been possible under the previous government and colleges and schools will be pleased that these Cycle 1 courses will continue to be available.

Although the campaign had pressed for these qualifications to be retained for two more years, we understand that the small and medium-sized AGQs that have been approved will in most cases continue to be available as reformed versions – typically alternative academic qualifications – in the future.

There is also a collective sigh of relief about qualifications in Cycle 2. There are 79 AGQs in Cycle 2 with around a quarter of a million enrolments (three times as many as Cycle 1) and hundreds of other Level 3 courses.

Decisions on these qualifications will be made as part of the curriculum and assessment review, but it is good to have the reassurance that they will not be defunded until 2027 at the earliest.

That brings some much-needed certainty for AGQs in business, law and criminology in the short to medium term, alongside other Level 3 qualifications such as uniformed protective services.

We still have to make the case for a true three-route model

The situation we find ourselves in today feels very different to the situation at the start of term. A review without a pause meant colleges and schools were holding open evenings and finalising prospectuses without knowing which qualifications they were able to offer in 2025.

We now have a greater degree of certainty and the reassurance that we will have a much longer lead time to plan for potential changes to qualifications in Cycle 2.

It is clear that we still have to make the case for a genuine three-route model, in which applied qualifications play a role that is equally important to that of A and T Levels. The Protect Student Choice campaign partners will reconvene in the new year to decide how best to drive home that message.

But for now, we must acknowledge and welcome the changes that ministers and officials have made in this vital area.

We must also reflect on the enormous impact that the education sector can have when it speaks with one voice. The Protect Student Choice coalition is almost unprecedentedly broad: students, schools, colleges, universities, trade unions, employer groups and, of course, FE Week. But it has a common purpose: to ensure that every young person can access a high-quality pathway to higher education or skilled employment.

This week we collectively took a big step towards that objective, in no small part because of the contribution to the campaign made by college staff and students.

The Protect Student Choice coalition is pleased to end the year with some welcome and positive news that positions us well for our campaigning work in the new year.

30 colleges risk private school VAT trap

Fresh fears have emerged that dozens of colleges may be snared by Labour’s private school fee VAT rules.

Government guidance on its finance bill, which is making its way through Parliament, says it is “confident” its current definition of a private school “does not capture” FE colleges.

However, the guidance also warns that FE colleges which have chosen to apply VAT rules set out in a complex 2020 tax court ruling involving the Colchester Institute “could” be counted as private schools.

It states: “[FE] Institutions can, if they choose to, apply the conclusion of the Upper Tribunal in Colchester, which would result in them treating the public funds they receive as business income. 

“This could bring these institutions within scope of this policy, as this income would be treated as consideration for the provision of education. 

“However, FE institutions should carefully consider this decision and ensure they understand what their new VAT obligations would be and the financial implications of this.”

There are about 30 unidentified colleges understood to have applied the rules from the 2020 ruling on a dispute between the HMRC and Colchester Institute.

A HMRC spokesperson told FE Week that colleges have until January 1 to decide whether to begin charging VAT for the first time.

Increased VAT cost risks

College income from fee-paying and government grant-funded students is currently exempt from VAT.

So being caught up under the new definition of a private school could have a significant impact on a college’s VAT returns.

Ian Brown, VAT director at S3TAX, said some FE colleges risk being “caught up” in this definition by HMRC.

He added: “How the government legislated for this surprised everyone, there’s an uncertainty around the risk for some FE colleges.

“Between Colchester, the private school legislation and HMRC’s application of VAT to private schools there’s uncertainty all around at the moment.”

What was the Colchester dispute?

The 2020 court ruling stemmed from a claim the Colchester Institute made for VAT paid on a large building project in the 2010s using a rule known as the ‘Lennartz mechanism’.

The result of the ruling – which set a precedent for similar cases – was that the tax treatment of grant-funded education shifted from being defined as a “non-business activity” to a “business activity”.

This change in legal definitions means that colleges no longer have the right to claim significant discounts on their VAT bills, known as “reliefs”, which include a zero rate for new buildings and a reduced rate for fuel and power.

However, soon after the 2020 ruling, HMRC said it acknowledged the court decision but would not impose the new rules on colleges while it mounted a new “test” appeal.

Following Colchester carries the risk of a large future tax bill, as HMRC vowed to “protect its position to secure tax revenues” and plans to take the case to the Court of Appeal.

Colleges already at a disadvantage

The dispute highlights wider concerns about the tax status of FE colleges, which suffer an estimated £200 million per year on irrecoverable VAT, leading to complaints that they are on an unfair financial footing compared to schools and academies which can reclaim VAT in full.

Julian Gravatt, deputy chief executive at the Association of Colleges, said apart from the Bank of England, colleges are the only public institutions that cannot reclaim their VAT, putting their students “at a disadvantage” compared to their academy counterparts.

He added: “Private school VAT rules add to the complexity and the HM Treasury October 2024 update helpfully exempts publicly funded institutions but leaves a doubt about those who entered into Lennartz arrangements and we’re awaiting clarification”.

Another layer of complexity

Socrates Socratous, a VAT consultancy partner at Buzzacott, told FE Week that private school legislation has added “another layer of complexity” to VAT rules for colleges, including those that specialise in special needs.

He said: “I think part of the problem may well be that the introduction of VAT on private school fees has been rushed through and its full implications haven’t been considered.

“The guidance that HMRC have issued is proving quite difficult to interpret because there are a lot of grey areas that they are sitting on the fence on.

“Private school VAT rules add to the complexity and the HM Treasury October 2024 update helpfully exempts publicly funded institutions but leaves a doubt about those who entered into Lennartz arrangements and we’re awaiting clarification.”

MPs give Sir Ian Bauckham the nod for Ofqual top job

MPs have given Sir Ian Bauckham the nod to continue as the chief regulator for Ofqual.

Parliament’s education committee today agreed that Bauckham, government’s preferred candidate to continue leading the exams watchdog, is “appointable to the post”.

The committee said it hopes he “fulfils his commitment to serve a full term in office and restore much-needed stability” to Ofqual, after a churn of chief regulators in recent years. 

Bauckham, who attended a pre-appointment hearing earlier this week, has been serving as interim chief regulator but has now been approved to do the role permanently. 

His “ambition to enhance Ofqual’s reputation further to be ‘ever more trusted by the public and by students as the guardian of safe, fair and trustworthy qualifications’ is welcome,” MPs added.

Greenlighting the appointment, the committee noted his “extensive experience in schools in leadership roles” and “significant contributions to the education sector”.

He took over the role of chief regulator in January 2024.  Before that, he had served as chair of the board of Ofqual from January 2021 and had been a board member from March 2018. 

“He told us that his roles in schools had provided him with a good understanding of the educational landscape and a deep appreciation of the value of qualifications,” MPs added. 

Bauckham previously led Tenax Schools Trust, a multi-academy trust. He is also chair of Oak National Academy, an arm’s-length body of the DfE.

Apprenticeship and Training Awards 2025 finalists revealed

Finalists for this year’s record-breaking Apprenticeship and Training Awards have been revealed.

Formerly known as the AAC Apprenticeship Awards, over 600 nominations were submitted from employers, training providers, colleges and universities, nearly doubling last year’s tally.

Run jointly by FE Week and the Association of Employment and Learning Providers (AELP) and delivered in partnership with City and Guilds, the eighth annual awards celebrate top-of-the-class training, outstanding outreach and exceptional employers.

This year’s categories celebrate innovative training, employer support for social mobility, and excellence in learner support, alongside the coveted awards for employer and provider of the year.

Lloyds Banking Group, Bagnalls, London Ambulance Service and Pendennis Shipyard are this year’s finalists for large employer of the year.

Meanwhile Cardiff and Vale College, Merseyside Fire and Rescue, Salford City College Group and Truro and Penwith College are each up for apprenticeship provider of the year.

And either Learning Curve Group, Baltic Apprenticeships, Catch or Pearson TQ will be named training provider of the year.

Finalists were selected by a 20-strong panel of judges including AELP’s CEO Ben Rowland, apprenticeship influencer Holly Hobbs, former skills minister Anne Milton and UCAS head of apprenticeships Lindsay Conroy.

A parliamentary reception will take place at the House of Commons as part of National Apprenticeships Week in February to recognise this year’s finalists. The winners will be announced at the Apprenticeships and Training Conference gala dinner and awards evening on March 11 in Liverpool.

Shane Mann, chief executive of FE Week’s publisher EducationScape, said: “I know I speak on behalf of all the judges in pointing out what a tough job we had this year. We saw so many examples of great practice from employers and training organisations thinking outside the box, taking risks, and genuinely putting their learners first.

“Congratulations to all finalists. I look forward to celebrating your achievements at the parliamentary reception next year before announcing the winners at the Apprenticeships and Training Conference in Liverpool.”

The awards have been refreshed with a host of new categories.

PTP Training, Exeter College, Serco and South Essex Colleges Group are up for innovation in training delivery.

Battling it out for the outstanding apprenticeship programme of the year are Cardiff City Football Club, EMTEC Automotive Apprenticeships (part of Nottingham College), Gateshead College and Northern Trains.

The awards will also mark the best workplace readiness scheme, specialist training provider of the year and best new apprenticeship programme.

MOVERS AND SHAKERS: EDITION 481

Kate Wills

Principal and CEO, Weymouth and Kingston Maurward College

Start date: December 2024

Previous Job: Deputy Principal, The Cornwall College Group

Interesting fact: Kate to this day still maintains her registration as a nurse, recognising the importance of industry skills in FE

Liam Sloan

Principal and Chief Executive, Bolton College

Start date: January 2025

Previous Job: Provost, Federation University Australia

Interesting fact: A native Scotsman, Liam has spent the past decade in Australia and New Zealand serving in senior leadership roles. Represented two nations in sport, Scotland in badminton and England in dressage

College trials ‘radical’ 4-day week

Teachers say they are more productive, save time spent commuting and enjoy a better work-life balance now they work from home each Wednesday.

St Charles Catholic Sixth Form College in West London is trialling a timetable that compresses classes into four days to give teaching staff one dedicated day a week for planning, preparation and assessment.

Most of the 80 teaching staff have praised the change, saying the opportunity to work from home mid-week reduced exhaustion and gave them more time to focus on their subject knowledge.

Meanwhile, the college’s 1,100 students participate in volunteering, work experience and cultural visits when their teachers are away.

One-year pilot

Principal Martin Twist told FE Week leaders first discussed the four-day teaching week 18 months ago to make the sixth form a more attractive place to work and a more competitive place to study.

Leaders tested the water with a small trial in May, and after a review the switch was extended across the college this academic year as a “one-year extended pilot”.

The college claims the initiative is at the “most radical end” of changes in the sector.

Twist said: “We know some schools and colleges are trying to go to a nine-day timetable over 10 days, so having a day off every other week. We haven’t seen or heard of anyone who’s doing it like this.”

To maintain teaching hours across four days, classes have been stretched from 55 minutes to 100 minutes. 

Staff teach three lessons per day, with a 30-minute morning break, a 45-minute lunch and a further 45 minutes at the end for directed time or student interventions.

Teachers have also been taken off additional duties such as tutoring so they are solely subject experts delivering their curriculum on Mondays, Tuesdays, Thursdays and Fridays.

“It does mean the other four days are busy, but we’ve consulted with them all throughout,” Twist said.

Martin Twist, principal of St Charles Catholic Sixth Form College

Though teachers are asked to come into college to do their PPA one Wednesday per month for “quality assurance”, the principal said leaders did not audit their time, and staff are free to cater to family needs such as doing their own school run. 

St Charles initially made cost savings by not needing agency staff on Wednesdays.

Twist said the college is now looking into alleviating resourcing issues that have arisen for the small team of staff who deliver trips and organise work experience on Wednesdays.

Energy boost

Based on initial feedback from 39 teachers, seen by FE Week, 58 per cent said they were more productive due to the dedicated PPA day.

Staff members told the college they had ample, uninterrupted time to plan good lessons from home, resulting in better classroom delivery.

One teacher said: “There is an enormous improvement in teaching impact for pupils, removing the midweek to end of week low points in energy. 

“I am able to teach up to the bell on Friday afternoons with no complaining about tiredness.”

Another teacher said they had time to work on subject knowledge, “which is the biggest hurdle to teaching GCSE retake classes”. It also let them “rest and recover between days to burn out less quickly”.

Some staff were also saving up to three hours of commuting on their work-from-home day and one hailed the “slower start to the day”.

Another said: “I would not want to return to five days, and this would affect my choice of workplace.”

‘Race to the canteen’

However, a small number of teachers who gave feedback were less enthusiastic.

One said having a day dedicated to PPA made “little difference” to them, and three teachers also complained the 45-minute lunch break was too rushed.

“It isn’t a break, it’s a race to get to the canteen, breakroom and back to the classroom,” one noted.

Another teacher said: “The condensed delivery has left little time (and energy!) at the end of the college day to deal with department business. 

“This is compounded further for part-time staff; in my case, I don’t work in college on Fridays, which means I only have face-to-face contact with the whole team three days a week.”

Positive attitude

Parents were generally positive about the sixth form’s Wednesday activities for students, which include volunteering at charity shops and soup kitchens, and doing work experience in hairdressers and nurseries.

Some said their children had a more positive attitude to studying and were more refreshed and active.

Most agreed that allocating Wednesdays for home study in the lead-up to mock exams was effective for Year 13s.

Twist said it was too early to say student attendance had been impacted by the four-day teaching week but leaders said they expected improvements since an absence meant students missed more learning given that classes are now twice as long.

While four-day weeks aren’t common in education, St Charles Catholic Sixth Form College isn’t the only one to trial the concept. South Essex College closed classrooms on Fridays two years ago to save energy costs, encouraging students to do independent learning and teachers to complete marking and admin.

‘Inadequate’ for double RI apprenticeships trainer

An apprenticeship provider has been downgraded to ‘inadequate’ after leaders were “too slow” to improve long-standing teaching failures.

Ensis Solutions received Ofsted’s lowest possible judgment this week after it found tutors relied on apprentices “teaching themselves” and almost a third of its learners should have already finished their courses.

When inspected in late October, the private provider, in Leigh, Gtr Manchester, had 164 learners on level 2 to 5 apprenticeships, mostly in the health and social care sectors. A further 80 had paused their learning and Ensis staff could not say how many intended to return, though many apprentices subsequently told Ofsted they had quit. 

Ensis was rated ‘inadequate’ for its quality of education, leadership and management and apprenticeships, while behaviour and attitudes and personal development were deemed ‘requires improvement’.

The firm previously had a grade three rating from two consecutive inspections in 2019 and 2022.

The report said of Ensis: “They do not identify accurately the reasons for apprentices leaving their apprenticeships early, nor do they put in place appropriate actions to stem the decline in quality of the apprenticeship provision.”

The watchdog also condemned leaders for presiding over “a continued decline in the quality of education” which included relying on apprentices “teaching themselves” for most of their programme.

“Leaders have been too slow to rectify the areas for improvement from the previous two inspections, when inspectors judged the provision to require improvement,” Ofsted said. “Leaders’ self-assessment of the provision is too positive.”

Inspectors said too many apprentices had fallen behind in their training and Ensis failed to provide the support needed to help them catch up swiftly. As a result, too few apprentices achieved their qualifications.

While employers were invested in helping apprentices gain knowledge and skills, “skills coaches do not plan opportunities for apprentices to link theory to their workplace practice, or to further practise their skills,” inspectors found.

Ensis Solutions created masterclasses in equality and diversity, safeguarding, and restrictive practices, but inspectors criticised leaders for not imposing expectations for apprentices to attend.

“Leaders do not monitor apprentices’ attendance at these sessions or whether they have watched the online webinars,” the report said. “Therefore, leaders cannot assure themselves that apprentices have gained these skills.”

The report also found “ineffective” governors did not sufficiently challenge leaders to swiftly improve the quality of education or increase the proportion of apprentices who successfully complete their apprenticeship.

The report did highlight the positive and professional attitudes of apprentices, who gain confidence and new skills to be proficient in the workplace.

The Department for Education typically terminates apprenticeship contracts with private training providers that are judged ‘inadequate’ by Ofsted.

Ensis Solutions did not respond to requests for comment.

CITB shaves £5m from apprenticeship clawback bill

A government-sponsored construction training body has negotiated a near-£5 million reduction in a huge clawback of apprenticeship funding.

The Construction Industry Training Board (CITB), which is funded through a levy on 67,000 employers, faced a liability of nearly £17 million from the Education and Skills Funding Agency (ESFA) due to “non-compliance” with funding rules between 2018 and 2021.

But the board’s annual report, published yesterday, said a “detailed investigation” into the ESFA’s audit meant it was able to “provide additional assurance and resolve potential errors” in its claims for apprenticeship levy funding.

This has lowered CITB’s likely overall liability to £12.3 million.

The report revealed poor record keeping meant the CITB was initially unable to evidence various funding claims.

It said: “We have taken steps to transform this part of the organisation, improving processes and introducing new technology, and are confident we will not experience similar issues for 2023-24 or future academic years.”

FE Week understands a large part of the apprenticeship levy clawback was due to high levels of sub-contracted training delivered through its branches of National Construction College, which it has now withdrawn. It has now settled £1.6 million of the clawback, a spokesperson confirmed.

CITB is an executive non-departmental public body for England, Scotland and Wales whose purpose is to “attract construction industry talent” and “support skills development”.

Last year it received £202 million in funding from a levy on construction employers of 0.35 per cent on payroll staff and 1.25 per cent on construction industry scheme subcontractors.

It spends the levy on grants for apprentices, qualifications and short-duration grants.

CITB’s board has been chaired by former ESFA chief executive Peter Lauener since 2018 – other members are senior representatives from large construction and property companies including Kier, Robertson Group and Keltbray.

An Ofsted visit last year resulted in its training centres’ grade dropping from ‘outstanding’ to ‘requires improvement’.

The watchdog’s latest report in June said CITB had made ‘significant progress’ in three out of four areas of concern by ensuring a significant proportion of apprentices caught up with their studies and improved their English and maths skills.

Since 2017 the number of apprentices on its books has fallen from 9,000 to about 400.

The report also reveals that CITB has “ceased to invest” in its ‘Training Model Improvement’ project because it “failed to deliver” on expectations.

The project was reportedly funded through a £1.5 million investment in Shared Services Connected Ltd (SSCL), a European technology consultancy giant that was co-owned by the Cabinet Office until late 2023.

CITB is attempting to recover costs through “formal contractual dispute proceedings” but the outcome “remains uncertain at this time”.

A spokesperson said: “Following extensive due diligence and close working with ESFA, the outcome of their audits of 2019-20 and 2020-21 Apprenticeship Levy provision has resulted in an agreed clawback against future apprenticeship levy claims of £12.3m.

“A significant proportion of this liability relates to subcontracted provision, from which CITB has withdrawn.

“We have since taken steps to transform apprenticeship delivery through the National Construction College, which is already having a positive impact on learners with retention rates increasing.

“We have also improved processes and we’re confident that we will not experience similar issues in future academic years.”

Start date for apprenticeship UCAS points revealed

Apprenticeships will be allocated UCAS tariff points from next year, the university admissions body has confirmed.

Level 3 apprentices who want to apply for higher education courses will be awarded up to 112 points on the University and College Admissions Service applications system from May.

UCAS initially scheduled the rollout for September this year, but following a summer consultation pushed back the timetable again by eight months to give university admissions teams more time to adopt the new proposals.

It means learners applying for courses starting in September 2026 will be able to use UCAS points from their apprenticeship.

UCAS said it will review the model from autumn 2025 to autumn 2026 and publish data assessing the use of tariff points, the impact on university admissions decisions and evaluate any “external changes” to the apprenticeship landscape across all four UK nations.

The points will only apply to apprenticeships at level 3 in England, Wales and Northern Ireland and Scottish Credit and Qualifications Framework (SCQF) at level 6. UCAS confirmed it currently has “no plans” to broaden the scope of the tariff beyond level 3.

To be eligible for the points, apprentices will have to meet the conditions of their degree offer, such as passing their end-point assessment, by September 4 of the forthcoming academic year.

UCAS chief executive Jo Saxton said: “Bringing parity to vocational and technical qualifications was one of my key priorities during my time as chief regulator at Ofqual, and I am delighted that UCAS is continuing that drive for parity by allocating tariff points to apprenticeships.”

Jennifer Coupland, who heads up the Institutes for Apprenticeships and Technical Education, added: “Apprenticeships are already recognised by prestigious employers and professional bodies. Getting recognition from universities completes the hat-trick.”

9 in 10 colleges support changes

UCAS launched a four-week consultation to universities, colleges and representative bodies in May over its proposals to allocate points based on the size and grading structure of an apprenticeship in the four UK nations.

It was floated in 2023 with the aim of putting level 3 apprenticeships on a level playing field with A-level, T Levels and other UK level 3 programmes.

The consultation received over 200 responses. 89 per cent of colleges that responded were in favour of the model, followed by 85 per cent of schools and 77 per cent of universities.

The “most divided” consultation response was agreeing with UCAS removing grade bands above pass (e.g. merit, distinction). 50 per cent agreed but 35 per cent disagreed, saying it was “unfair” not to recognise achievements and could “demotivate” students in seeking more than a ‘pass’.

Incoming system

The points are as follows; apprenticeships typically lasting between 12-17 months would give successful apprentices achieving a ‘pass’ 48 UCAS points.

An 18 to 23-month apprenticeship would be awarded 64 points, and a two-year apprenticeship would be awarded 96 points, equivalent to three A-levels with grade C, or a T Level pass grade.

An apprenticeship lasting 36 months or longer would accrue 112 UCAS points.

Previous FE Week reporting pointed out that the most popular apprenticeship among under-19s last year – the 18-month-long level 3 business administrator – would award successful apprentices 64 UCAS tariff points, short of the typical minimum university 72 to 128 UCAS point entry requirements.

UCAS acknowledged the concerns around the number of tariff points in an FAQ document.

It said: “[UCAS] appreciates the significant learning, experience and preparedness for higher education that an apprenticeship can bring.

“However, UCAS has a responsibility to ensure that the UCAS tariff does not indicate that an apprentice is necessarily better prepared for higher education than those that have completed an A-level, T Level, Scottish Highers, or other equivalent programmes of study.”

Duration vs credits

The tariff will use the expected duration of an apprenticeship set out by IfATE to determine the number of points, which previously received criticism from two university groups for having “pitfalls”. The groups suggested a credits system that awarded one credit for 10 hours of teaching, following the Scottish system.

Half of consultation respondents agreed or strongly agreed with using duration as the best measure of the size of an apprenticeship. Over a fifth were neutral and another fifth of respondents disagreed.

Susanna Kalitowski, head of policy at University Alliance, said its concerns that the model will “undermine” the aim of parity of esteem “still stands”.

She told FE Week a two-year apprenticeship being worth no more than 96 points “risks signalling that these qualifications are less rigorous or prepare students less well for HE study, when that is very much not the case”.

“We know UCAS will do all they can to mitigate this, and we welcome the commitment to regularly reviewing the policy,” Kalitowski added.

UCAS doubled down, saying it was the “best and only viable” model and had tested using credits but “it did not show any significant difference”.