European funding for tackling youth unemployment could have been better spent at local level, a Department for Work and Pensions (DWP) official has admitted.

The head of the DWP European Social Fund (ESF) Division, Angus Gray, told a House of Lords inquiry into youth unemployment that too much of the fund had been spent centrally.

He pledged to ensure more control over the money was handed over the bodies such as Local Enterprise Partnerships (Leps).

Mr Gray was appearing alongside Skills Minister Matthew Hancock and DWP Employment Minister Esther McVey as part of the inquiry by the Lords EU Sub-committee on the internal market, infrastructure and employment, led by Baroness O’Cathain.

Sub-committee member Baroness Valentine said: “We have received evidence from some witnesses that the use of EU funds in England is too centrally-directed and delivered and that this inhibits the development of effective local responses.

“While Leps should have a greater role in determining priorities for the next programming period, we have not been persuaded that the government’s plans give sufficient powers to actors at the local level, particularly when it comes to delivery rather than planning.”

Mr Gray said: “I think what I’d say is those criticisms are absolutely valid of the way we have run the programme to date.

“I always point out that all provision is local, individuals are being helped in a city, or in a town, in a place and they are being helped to connect to the local labour market, but nonetheless it is true that the approach I and my predecessors have been managing over the last seven years has been more national than local.

“But we are changing that for the next programme, and I am testing the faith of people out there in whether they think I am making the change I am saying we are making.”

Mr Hancock also re-assured the committee, adding: “The ESF money has now been devolved to LEPs. Maybe we can use that to demonstrate the strength of our intentions in this area.

“It is true that in many cases funding is demand-driven, i.e. when you get an apprenticeship, that triggers the government funding, rather than giving money to an intermediary to then spend in a particular area. In that sense, it is devolved right to the ground to the employer or to the individual who is doing the training.”

The ESF supports Skills Funding Agency projects worth £874m and other schemes run by the DWP and National Offender Management Service totalling £354.6m.

It also gives an allocation of funding to regions — ranging from £2.8m (Gibraltar) to £403m (London).

The ESF spending across the European Union (EU) amounts to around 10 per cent (£62.4bn) of the EU’s total budget The aim of ESF spending is to support the creation of more and better jobs in the EU.

The boss of A4e has spoken of his disappointment at four former employers after they admitted ripping off taxpayers while employed by the welfare-to-work provider.

Ex-A4e recruiters Julie Grimes, Aditi Singh, Bindiya Dholiwar and Dean Lloyd, pleaded guilty to more than 30 charges of forgery and fraud when they appeared  at Reading Crown Court (pictured) on Monday, February 3.

I am deeply disappointed that a small number of people who formerly worked for A4e…”

The case followed a police investigation into financial rewards claimed for helping the unemployed into work through the European Social Fund (ESF) ‘Aspire to Inspire’ Lone Parent mentoring programme, which ended in July 2011.

It is alleged that they forged documentation to support fraudulent claims for rewards for work with learners who had not found work or did not exist over a period of four years until February last year.

Grimes, 51, of Staines, admitted nine charges of forgery and Lloyd, 37, of Milton Keynes, admitted 13 offences of forgery.

Dholiwar, 27, of Slough, admitted seven counts of forgery while Singh, 30, of Slough, admitted two counts of forgery and one of fraud. No date was set for set for sentencing.

Andrew Dutton, A4e chief executive, said: “I am deeply disappointed that a small number of people who formerly worked for A4e on the Aspire to Inspire contract in the Thames Valley up to 2011 clearly let down the people they were supposed to help, and in turn the taxpayer, Department for Work and Pensions (DWP) and A4e.

“A4e co-operated fully with the police enquiry, after our own internal investigation first brought these incidents to light.
“Since these events took place, we have augmented our controls and processes to seek to ensure that nothing like this could ever happen again.

“This includes implementing all of the recommendations for improvement made to us by White & Case LLP following their independent review of our core processes.

“Furthermore, rigorous audits undertaken by the DWP and the Skills Funding Agency have concluded that there is no evidence of fraud on any of the contracts that we currently hold with them.

“A4e has, of course, committed to paying back in full the total value of unsubstantiated claims that were made to the Department for Work and Pensions as a result of the activities of these former employees.

“I would also like to say thank you to our 3,000 loyal, hard-working and principled staff who each day deliver public services to the highest standards that help to improve the lives of thousands of the most vulnerable in our society.

“I am intensely proud of what they do and deeply sorry that the allegations have for so long cast a shadow over their good work.”
The trial of eight other ex-A4e defendants, who pleaded not guilty to all charges at Reading Crown Court, including conspiracy to cheat, is expected to start on October 6.

A further defendant, Nikki Foster, aged 30, of Reading, recruiter, was not at court on Monday. She is due to appear
on Tuesday, February 11, over charges including fraud.
All defendants were unconditionally bailed.
[Proceeding]

Fears have been raised that a lengthy application process for FE loans could be putting people off starting courses.

worrying conversion rate”

David Hughes (pictured top), chief executive of the National Institute of Adult Continuing Education (Niace), claimed there was a “worrying conversion rate” between the number of students offered 24+ advanced learning loans and those who took up the offer and started courses.

He told FE Week this could have been caused by slow processing of loans — an issue the Student Loans Company (SLC) said had “improved”.

Mr Hughes pointed to government figures published last year that showed there had been 52,468 loan applications up to the end of October — of which 39,043 were ready for payment by that point.
But just 25,200 loans were taken out by the end of October, according to provisional figures from the latest Statistical First Release (SFR).

It indicated that only 65 per cent of potential learners offered loans had taken up the offer and started their courses by the end of October.

Mr Hughes said: “The longer loans take to be processed, the more likely people are to miss the start of their course or even change their mind over starting altogether.
“It is probably one of the reasons why there is a worrying conversion rate from those who have applied for loans and those taking up courses.”

Meanwhile, the most recent figures from the Department for Business, Innovation and Skills (BIS) (published last month) showed 57,181 loan applications had been lodged by the end of December — of which 20 per cent were not ready for payment.

A spokesperson for the SLC claimed its processing rate had improved since the end of December — with 77.5 per cent of 61,935 loan applications received by February 2 being processed.
She said: “These figures demonstrate that SLC continues to efficiently process applications for funding.

“If a customer has been asked to provide evidence to support their application they are advised to send in their evidence as soon as possible to allow us to complete their application and prevent any delays.”

Christine Doubleday (pictured centre), deputy executive director of the 157 Group, said: “The ongoing lag in the readiness of payments is clearly worrying.

“Concerns raised earlier in the year are not being rectified quickly enough.

“Behind the statistics lie significant numbers of people who are either unable to start their learning or trying to do so on very little money.”
Shadow Skills Minister Liam Byrne (pictured right) said: “It is vital that people who miss out the first time [on education] get a chance to gain skills and qualifications.

“But the government is letting these people down. Ministers must tell us why these loan applications are not being dealt with quickly enough.”

A spokesperson for BIS declined to comment.

Graduate maths teachers who choose to teach in FE colleges will get a bonus of up to £10,000 under a £20m plan unveiled by the Government to recruit 500 new maths teachers in the sector.

Skills and Enterprise Minister Matthew Hancock announced the new measure today in the wake of changes to traineeships, apprenticeships and vocational education which places more importance on maths.

Under the scheme, graduates who choose to teach in the sector will receive a bonus of £7,500, payable in their first year, and rising to £10,000 if they train to support learners with special educational needs.

The policy will also reward colleges with up to £20,000 if they recruit a specialist grade maths teacher, and £30,000 for those which share teaching expertise with other colleges and learning providers.

Mr Hancock said: “Maths is an essential foundation for any career. Taught well it opens up a range of possible jobs and makes a real difference to progression to the highest levels.

“Attracting the brightest and best graduates to teach in maths in further education will help ensure learners get the educational grounding they need.

“This is an important step in creating a skilled workforce that meets the needs of employers and can better compete in the global race.”

Mr Hancock also announced that a scheme to give bursaries to trainee maths teachers, reported by FE Week last August, has been extended to the 2014/15 academic year.