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28 June 2026

Latest news from FE Week

Agency loses tolerance on delivery

A Skills Funding Agency clampdown on under-delivery next academic year has prompted concerns that providers could be hit by growing “financial instability”.

The agency is cutting its tolerance of under-delivery, meaning more providers could be hit with an in-year reduction to their allocation.

This academic year, providers who were 15 per cent below their SFA contract target at November 2013 faced an in-year reduction. At February this year the tolerance level was 8 per cent and at May it was 5 per cent.

However, next academic year the levels are falling to 12 per cent, 6 per cent and 3 per cent, respectively.

Both the Association of Colleges (AoC) and the Association of Employment and Learning Providers (AELP) warned against the move.

An AoC spokesperson told FE Week: “Despite rising demands to fund apprentices, adult learners and people who are out of work, the agency has less money available in its budget.

“There’s naturally pressure on the agency to redistribute funds during the year, but there is also a risk that such decreasing of tolerance with regard to in-year reductions will add to financial instability within the sector and institutions.”

The levels, which apply to contracts worth more than £10,000, were laid out in the agency’s Operational Performance Management Rules 2014 to 2015 published on Wednesday (June 25).

Stewart Segal, AELP chief executive, said: “The current system was developed when there was more flexibility in the Adult Skills Budget. We now have restrictions on the opportunity to vire funds so it is very difficult for providers to manage delivery to four quarterly measurement points as well as managing to a financial year and an contract year.

“The reduction of the thresholds will make this management even more difficult, so the agency has to be very clear as to what the priority delivery programmes are and their decision-making must be more transparent and timely to enable providers to respond to the contract changes.

“We have had several instances where contract increases come far too late to deliver the increased volume and reductions are made in the following quarter.

“With these reduced thresholds and the new contract management system within the agency, we need a full review of how the system will work in 2014-15.

“We also believe that any system of in-year contract reviews should apply to all providers.

“Providers will have to deliver Trailblazer pilots from within their existing allocations but we hope any changes to volumes will be taken into account in the quarterly reviews.

“Those quarterly reviews must also be open and transparent and must allow providers to make a case for retaining volumes where specific circumstances affect their delivery profile.”

An agency spokesperson said: “We are seeing improved performance by providers against contract values, and have therefore adjusted the tolerances to reflect more closely the actual pattern of performance.

“As now, providers will be able to make a case for retaining contract values where they can demonstrate that their profile of delivery will differ from the performance profile.”

Cash application form for free school meals

The Education Funding Agency (EFA) has issued a new application form for providers to dish out free school meals cash to needy learners.

The government wants disadvantaged 16 to 18-year-olds to be fed by providers — and has earmarked funds to develop kitchen facilities — or through a credit or voucher scheme for outside caterers.

However, it conceded in April some learners may have to be given cash in “exceptional circumstances” that it listed at the time — and it also said there may be even more situations where learners were handed money.

The EFA’s new document last week was aimed at providers in this latter situation. It lays out how providers, from September, can give out the minimum £2.41 per meal for special, but undefined, reasons.

Piran Dhillon, Association of Colleges public affairs officer, said: “The conditions [for cash payments] set by EFA are challenging but allow some flexibility to colleges in how they deliver the meal entitlement.”

She added: “We are pleased EFA has taken on board concerns following visits to colleges, which have resulted in some improvements to the scheme.

“This has included a higher cost per meal (£2.41 rather than the £2 suggested initially) and acceptance there needs to be exceptions to the cashless transaction rule.”

Paul Warner, Association of Employment and Learning Providers director of employment and skills, said the new guidance reflected how “a great deal of training takes place away from institutions with catering facilities”.

Potential fraud cases with SFA rocket

The number of potential fraud cases referred to the Skills Funding Agency (SFA) more than doubled between 2012-13 and 2013-14.

In the SFA’s annual report and accounts for 2013-14, it said that 108 new “allegations of financial irregularity” were considered, compared to 52 the previous financial year.

The figure for the number of allegations in 2013-14 was 132, but the SFA said 25 allegations related to one case, although it declined to identify the provider.

The report said: “Therefore, the total number of new cases considered during the period was 108.

“There were 40 cases (of which 21 were investigations) brought forward from 2012-13 and a further six allegations brought forward that had not been entered into the vetting and assessment process as at April 1, 2013.

“During 2013-14, 37 investigations were closed and, as at March 31, 2014, there were 18 investigations ongoing and 22 cases at the vetting and assessment stage.”

An SFA spokesperson told FE Week: “We are continually reviewing and strengthening our governance and business processes, particularly in relation to allegations of financial irregularity.

“At the beginning of this year, we changed the way we report on allegations and now also include those that were referred to other agencies.”

The report for 2012-13 had said that 41 allegations were brought forward from the previous year and 52 were made to March 2013.

No case was referred to the police in 2012-13, but one case was passed on to officers in 2013-14, although they decided not to take up a criminal investigation, according to the SFA.

An AoC spokesperson said: “The SFA spent more than £4bn in 2012-13 on more than 2,000 organisations via some 40 programmes.

“We see SFA’s investigation work as being necessary to protect the public purse. The issue here isn’t the number of investigations that have been conducted but what the outcomes were.”

Stewart Segal, Association of Employment and Learning Providers chief executive, said: “We fully support the zero-tolerance approach to potential fraud taken by the SFA.

“There are very few cases of fraud in the sector and as the annual report says most of the errors found in audits are misapplication of funds or where there is insufficient evidence.

“The error rates of PFA audits are around 1 per cent which shows that providers meet the complex rules of funding and evidence.

“The process for dealing with any funding issues needs to be robust, effective and transparent and it is good news that there are very few cases where there is evidence of fraud.”

Hub system ‘ready’ to calculate funds

The Skills Funding Agency will be hoping that long-standing problems in developing new funding software are at an end as it prepares to use the new Hub data collection system to calculate provider payments for the first time.

The agency’s revamp of its data collections and funding system was due to have been completed 11 months ago.

But it has suffered ongoing problems leading to the continued use of the old Online Data Collection (OLDC) as a crutch for its replacement, the Hub, since September.

However, the SFA has announced that the Hub will be stepping up to the plate for the R11 data return, due in by July 4, with responsibility for calculations.

An agency spokesperson said: “We intend to continue to run the two systems in parallel until we consider it appropriate to formally de-commission the old system.”

A spokesperson for the Association of Employment and Learning Providers said: “Providers seem sanguine about dealing with the issue. We hope however that a switch to a single system can be made soon.”

An Association of Colleges spokesperson said: “It’s imperative accurate information is on record and a back-up system during this transition period offers some reassurance.”

World Class Apprenticeships

Download your free copy of the FE Week 16-page  supplement on World Class Apprenticeships ~ in partnership with OCR.

 

Click here to download (10mb)


 

In the 21st Century, ‘apprenticeship’ is truly an international word. Almost every English-speaking country in the developed world has an apprenticeship programme, and Central Europe leads the way on learning that combines on-the-job training with qualifications.

But when you drill down to the differences between countries and their programmes, the gaps could not be wider.

That was the purpose of the first world class apprenticeships study tour organised by the International Skills Standards Organisation (INSSO), which led delegates from Northern Ireland, South Africa, New Zealand, Canada and the United States on a journey of discovery earlier this month.

I was lucky enough to accompany the group, and in this supplement I aim to report back on the lessons we learned on our tour of America and Canada.

The Federation for Industry Sector Skills and Standards (FISSS) produced a helpful report on apprenticeships in English-speaking countries last year, from which we present some information on page three to set the scene.
Our first destination was Washington DC’s Urban Institute, where speeches from apprenticeships expert Dr Bob Lerman and US Labour Secretary Thomas Perez shed some light on the inside view of apprenticeships, or rather, the lack of, in America. These are covered on pages four and five.

On pages six and seven, we explore the Canadian system, which is governed by the all-powerful Red Seal programme. We also hear from Sarah Watts-Rynard in the first of a series of transatlantic expert pieces aimed at opening up the debate on global apprenticeship policy.

After Canada, our trip took us to South Carolina to investigate one of the US’s real apprenticeship success stories. See pages 10 and 11 for the employers’ view, and another expert from Apprenticeship Carolina’s Brad Neese.
Our tour was led by Labour MP John Healey, whose link to the FE and skills sector remains strong a decade after his term as England’s first adult skills minister ended. We feature some of his speech to the Urban Institute, along with an exclusive interview, on pages 12 and 13.

Finally, on pages 14 and 15, we have a debrief with INSSO chief executive Tom Bewick and other delegates on how the tour shaped their views on apprenticeships in the global arena.

In defence of criticisms of UCU’s graded lesson observation report

Former Ofsted FE and skills inspector Phil Hatton was critical of a report from University of Wolverhampton academic Dr Matt O’Leary that raised “serious questions about the fitness for purpose” of graded lesson observations. This is Dr O’Leary’s response to Mr Hatton.

The University and College Union (UCU) research project into the use and impact of lesson observation in FE recently came in for some critique from Phil Hatton.

The project is the largest and most extensive of its kind carried out in the English education system and as such marks an important milestone in lesson observation research.

However, Mr Hatton seemed more intent on damning the report than seriously engaging with its key findings. This is disappointing but not surprising given that Mr Hatton seemed to have a particular axe to grind and, as it turns out, has not even read the report.

Mr Hatton describes himself as a ‘scientist’, yet there is a noticeable lack of empirical evidence or systematic argument in his article, much of which is based on personal anecdotes.

The fact that he dismisses the real experiences and views of thousands of UCU FE members displays a high level of contempt towards them. That he should also compare them to ‘turkeys’ voting for Christmas is an insult to the very serious issues raised in this research.

Whether or not he disagrees with the views of UCU members, to belittle them is disrespectful and irresponsible. It is clear Mr Hatton has not read the report in full and thus draws on his pre-established prejudices to support his argument, the antithesis of a ‘scientific’ approach.

Performance-driven observations are an extremely unreliable means of attempting to assess and measure professional competence

Mr Hatton takes issue with the representation of college managers in the study. The research sample included UCU members nationally. The fact that senior college managers comprised a small percentage of that sample is a reflection of the composition of UCU’s membership.

It has nothing to do with excluding a specific population group from the research, which Mr Hatton seems to imply in his comments.

A sample can only be drawn from the population in question. If Mr Hatton were to make the effort to read the report in full, he would indeed find there are numerous instances in which the views and voices of senior managers are included, often conflicting with those of teaching staff.

His comments suggest that he has little understanding of research methodology. If he did, then he would know that to reduce threats to the validity and reliability of any research, the methodology should be made explicit and transparent for all to see so that a judgement can be made on what data was collected, from whom, how it was collected and analysed etc.

Once again, had he read the report, he would realise that there is a section which discusses this in detail and is open to the external scrutiny of any reader.

Mr Hatton states: ‘I am very simplistic about my expectations of the FE system’. His simplistic position is not restricted to his expectations of FE, but extends to his conceptualisation of the way in which observation is used as a method and its role in informing judgements about professional competence.

In referring to a system of observation that he introduced at a college where he was responsible for managing quality, he conflates the use of grading performance with ‘identifying and spreading good practice’ as though this was something that is unproblematic and uncontested, let alone the disputed notion of what constitutes ‘good practice’.

However, in his defence, he does state that this was 18 years ago.

Times have certainly changed considerably since then and the failure to acknowledge the increasingly high stakes nature of graded observations in FE is merely one example of how out of touch he appears to be with the current debate.

His claim that ‘if you cannot put on a performance with notice, there has to be something very lacking in your ability’ is very revealing about Mr Hatton’s views of the purpose of observation.

He is right about associating the use of summative observations with ‘performance’. A key theme to emerge from the research data was the inauthenticity of the performance element of isolated, episodic observations.

There were repeated examples of ‘poor’ teachers raising their game for these one-off observations, only to go back to their poor practice for the rest of the year.

In contrast, some consistently effective teachers were so unnerved by these high stakes observations that they seemed to go to pieces during the observed lesson.

Thus the important lesson here is that performance-driven observations are an extremely unreliable means of attempting to assess and measure professional competence.

His final claim that ‘the best way of gauging the quality of the experience of learners is to observe what they are getting in a quantitative way, in a transparent way’ would seem a commendable suggestion, but it is one that belies the complexities of teaching and learning and seeks to measure them in a reductive and ultimately unreliable manner.

Let us continue to use observation to inform judgements about the quality of teaching and learning, along with other sources of evidence.

But let us also acknowledge its limitations and accept that the grading of performance is little more than a pseudo-scientific practice that gives rise to some very serious counterproductive consequences for the well-being of staff.

Dr Matt O’Leary, principal lecturer and research fellow in post-compulsory education at the University of Wolverhampton’s Centre for Research and Development in Lifelong Education (CRADLE), and author of Classroom Observation: A Guide to the Effective Observation of Teaching and Learning