Bosses of the FE sector’s new self-improvement body, the Education and Training Foundation, have been warned of “sycophantic nepotism” after it emerged that no advertising had taken place for senior roles.
The foundation’s chair and chief executive posts are currently publicly on offer, but interim posts, including director of contracting and procurement, look likely to be filled without having been advertised.
The body, formerly known as the FE Guild, is seen as replacement for the Learning and Skills Improvement Service (LSIS), from which a number of staff have moved via Transfer of Undertakings (Protection of Employment), or TUPE.
And foundation bosses said they had been seeking the “best possible candidates” for posts having approached sector bodies and recruitment agencies for candidates.
However, FE Week understands that no public advertising for some key posts took place. The situation has drawn warning from FE commentators against appointments without advertising.
Jayne Stigger, head of maths and science at North East Surrey College Of Technology, said: “This is a tactic sometimes used by colleges when they already have a preferred internal candidate and using it doesn’t help change the negative perception of ‘jobs for the boys’ and political appointments, rather than best person for the role. There is a danger of giving the impression of sycophantic nepotism.
“If FE truly is at the heart of the foundation, then as wide a range of candidates as possible should be sought and interviewed.”
Meanwhile, the chair of governors at one college in the north of England, who did not wish to be named, said: “The foundation has a pivotal role ensuring FE has the leadership, governance and workforce fit for the future and any appointments process should be transparent and accountable.
“The sector needs a fresh perspective not more of the same.”
Foundation interim chair Sir Geoff Hall, former principal and chief executive of New College Nottingham and chair of the Information Authority, said: “The foundation board at its meeting on August 1 — the first day of the new organisation — agreed the delivery plan for 2013/14.
“To ensure a good start was made to achieving the plan, and given only a handful of staff TUPE’d across from LSIS, the board accepted the need to fill vacant posts initially through a combination of interim appointees and secondees.
“We therefore approached four interim agencies to help us find suitable candidates who were immediately available.
“We asked them to come back to us with prospective candidates within a week which is a normal timescale when recruiting for interim positions with an immediate start date.
“Because those agencies mainly serve colleges, we also shared the specifications with, for example, the Association of Employment and Learning Providers [AELP] to see if there were available staff.”
Sir Geoff, who was also national director of the Further Education Funding Council/Learning and Skills Council, added: “Our chair and chief executive posts are currently out to advertisement in the usual way.”
FE Week was alerted to foundation roles and the lack of advertising after the AELP encouraged members to apply — but after the closing date.
Their weekly newsletter was sent out on Tuesday, August 13, directing members to a news page on their website containing links to the job pack.
Both job packs were posted on the deadline day of Friday, August 9. The AELP declined to comment, but FE Week understands it received the job pack from the foundation on Thursday, August 8.
Foundation lead for professional learning [a role also not advertised] Sue Dutton, a former deputy chief executive of the Association of Colleges, said: “The foundation will be advertising its fixed term contracts in the second week of September for its establishment posts.
“We will be using a variety of media to ensure the fullest range of coverage and audiences within both the FE sector and in the wider community of education and training.
“We have some immediate staffing needs to cover the interim work of the foundation until the established posts can be recruited and have, therefore, used the services of four recruitment agencies well-known to the sector in order to attract the best possible candidates who are immediately available.
The former interim cheif executive of the now defunct Lifelong Learning UK added: “All candidates for both interim and substantive roles will be subject to a competitive recruitment process.”
The number of apprenticeships lasting less than a year has fallen “dramatically” after they were outlawed over fears about the quality of short-term programmes.
They fell from 43 per cent (224,000) of the total number of apprenticeship starts in 2011/12, to just 8 per cent (28,000) for the first nine months of the academic year.
The figures were obtained from the Skills Funding Agency by FE Week under the Freedom of Information Act.
A spokesperson from the Department for Business, Innovation and Skills (BIS), said: “It is our priority to ensure that apprenticeships are of sufficient duration to deliver the high quality training apprentices and businesses need.
“Although this is provisional data, it is good news that the proportion of short apprenticeships has fallen dramatically.
“Under the current rules there will always be a small number of apprenticeships lasting less than a year, because we allow some flexibility for adult apprentices who have relevant prior learning.”
There were 17,600 intermediate level apprenticeships of less than a year’s duration last year, among which the 19 to 24 age group saw the most at 7,600.
There were 10,300 short-term advanced level apprenticeships, with the 25+ age group the largest at 5,300. And there were 200 among higher apprenticeships, shared equally between the 19 to 24 and 25+ age groups.
David Way, National Apprenticeship Service (NAS) chief operating officer, said at the time: “We need to ensure that all apprenticeships are high quality.
“By ensuring they last between one and four years, we are not only giving employers what they say they want but also giving confidence back to everyone who has questioned the growth in shorter apprenticeships.”
The BIS Select Committee “supported” the minimum duration rule, but said it should be monitored so that, for example, talented learners did not feel held back if they felt able to complete the programme sooner.
However, the Association of Employment and Learning Providers was opposed to the rule and has continued to argue for exceptions in light of this year’s fall in short-term apprenticeships.
An association spokesperson told FE Week: “Employers and providers have down the years regularly shown that they are very flexible in adapting to rule changes in skills programmes, so the figures are hardly a surprise.
“We maintain the long-standing position though, that exceptional candidates should be allowed to complete an apprenticeship in less than a year if it is in the interests of both the employer and the learner.
“The select committee heard some evidence from employers that this was a reasonable stance and we should remember that apprenticeship frameworks are employer-owned.
“Furthermore, longer programme durations do not automatically mean an improvement in quality as there are a host of other factors which come into consideration as well.
“The committee was therefore right to recommend that the impact of the rule changes should be closely monitored to ensure that talented and older apprentices with appropriate work experience are not dissuaded from joining the programme.”
The number of young people out of work has risen despite the overall unemployment rate remaining the same in the last quarter, government figures have revealed.
The number of unemployed 16 to 24-year-olds went up 15,000 between April and July, from 958,000 to 973,000.
However, the figure is considerably down on the same period last year, when youth unemployment hit more than 1.1 million.
Skills Minister Matthew Hancock said: “Youth unemployment is down 38,000 since last year, and the youth claimant count has now fallen for fourteen consecutive months, but we are not complacent, and are committed to giving young people the best possible chances for gaining the most up to date skills to participate in the modern economy.”
He pointed to the traineeship scheme, which will be funded from this month, saying it would “give young people a clear pathway into apprenticeships and other employment”.
He added: “We are boosting apprenticeships to provide businesses with the skills they need to compete.”
The increase in out of work 16 to 24-year-olds put the unemployment rate for the age group at 21.4 per cent, up 0.7 percentage points from January to March 2013.
According to international guidelines, unemployment rates are calculated as the number of unemployed people divided by the economically active population — people who are employed plus those who are not.
Increasing numbers of young people going into full-time education reduces the size of the economically active population and therefore increases the unemployment rate.
From April to July this year, there were 3.58 million 16 to 24-year-olds in employment, down 92,000 from January to March 2013.
There were 2.67 million economically inactive 16 to 24-year-olds, up 63,000 from January to March, but 74 per cent of these were in full-time education.
Spencer Thompson, economic analyst at think tank the Institute for Public Policy Research (IPPR), said the performance of young people in the labour market was an “area of particular concern”.
“The danger is that when the economy really starts to get moving again, the young will miss out,” he said.
“This will have profound economic and social costs in the future.”
He added: “Getting the youth labour market working again is going to require a concerted effort from policymakers.”
He repeated calls made by the IPPR for the government to implement a jobs guarantee for young people which, he said, would “provide much needed work experience and employability skills to the growing ranks of unemployed youth”.
Pictures and messages from colleges across England, celebrating A-level results day.
Students congratulate each other at Selby CollegeThumbs up at Farnborough College of TechnologyJasmine Oladimeji’s looking pleased with her results at Ealing, Hammersmith and West London CollegeJumping for joy at Macclesfield CollegeBarnsley Sixth Form College students looking happy with their resultsCelebrations are in order at Salford City College
Burton and South Derbyshire College students after opening their resultsRichard Huish College students with their resultsDaniel Cook, 19, bares his heart for us after getting an A in maths, and Bs in chemistry, biology and physics. He is going to study medicine at Newcastle University
Joanna Elmore , 23, from Selsdon achieved three As in history, politics and English literature and an A* in sociology. She said: “The teachers here were amazing. I received lots of support and am now excited to see what the future holds”. Joanna’s mother, after giving her daughter a big hug, said: “I am so proud of all of her hard work, the great education she has received here means that she can go on to study English literature at university.”
Who needs to keep their feet on the ground when they’ve got results like the ones these students from Trafford College have?Priestley College students wave their A levels goodbyeStockton Riverside College Bede Sixth Form student Lizzie Carr rejoices with her dad
Stockton Riverside student Lizzie Carr, 18, (pictured above) gained the results she needed to study physics at Oxford University. The 18-year-old from Norton achieved two A*s and an A grade in maths, further maths and physics.
She said: “I felt so sick earlier on this morning before I got my results, but now I’m just over the moon. It’s such a relief – but I’m so happy as well. I’m really looking forward to studying physics at degree level – it sounds a bit nerdy, but that’s what I’m most looking forward to. Afterwards, I’d love to stay in academia and do research.”
Lizzie’s results are even more remarkable, because she missed two months of school after being diagnosed with Adolescent idiopathic Scoliosis – a painful curvature of the spine, when she was 13, which meant she struggled to walk or stand and had to have an operation when she was 14.
“I’m so excited about going to university – I cannot wait,” she said.
Newcastle-under-Lyme College students celebrating the 138 As and A*s handed out to them and their classmatesSouth Cheshire College students with their resultsFriends at City of Bristol College celebrating togetherMore jumping for joy, this time from students at West Nottinghamshire College.Chichester College student Courtney Buckler said she was really proud of her A in musical theatre, and Bs in psychology and law after a tough year. She is off to Exeter University to study lawncn learner Jade Clarke, 19, looking pretty ecstatic
ncn student Jade Clarke, 19,(pictured above) got A*AA for English Language, Geography and Psychology respectively and is off to Bristol University to study Geography
She said: “I’m ecstatic to have got the results that I did as well as shocked as I wasn’t expecting to do so well! Studying at ncn has been a brilliant experience full of opportunities, as I was able to get involved in a lot of extracurricular activities. It’s also made me really passionate about the subjects and I have created my own blog www.jadesgeographyhub.co.uk – I can’t wait to add to this when I go to university.”
Warwickshire College students Kurt Shead and Jade Hartwell
Warwickshire College students Kurt Shead and Jade Hartwell (pictured above) were delighted with their results.
Kurt Shead 21, from Kenilworth, achieved an A* in law and As in English literature and history. He said, “I’m really happy to have got my place at Warwick University to study English literature. I’m a writer, so it’s the place to be.”
Jade Hartwell, 20, from Rugby achieved a stunning 3 A*s in physics, Maths and History and is off to Nottingham University to study physics. “I want to go on to do research and was hoping for one A* but 3 is fantastic. I couldn’t have done it without the support from the college.”
Weston College students Desi Georgieva, 19, and Catherine Malcolm, 18
The early bird caught the worm at Weston College.
Friends Desi Georgieva, 19, and Catherine Malcolm, 18, (pictured above) were among the first to get their results this morning and screamed with delight as they opened their envelopes.
Desi, who came to Britain from Bulgaria seven years ago, achieved an A, three Bs and a C, and is now off to the University of Bath to study International Management and Modern Languages.
She said: “I feel amazing. This is such a good day for me and I can’t believe I’ve finally got the results I wanted.”
Catherine, of St George’s, got an A in Religion and will be taking up a place at Bristol University to study Religion and Theology.
Bournemouth and Pool College students having a well-earned rest after all their hard workCentral Sussex College students reaching for the stars with their resultsNelson and Colne Sixth Form students looking very pleased with their results
Birmingham Metropolitan College student Belasim Moosavi is off to Cambridge in September
For one Birmingham Metropolitan College student, brilliant A level results meant the start of a whole new career.
Former mental health worker, Belasim Moosavi (pictured above) is aiming to pursue a career in scientific research after gaining a place at Cambridge University to study natural sciences.
“The college has made all this possible for me,” said the 32-year-old who achieved three As in biology, chemistry and maths.
“My interest in science grew from my studying GCSEs in evening classes at the Sutton Campus. This led to A levels and the suggestion that I apply to Cambridge.
“It was challenging being a mature learner studying among 16 to 19-year-olds but there was lots of support from BMET and their careers service. I’m really pleased with my results.”
Haringey Sixth Form Centre students were delighted with their resultsLoughborough College students jump for joyFrom left: Esher College students Hamish Forbes, Monica Oluwole, Tegan Jones, Ben Platt, Matt Hollands, Dominic Luck, Hannah Brandon and Simon Marshall
All the hard work has pair off for students from Esher College (pictured above).
Ben Platt who achieved four A* grades in biology, history, German and Spanish, said: “I am really pleased with my grades. Thanks to my teachers, especially the Language department, for helping me realise my goal of studying German and Spanish at St Catherine’s College, Cambridge. I’m really looking forward to starting the course in October.”
Monica Oluwole who achieved an A* and two B’s at A Level said: “Words can’t describe how excited I am to begin university in September; two years of hard work and determination have paid off!” Monica is going to study Law at Southampton University.
Simon Marshall who achieved an A* and two A grades said: “I’m so pleased with the grades I got. It was a big relief to have them, as I was getting really nervous over the past few weeks. I’m very grateful to my teachers as well, their supportiveness made all the difference.”
Simon is taking a gap year, and will then apply for a politics degree starting in September 2014.
Matt Hollands who achieved four A* grades in maths, further maths, chemistry and physics said, “I’m relieved to have achieved the grades I did. I will be studying engineering at Cambridge next year. Thanks to all the teachers and staff who have supported me at Esher.”
Northallerton College student Tom Rogers
Tom Rogers, 18, from Northallerton College, (pictured above) achieved three A*s and one A grade in applied IT double award, English and psychology despite being confined to a wheelchair with mobility limiting cerebral palsy.
Tom, who requires full time care, is now set to take up a place at Northumbria University to study psychology and hopes to become a forensic psychologist.
“I am absolutely elated with my results,” he said.
“Because I lack certain practical skills academia is very important to me as it’s an area where I feel I have the most to give.
“I’ve enjoyed a fantastic experience at Northallerton College and am really looking forward to moving on to university.”
A family affair: brothers Gary and Thomas Woodcock who achieved identical grades in the same subjects A in English literature, English language, and film studies and B in media studiesWakefield College student Carrie Battram, who got A* in law, A in film studies and B in media studiesBurnley College A level students spell it out for usOaklands College students who all studied intensive maths (AS and A2 in one year) and have all got into their first choice universities. From left, Louise Townsend, Lana Merritt and clever clogs George Milleret who got an impressive 98 per centBlack Country University Technical College students from left: Robert Baylis, 19, Will Haynes, Joe Symonds, and Rose Wilkins, all 18.
Northallerton College student Robert Chandler celebrates three A grades
From left: Northallerton College students Sophie McArthur, Ellie Coleman and Zack Murfitt
From left: Northallerton College students Stephanie Bell, Amy Craven, Sophie Banks and Lois Ancell
From left: North Hertfordshire College students Emma Page, Kirsty Voller and Olamide Owojori
North Hertfordshire College students (pictured above) told FE Week what they were planning to do next.
Olamide Owojori, 18, from Stevenage, said: “I got an A in sociology and two Bs in law and psychology, which is what I wanted, and I’ve now got a place to study Law at Brunel which was my first choice. I’m really, really excited.”
Kirsty Voller, 19, from Luton, said: “I got an A* in my extended project qualification, B in psychology, a B in sociology and a C in English. I’m going to Huddersfield University to study psychology, which was my first choice and I’ve wanted to study psychology ever since I started my A levels.”
Emma Page, 18 from Stotfold, his off to Bangor, having achieved a place to study law with social policy.
From left: Sunderland College students Emily Elkington, Wenhui Tan, Nigel Harrett, Jonathan Softley, and Sam MorrisonFront, from left: Sunderland College students Emily Elkington and Sam Morrison. Back, from left: Jonathan Softley, Nigel Harrett and Wenhui Tan
Sunderland College students (pictured above) all have their own reasons to be pleased with their impressive results.
Wenhui Tan, 18, from Hendon in Sunderland achieved one A*, two As and two Bs. She hopes to study maths and statistics at the University of Bristol.
She said: “I moved to the UK from China two years ago, so college was not only a challenge for me academically, but also because of the language barrier.
“The college helped me a lot and I think their support really helped me to achieve the grades I did.”
She added: “I’m really looking forward to getting to university and putting into place the skills I have gained during my time at Sunderland College.”
Emily Elkington, 18, from Tunstall, Sunderland, studied psychology, sociology and religious studies at A Level, as well as undertaking an extended project in psychology. She achieved two A*s and two As. Emily plans to study psychology at the University of Nottingham, and hopes to become a neuro-psychologist after her studies.
She said: “I’ve always known what I wanted to do and when my mother suffered a brain injury in 2011, it made me sure that I wanted a career in neuro-psychology.
“I was average at GCSE level, but the support and encouragement I got from the college made me blossom. My lecturers had faith in me and I started to believe in myself and work harder.
“I put my social life on hold to focus on my studies, and just hoped it would pay off. I cannot take the smile off my face today. I’m so happy.”
Jonathan Softley, 18, from Newbottle, Houghton-le-Spring, achieved two As and one A*. He studied maths, chemistry and physics and is going on to Newcastle University to study chemical engineering.
He said: “Chemical engineering seems to fit really naturally with my interests so I’m looking forward to studying it – although a little apprehensive.
“I really enjoyed my time at Sunderland College. The lectures were great and really supported me with help and advice. I’m sad to leave.”
Sam Morrison, 17, from South Shields, is going on to study for a degree in medicine at Newcastle University. He studied maths, physics, biology and chemistry at Sunderland College, achieving a clean sweep of A* grades.
He said: “I’m really happy. My place at Newcastle University was conditional, so I had to achieve at least three As to make the grade. It was a nervous wait and I didn’t get too much sleep last night.
“I have always wanted to be a doctor, so I am looking forward to getting started on my course. The support I have had from the college has been great and the lecturers have been fantastic. I’m sorry to be leaving Sunderland college, but looking forward to meeting new people when I move on to Newcastle.”
Jason, Sean and Anna from Gloucestershire College had the nerve racking experience of opening their results live on BBC Gloucestershire this morning. Luckily all got As and secured their first choices for university.
Students celebrating at Stockton Sixth Form College
A @prestoncollege tweet: Jeremy Heywood, Shara Edgar, and Connor Brown all off to uni with their excellent grades
Young people who experience a workplace environment while in full-time education are far more likely to land a job than those who didn’t get a taste of paid employment, a new study has suggested.
Research by the Institute for Public Policy Research (IPPR) showed the unemployment rate for young people who have left regular education with experience of paid work was 14 per cent, while for those who did not it could be up to 23 per cent.
The study, called A job for everyone: What should full employment mean in 21st century Britain? and released ahead of the latest unemployment statistics, also found that of the 1,290,000 young people not in work or full-time education, half had never had a job.
“Gaining experience of the world of work while studying is vital for the future job chances of young people,” said IPPR economic analyst Spencer Thompson.
“But fewer and fewer young people are working while learning.”
In the UK, 75 per cent of young people in all levels of education do not have a job, in contrast to the Netherlands, for example, where almost 60 per cent of young people are employed.
Before the beginning of the recession in 2007, one-in-three young people was working, but the number of young people who have never had jobs has doubled since 1998.
Mr Thompson said: “These findings show the need for a job guarantee for young people, paid at least the minimum wage, to provide them vital with experience of the workplace.
“By having job experience on their CV when they leave full-time education, young people will be at an instant and much needed advantage when entering the jobs market.”
Mr Thompson added that a job guarantee would also ensure that those who could not afford to take unpaid internships would not be disadvantaged.
According to the study, the advantage was particularly important for young people with few qualifications, as one-in-three young people with fewer than five A* to C grade GCSEs and no work experience are unemployed, compared to one-in-six with experience of work.
A spokesperson for the Association for Education and Learning Providers said: “We strongly opposed government’s removal of mandatory work experience for school pupils because we were very worried about its likely impact on the job chances of young people.”
He added that the removal of mandatory work experience increased the importance of the work experience element of the new traineeship programme.
UK Commission for Employment and Skills (UKCES) senior manager David Massey said the drop in young people taking on paid work alongside their studies was worrying.
“The ‘death of the Saturday job’ may seem trivial, but UKCES research shows that experience is what employers value most when taking on young people,” he said.
“Over the past two decades, the share of 16 to 17-year-olds in full-time education with part-time jobs has halved, from four-in-ten in 1992 to under two-in-ten now.
“Young people are less and less likely to combine work and learning, cutting off this route to gaining vital experience.”
Just 24 apprentices have applied for 24+ Advanced Learning Loans since the scheme was launched prompting a sector head to call for “concerted action to ensure that adults are not missing out”.
Dr Fiona Aldridge, head of learning for work at the National Institute of Adult Continuing Education, spoke out as the Department for Business, Innovation and Skills (BIS) for the first time revealed apprenticeship uptake of the new loans system, launched on April 8. Courses funded by the loans start tomorrow.
“There needs to be concerted action to ensure that adults are not missing out on opportunities, particularly where advanced and higher-level apprenticeships are concerned,” said Dr Aldridge.
“The number of applications for these remains extremely low.”
She added: “Having a skilled workforce that can compete in the global market is essential for a substantial and sustained economic recovery and people of all ages and stages of their careers need access to high-quality opportunities to improve those skills.”
FE Week understands that the government initially expected around 27,000 (33 per cent) of the predicted 80,000 loans applicants for 2013/14 to be from apprentices.
However, according to the monthly update from BIS, of the 19,096 loans applications received by July 31, just 24 (0.1 per cent) were from apprentices.
A BIS spokesperson said: “We are closely monitoring application data, including applications for apprenticeships and are working with the National Apprenticeship Service and those sectors with significant volumes of 24+ advanced and higher level apprenticeships to ensure that employers and employees understand the loans that are available.
“However, we are still at a very early stage for apprenticeship applications and would expect recruitment to happen throughout the year, it is therefore too early to say what the level of applications from apprenticeships will be.”
According to the figures, just 12 higher apprenticeship loans applications were received by the Student Loans Company while a further dozen were received for advanced apprenticeship loans since April. The majority applied last month with only three apprentices registering interest before July 1— so few that figures were revealed only this month.
Overall, of the 19,096 loans applications received, which includes A levels, QAA Access to HE and QCF certificates and diplomas, 14,383 have been processed. Seventy eight per cent of applicants were female.
The majority of all applicants — 8,420 —were aged 24 to 30. Meanwhile, 6,759 were aged 31 to 40 and 3,085 were aged 41 to 50. Just 832 applicants were from applicants aged over 50.
In May, FE Week reported how three weeks into the scheme just 68 men and 270 women had requested a loan.
At the time Martin Doel, Association of Colleges’ chief executive, said deterrents included “aversion to debt” among mature students, and the “absence of a national marketing drive” for the loans.
BIS set up a £6.5m development fund to help providers with loans facilities to market the new loans.
With more than £850m-worth of subcontracting last academic year, Mick Fletcher looks at whether such delivery is something to be concerned about.
Some parts of FE can be awfully hard to explain to anyone outside the system or even to many of those inside who see their main role as teaching.
Indeed, some aspects are fairly easy to describe in ways that make them sound distinctly dodgy, especially if there is the slightest whiff of scandal.
The danger is that when sooner or later political scrutiny chances upon one of these darker corners, the baby will get thrown out with the bathwater and the reputation of the whole sector gets tarnished.
The world of FE subcontracting is a case in point. Most observers would be genuinely surprised to learn that many colleges routinely get more funding from the Skills Funding Agency (SFA) or the Education Funding Agency (EFA) than can be justified by the student numbers taught by their own staff.
They would be still more surprised to learn that not only do these colleges then effectively ‘buy’ student numbers from third parties to ‘earn’ their funding allocation, but that there is a whole secondary market involved in ‘selling’ students to FE with large and successful organisations set up to do just that. It sounds odd, but is it a problem?
Concerns about subcontracting often focus on the proportion of funding received by the college that is passed on to the organisation that does the real work — teaching students. On average, it seems that colleges hold nearly a quarter of the total back with instances of more than 30 per cent of funding held back from the training organisation.
Clearly the subcontractors would like to receive more with some describing the colleges as just ‘skimming easy money’ off the contract; and at the same time colleges can give an impressive rationale for their proportion quoting the need for quality control and the fact that they provide specialist services in support of the work. But where does the truth lie?
There are clearly problems if the relationship is asymmetrical. When the boot is on the other foot, as when higher education institutions subcontract work to FE colleges, the latter are quick to complain that some universities abuse their stranglehold on the power to award degrees and their close relationship with HEFCE to retain an excessive proportion of funding.
Furthermore colleges are rightly critical of higher education partners that see their subcontracting as a sort of ‘balancing tank’, letting it grow if their ‘own’ numbers fall and cutting back when their mainstream recruitment is healthy.
The bigger question about subcontracting is whether the provision delivered through that route represents value for money
There is certainly evidence that an asymmetric relationship was established in FE when, in order to save its own administrative costs, the SFA sharply raised the minimum size of contracts it was prepared to let, forcing many small providers to seek subcontracts from larger institutions. This not only meant that the new subcontractors were in a weak bargaining position, but it allowed SFA to claim it had cut costs without hurting the ‘front line’ whereas in practice the inescapable costs of administration, now recouped by the subcontracting colleges, directly reduced the funding available for learners.
In general however, it is not obvious that the proportion of funding held back by colleges is excessive. Many teaching teams within colleges would be delighted to get 75 per cent of the funding that their work earns because on average a good half of all FE funding is used to support institutional overheads — not just the buildings and the principalship, but teams of marketing managers and finance departments, quality units and MIS operatives.
In any event, most subcontracting does not take place between monopoly colleges and vulnerable small contractors, but in a fairly open market where each partner needs the other.
The bigger question about subcontracting is whether the provision delivered through that route represents value for money — is it intrinsically worthwhile? In this respect there is an uncanny resemblance between some of the work undertaken and that delivered in previous FE bubbles — the franchising scandal in the mid 1990s for example, or the excesses of Train to Gain or adult apprenticeships. So have we learned from our mistakes?
The problem of course does not lie with the colleges, but with government policy
Although there is a tighter control over qualifications eligible for funding (we no longer train thousands of so-called diving instructors as some colleges did through franchises), the bubbles each have several things in common. The focus is on lower level work, often at level one or two; it is often work-based with the risk that it is substituting for employer investment; it often involves a high proportion of distance learning (now of course described as ‘blended learning’); and, it often has a focus as much on assessment of existing skills as the teaching of new ones. None of these features are necessarily problematic; but in combination and when the work is expanded rapidly, it must give cause for concern.
It is fascinating that a cause celebre in the franchising scandal of the 1990s concerned Tesco shelf stackers while the recent adult apprenticeships bubble was highlighted by Morrisons. As the level of subcontracting grows exponentially, one wonders which supermarket has its finger in the pie this time.
The problem of course does not lie with the colleges, but with government policy that reduces education to a marketplace and measures success through crude quantitative targets. In the 1990s, government wanted growth at all costs to reduce the unit of resource.
More recently, it has wanted apprenticeships — almost at all costs — to appear to tackle unemployment and low skill.
It currently requires colleges to hit ever-increasing quality targets with limited and unstable funding so when a subcontractor offers to sell provision that seems to fit the bill, who can be surprised at its rapid expansion? A closer examination of what we are getting for our money however might reveal some nasty surprises.
The government has been pressed to launch an “urgent review” of traineeships over fears the programme could hit learner benefits, FE Week can reveal.
The Association of Employment and Learning Providers (AELP) has called for a new look at how the government’s flagship youth unemployment scheme will affect Job Seeker’s Allowance (JSA).
It is concerned that working around the Department for Work and Pensions’ (DWP) 16-hour rule — which limits the number of hours skills’ provision claimants can do in a week — will be more important than considerations surrounding the needs of learners when courses are designed.
“The rule has long been a source of contention for skills providers and in this instance means that skills elements, including maths and English provision within traineeships, will adversely impact on JSA payments if they exceed this amount per week,” said an AELP spokesperson.
“Work experience placements are treated slightly differently — placements of up to 30 hours a week are allowable within JSA regulations, but only up to a maximum of eight weeks, after which the 16-hour rule once again applies.
“The only exception to this is where an apprenticeship opportunity arises as a result of the work placement, where an extension to 12 weeks can be allowed.”
He added: “AELP believes that the cumulative effect of all this will mean that the short-term impact on a learner’s welfare benefits may in some cases be more important to the design of a traineeship than its potential effect on their future job prospects.
“Provision will therefore have to be configured around compliance with benefit rules as much as, if not in some cases more than, the needs of the learner (or even the potential employer) involved.
“We feel that this confluence of rules and regulations undermines the principle of delivering a flexible programme based on learner needs, and are pressing for an urgent review of the rules surrounding JSA and Traineeships in particular — for example by considering whether traineeships should qualify for a blanket exemption from the 16-hour rule.”
A spokesperson for the Department for Education told FE Week: “Traineeships have been designed to have the flexibility to fit with the benefits system.
“DWP policy is that JSA claimants can undertake up to 30 hours a-week work experience for a maximum of eight weeks.
“JSA claimants on traineeships will be able to spend up to 30 hours a-week on work experience, or work experience and training combined, provided that the training element is under 16 hours per week.
“Claimants will remain on JSA throughout their traineeship, unless agreement is reached between the provider and jobcentre locally to fund full-time participation via a JCP training allowance.”
A Department for Business, Innovation and Skills spokesperson told FE Week there was no exemption for traineeships, but added that the programme would be reviewed.
She did not indicate when the review would take place, but said: “Traineeships are in the first year of a staged national rollout and all aspects of delivery, including work experience, will undergo a formal evaluation.”
Traineeships were first proposed by Deputy Prime Minister Nick Clegg in June last year to help young people gain work-related skills and attitudes.
Pressure for the scheme mounted after it emerged that 979,000 16 to 24-year-olds were out of work in the three months from December to February.
The youth unemployment figures, released by the Office for National Statistics, showed a 20,000 increase on the three months from September to November.
The AELP wants to hear from providers — via enquiries@aelp.org.uk — about their experiences of traineeships and JSA compliance.
Lead providers took on nearly £300m of subcontracted provision last academic year, Skills Funding Agency (SFA) figures have revealed.
More than 1,600 subcontracting agreements, totaling £283m of funding, were in place between providers who already held their own direct contracts with the SFA.
It is the first time that the extent of inter-lead subcontracting has been disclosed by the SFA (click here to download).
Meanwhile lead providers gave out £569m of business, via 2,235 contracts, to organisations that didn’t hold direct contracts (click here to download).
However, more subcontracting could be taking place because the figures are based on self-declarations and only agreements worth £100,000 or more are included the SFA spreadsheets.
County Durham-based Learning Curve had a direct SFA contract worth £2.7m last year and was also by far the biggest subcontractor.
The firm, which has a direct SFA contract for £2m for the coming year, had £18.4m in subcontracting arrangements with 32 lead providers last year.
Tony Outhart, Learning Curve director and co-owner, said subcontracting played such a part in his business — set up with Judith Moran [Learning Curve chief executive] in 2004 — because “in the early years it was difficult to get a direct funding contract with the then-LSC [Learning and Skills Council], so the natural way forward was to work in partnership with colleges.”
He said: “Then when Train2Gain was launched we were offered direct contracts in four regions, and we have continued to grow our SFA contract year-on-year ever since.
“This year we also became a direct Education Funding Agency [EFA] provider to extend our provision to 16 to 18-year-old learners in addition to our core Adult Skills Budget-funded workplace and classroom provision.
“Although we are a directly-funded SFA/EFA provider we want to continue to build on the strategic delivery partnerships we have developed with our college partners over the past nine years.”
He added: “We are hoping to increase both our direct contracts with SFA and EFA, and at the same time continue to develop high quality, sustainable partnerships with FE colleges.”
The firm pays anywhere between 10 and 20 per cent in management fees for the provision it takes on from lead contractors.
“I think this is a fair arrangement given the QA, funding, MIS and audit support our partners provide,” added Mr Outhart.
An SFA spokesperson said Learning Curve had “quarterly opportunities to make a case for growth in relation to its direct contract”.
He said: “If and when such a case is received, we will consider it … in accordance with our published process and subject to affordability at that point in time.”
Learning Curve, which was rated as good by Ofsted in early 2009, also dishes out provision to subcontractors and is listed on the SFA website as doing so with five providers.
The next biggest subcontractor was the Skills Network, which does not have a direct SFA or EFA contract and so is not subject to full Ofsted inspection. It took £9.1m of business from 14 colleges and one independent provider last year.
Nobody from the North Yorkshire-based Skills Network was available for comment.
However, a statement by the firm on the issue of subcontracting from colleges was issued by its chief executive, Mick Cox, two months ago.
He said: “Good training providers can add value to a college’s curriculum offer, through the provision of niche services.
“We have our own contacts within relevant business communities, and our own experienced staff who understand the needs of these sectors. Colleges are able to use a training provider’s longstanding relationship with employers to build on their own employer engagement.”
The SFA spokesperson said it had conducted apprenticeships pilots over the last 12 months to see if subcontractors wanted to become lead providers.
“The organisations were invited to participate through our e-tendering portal and 62 training organisations were successful in their application for a direct contract with us as a result,” he said.
“The Skills Network did successfully apply to deliver apprenticeships through one of the pilots, but elected not to enter into a contract.”
Based on management fees of 20 per cent, and total SFA subcontractor funding of £853m via 3,883 deals, up to £170m could have been taken from front line delivery of education.
However, that figure could be even higher with a number of primes charging around 30 per cent — and FE Week has even learned of one prime charging fees of up to 35 per cent.
“We do not determine how much subcontracting a provider can undertake,” said the SFA spokesperson.
“There are clear funding rules and contract clauses that support subcontracting arrangements, however we are clear it is the responsibility of the provider to ensure that its subcontracting arrangements represent good value for money and that there is sufficient funding being allocated for the delivery of high quality education and training.
“Providers who contract directly with us are responsible for the entirety of the value of their contract and all of the provision that it funds.”
Read Mick Fletcher’s expert article about subcontacting here.
Download the AoC/AELP/LSIS Supply Chain Management Guide here.