Apprenticeships make up just half a per cent of FE loan applications

Figures released this morning show just 239 loans for apprenticeships have been applied for  since the scheme began — 162 in September.

The figures are dramatically below government forecasts, in which around 25,000 applications for apprenticeship loans were expected this academic year (by July 31, 2014).

Provisional figures for the last academic year (ending July 31, 2013), before 24+ advanced learning loans were introduced, indicate there were 112,300 level three and above apprenticeship starts for those aged 25 and over.

A department for Business, Innovation and Skills spokesperson told FE Week this morning: “We are closely monitoring the take up of these loans and will continue to do so. We recognise that under the loans system where we have had over 49,000 applications in total, the current figures for apprenticeships are low. However, apprentices do not typically begin their role with the academic year so applications could increase throughout the year.”

Stewart Segal, chief executive of the Association and Employment and Learning providers said: “There are changes we could make to the system to improve the position but we need a more radical solution sooner rather than later to ensure the apprenticeship programme is not damaged further.”

David Hughes, chief executive of NIACE said: “We are extremely concerned that this radical funding change has resulted in a massive shift in delivery. This shows how price-sensitive learners and employers are and the impact that has on choices people make about learning.

“This week the Government announced ambitious plans for the future of Apprenticeships, but these figures show that action is needed now to rescue the programme for adults over the age of 24.”

Read more in the next edition of FE Week.

Funding software delay ‘getting serious,’ 157 group tells SFA

The Skills Funding Agency (SFA) has been hit with further criticism over “serious difficulties” faced by colleges because of delays in the release of critical new software.

Lynne Sedgmore, 157 Group executive director, has written to the SFA today to add her voice to growing sector concerns about the wait for new programmes that generate the value of provision delivered.

Her letter follows another from Association of Colleges chief executive Martin Doel, who wrote to the SFA last week to express his concerns about the software update.

Mrs Sedgmore said:  “The problems with immediate implementation are causing serious difficulties for my members and it is imperative that they be resolved without further delay.”

Colleges and training providers have been expecting the Data Collections and Funding Transformation programme in which the Funding Information System (Fis) replaces Learner Information Suite (Lis).

Meanwhile, the Learning Aim Reference Service (Lars) is to replaces Learning Aim Reference Application (Lara).

But while an updated version of Fis was released today, allowing providers to test whether their data entries were correct, there is still no Lars, which complements the new system with funding values.

The delay in supplying providers with the full software system means providers now have just eight working days to check tens of thousands of Individualised Learner Records, rather than the usual fortnight.

“My members are extremely concerned about the ongoing problems with the Fis software and its effect on the 2013/14 academic year,” it said in Mrs Sedgmore letter, seen by FE Week.

These problems, said Mrs Sedgmore, included being unable to accurately calculate income generated from adult enrolments, enter into sub-contracts or calculate the ‘rollover’ value of students.

“These are all very real and serious problems for the sector and I hope we can work together to an immediate resolution,” she added.

Mr Doel called for “concerted action” from the SFA to rectify the situation in an open letter sent to its chief executive Kim Thorneywork.

“Colleges need a clear, non-technical statement to be issued which explains to all those interested in [agency] funded activity what the situation is, plus concerted action to ensure the current implementation timetable is met,” he wrote.

Mr Doel added communication from the agency’s Data Service to colleges and stakeholders had been “insufficient and late”.

And his concerns about communication were echoed by Mrs Sedgmore, who further wrote: “In general, communication has been poor. My members would like short, clear, concise information about how the problems will be resolved and request a new timeline and clear indication of when the software will be released.”

Nobody from the SFA was available for comment as to what was causing the new system delay.

More information on this story will be found in next week’s edition of FE Week.

Government publishes its ‘radical and far-reaching’ apprenticeship plan

The government has this morning confirmed in a newly-published implementation plan that it would put apprenticeship design in England in the hands of employers.

And the skills minister, Matthew Hancock, went further, saying: “It will also provide a blueprint for wider reform in vocational education.”

The plan comes at a difficult time for the programme with a major training provider having collapsed last week, the latest government figures showing apprenticeship all age starts and success rates falling and employers increasingly paying their apprentices below the legal minimum wage. Meanwhile, out of 131 Ofsted inspections last year, no independent training provider recieved the top grade.

Nevertheless, the decision to put the apprenticeships programme in the hands of employers follows the Richard Review, published in November last year and the subsequent consultation, which ended in May.

The key announcements in today’s plan include:

— Apprenticeships will be based on “standards designed by employers”, which will “replace current frameworks.” The “aim is that, from 2017/18, all new Apprenticeship starts will be based on the new standards. As the new standards are developed and agreed, we plan to cease funding Apprenticeships under current frameworks”.

— Employers will also “have a key role in developing the high level assessment approach” to include “rigorous independent assessment, focused primarily on testing their competence at the end of their apprenticeship”.

— Eight sector-based Trailblazer projects, supported by Lord Sainsbury’s Gastby Foundation, have already “signed up” to lead the first phase of apprenticeship standard design. They are: aerospace; automotive; digital industries; electrotechnical, energy and utilities; financial services; food and drink manufacturing and life sciences & industrial sciences.

— Apprenticeship completions will be graded in future, as either pass, merit or distinction.

— The 12-month minimum duration will be applied without exceptions, such as for prior attainment.

— ‘Mechanisims’ to enforce at least 20 per cent off-the-job training will be considered.

— English and math requirements “will be stepped up gradually”.

— A National Apprenticeship Council will be created and “run by young people with elected representatives to spread peer to peer messages”.

It said in the plan: “Given the radical and far-reaching nature of these reforms, it is essential that we carefully monitor and evaluate their impact. This will enable us to determine whether they are having the intended positive effects, whether they are having any unintended consequences and, if so, whether any further refinements to the reforms are needed.”

Stewart Segal, chief executive at the Association of Employment and Learning Providers (AELP) said he supported the key objectives of the reform but they “need to be carefully thought through with the key decisions made by employers in partnership with the sector specialists such as providers, awarding bodies and other stakeholders”.

He said: “Some of the changes such as the grading of Apprenticeships could add complexity and cost without adding significant value, so we should ensure that the implications are properly considered.”

But Mr Segal appeared cautious about the Trailblazers scheme, adding: “Trailblazers appear to be heavily biased towards larger employers.” He also recommended that, “any funding proposals are held back until the sector has an opportunity to see how the Trailblazers develop”.

Katja Hall, chief policy director at the Confederation of British Industry, said: “The real test of the new system will be whether it is simple; works for firms of all sizes; and puts the funding in the hands of businesses.”

Whether apprenticeships will be funded via the tax system, one of three options outlined in a separate consulation that closed in early October, won’t be announced until “later this year and the implementation timescale for it will depend on our choice of delivery model.”

Employers or professional bodies interested in getting involved in an existing or new Trailblazers should contact: Apprenticeship.Trailblazers@bis.gsi.gov.uk

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Join FE Week editor Nick Linford and Skills Minister Matthew Hancock for a webinar to discuss the government’s plan tomorrow at 3pm. Click here to register.

Foundation appoints permanent chief executive

A policy director at the Department for Education (DfE) will become the Education and Training Foundation’s (ETF) first permanent chief executive.

FE Week can reveal David Russell will take the top job at the ETF after nine years in the senior civil service, where he is currently responsible for vocational education reform and closing attainment gaps. Mr Russell is also a governor at Central Sussex College.

David Russell driving a tractor last month at Reaseheath College in Cheshire

The ETF (formerly known as the FE Guild) is a new FE ‘self-improvement’ body,  formally launched in August, that follows in the footsteps of the Learning and Skills Improvement Service.

Within weeks of the launch Sir Geoff Hall, the interim chief executive, quit, resulting in the temporary return of former FE Guild consultation project leader Peter Davies, who took on Sir Geoff’s post.

Mr Russell’s appointment to replace Mr Davies permanently comes as Paul Mullins (pictured below) was named the new ETF chair, replacing interim chair David Hughes.

An ETF spokesperson said: “Paul Mullins will take over the chair from David Hughes this month and David Russell will take over as chief executive from Peter Davies soon after.”

Mr Mullins, a mergers and acquisitions adviser for 25 years at Schroders, Citigroup, Bank of America and DC Advisory, has been chair of the Business, Innovation and Skills (BIS) sponsored Industrial Development Advisory Board since January 2012.

The ETF is funded by BIS, but ‘owned’ by the Association of Colleges (AoC), Association of Employment and Learning Providers (AELP) and the Association of Adult Education and Training Organisations (known as Holex).

The new appointments come amid a BIS commitment to funding the ETF for 2015-16 (1 April to 31 March) of up to £10m.

The ETF has already been allocated annual BIS funding of £18.8 m (excluding VAT) for 2013-14 (1 August to 31 March) and the same indicative figure again for 2014-15 (full year).

A BIS spokesperson said: “In recognition of the need for continuing investment to have the education and skills training we need, BIS has provided the ETF with its funding for the next two years and, after the Autumn Statement, will make a further announcement about funding of a core budget of up to £10m for 15/16 and potential to bid for further funding as priorities demand.

“The changes being delivered through the ETF will take time to achieve. To achieve those changes the ETF needs stability and certainty about its future so that it starts its work and continues to be focussed on delivering short and long term results.”

In a joint statement the AoC, AELP and HOLEX said: “We as the ‘owners’ of the ETF on behalf of the sector, are very pleased to note its good progress and the government’s further recognition of this. We welcome both appointments and are confident that David and Paul will help ensure the ETF makes a real difference and earns the respect of the sector.”

Association of Colleges calls for action on funding software

The Association of Colleges’ boss has written to the Skills Funding Agency expressing concerns over software funding delays and outlining the problems providers are facing. Click here to read the letter.

The Association’s chief executive, Martin Doel, called for “concerted action” from the agency to rectify problems caused by a delay in releasing software to calculate and track colleges’ funding, in an open letter sent to its chief executive Kim Thorneywork yesterday.

In the letter, Mr Doel said: “Colleges need a clear, non-technical statement to be issued which explains to all those interested in [agency] funded activity what the situation is, plus concerted action to ensure the current implementation timetable is met.”

Mr Doel added communication from the agency’s Data Service to colleges and stakeholders had been “insufficient and late”.

The release of the Funding Information System (FIS), the software system for checking data errors and calculating funding, has been delayed by almost two months.

Currently, only a test version of the programme, FIS Beta, is available, which does not calculate funding.

The updated version was due to have been published yesterday, but instead, the beta version will be taken offline and re-uploaded with some updates on October 28, leaving providers just eight working days to check tens of thousands of Individualised Learner Records, rather than the usual two weeks.

Mr Doel listed problems faced by providers as a result of the delay in his letter.

These included being unable to monitor enrolment performance or use of agency funds, a lack of management information for governing body meetings, and a lack of information to help colleges pay partners or subcontractors.

He also said it had put “unacceptable pressure on college staff in a month when the final 2013-14 ILR data was also brought forward.”

Mr Doel concluded by urging the agency to reflect on the issue, once the problems had been solved, perhaps through a report to its Audit and Risk Committee.

The funding software delay has been met with anger from the sector.

FE Week is still making enquiries with the SFA about when the Learning Aims Reference System (LARS), which is also in the process of being updated, will be available.

New course will prepare FE lecturers to teach GCSE English

A new training course is set to be launched to prepare FE lecturers for a massive expansion in students who will need to be taught English GCSE.

The Department for Education (DfE) has confirmed it is developing an English enhancement programme to help FE lecturers teach the subject at GCSE.

This is being developed with the Education and Training Foundation (ETF) and the Association of Centres for Excellence in College Education (ACETT) for teachers.

It is understood the programme could be launched as early as spring next year.

A spokesperson for ETF, said: “The DfE does have an English continued professional development course in development, but delivery models and arrangements are yet to be confirmed.

“The foundation [ETF] will work to make the programme as accessible and affordable for providers as possible.

“What this may look like will be determined as the programme develops.”

This comes after the ETF announced three weeks ago it will subsidise a new GCSE maths enhancement programme, which will limit the cost of the course to be launched in November to £100 per person.

The courses are needed because the government has announced learners aged 16 will no longer be able to drop maths or English, unless they have achieved at least grade C in their GCSEs.

This will mean thousands more teenagers having to be taught GCSE maths and English in FE.

An ACETT spokesperson said: “An English enhancement programme is currently being developed, with a view to launch it in the new year.

“We cannot go into details at present because it is only the early stages, but it will serve a similar purpose to the maths enhancement programme, in that it help prepare FE lecturers to teach GCSEs.”

John Westwell, from the National Centre for Excellence in the Teaching of Mathematics, which is developing the maths enhancement course, said it will focus on areas including algebra, trigonometry, geometry and statistics.

He added the course will specifically look at the most effective ways of preparing learners for resits.

Fresh concerns raised over Barnfield College

Teaching unions have raised further concerns about the governance and management of a troubled college which is being investigated by the government.

The National Union of Teachers (NUT) has written to Ofsted about Barnfield College, in Bedfordshire, in the same week as the Skills Funding Agency and the Department for Education confirmed they were investigating allegations that are being taken “very seriously”.

Bodrul Amin, NUT Luton branch co-secretary, said the organisation welcomed the news of the investigation.

He said: “We can also confirm that the Luton NUT has written to Ofsted in order for them to look into the management and governance at Barnfield College and Barnfield Federation.”

The college is part of the Barnfield Federation, which incorporates four primary school academies and six secondary school academies.

The director general of the federation, Sir Peter Birkett, resigned in July, and the college recently completed a major restructure.

Mr Amin said the union had been concerned by the strategy the federation seemed to have been pursuing while Sir Peter Birkett was in charge.

He said: “Sir Peter Birkett, the ex-director general, made it very clear that he wanted Barnfield in the future to be a profit-making entity.

“If we go down this route, this is what can happen because people will put profit before education.”

A Barnfield spokesperson said: “This audit is about what’s happened in the past and we are fully engaged with it to ensure that we learn lessons for the future.

“Meanwhile, our focus continues to be on our students, parents and staff. They are our priority always and we are re-shaping Barnfield to ensure we provide excellent education. That’s what the future is about.”

Gavin Shuker, MP for Luton South, and Kelvin Hopkins, MP for Luton North, have written to the government after receiving anonymous but “specific allegations” about “financial mismanagement”.

Sir Peter Birkett said he was not aware of the scope or purpose of the investigation, but defended the state of the college during his time there.

“What I can say is that when I moved on from Barnfield as director general of the whole Barnfield Federation, it was reported to me that the interim results were the highest ever, there were healthy financial reserves and the staffing reshaping of the college would place the organisation in a solid position moving forward,” he said.

“Policy and practices were regularly internally and externally reviewed and if they were found in need of improvement then action was taken immediately.”

The investigation is expected to last up to six weeks.

A joint DfE and SFA statement said: “The Department for Education and the Skills Funding Agency have received allegations relating to Barnfield College and the Barnfield Federation. We are taking these seriously and are investigating.”

It added: “We do not comment on ongoing investigations.”

Elmfield to ‘take steps to put the company into administration’

Elmfield Training has confirmed that its “directors have taken steps to protect the company through an administration process”.

In a press statement sent to FE Week, Elmfield said: “The board and its advisers have been working hard with major stakeholders in recent weeks to try and put the business on a sounder long term footing.

“These efforts are continuing in order to seek to preserve jobs and protect learners.

“Whilst this is on-going the directors have taken steps to protect the company through an administration process.”

The statement follows on from an email Elmfield sent to their employees stating that its necessary to “take steps to put the company into administration.”

The email seen by FE Week, which was issued late last night (Thursday 24 October) also informs staff that Elmfield Training Ltd “cannot presently process salaries.”

The email, signed off by “the executive team” said: “As you know, Elmfield has faced a number of very difficult challenges in the past few weeks. We have been working incredibly hard with our major stakeholders to try and put the business on a sounder footing.

“Despite these efforts we have failed to reach a conclusion so far and as a result cannot presently process salaries.”

The email goes on to add that the executive team “will continue to work with stakeholders and potential buyers over the weekend and into next week and will try our hardest to preserve jobs, get the salaries paid and protect our learners. However we can’t be certain that we will be successful and while this process goes on it is necessary that we take steps to put the company into administration.”

This development comes after last week’s news that former Elmfield director Ged Syddall and a representative from the Skills Funding Agency look set for a “no-holds-barred” grilling by MPs over allegations of apprenticeship malpractice.

Elmfield is contracted to deliver apprenticeships in partnership with Barclays, as previously reported in FE Week, which recently announced it wanted to double its intake to 2,000.

A spokesperson for the bank said it still planned to press ahead with the expansion plans.

He said: “Our commitment to apprenticeships and helping young people into work remains unchanged, including delivering 2,000 quality apprenticeships by 2015.

“We are working closely with the SFA to ensure that our apprentices are not impacted.”

A spokesperson for the Skills Funding Agency (SFA) said: “In cases where a provider enters administration, the agency responds by identifying potential alternative providers. If necessary, we manage the transfer of learners and employers to new providers. We also redistribute funding as effectively and efficiently as possible to ensure that learners and public funds are protected.

“The agency’s priority is to ensure minimal disruption to apprentices, learners and employers and once appointed, we will work with the administrators to ensure that all learners and apprentices are transferred to alternative providers.

“Any concerned learners or apprentices, parents or guardians can contact the agency through a dedicated email address set up for enquiries at elmfield@skillsfundingagency.bis.gov.uk.”

More will follow on developments with Elmfield in the next edition of FE Week.

 

 

Fury at SFA funding software delays

Funding software delays at the Skills Funding Agency (SFA) sparked fury in the FE sector.

A delay in supplying providers with the full software system for checking data errors and calculating funding, known as the Funding Information System (FIS), has meant providers will now have just eight working days to check tens of thousands of Individualised Learner Records, rather than the usual two weeks.

Currently, only a test version of the programme, FIS Beta, is available, which does not calculate funding.

The updated version was due to have been published today, but instead providers were told in the weekly SFA update that the beta version would be taken offline and re-uploaded with some updates on October 28.

Commenters vented their frustrations on the FE Week website, with many expressing dismay that they would have no way of accurately calculating their funding.

Mark Gould said: “This is really the most appalling mess.

“What concerns providers is the inflexible attitude of the Data Service and the SFA, and the seeming refusal to accept that software that was originally slated for release in May 2013 will not be available until November and currently suffers from a number of technical and data issues.”

Another commenter highlighted that many colleges may not even get eight days, as some of these fell in half-term, when many staff members may have booked leave.

They added: “The Data Service continually fails to deliver to target and it is clear it is not fit for purpose. Time for a National Audit Office investigation perhaps.”

User Steve Hewitt pointed out this change of software has been planned for two years.

He said: “It’s only since June, when nothing appeared, that we’ve realised the whole project was on the verge of collapsing and, I think, could now be said to have failed.
Also, let’s make it clear the main reason a lot of providers haven’t installed FIS beta isn’t through laziness or not caring, it’s because the damn thing can’t be installed on standard college networks, with usual levels of security, because it needs all sorts of proxy and firewall settings switching-off which, even with a willing IT team, can take an age.”

He added that for prime contractors this might be “an annoyance” but independent providers or subcontractors should be “furious” as the delay was “really stopping a key part of their business from operating successfully”.

Another user agreed and called for an investigation by the National Audit Office into what he called “this screwup”.

He said: “Many of us entirely innocent third parties are now at financial risk due to the SFA’s incompetence. That just isn’t acceptable at any time, let alone in today’s economic climate.”

He added: “This has just been a complete farce from day one.”

FE Week is still making enquiries with the SFA as to when the Learning Aims Reference System, which is also in the process of being updated, will be available.