Forming an orderly queue to improve customer service

When the Association of Colleges helped give 31 enterprising colleges a permanent presence in India earlier this year, the initiative required a  level of customer service to match that of the best export companies.

Education export services are already worth £14bn a year to the UK and are expected to rise to at least £22bn by 2020. So it was no surprise the  trip to India involved Skills Minister Matthew Hancock helping, in his own words, “co-ordinate the government’s support for education as an export industry”..

And yet, 20 years ago, before Incorporation, colleges were largely characterised as public institutions focused on qualifications with little or no customer service, communication and marketing.

Jim Horrocks, former principal of Barnsfield College, recalls his first year in post when he observed growing queues waiting for a door to be opened at 2pm to process people for enrolment.

Something had to be done and the responsive college programme led by the FE Staff College, Blagdon, was designed to encourage colleges to prepare for market-led change that exploded during the 1990s.

In those early days, there was often something of a wish and a prayer in the operations”

Gazelle Group chief exective Fintan Donohue, (pictured) a member of that first team, says: “The responsive college programme promoted the idea of student as a customer and we spent much time with colleges, helping them recruit, train and support marketing managers for the very first time.”

The main legacy is seen in the Responsive College Unit (RCU), which continued as an independent agency after Incorporation, says Peter Davies, marketing consultant with the Policy Consortium.

He had helped create the College Marketing Network in 1987, which was crucial to supporting the RCU success and is still going, with around 180 members and an award scheme and annual conference in November.

But Incorporation brought a considerably more focused approach. “My impression of the marketing staff who attend is that their professionalism and competence has improved out of all recognition compared with the early days, and that the best practice in the sector now would be outstanding among any service organisations with comparable budgets,” says Davies.

Analysing customers and colleges in the 1999 publication Managing External Relations in Schools and Colleges, Davies points to the key change as that of a move from promotion to marketing. Far more precise market research was needed to inform decisions about curriculum development, stimulated in 1994 by the legal requirement on colleges to produce strategic plans.

“As a consequence, colleges adapted their management information systems (MIS) for the purposes of marketing intelligence, which had not been a primary consideration in their original design,” he says.

The workload on managers was incredible, says Carole Overton. “I was assistant principal at Deeside College. My responsibilities included marketing along with MIS, funding, planning, external work from companies, admissions, student services and multimedia learning and a few odd extras like nurseries. How I did all that I don’t know,”she says.

In those early days, there was often something of a wish and a prayer in the operations. Andrew Morris, formerly director of marketing and development at City and Islington College, recalls: “Bizarrely, I became director of marketing and development in my college with no background in the former. Someone had to do it.

“In fact I read about Ruth Silver’s approach at Lewisham College in a marketing magazine, took her advice and hired in a Blue Chip company. Certainly the quality and punch shot up; then it was taken back in-house and then the capacity and budget increased enormously with external recruitment — and the level of sophistication we see in FE today.”

Four into one equals success

City and Islington College, born in 1993, has faced challenges aplenty in its 20 years. Despite the blips, a birthday study shows how it has championed the community it serves, writes Andrew Morris

Take two FE colleges, one sixth-form centre and one adult education service, mix together slowly, simmer on a gentle heat and what do you get after 20 years? Something “outstanding in every single measure”, says Ofsted; “a model for others”, says a citation for one of the college’s Queen’s Anniversary prizes; “exemplars in the field”, say the words of the Learning Skills Improvement Service’s beacon award.

For most colleges in 1993, just taking over the multiplicity of corporate services from the local authority seemed challenge enough; the imposition of a new funding methodology at the same time looked decidedly risky. What crazy people would aggravate the situation by adding a cross-sector, four-way merger to the mix? Answer: Islington people.

To understand this paradox, City and Islington College decided last year to organise a study of its life. With the former principal, Tom Jupp, I interviewed staff of all types and vintages, pored over ancient statistics and spoke to students, past and present. The analysis, yet to be completed, throws light not only on the college’s path to 2013 but on many issues affecting the world of learning and skills. The story that emerges is one of immense change — no surprises there — but, unexpectedly, one that we found retold consistently by teachers, learning supporters, students, business support staff, premises personnel.

So what are the headlines?

“It’s more systematic, it’s tighter, we’re more accountable,” say the staff; “the quality of teaching and support is fantastic,” say the students; “they showed us how to grow up, love learning and move on to further things,” say the alumni — to paraphrase 48 interviews. Beneath the headlines lies a little more nuance. “There are also losses,” say the staff who mourn the freedoms they enjoyed before the age of indicators; “it gets harder and harder, competing for grades and jobs,” say the students.

One of the greatest changes is from paper-based to online systems (see table). Computerised management information has transformed the college’s knowledge of its strengths and weakness; online business processes have streamlined personnel, recruitment and financial control.

Then there are the changes that came with new business influences in governance. In came new expertise in real estate and finance; sites were consolidated and well equipped and attractive new buildings created, much better suited to modern learning in convenient locations.

An extremely positive image of what FE can do for a community emerges from this study”

Learning has been enriched by online access to materials and opportunities available in every classroom, library and learning support areas. The curriculum has grown — forensic sciences, veterinary nursing, media technology — and with it have come opportunities for new kinds of enterprise and partnership, providing students with real work experience.

But the path of growth and development has not been quite as smooth as these changes might suggest. Political swings and economic turbulence leave their trace over 20 years. Enrichment activity, once the preserve of more privileged schools and universities, stimulated aspirations for higher education and supported vulnerable people at critical moments. It opened up a world of possibilities — intellectual, enterprising, cultural and social — but as resources have reduced, the college has struggled to maintain what it can.

Even more severe have been the changes in funding for adult learners, with rising fee levels and diminished Esol funding systematically reducing their number. Swings in government attitudes to school sixth forms have also proved a challenge.

The 11 to 16 partner schools of the Sixth Form Centre (now College) long ago pooled their small sixth forms and paved the way for the enormous success of this part of the college, but today separate small sixth forms are back in vogue.

By contrast, some aspects of college life have developed. Careers guidance, counselling and supported learning services have improved, as have procedures for safeguarding vulnerable young people and adults, support for learning, and attention to pedagogy.

New vocational curriculum areas have been introduced to meet new demand in areas such as counselling, beauty therapy and sports science. Others, such as electrical engineering, have closed. Higher education provision and courses providing access to higher education have increased, particularly on the vocational side. ‘Social mobility’ has been supported for thousands of people going on to higher education: 1,315 in 2012, including 98 to Russell group universities.

City and Islington College’s new sixth form campus, in Goswell Road, London, and inset- the old campus in Benwell Road, London

So what of the overall picture?

The first 20 years at City and Islington have certainly seen challenges aplenty, as they have for colleges everywhere. Contract negotiations in the early 1990s, vacillating national policy on qualifications and funding, increasing group sizes, greater workloads, repeated restructuring and redundancies — all have left their mark.

Yet whatever the external stresses over the years, an extremely positive image of what FE can do for a community emerges from this study of a single college over two decades.

It shows students and staff united in valuing the quality of their relationship, and their respect for one another as the key to successful learning. The college’s unremitting emphasis on its students, their learning and support, is backed by all in the college community – from security guard to director of finance.

Perhaps the last word should go to a former student interviewed for the study. In describing the experience from a student’s point of view, Huseyin Acar told us: “Without the college, I would just have worked in a small shop as lots of people in my position do. This college gives a chance to people. It opened my way, so I could see the opportunities. The college allowed me to choose and gave me the tools to achieve my objectives. It gave me advice, guidance and personal support. It’s a long term relationship. We’ve run this journey together.”

Huseyin began as an Esol student at 16, progressed through A-levels to university and in two years expects to be an architect.  His long-term ambition is to become a governor of the college.

Andrew Morris, a former director at the City & Islington College

How do you solve a problem like ‘college’?

Public confusion about the identity of a “college”, poor media perception of FE and a lack of skills among college press officers combine to prevent the sector getting better media coverage, it is argued.

A brief study of journalists’ perceptions of the sector for FE Week points to a continued poor understanding among news editors — the “gatekeepers” of the national media.

But it also reveals a failure among college press officers to spot and promote good stories, suggesting a lack of practical journalistic skills and experience.

Education correspondents interviewed for the study said it was rare for a college press officer to really show a clear understanding of what makes a story.

One said: “Despite having media studies degrees, they don’t seem to understand the difference between marketing and communications.”

Janet Murray, (pictured) a regular writer for FE Week and the Guardian and founder of the Last Word media consultancy, said: “People constantly come to me with stories about buildings and not policy or people. There is a clear lack of training and expertise.

“There is a lack of space in the media and editors want the nitty-gritty about education maintenance allowances and apprenticeships.”

Liz Lightfoot, former Daily Telegraph education correspondent, said there was a perennial problem of attitude among news editors — “One comment from a news editor was that everyone has been to school and knows about university, but not everyone knows about further education.”

But she echoes Murray’s concern, saying “press officers need to rise to the challenge”.

There is no doubt that media coverage has improved since incorporation, with the rise of national online services and high-profile trade media.

TES FE Focus was launched in 1995 and quickly followed by Guardian Further. While the latter closed and FE Focus has moved to become online only, the not-even-two years old FE Week is now the only newspaper dedicated to the sector.

Problems of a poor public understanding of FE have been revealed in work by the Association of Colleges (AoC).

A survey for the AoC by ICM Research in 2011 showed the confusion in the public mind about the identity of a college.

Two thirds (72 per cent) of the public thought Trinity College Cambridge was an FE college and over half thought the same of Eton.

Just over half believed they were still run by local authorities and one-in-five said they weren’t inspected by Ofsted. Nearly a quarter assumed they took less pastoral care of students than schools.

But once it was explained what colleges did, their impression was very favourable and more than 80 per cent said they would be happy for their children to go to one and thought they made an important contribution to the local economy.

Around 90 per cent concluded they gave people a second chance at education.

One answer may be to make colleges “a recognisable ‘brand’.” Work for the AoC by the consultancy Branded concluded, however, that this would be highly problematic.

First, unlike the word ‘university’ which has a legal definition, the word ‘college’ has an established usage elsewhere in schools.

Second, FE colleges cover a diverse range of activities targeted at different audiences, making an all-encompassing brand potentially so broad as to be meaningless or even self-defeating.

One possibility suggested by Branded is for the sector to agree on a common set of values over and above individual products and services.

They could then adopt a kitemark or Charter mark, indicating membership of the AoC for example, in the way that travel agents might belong to ABTA.

It is the sort of proposal that makes the government’s proposed Chartered status for the further education sector, currently out for consultation, possibly even more attractive.

The rise of the entrepreneurial college

Former hairdressing apprentice Jodie Whitemore (pictured right) is running her own salon at the age of 20 while completing a foundation degree at West Nottinghamshire College.

Just four years ago, she started her NVQ with no school-leaver qualifications and looked destined to add to the growing bank of NEET statistics. But Asha Khemka, her college principal, had other ideas with the creation of the Ashfield Centre aimed at capturing the likes of Jodie.

Nineteen-year-old Joseph Johnson (also pictured) is a similar entrepreneurial success story. While studying professional cookery at the college, he helped create the Forest Ferret company, producing and selling jams and preserves.

When Khemka launched the Ashfield Centre, she discovered that public funding would never meet the centre’s needs and so founded the Inspire and Achieve Foundation — a charity separate from the college — to fund it.

Based in former South Yorkshire coal-mining communities with severe cycles of inter-generational deprivation, the college had to act, she says.

In September, Khemka launches Vision Entrepreneur — a programme designed to support the job-creators of tomorrow — where enterprising students from the college and local sixth-forms will learn what it takes to succeed in business while hearing from inspirational guest speakers.

Similar initiatives can be seen springing up elsewhere, and not just for NEETs.

Among them is the Gazelle Group of 20 colleges, launched in April 2011, which its chief executive, Fintan Donohue, describes as “subversive” in intent.

“The group promotes the idea of entrepreneurial colleges as a disruptive influence for positive change in the purpose of colleges and the nature of their offer,” he says.

Technological change is rapidly replacing colleges and classrooms as the route to knowledge and skill”

Colleges have been striving for a more enterprising approach ever since incorporation — reaching out to the community, creating arms-length college companies which reinvest profits in learning, and franchising courses to reach people in the workplace, but they too often came to grief for overstepping the mark or being accused of using public funds for private training. But, more recently, it has been seen as quite respectable for colleges have come to the rescue of collapsed or failed enterprises, such as the Newcastle College Group takeover of Carter & Carter and Khemka’s own college appropriation of training company Pearson in Practice.

Several factors are forcing a change of attitude and approach, says Donohue.

“Traditional colleges and qualifications no longer provide the career opportunities they once did,” he explains.

“Young people are more open to the sort of entrepreneurship already established in countries like India and Africa. Technological change is rapidly replacing colleges and classrooms as the route to knowledge and skill. And the recent European Commission report makes entrepreneurial education its number one priority.”

This constitutes a far more generalised rather than utilitarian view of students being enterprising and entrepreneurial, he says.

“We need people who are ‘enterprising’ in all the dimensions of their life, not just about their career paths and financial investments,” explains Donohue.

For Sally Dicketts, principal of Oxford & Cherwell Valley College (a Gazelle member) the way to bring the best of the past and present together is through the creation of a learning company, where students are employed in real commercial operations as a significant part of their college experience. From September, business students will work in administration and marketing, media students will make films for local businesses, motor vehicle students will provide MOTs to paying customers and art students will develop community art projects.

A tutor-led and assessed programme taking 30 hours a week will combining work experience and individual study.

“At the end of their programme they can choose to work permanently in the learning company or with our own employment agency to gain employment or progress into higher education,” she says.

Leave us alone to get on with it, says Doel

Incorporation as the start of a challenge, not the end of one

The journey to college self-improvement needs at least three to five years without political intervention, says Martin Doel (pictured), chief executive of the Association of Colleges.

“I’m one of life’s optimists,” he insists. “We can achieve this through New Challenges, New Chances, which gives at least the prospect of ‘re–Incorporation’ after a period where we saw many central controls reintroduced.”

But he is also a realist and knows there has to be a trade-off. Doel reckons it was a big mistake to see Incorporation in 1993 as “the end of a journey”, rather than a beginning. Ken Clarke, then Education Secretary who saw the 1992 Further and Higher Education Act through Parliament, told colleges they were free and said: “Let 100 flowers bloom.”

And how they bloomed; until the spectacular scandal of mismanagement at Derby College, Wilmorton. The Shattock inquiry painted an extraordinary picture of negligence and an attempted cover-up at a college spending an annual £10m of taxpayers’ money on outlandish ventures such as Oscars, a city centre nightclub.

The chair and three governors quit, as the board was accused of failing to curb an impetuous principal.

Subsequently, a new funding formula led to a franchising bubble that ended in 1999 with inquiries at Halton and Bilston. The whole sector was tarred with the brush of negligence and freedoms were curtailed.

“How you exercise freedom and how that develops should have been seen as the start of a journey,” says Doel. And at the start is where the sector is now, he says, after “the journey was further delayed by the Learning and Skills Council (LSC) silos and bureaucratic controls”.

And so to the trade-off: “We must make sure this time that we give no one any excuse for arresting that journey. Also, the government needs the courage of its convictions, rather than stop us prematurely as the City Deals and local enterprise partnerships (LEPs), etc, develop, all of which could be seen as reasons to take away freedoms before they’ve had time to fully develop.”

But if LEPs turn out to be no different to the training and enterprise councils of the 1990s, which often overlaid work colleges did rather than call on them, much will be lost.

“This won’t happen if what we see in New Challenges, New Chances is allowed to happen but, as I’ve said before, this needs three, possibly five, years to develop. That is where the FE Guild comes in,” he says.

“It needs to be here in five years’ time to help make teaching and learning as good as it can be, and to help professionals define them, rather than have others come in and tell us what to do.”

There is also the need to develop good leadership and governing bodies competent in their roles and responsibilities to the community if the sector is to avoid any Wilmorton or franchising abuse revival.

Dame Ruth Silver, chair of the Learning and Skills Improvement Service, emphasised this point in recent FE Week supplement Effective Leadership and Governance.

“A college governing body has to take care of the college so that it is of service to the local community, which sometimes means doing things that are difficult for the college,” she said.

Colleges may be in a different place compared with 1993, but that is no cause for complacency. Back to Doel, who says: “The guild won’t do it on its own. The institutions will, but the guild must facilitate and help colleges to make the most of this journey.”

He sees three priorities. First, that governing bodies challenge their executive and staff to improve teaching and learning, and have methods to check progress.

Second, see how colleges meet the needs of students and employers. And finally, check finances are healthy.

“We are in a strong position to develop and secure reincorporation despite the austerity — if we keep improving,” he says.

The New Zealand experience

Successful changes to how FE institutions are governed in New Zealand should prompt scrutiny of governance in British institutions, says Janice Shiner

New Challenges, New Chances completes what was started in 1993, when colleges were taken out of local education authority control and given a degree of independence. The sector is now in a very different place, with colleges having almost all the freedoms and flexibilities they need to determine their own destiny.

It feels much more like my New Zealand experience where equivalent organisations were run by chief executives with an eye on the next opportunity and their position in the local and global education market. They had for some time worked in a fees and loans regime for much of adult provision, but with the freedom to develop new programmes and take them to market.

There are no awarding bodies in New Zealand: polytechnics (college equivalents) can award their own qualifications, including degrees. Nobody questions whether a degree from, say, the Bay of Plenty Polytechnic [an institution in a small city] is credible.

It is clear the freedom created the space for innovation. It carried risks, of course, and needed a fast, high-quality response to failure — by the institution and, if not successful, by the Tertiary Education Commission [the body responsible for funding tertiary education in New Zealand].

There are no awarding bodies in New Zealand

An appointed commissioner provided a communication link between the funder and the polytechnic’s board, and made independent recommendations to the government on the best way forward.

But it is perhaps two other changes that have made the biggest difference in recent times, first, the introduction of an investment plan where institutions agree in advance what they will deliver in return for government funds (at a reasonable level of detail and in response to robust analysis of local need confirmed by stakeholders) and second, changes to governance.

Each polytechnic governing body has up to eight members. The chair and three others are appointed by the government and four by the community. There are no staff or student members (institutions are expected to put in place ways of consulting with key stakeholders). Early evaluation confirms the benefits, not least greater strategic understanding of the issues facing the polytechnic and more robust monitoring, including greater performance management of the chief executive.

For me, governance in English colleges is the one area that has not been subject to the sort of scrutiny and challenge that is needed in the new environment. Perhaps some governing bodies are too big, too fragmented, too focused on the wrong things. In the colleges that are getting into trouble, either through financial mismanagement or poor quality, governing bodies cannot possibly be asking the right questions and robustly monitoring the outcomes of actions taken. A commission on governance is long overdue.

Incorporation has been a long, slow and sometimes frustrating journey and, at times, has felt like two steps forward and one step back. But if incorporation in 1993 was a big step change for the sector, then the challenge this time feels bigger. We have a sector that is mature and ready to take it on.

Janice Shiner, former principal Leicester College and director general of lifelong learning at the DfES, spent three years in New Zealand as chief executive of the Tertiary Education Commission

In charge of their own destinies

Incorporation may have been a challenge too far for many, but it has left colleges free to meet the needs of their local areas, says Matthew Hancock

I must admit that Incorporation was an event that rather passed me by in 1993 — I was rather more occupied preparing to take GCSEs. It was, nevertheless, an event that profoundly influenced my life because I went on to take an A-level at the newly-incorporated West Cheshire College and, in due course, to take on my current role as minister.

At the time, many people in the sector and in Parliament saw the 1992 Further and Higher Education Act as an intensely ideological, centralising measure, as it took colleges and polytechnics — and the money that went with them — out of local education authority (LEA) control and made principals accountable.

So, too, the remit of the new Further Education Funding Council that made clear that colleges’ main purpose was to provide courses leading to a list of vocational qualifications specified by the Secretary of State.

Many feared this would be the death knell for both the study of humanities in FE and informal adult education.

Yet the incorporation of colleges as free-standing legal entities has led to professionalisation of their leadership.

For a very few colleges, Incorporation was a challenge too far, leading to risky business plans, failed enterprises and poor financial control.

With freedom comes greater need for colleges to demonstrate they are working in the best interests of their learners”

The knee-jerk reaction of the last government to this handful of cases was to introduce new controls across the board on governance and funding, to tie leaders up in knots, to restrict both their freedom to act and the incentives that come from being held robustly to account.

Our changes since 2010 have freed colleges from this mass of restrictions so that they can once again take charge of their own destinies.

Free colleges are able to develop a wider and healthier relationship with local partners — including communities, local enterprise partnerships and, crucially, directly with employers — than they had in the days of LEA control. They can develop to meet the needs of their local areas.

With freedom comes greater need for colleges to demonstrate they are working in the best interests of their learners, employers and broader communities.

Accountability matters, so more data on student outcomes is necessary. And strengthened governance matters too, to hold principals’ feet to the fire on behalf of students.

The government’s efforts to secure greater transparency and accountability continue, but to an increasing extent with colleges as willing partners.

That is the best way to preserve colleges’ freedom — and to help ensure everyone in the UK is given the chance to reach their potential.

Skills Minister Matthew Hancock

Celebrating 20 years of college independence

Download your free copy of the FE Week 16 page special anniversary supplement celebrating 20 years of college independence, sponsored by NOCN.

Click here to download (10mb)

Introduction

Twenty years ago radical change took place as colleges were freed from local authority control.

The revolution had started five years earlier when the 1988 Education Reform Act introduced market forces into state schools.

After the Further and Higher Education Act of 1992 and the resultant Incorporation the following year (page 3), however, colleges rapidly overtook schools and could now teach them a lesson or two — no wonder government officials were imploring college leaders to sponsor a new generation of academies at the Association of Colleges’ annual conference in Birmingham last November.

But what has happened to colleges over the last two decades? What are the prospects now as the Coalition offers new “freedoms” through strategies spelled out in New Challenges, New Chances in what many would describe as a period of “re-Incorporation”?

It is clear that the revolution, started 20 years ago, is still in need of nurturing”

This supplement can only provide a snapshot and, in so doing, concentrates solely on the colleges and local adult and community services reshaped under the Act.

From what the politicians of both the Coalition and Labour Party say (page 4), Incorporation is “unfinished business” as colleges must get even closer to employers and the community through Local Enterprise Partnerships.

Were anyone to doubt the unfinished nature of the task, Association of Colleges chief executive Martin Doel (page 5) points out that the whole process of self–improvement and true autonomy envisaged all those years ago will take at least another three to five years to complete.

But as coverage on pages 6 and 7 shows, protracted debates over who really owns or controls the sector have not stopped a remarkable upsurge of enterprise and entrepreneurialism in FE.

While it must be acknowledged that a few rogue college leaders overstepped the mark with dodgy deals and franchises — bringing unwelcome curtailment of freedom for the majority — the creative zeal of most, characterised lately by the Gazelle Colleges Group, has been remarkable.

The 20-year case study of City and Islington College shows just how far such zeal reaches into every corner of the curriculum and student population.

However, the FE sector continues to suffer a relatively poor image. To a large extent, as shown on page 10, this arises from the complexity of the sector and failure to identify a college “brand”.

But page 11 poses the question that perhaps a unified “brand” is impractical in light of the changing and burgeoning scope and size of colleges post-Incorporation.

And certainly, concerns at Ofsted that colleges might be over-reaching themselves haven’t aided the image situation of today.

It’s just the latest in a highly equivocal, nevertheless constructive, relationship between FE and its inspectorate, as inspectors present (Matthew Coffey) and past (David Sherlock, who was a member of the Lingfield inquiry into professionalism in colleges) testify on page 12.

But as new, more affordable learning opportunities emerge daily through the power of ICT (page 13) and as the quality of the FE estate improves despite the pressures of austerity (page 14), it is clear that the revolution, started 20 years ago, is still in need of nurturing.

As a last word, for now, in all this change, have we really kept sight of the true needs of FE?

Alan Tuckett, of the International Council for Adult Education, and David Igoe, from the Sixth Form Colleges Association, remind us on page 15 that the world of FE is bigger than the skills agenda that currently dominates.

Fair funding leads to focus on learners

Incorporation in 1993 gave colleges the welcome ability to respond quickly and flexibly to changing circumstances.

Colleges became legally free to adjust their staffing, to reshape delivery methods and remodel their estates as needed, without unnecessary restraint from local bureaucracy.

By itself however, this operational autonomy would have been insufficient to guarantee responsiveness to the demands of students.

The single most important step in ensuring such a focus was the introduction of a standard national funding system that reflected student numbers and necessary differences in the cost of provision.

In effect, the funding system introduced by the Further Education Funding Council and carried on by the Learning and Skills Council, created the level playing field necessary for the operation of a free and open market.

It contained incentives for efficiency, but in general did not seek to distort the market in one direction or another, reflecting variations in the cost of teaching different subjects, working in different areas and supporting different types of students.

It is important to keep this simple point in mind because over the past 20 years there has been a constant temptation to use the funding system in a more manipulative way, usually with damaging results.

What is needed going forward is more such fine-tuning and less wholesale redesign”

The competition between institutions introduced by a demand-led funding model has been generally healthy — it has encouraged innovation and helped high quality provision to expand.

However, perverse outcomes are certain to follow where funding levers are pulled too hard and too sharply, or there are crude attempts to steer provision according to prevailing political fashion, as was the case in the franchising debacle of the mid-1990s, in programmes that simply assessed existing competence under Train to Gain or in the recruitment of longstanding employees to adult apprenticeships.

It is good that in their recent reports both Professor Alison Wolf and Sir Michael Wilshaw spoke out about the dangers posed by ill-thought financial incentives.

As well as supporting a well-functioning market, the FE funding model has had other successes.

The convergence process removed unjustified differences between those institutions that had always been generously funded and those that had been starved of cash.

Interestingly, it has taken nearly 20 years more for similar unjustified differences between college and sixth-form funding to be properly addressed.

FE funding incorporated the disadvantage uplift over a decade before politicians started to talk about a pupil premium in schools, and the mechanism for additional learning support (ALS) was key to driving up the extent and quality of provision for learners with learning difficulties or disabilities.

The sector has learned from the weaknesses of both models.

The lack of evidence on how the disadvantage uplift was spent makes it hard to assess its impact, while the excessive requirements for accountability around ALS led ultimately to wholesale gaming. The new arrangements seek to strike a better balance.

What is needed going forward is more such fine-tuning and less wholesale redesign.

Every three or four years government seeks to introduce fundamental reform, always described as simplification and usually also as making the system more responsive — and on most occasions neither description has been true.

Currently, two different departments are developing increasingly divergent models for young people and adults — a move that will certainly complicate planning and increase overheads — and at the same time there are suggestions that funding for adult skills should go directly to employers, while others argue that it should go into a single funding pot administered by local enterprise partnerships.

Now is a good time to remember the very real benefits brought about by a single national funding methodology and the damage done to learners when we have got it wrong.

Lynne Sedgmore is executive director of the 157 Group