SFA publishes £283m of inter-lead subcontracting for first time

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.

Hairdressing award for ‘stand-out’ learner

London learner showed she was a cut above when she was named student of the year by a leading hair care brand.

College of Haringey, Enfield and North East London hairdressing student Eunice Pennant, aged 52, won the award from Afro-Caribbean hair care company Softsheen-Carson.

The award came with the chance to work backstage at Africa Fashion Week London.

Eunice said: “I was really excited.”I’m so glad for this opportunity and winning the competition has reinforced my enthusiasm for my career hairdressing.”

Eunice’s Lady Ascot design, inspired by Royal Ascot Ladies’ day, also won £500-worth of equipment for the college and £500 for herself.

Competition co-ordinator Lorna Hill said: “Eunice’s entry, which combined creative flair with technical expertise, really stood out.”

Eunice Pennant demonstrating her award winning skills

A principal first for Gateshead College

New Gateshead College principal and chief executive Judith Doyle said she was “thrilled” and “proud” to be taking up the post.

She had been deputy principal for curriculum and quality at the college for four years before taking over the role on August 1 following the retirement of Richard Thorold.

“I am thrilled to be appointed and feel privileged and proud to have been given the opportunity to lead Gateshead College,” said Ms Doyle, the college’s first female principal.

“I am really looking forward to building on Richard’s excellent work to ensure that Gateshead is the college of choice for students and employers.”

Ms Doyle has more than a quarter of a century’s experience in FE having joined the college teaching team as an English lecturer in 1987 after completing her teacher training there.

She then moved on to a role developing adult community learning provision across Gateshead, followed by senior management roles as director of teaching and learning, and assistant principal for quality, before taking up her deputy principal post.

Outgoing principal Mr Thorold said: “I am delighted to be passing on the principal’s baton to Judith and wish her the best of luck in taking the college forward to an even brighter future.

“I know the college will go on to even greater achievements under her leadership and she will be absolutely dedicated to the staff, students and community we serve.”

Robin Mackie, chair of the board of governors, said the quality of applicants for the role had been “extremely high”.

He said: “Judith is a highly talented, extremely motivated and dedicated individual who impressed with her ambition, commitment and passion for Gateshead College and the wider region.”

Ms Doyle said: “It is an exciting and challenging time to be involved in further education.

“I am absolutely focused and devoted to making sure that all students continue to receive the highest quality training to equip them with the skills and confidence that will provide the important foundations for their future success, give them the edge in the jobs market and help them to adapt to a constantly changing world.”

The college got a grade three (satisfactory) Ofsted inspection result in June last year.

Nailing the nitty-gritty

With the government looking at new funding models for apprenticeships, Suzy Gunn explains why questions of practicality and accessibility must be considered.

While most people agree solving the UK’s growing professional skills gap should be a major priority in the country’s return to healthy economic growth, exactly how this should be done is less clear.

In response to growing numbers of young people taking non-vocational degrees and finding that they do not have the skills employers need, the government has wisely placed greater emphasis upon more specific routes into employment — primarily through apprenticeships.

However, in order to truly make apprenticeships attractive and accessible to young people, it’s crucial that the practical and grass root operational foundations — the ‘nitty-gritty’ — are fully in place.

Last year, the government tasked Doug Richard with reviewing the funding structure of apprenticeships. In light of his conclusions, the Department for Business, Innovation and Skills proposed three new funding models.

As the director of a company that offers a range of apprenticeship packages to employers, training providers and learners, my experience in this area is that these can be dense and complex issues — and that the devil is often very much in the detail.

While I fully agree with Mr Richard that apprenticeships can play a vital role in meeting the needs of the economy, and that more needs to be done to incentivise employers, realistically, out of the three proposed models, I can only see one being practically and effectively implemented.

Model 1 puts the emphasis firmly on the employer, requiring it to register apprentices through an online system and then take responsibility for provider payments, expenditure and assessment reporting. It then receives direct funding from the government into its accounts. The problem is this is so heavily reliant on employers — they are busy trying to run a business and may not have the resource to be able to do full justice to the scheme. Should this prove to be the case, the potential dangers could range from providers not being paid on time, to the learners having their actual qualifications delayed due to a lack of sufficient achievement recording.

Employers clearly require well-trained staff, but in my experience they are hesitant to become overly involved in the educational/operational side of the training and would prefer to leave these aspects to the experts.

The second model utilises the PAYE system, and is also one that I have reservations about, but this time for more economic reasons.

Without knowing exact figures, one can only assume that implementing a national software infrastructure would be extremely expensive. While I do agree with investing in vocational education in principle, spending so much here, and further stretching HMRC as a means to ultimately assist the country’s financial and economic recovery, does seem slightly counter-intuitive. Indeed, even putting aside the likely cost on the public purse, there is no doubt a software infrastructure of this magnitude will inevitably present “teething issues”, that run the risk of disengaging employers completely from apprenticeships, and forcing them to find alternative solutions.

But that is the last of my pessimism, because model 3 is a one I envisage being successful. It proposes that providers should be at the centre of the funding process and allows providers to maximise their experience and expertise, and, crucially, helps develop links and relationships between employers and providers.

But even with ‘Model 3’ there will still be administrative and financial issues to determine. For example, if it is up to employers to determine their own financial contribution, will the scale of that contribution be considered to reflect the employer’s attitude towards having better-skilled employees? As such this could mean that employees could lose out on training.

Ultimately, the fact there is a serious government focus on apprenticeships is a really positive step, but if new funding structures are to be introduced, it’s absolutely crucial that they are practically robust enough to meet the needs of not just learners and employers, but our economy too.

Suzy Gunn, operations director at Active IQ

Listen to BBC Radio 4 Today programme discuss FE recruitment at 14

At 06:50 this morning the BBC Radio 4 Today programme interviewed Mike Hopkins, Principal of Middlesbrough College, and Professor Ann Hodgson, Institute of Education, about the direct recruitment of full time 14 year-olds to colleges from this September.

Listen to the interview below, and you can read more about direct recruitment to FE at 14, and which seven colleges so far have permission, here.

FE sector launches self-improvement body

A ceremonial handing over of the Education and Training Foundation’s certificate of incorporation sealed the new FE sector self-improvement body’s official launch today.

Martin Doel, chief executive of the Association of Colleges (AoC), and Stewart Segal, chief executive of the Association of Employment and Learning Providers (AELP), gave the founding document to the organisation’s interim chief executive Sir Geoff Hall and its independent steering group chair David Hughes, who is also chief executive of the National Institute of Adult Continuing Education (NIACE).

 

From left: David Hughes, chief executive of NIACE and interim chair of foundation board, Sir Geoff Hall, foundation interim chief executive, Stewart Segal, chief executive of AELP, and Martin Doel, chief executive of AoC.

It followed the first official foundation board meeting, at London’s Goldsmiths’ Centre, in which the recruitment of the body’s permanent chair and its chief executive featured on the agenda along with proposals for the appointment of directors.

The board also looked at the audit and risk committee terms of reference and staffing progress, among other issues.

Sir Geoff said: “We’ve had a very good board meeting this morning. We’re enjoying tremendous goodwill and support from everyone and we hope to satisfy everyone’s expectations.”

He also revealed that seven staff from the sector’s former improvement body, the Learning and Skills Improvement Service, had transferred to the foundation leaving 25 posts to fill.

Mr Hughes said: “It’s been quite a journey to get here. One of the things that’s been quite surprising and pleasing has been the degree of consensus and partnership we’ve achieved throughout the process.

“I’m really pleased we’ve got the AoC and the AELP here, along with the voluntary sector and other people fully behind what we’re trying to achieve and that isn’t something you can take for granted and it’s not something, I suspect, that all the preceding organisations had.”

The seven board members include Don Hayes MBE, chief executive of voluntary skills consortium Enable; Lynsi Hayward-Smith, head of adult learning and skills at Cambridgeshire County Council; and John Hyde, co-founder and executive chairman of HIT (Hospitality Industry Training).

Joining them is Chris Jeffrey, strategy and policy adviser for General Physics (UK) Ltd Skills Training Academy; Asha Khemka OBE, principal of West Nottinghamshire College; Peter McCann, principal of Kirklees College; and, Mark White, vice-chair of Stockton Riverside College.

The appointments were put forward by foundation members the Association of Colleges, the Association of Employment and Learning Providers, the Third Sector National Learning Alliance, and the Association of Adult Education and Training Organisations (HOLEX).

The foundation, formerly known as the FE Guild, was incorporated on May 22 and registered to the AoC’s London HQ. Its website also went live today.

Top picture, from left: Sir Geoff Hall, foundation interim chief executive, Lynsi Hayward-Smith, head of adult learning and skills Cambridgeshire County Council, Don Hayes MBE, chief executive of ENABLE, Asha Khemka OBE, principal and chief executive of West Nottinghamshire College Group, David Hughes, chief executive of NIACE and interim chair of foundation board, Stewart Segal, chief executive of AELP, Peter McCann, principal and chief executive of Kirklees College, Martin Doel, chief executive of AoC, John Hyde, executive chair of HIT Training Ltd, Christine Jeffry, strategy and policy advisor for General Physics (UK) Ltd, Skills Training Academy, and Mark White, head of the vice-chancellor’s office at Teesside University. Picture by Nick Linford

Minister takes to Twitter to say ‘thanks’ as LSIS programmes end

The Learning and Skills Improvement Service (LSIS) programmes and support officially ended last night, and key sector figures took to Twitter to bid the organisation farewell.

FE Week first reported on the closure of LSIS in November last year after the Department for Business, Innovation and Skills revealed its planned new ‘FE Guild’, now known as the Education and Training Foundation, would take over large areas of LSIS’ remit.

Skills Minister Matthew Hancock tweeted today: “With thanks to all those who worked so hard at @LSIS_Updates over these past years to deliver change.”

His Labour opposite number, Shadow Skills Minister Gordon Marsden MP, also expressed his gratitude to the organisation.

He tweeted: “Appreciation/ thanks for what LSIS has done in FE not just for standards but for succouring both individuals as well as institutions.”

The chair of the national careers council, Deirdre Hughes OBE tweeted “#LSIS thank you to Rob Wye, Ruth Silver and the team”, acknowledging the work of the chief executive and chair of the organisation respectively.

Many tweets wished LSIS staff members good luck in their future careers, and expressed hopes that LSIS resources would continue to be available through the foundation.

An unofficial Twitter account, LSIS Countdown, set up to “raise awareness” of LSIS’ closure, tweeted: “An “unofficial” thank you to everyone who has supported LSIS staff over the last few months of the #LSISClosure”

LSIS’ report into the impact it has had on the sector since its creation in 2008, ‘A legacy of learning’ said “feedback and analysis from the sector” showed that LSIS was seen as “bringing the sector together as a community of learning organisations, breaking down isolation, raising performance and offering support across a variety of critical areas of development.”

The Education and Training Foundation marked its launch today with its first board meeting in London.

Speaking last month, David Hughes, who chaired the foundation steering group, confirmed the foundation would be taking over support for LSIS’ clerks’ training and the current cohort on the senior leadership development programme, as well as the excellence gateway, which he said the foundation would “continue and try to review and develop going forward”.

He added discussions over the fate of other LSIS materials were ongoing.

 

Government’s £20k carrot for college teachers

Graduates will be offered grants of up to £20,000 to teach at FE colleges, Business Secretary Vince has announced.

The government is hoping the incentive will help improve numeracy and literacy among vocational learners, especially in areas like engineering where, said a government spokesperson, the UK had a “massive skills shortage”.

Maths graduates will be offered up to £20,000, while a maximum of £9,000 will be on the table for English graduates.

Dr Cable said: “Too many businesses tell me they cannot find young people with the numeracy and literacy skills they need.

“It’s not just those planning on going to university who need to have a firm grasp of English and maths. These basic competencies are needed for all types of employment and it is not possible to enter a full apprenticeship until then.”

The announcement follows the government’s most recent Skills for Life Survey, which showed that 24 per cent of the population (8.1 million people) lacked basic numeracy, and 15 per cent (5.1 million people) lacked basic literacy.

The grants, including up to £9,000 for those wanting to specialise in teaching SEN students, will go toward initial teacher training for 2013/14 graduates.

Skills Minister Matthew Hancock said: “It does not matter whether you are studying vital skills like carpentry or studying at university to be a research scientist, there is not a job in this country that does not need maths and English.

“These bursaries will help us recruit the brightest and best teachers so we can improve standards and provide people with the basic skills they need for a rewarding career.

“They will also make sure that we promote excellence in special needs teaching so that we protect members of our society that are potentially the most vulnerable.”

The bursaries will be available for two years and, in addition, £1m in grants will fund high-level specialist training for those already working with students with SEN, through continuous professional development.

Lynne Sedgmore, 157 Group executive director, said: “This announcement is good news indeed, not only because it brings focus once again onto English and maths, which all FE Colleges know are vital to their learners’ success, but also because it sends a clear message to potential teachers that teaching in FE is as valuable as teaching in schools.

“As those of us in the sector know, our learners are perhaps the most enriching and stimulating, and so we are pleased that a great many more good teachers will have the chance to find that out for themselves.”

Joy Mercer, Association of Colleges policy director, said: “New bursaries will help colleges attract graduates so that they can support students who leave school without GCSE maths and English at grades A to C.

“New grants totalling £1m to support professional development for those already working with students with special educational needs is equally welcome.

“Speed and longevity are of the essence — it is useful that government has committed to initial teacher training grants for 2013/14 graduates so that colleges can start recruiting straight away, but funding has only been confirmed for the next two years and a short-term funding commitment risks limiting the benefits.

“Colleges also face considerable challenges in attracting people with excellent applied maths skills and relevant vocational expertise who may not be graduates or be looking to undertake initial teacher training — we would welcome further discussions with government, its agencies and partners as to how the sector can be helped to attract these types of people from industry into the college classroom.”

Further details on the grants, covering the application and payment process along with eligibility criteria, are expected in the autumn.

AoC on lookout for “good” zero-hour contracts

The Association of Colleges (AoC) is on the hunt for “good” examples of zero-hour contracts amid an investigation into the controversial agreements by the Department for Business, Innovation and Skills (BIS).

The contracts have been criticised as leaving staff without guaranteed hours, sick or holiday pay, and for making it difficult to get tenancy agreements, credit cards or loans because it is impossible to show a regular income.

The University and College Union (UCU) is campaigning against their use and is expected to release its FoI findings soon on how widespread they are among colleges.

The contracts have also come under fire from Deputy Prime Minister Nick Clegg, who said this week: “Families have to plan to pay bills – everyone has to plan for what their income is and what they are going to pay out. That can cause very intense insecurity and anxiety indeed.”

Nevertheless, the AoC is looking for positive examples of zero-hour contracts in use by colleges following talks with BIS officials about the investigation.

Emma Mason, AoC director of employment policy and services, told members in an email yesterday: “AoC met with BIS officials earlier this week to discuss the review of the use of zero hours contracts.

“It is apparent that evidence of good practice will be extremely helpful in illustrating how these employment contracts benefit both the employer and the worker.”

The AoC has also been drawing up legal advice to help colleges respond to the UCU’s FoI request for details of their use of zero-hour contracts.

Marc Whitworth, AoC employment services manager, said: “There are parts of the FE sector that use zero-hour contracts and we have an interest in understanding where this might work for employers and staff.

“We have discussions with BIS as part of our representative role on a variety of issues.

“Our role is to offer advice and guidance to support colleges in ensuring their employment practices, terms and conditions are fair and lawful.

“Colleges will make local decisions on how best to resource services and meet the needs of students to ensure effective delivery of learning to students effectively.”

The Office for National Statistics said around 200,000 staff across the UK economy could be working on zero-hour contracts, but some experts think the actual number is far higher.

But the UCU is campaigning against their use, saying they denied staff the financial security or stability to operate on a month-to-month basis, and denied students continuity with their teachers.

The contracts, it is claimed, leave workers vulnerable to sudden reductions in shift patterns and last-minute shift cancellations at the discretion of managers.

However, the UCU is currently collating its own data on the prevalence of zero-hour contracts in colleges and universities and hopes to release the findings this month.

Simon Renton, UCU president, said: “Zero-hour contracts remain the unacceptable underbelly of further and higher education.

“Only the catering sector employs more people on casual contracts than our colleges and universities, and staff and students suffer from their widespread use.

“Staff are denied full employee status and key employment rights. Without a guaranteed income they are unable to make financial or employment plans on a year to year, or even month to month basis.

“Students miss out on a lack of continuity and, often, receive reduced access to staff employed on minimal hours. There are other ways to deliver the flexibility that employers claim they need while providing a level of financial security for staff and continuity for students.”