New funding system delay has knock-on effect: sub-contractor issues wages warning over prime’s non-payment

Sub-contractors are suffering devastating knock-on effects as the wait for a new Skills Funding Agency (SFA) payment system continues, FE Week can reveal.

One sub-contractor in Liverpool said it could go bust waiting for late payment from its prime who, although having been paid itself, was unable to put an exact value on provision until the new system is up and running.

However, following the intervention of FE Week, the prime contractor has agreed to make payments based on estimated delivery.

Behind the apparently sector-wide issue is the adoption of a new funding system in which key software is yet to be fully functioning.

Prime and sub-contractors with the SFA, and also Education Funding Agency (EFA), will use the new system, which generates the values of provision delivered.

Vauxhall Neighbourhood Council has been among the worst hit by the knock-on effects of the delay.

It has received a letter from prime contractor Intraining, an arm of NCG (formerly Newcastle College Group), warning about “the current payment situation”.

Vauxhall Neighbourhood Council enterprise director Gill Mason told FE Week: “We’re a charity and a social enterprise and we have no cash flow. We support 36 other organisations affiliated to us.

“We will not be able to pay our staff. The impact is massive. We’re a neighbourhood council and we support local tenants’ associations. We have 18 members of staff.

“If we don’t receive our payment we won’t be able to pay our staff salaries next month, so we’ll be gone. This has major implications for us. We don’t know what exactly we’re owed.”

Meanwhile, a director at another Intraining sub-contractor, who did not want to be named, told FE Week it too had experienced problems.

He said: “We’re getting paid, but we seem to be a long, long way behind — constantly chasing.”

Intraining managing director Phil Bonnell told FE Week: “There are often issues across the sector about ensuring contractors get accurate payments for the right number of learners at the start of any new contract until data can be verified.

“And we have already made arrangements with those who work on our SFA contracts to ensure they get an estimated payment for the first quarter which we then rectify with subsequent payments.

“We realise the impact this could have on smaller suppliers so we are also making similar arrangements on our EFA contracts to make initial payments based on an estimate of learners and will correct it with later payments. We will be in touch with all our suppliers shortly to update them.”

The SFA, along with the EFA, has already paid prime contractors based on the value of delivery estimates (termed payment on profile).

However, it has conceded there have been delays in implementing the new funding system (known as the Data Collections and Funding Transformation programme), in which the Learning Aim Reference Service (Lars) replaces Learning Aim Reference Application (Lara), and the Funding Information System (Fis) replaces Learner Information Suite (Lis).

In an early October update, the SFA said the situation would be sorted out “shortly”.

It added: “This is a little later than planned and consequently we will ensure that no decisions are taken in relation to contract performance or future allocations that are not founded on a full and robust data return.”

Stewart Segal, chief executive of the Association of Employment and Learning Providers, welcomed the SFA and EFA’s payments based on estimates, but said: “Providers need the Fis system up and running as soon as possible so that they can review their actual delivery against profile.”

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

Donning denim raises hundreds for charity

Students and staff from Doncaster College took part in Jeans for Genes Day.

They discarded their normal attire and wore denim, in return for a £1 donation to the Genetic Disorders UK charity.

After donning their straight leg, flared retros, boot cuts, jeggings, skinnys, dungarees and “Daisy Dukes”, nearly £885 was raised.

College spokesperson Tina Harrison said: “We were very pleased to be able to raise a substantial sum of money and also awareness of such an important charity. The students were really supportive of it.”

She singled out students and staff involved with childcare courses for particular praise, as they raised £210 towards the total.

Jeans for Genes Day took place on September 20 and is on September 19 next year. It raises money for the Genetic Disorders UK charity.

Featured image caption: Students showing off their denim jeans

Body artist makes mark with gift business

A young designer is turning traditional body art and the skills she learned at college into a thriving gift business.

Inspired by traditional Indian mehndi, or henna tattoo designs, former Cleveland College of Art and Design HE textile and surface design student Ambreen Iqbal, 23, has created a range of home decorations and wedding gifts.

“The designs are so versatile they can be adapted to anything,” said Ambreen.

Ambreen’s business is called To Gift. She is selling her creations at craft and wedding fairs, markets, house parties and online at facebook.com/togiftuk.”I’m always working just to keep up with demand,” she said.

“CCAD really gave me the confidence and skills to succeed and I’m so proud of what I’ve achieved.”

Featured image caption: Ambreen Iqbal aged 23, with her a stall of her creations

Students put icing on the cake for port party

Catering students baked a giant cake for 300 people to celebrate a container port’s 50th anniversary.

Tees Dock, in Middlesbrough, which is managed by PD Ports, was officially opened in 1963 and now employs 650 people.

Sixteen students from Middlesbrough College took three days to prepare and bake a giant birthday cake — along with 500 cupcakes — for an anniversary family fun day.

Zoe Lewis, Middlesbrough College principal, said: “We were thrilled to be asked to make the centrepiece for PD Ports’ celebrations.

“It’s testament to the skill and professionalism of our students, and working on projects of this size ensures our students are ready for work when they complete their studies.”

Middlesbrough College and PD Ports joined forces in 2011 to deliver a set of training programmes for more than 70 port employees.

Featured image caption: PD Ports’ youngest Tees Dock employee Aadil Hassan, aged 19, puts the finishing touches to the 50th birthday cake, helped by Middlesbrough College level three patisserie and confectionery students Holly Stanley (left) and Sam Harvey, both 18

Blossoming florist takes on apprentice

Business is blooming for a young florist who has taken on an apprentice from her old college.

Lauren Henderson, aged 21, completed level three floristry at East Durham College last year, before opening her shop in July.

“It’s been a mad few weeks, but business is going really well,” she said. The shop, in Sunderland, is named Ray of Sunshine in honour of Lauren’s grandfather, Ray.

It has quickly become so popular that Lauren has been able to take on 25-year-old Danielle Johnson as an apprentice.

“I loved my time at college,” said Lauren, who initially started A-levels before switching to floristry.

“I still keep in touch with my old lecturers, who continue to give me advice and guidance today, and the same lecturers are also now helping Danielle.”

Featured image caption: From right: Florist Lauren Henderson with new apprentice Danielle Johnson

‘Home-from-home’ for special needs students

Havering College of Further and Higher Education has transformed the home of its former caretaker into a state-of-the art facility for students with learning disabilities, including those on the autistic spectrum.

The London college spent £420,000 on the plush new facility, known as The Bungalow, which will feature a sensory room with fibre optics and bubble tubes, twin bedrooms —  for overnight stays — and a garden with specialised fitness equipment.

The idea is it will help students with learning disabilities adjust to college life, by providing them with a home-from-home environment.

Amanda Heary, whose 17-year-old daughter now attends The Bungalow, said: “I feel very fortunate that my daughter has a place here.

“She was definitely not ready to make the step straight into college but her transition into The Bungalow is personalised and it is going really well.”

Angela Watkinson, MP for Hornchurch and Upminster, cut the ribbon at the official opening ceremony.

Featured image caption: From left. Havering College principal Maria Thompson and Angela Watkinson MP

Food festival develops new catering skills

Catering students helped to bring Manchester Food and Drink Festival to Salford City College.

Working with chefs from award-winning local restaurant Grenache, they prepared and served a gourmet meal for guests at a festival-related event in the college’s training restaurant, The Glass House.

Student Adam Wright, aged 17, said: “We’ve learned a lot while working alongside the Grenache chefs.

“The experience has taught us lots of new skills and taught us to cope well under pressure.”

Featured image caption: Ryan Partington, aged 18, and Alex Cowlishaw, 17, on front of house duty at The Glass House

Plastic frocks bag designers place on the catwalk

Fashion and textile students took to the catwalk with clothes made entirely from recycled plastic shopping bags.

The Chelmsford College level three BTec learners showed off their garments at the intu Lakeside shopping centre, in Essex, alongside fashion displays from the centre’s shops, which donated the shopping bags for the students’ creations.

Julie Leahy, curriculum leader for the art and design faculty, said: “The students were extremely excited about being involved in such a high-profile show.

“They have worked extremely hard, with a professional approach.”

Students used bonding, stitching, knitting and weaving to create wearable upcycled outfits.

Audience member Jeni Bayliss said: “The outfits were fabulous and when I realised what they were made from I was completely amazed.”

Featured image caption: First year textile student Ella Chandler Lewis, aged 18, modelling a dress made as a collaboration between all first and second year students. Photography Daniel Jones

Seascape makes splash in photo competition

A photographic student’s picture of dark clouds over the Bristol Channel has been shortlisted in a national photographic competition.

Ed French, who is studying a level three BTec extendeddiploma in photography at Weston College, Somerset, captured the image last year.

He said: “I like how the sea meets the sky and is divided by the land. I altered it slightly to give it a blueish tone because I thought it enhanced it.”

Ed entered the photo into the National Historic Ships Photography Competition 2013, in the Young Photographer Historic Ship or Seascape category.

The image has been shortlisted, along with four others in its category, ahead of more than 500 other entered photographs.

The winner will be announced at a reception on board HMS Belfast, in London, on October 23.

Featured image caption: Shortlisted Ed French, aged 16, and his shortlisted photo (inset)