Sub-contracting woes: ‘My story is not unique’

Krissy Charles-Jones is determined that the subcontracting of apprenticeships has to change.

The chief executive of Bright International Training told the Apprenticeships England conference last week about the impact on her business when her prime contractor pulled the funding of a cohort of learners on a pilot programme.

“This left us in a difficult position. We had delivered the course, paid registration fees, we had paid our staff and the learners were about to finish. In fact about half of them had already been offered jobs within the sector on the provision that they achieved this qualification.

“This is not new, my story is not unique. I have worked in the sector for over a decade. I have seen subcontractors go to the wall because of situations like mine and it is not acceptable.”

The conference, organised by Peter Cobrin and Lindsay McCurdy of the popular LinkedIn group ‘Apprenticeships England’, is the second this year. Held at the Queens Hotel in Leeds, more than 150 representatives from colleges and providers debated: “how we can continue to make apprenticeships even better.”

I have seen subcontractors go to the wall because of situations like mine and it is not acceptable.

Charles-Jones was one of six sector representatives to take part in the morning’s panel debate. The other panellists included Professor Jill Brunt, director of education at Pearson, Barry Brooks, director for education and Skills Strategy at Tribal, Scott Upton, vice-principal of Sandwell College and Ged Syddall, CEO of Elmfield Training.

Charles-Jones also outlined her frustrations with the response she received from the Skills Funding Agency (SFA). The agency told her that “there was nothing they could do”, but she approached someone higher in the organisation and her company was eventually partnered with an alternative prime provider.

“My advice to anybody in my situation is not to give up; you have to fight your corner, go as high as you have to within the SFA. Before you agree to work with a prime, make sure you do your own due diligence. Check their Ofsted report, other publicly available information and speak to other providers about their experience. Do not put all your eggs in one basket; put them in three of four. The SFA have to change their policies when it comes to subcontracting – from the minimum value a contract has to be before declaration to a guarantee of support from the SFA when things go wrong. At the moment it’s just not acceptable; the SFA are responsible for what happens to our learners.”

Panellists also raised concerns about management fees between prime providers and sub-contractors. Recent analysis from FE Week suggested that lead providers charged more than £175 million in management fees to sub-contractors during the previous academic year.

Colleges have not been fully undertaking their responsibility in growing apprenticeships and instead subcontracting it to others.

Making, what is thought to be one of his first public appearances at a sector conference following his evidence session at the BIS select committee earlier this year, Ged Syddall used the conference to announce that his organisation would no longer charge a “top-slice” to third sector and social enterprises from next year; a move well received by a representative of the organisation Deaf Apprentice.

The scheme, which will run as a pilot for the next academic year, will allow Elmfield to support the third sector and social enterprises in their work with apprentices.

Syddall added: “I am passionate about the current localism agenda and I believe that it is the third sector and social enterprises that truly underpin this. Therefore by piloting such a scheme as an organisation we can help to drive this agenda.”

Scott Upton added: “Top-slicing is an area which needs to be looked at more thoroughly by the government and SFA. In my opinion, withdrawing these funds which can be anything up to 30 per cent, ultimately impacts on the quality of the education received by the learner.”

Chairing the debate, Nick Linford, managing editor of FE Week, referred to a line in the recently published SFA Annual Account that said, “The reasons for the large increase in subcontracting over the last year has been not only due to the expected growth, but because colleges have not been fully undertaking their responsibility in growing apprenticeships and instead subcontracting it to others.”

There was also some amusement when Scott Upton asked a series of questions about the current system. When the audience were asked whether “there was any real value in the online Apprenticeships Vacancy Matching Service”, not one person raised his or her hand in support of the service, leading to Upton making the statement, “why don’t they close the thing down, it costs money and resources to run and we spend great time uploading vacancies online. The money saved by its closure could be put towards expanding the successful advertising campaign which NAS have run.”

I am passionate about the current localism agenda and I believe that it is the third sector and social enterprises that truly underpin this.

Peter Corbin and Lindsay McCurdy spoke to FE Week about the event’s future as they will now being going their seperate ways. McCurdy said that she would run her next conference in October, but with more of an employer focus and as Apprenticeships England (AE) Ltd.

Peter Cobrin added; “Lindsay’s energy and knowledge is absolutely perfect for the area of employer engagement, which she now wishes to focus her time on. As for me, I will continue, through the Apprenticeships England CIC, the campaigning element.”

Kensington and Chelsea College creativity

A group of creative trailblazers from Kensington and Chelsea College are set to debut their collection of cutting edge designs at a leading national exhibition.

The New Designers Exhibition 2012 brings together the UK’s graduating designers and gives them a platform to showcase their work to industry employers, the media and public.

This year, six students from the college’s professional development designer makers course will be among the cream of the crop displaying their creative flair at the exhibition.

Their work includes stunning jewellery, glass and ceramic pieces.

Ksenia Goryainova, who is exhibiting her first jewellery collection, said: “My passion for bespoke is a driving force behind my collection.

“I am thrilled to be exhibiting for the first time in New Designers.

“It is such a solid and exciting platform for all design students.”

Final interview with retiring SFA CEO

What has been your greatest achievement at the SFA?

“The biggest thrill for me and the greatest intellectual high is to be able to see one of your ideas implemented – and find that it works. The shift to outcomes, and how I wanted to introduce more competition around price, the simplifications in the sector, these were all very complicated ideas.”

But these policies are a long way from implementation. Are you disappointed?

“Stick around. We will be publishing shortly the document with the guidance that will put the meat on the very bare bones that we’ve put out. We’ve still got to work with the existing funding system, but the year after we’ll start moving money, both in-year and annually, to bias it towards people who deliver outcomes.”

What will job outcomes achieve?

“The first one is – all things being equal between providers – the one that delivers outcomes more effectively will be more likely to get money. It doesn’t mean to say the other provider will get nothing, but over time the ones that are better at delivering outcomes will attract more funding.

The second thing is we’ll move it to – all things being equal between providers – the one who has the highest quality. This will motivate people to not just bump along the bottom at the minimum levels.

The third thing – and this is a little tougher, if you’re a private provider- if you invest more of your profits back into your business you’ll be more likely to get money from us.”

How would that work? If you’re a private provider taking out large dividends, could it affect the size of your contract?

“I have nothing against taking dividends and nothing against making a reasonable return. But in a system where you pay one price for everything, by definition you’re going to be overpaying in some cases and underpaying in others.

Our system doesn’t take account for the economies of scale, and you know what can happen when you benefit from the economies of scale.

So one way of dealing with this is to say to people, you should make sure that you’re investing enough in your quality and in your facilities.

The other way is to move away from a model that says we will pay this amount for that qualification and move towards saying how much would you be willing to do this for?”

Do you think there’s a chance any FE colleges might go to the wall?

“We’ve threatened to do it twice. We wrote letters to two colleges in December saying give us a plan that persuades us in a month, or we’re going to put your funding up for auction.”

The SFA said that wasn’t the case . . .

“Well it’s because the colleges came back in a month with some rather good plans. Our intervention strategy makes very clear that you get a notice of concern and then you get a notice of withdrawal of funding. After that, if it doesn’t work out, we will auction your funding.”

Are high prime provider management fees an issue for you?

“I’m asking the primes to do two things. Demonstrate that they have the processes and the controls to be able to properly oversee a subcontract – which is going to discourage people from doing it quickly
– and show me that the only fee you’re charging is what you incur by way of
direct costs.

Subcontracting plays an important role. But what I don’t want is for it to become permanent, unless both the prime and the subcontractor are happy with that relationship… That they’re each adding something that neither wishes to get into, and they’re doing it for a reasonable fee that isn’t basically to give someone a business of selling SFA contracts and keeping a slice.”

What’s next? Can we expect Mr Russell CBE?

“I think it’s highly unlikely that I will have any letters after my name.”

So what will you be doing next?

I’m retiring.

But you’ve retired before…

“I‘m only 54, so I’m not quite dead. But equally, as Steve Jobs said, there’s no point being the richest man in the cemetery. It’s about recognising that there’s more to life than paid employment.

However, if as before someone called me and said ‘here’s something really interesting to do’, then I might consider it.”

Final thoughts on you time at the top?

“This has been one of the most difficult and challenging things that I have ever done in my life, but it’s also been fantastic. FE is amazing and it’s been a pleasure that people have been willing to share it with me.Finally, I think I’m pretty safe in saying that a lot of the things that we’ve talked about today, that I and others wanted to have happen, will happen.”

Will you still have an interest in FE?

Yes, that’s why you have to send me a copy of your rag every week, that’s the best way I’ll find out what’s going on, won’t I!

 

 

Lights, camera, action, at Middlesbrough College

Budding film-makers at Middlesbrough College have broken the golden rule of showbiz never to work with children or animals.

St Peters School in South Bank commissioned creative media production students at the College to make an introductory film based on the school’s “Little Book of Worries”.

The book identifies the children’s biggest worries about starting secondary school, such as getting lost, and reassures them that these things won’t happen to them at St Peter’s School.

All the “worries” are presented by two children at the school and are filmed in black and white, with the “reality” of the situation then shown in colour.

Amy Glanville, the teacher at St Peters who commissioned the film, said: “The Middlesbrough team worked tirelessly on the project, with a level of professionalism that can only be described as impressive.”

The film, from initial storyboarding to filming and editing, is the work of five BTEC creative media production Level 3 students; Liam Emmerson, Emily Tatters, Adam Angell, Amy Fall and Dan Charlton, and their tutor Tony Brown.

Warrington College go back to school

Bernie Casey, curriculum manager for carpentry and joinery at Warrington College, was delighted when St Bede’s Catholic Junior School in Halton approached him to build them an outside classroom.

The former pupil of the school said: “It’s a long time since I’ve been at the school, but it was a pleasure to go back with such an exciting project.

“Real work experience gives the students an insight into how the industry works, as well as creating an ideal opportunity to put their skills into practice.”

Carpentry and joinery students, aged 18 and 19, used Metsä Wood timber materials to construct the outdoor classroom.

Mr Casey said: “After regularly receiving donations of Metsä Wood’s premium timber for several years, we knew that the company would be more than happy to supply us with materials for the project. “

Nail art goes wild at Dearne Valley College

Tropical climes have helped Lauren Sharpe win an in-house 3D nail competition at Dearne Valley College.

The competition brief was to create 3D acrylic nails with a historical or fantasy theme.

Miss Sharpe, from Kilnhurst, Mexborough, was inspired by rainforest research materials before making the accessories from acrylic.

Claire Mynett, a College beauty therapy tutor, said: “The students have all worked really hard to create their 3D nails.

“There have been some really creative designs produced.

“All the students have put a lot of time and effort into some fantastic designs.”

Derby students with the Olympic touch

More than 120 students from Derby College helped to keep spectators and runners safe during the Olympic torch relay last month.

The students, who all underwent stewarding and door supervisor training as part of their public services’ course, acted as marshals along the route.

They had a wide range of duties including traffic management, maintaining order at key areas along the route and accompanying torch bearers through the city.

Edwin Watkins, a public services lecturer at the College, said: “The students have been working at many local events over the past 18 months to gain experience in event stewarding.

“This was invaluable in qualifying them for an important role in ensuring the smooth running of the torch relay through the city.”

After undergoing special training and work experience at several Derby events, the students have been now guaranteed interviews with G4S, the Olympics Games’ security provider.

So far more than 20 have been offered temporary jobs this summer.

Gareth Edwards, a public services student, said: “We have yet to be told just what we will be doing at the Olympic venues, but it will include security work and checking bags at entrances.

“This will all be great work experience and good for our CVs after College, as well giving us the chance to be involved in a once in a lifetime event.”

Traineeships to be piloted

The deputy prime minister has revealed plans for a new pre-apprenticeship scheme that he called “traineeships”.

Nick Clegg, speaking at an event held by the Confederation of British Industry on youth unemployment, said the scheme would provide support for people leaving school with minimal work experience or qualifications.

It was a package of training and work experience to allow young people “to get the basic, necessary skills, with a recognised qualification at the end of it – an extra rung on the ladder to get you on your way to an apprenticeship or job”.

The Department for Business, Innovation and Skills (BIS) told FE Week the scheme would be used to tackle “unacceptably high” levels of youth unemployment.

“We are already helping young people improve their skills through pre-employment training, by expanding the apprenticeships programme, introducing the access to apprenticeships scheme and by protecting funding for basic and intermediate learning for 19 to 24 year-olds,” a BIS spokesperson said.

“As part of that continuing work, we are looking at developing a new ‘traineeship’, an extended package of training and work experience that will enable young people to get the skills that they need to secure a place with an employer.”

Unionlearn warned that the scheme would need to be properly assessed to make sure employers did not exploit young people as cheap labour.

“Traineeships should be paid unless they are for a clearly limited period of work experience,” a spokesperson told FE Week.

“They must also not be allowed to replace real jobs and existing work. The focus must be on developing the skills of the learner and all traineeships should lead to an apprenticeship, where possible.”

It is unclear whether the traineeship scheme will replace access to apprenticeships, the current programme designed to help young people aged 16 to 24 on to an apprenticeship.

David Harbourne, director of policy and research at the Edge Foundation, said: “What Mr Clegg is talking about is a programme below level 2; a pre-apprenticeship programme.

“This obviously isn’t a new idea. But one problem with all such programmes is that some of the people most likely to benefit live chaotic lives.

“This can lead to non-completion rates that are higher than politicians and their civil servants are prepared to accept, especially if there is a strict time limit for completing the programme.”

The Association of Employment and Learning Providers (AELP) have long campaigned for a form of preparatory training for apprentices.

“The need for it has grown more urgent over recent months because the access to apprenticeships programme has only been moderately successful and because employers are now raising the bar for full apprenticeship entry requirements,” an AELP spokesperson told FE Week.

Olympic torch to pass through Brockenhurst College

The Olympic torch is due to visit Brockenhurst College on July 14, an event that the College plans to celebrate by hosting a Sporting and Cultural Olympiad on the same day.

The event will give visitors the chance to try new sports, as well as bring the College and local residents closer together.

A marching band and dance display will showcase their abilities, with a varied programme of activities on offer, from archery to shooting to hockey.

The torch will pass through Brockenhurst just after 10.25am and will stop at the College for 20 minutes before continuing its journey through Hampshire.

Di Roberts, Brockenhurst’s principal, said: “We strongly believe in giving back to our local community and what better way than to bring people together for this historic once in a lifetime opportunity and get up close to the Olympic Torch relay.”