New apprenticeships are flying high

When Vince Cable and John Hayes announced the second list of successful higher apprenticeship bids last week, everyone should have taken note and appreciated the real transformation that is taking place.

It is not simply the growing list of occupations likely to attract the attention of young people and their parents. It is also the new and impressive employers who see higher apprenticeships as right for their business.
When speaking with employers over recent months, it is the expansion of the higher apprenticeship programme that is exciting them the most.

Employers see higher apprenticeships as a route that enables them to recruit and develop people who will have the skills to progress to senior management level. Too often this has been restricted to graduates.

Employers are now establishing two recruitment pathways – one for graduates and one for non-graduates. It’s an approach that is being adopted by some of the most impressive companies in this country.

They say that they want to attract the most talented people – and that this is the best way of doing so. Companies who will only put their names to high quality, now want to put their names to apprenticeships.

In the announcement on higher apprenticeships, ministers confirmed that nine partnerships comprising of employers and training providers will receive a total of £6m.

This will result in the development of more than 4,200 new higher apprenticeships. The funding is part of a £25m fund for higher apprenticeships announced by the government. The first round was announced in December last year.

The expansion of the higher apprenticeship programme is allowing the introduction of apprenticeships into new sectors, including industries where skills shortages are threatening to stop growth.

The first apprentices have started in Life Sciences, for instance. After the rapid expansion of jobs and apprenticeships in the service sector, it is great to see apprenticeships emerging to support the new sciences.

I imagine that if I asked many of you to name the career pathway to becoming a commercial airline pilot, completing an apprenticeship may not be your first answer.

However, it is now possible as City & Guilds was awarded funding to develop a higher apprenticeship pathway for commercial airline pilots. This project will help employers, including Jet2, to address the predicted shortfall in pilots over the next 20 years.

 Companies who will only put their names to high quality, now want to put their names to apprenticeships.”

Just as ground breaking is PwC’s proposal to develop apprenticeships at Level 6 and 7. It will establish a true alternative route to high skills careers in Accounting and Professional Services.

Higher apprenticeships have also been introduced in low carbon engineering, legal services and space engineering.

Higher apprenticeships also present a new challenge to the sector. Enabling employers to expand their apprenticeship offer and set new, higher standards will require a provider network that can work with higher level skills. This will be an opportunity that I am sure the sector will relish.

One of our objectives for some time has been to increase progression. The higher apprenticeship offer sets out clear ladders of progression for candidates. Importantly, this will help attract far more young people with the capability of progressing.

This is an attractive offer for many young people who are now looking at the different career options available to them. Increasingly parents will see that completing an apprenticeship is as attractive an offer as going to university and will suit many people better. It is great to be able to present this choice to young people.

This is a vital part of changing mindsets of more people to put practical learning on a level footing with academic study. We all need to see what a fantastic opportunity
this presents to change the face of  vocational learning.

David Way,
chief executive, NAS

More than £20 million spent on Framework for Excellence

The government has spent more than £22 million producing the Framework for Excellence and  FE Choices websites.

A letter sent by skills minister John Hayes to Lynne Featherstone MP, says that more than £20 million was spent on “the development and operation” of the Framework for Excellence site  – which allows the public to compare the performance of providers – between 2007 and the end of last year.

But key figures in FE are disappointed with the numbers visiting FE Choices, the successor to Framework for Excellence.  A freedom of information request reveals only 6,230 people had viewed the site since its launch in January.

Joy Mercer, director of policy at the Association of Colleges (AoC), told FE Week: “FE Choices has been a costly development. Unfortunately, having reached a point where it was ready to go live there was no marketing budget to inform either individuals or employers.

“While we support the concept of transparent services for young people and adults, who are able to make informed choices on where to study, we know that they can’t take make these decisions if they don’t know where to find the information. The site is no good if no one knows that it is there.”

In his letter to Ms Featherstone, Mr Hayes wrote that the bulk of the spend on Framework for Excellence was on defining the indicators, establishing methods of collection and developing and testing the website.

He also revealed that last year there were 15,222 visits to the site.

Mr Hayes said: “All new things take time to embed and reach their full potential, but I am sure you will agree that it is important for the government to take steps to increase openness and transparency in public services.”

A spokesperson for the Skills Funding Agency (SFA) told FE Week that the Framework for Excellence site “was a success” and “worth the investment”.

“It was the first time that a website such as this had been established, and information of this kind gathered and published for public consumption to assist the sector in its own quality assurance, and provide a basis for colleges and providers to evaluate and improve their activities,” the spokesperson said.

It is disappointing that the FE Choices website is not used widely but it is perhaps not very surprising given the lack of marketing.”

Framework for Excellence was relaunched in January as FE Choices.

The response from the SFA to a freedom of information request showed that the new website has cost the taxpayer £2.3 million to date.

Joy Mercer said that it had cost a lot of money to gather the same information from schools and HE institutions.

“The costs of such exercises must be looked at in the round, which means including information about how it is used and whether it proves to be value for money in driving up quality,” she said.

The National Institute of Adult Continuing Education (NIACE) told FE Week that it had always been a challenge to provide learners with “accessible, relevant, consistent and comprehensive information”.

The FE Choices website holds success rates data for each provider, as well as two scores based on whether learners progressed to a new course or job. It also holds data that shows how satisfied learners and employers were with providers in 2010/11.

David Hughes, chief executive of NIACE, said: “It is disappointing that the FE Choices website is not used widely but it is perhaps not very surprising given the lack of marketing.

“We would like to ensure that adults know about this information as well as the new Careers Service. Both can help them to make better choices about the learning they want
and need.”

Staff and students lobby MPs over FE loans scheme

Staff and students are campaigning against the introduction of FE loans today.

Protestors have written to the skills minister John Hayes asking for “urgent clarification” on whether the scheme will result in fewer places at FE colleges and independent training providers.

They will also be lobbying MPs in their local constituency.

Toni Pearce, vice president for further education at the National Union of Students (NUS) said: “The government’s own official prediction is that 100,000 learners will no longer be learning if this scheme goes ahead, and nearly two-thirds of those are set to be women.

“Ministers are slamming the door in the faces of adults who want to return to learning and gain basic skills, despite the evidence showing that it would put off many of those who want to study A-levels, apprenticeships or access courses to higher education.

“In the midst of a double-dip recession and with the spectre of unemployment, we need opportunities to develop skills and find jobs rather than attempts to throw people on the scrap heap.”

FE loans will be introduced next year for all learners aged 24 and above wishing to study at level 3 or higher.

However, the final Equality Impact Assessment (EIA) and Regulatory Impact Assessment (RIA) reports, published last week, show that adult learners studying at level 3 and 4 could drop from 359,000 to about 247,000 once the loans are introduced.

The national day of action has been organised by the NUS, Unison, University and College Union (UCU) and the Association of Teachers and Lecturers (ATL).

Sally Hunt, general secretary of the UCU said: “The minister urgently needs to clarify just how damaging these controversial plans will be.

“At a time of record levels of unemployment it is simply not acceptable to slash opportunity for 100,000 people.”

She said the projections in the final equality impact assessment and regulatory impact assessment were “quite staggering”.

“Colleges simply cannot absorb a 45 per cent cut in student numbers for people aged 24 and over,” she said.

“This would result in course closures, job losses and vastly diminished opportunities for adults and young people who need a second chance in education.”

(You can follow the day of action on Twitter using the hash tag #No2FEFees)

New round of higher apprenticeship funding allocated

Business secretary Vince Cable has announced 4,239 new higher apprenticeships in sectors such as aviation, low carbon engineering, legal services and space engineering.

Providers have been allocated almost £6.5 million to develop the places as part of the second round of the higher apprenticeship fund, which is worth £25 million.

Doing an apprenticeship should be one of the best gateways to university-level study.”

Mr Cable said the new apprenticeships would allow the government to target industries in which skills shortages “are threatening to choke off growth. Higher apprenticeships are an essential step in rebalancing our economy and building a fairer country where growth is spread evenly and opportunities are not limited to the privileged,” he said.

Skills minister John Hayes added: “By radically increasing the number of degree-level apprenticeships we are putting practical learning on a level footing with academic study.

“Doing an apprenticeship should be one of the best gateways to university-level study. Through the higher apprenticeship fund we are creating (a total of) 23,000 places for young people to take degree-equivalent higher apprenticeships.”

The City and Islington College received just over  £1.39 million, the largest allocation in the second round, to develop level 4 apprenticeships in engineering and environmental technologies.

David Way, chief executive of the National Apprenticeship Service, said the expansion of the scheme underpinned the service’s commitment to raising the quality of apprenticeships.

“Major employers are opening up recruitment and training to young apprentices.

“Young people and their parents can see clear opportunities to climb the jobs ladder right to the top through taking up apprenticeships.”

PricewaterhouseCoopers (PWC) was
allocated £960,000 to develop some of the first higher apprenticeships in accounting and professional services at level 6 and 7.

Meanwhile, Loughborough College received £500,000 in the second round to develop level 4 apprenticeships in space engineering.

Neil Carberry, director for employment and skills at the Confederation of British Industry (CBI), said developing more high-level skills was “essential” for long-term economic growth.

“Businesses know that building our higher-level skills base has to be an essential part of a successful plan for growth in the long-term,” he said. Future skills shortages in key sectors could hold back our economic performance, so boosting higher-level apprenticeships now is the right thing to do.”

Mr Carberry said that he supported the government’s decision to focus on sectors such as advanced manufacturing and IT.

“Young people need to know that higher apprenticeships are a great route to a
successful career, as they can build higher level skills while learning on-the-job with an employer,” he said.

HMRC confirm VAT on FE loans with independent training providers

Adult learners may have to pay VAT if they study with an independent training provider next year.

The 20 per cent charge, which will be applied as part of the “24+ advanced learning loan” scheme, will not affect “eligible bodies”, including FE colleges and not-for-profit organisations.

A spokesperson for HM Revenue & Customs (HMRC) said: “A provider of further education that is not an eligible body must charge VAT on its supplies of FE.”

Graham Hoyle, chief executive of the Association of Employment and Learning Providers (AELP), said the ruling was “nonsense”.

“As I have made clear to the minister and senior officials for the Department for Business, Innovation and Skills (BIS), the current position is simply unacceptable for two reasons.”

He told FE Week that it was not in the government’s interests for the take-up of adult apprenticeships to be adversely affected by the VAT requirement, especially when skills minister John Hayes had reiterated  its commitment to them.  It was also “blatantly anti-competitive” for the adult skills market.

“This requires an urgent resolution for my members to plan their business development strategies accordingly and for the government’s own skills strategy to be safeguarded,”  he said.

It could have a huge impact on whether providers are in the game or out of the game”

Mr Hayes, speaking at the AELP National Conference last week, said he had “no doubt” he would be making “a recommendation” to Chancellor George Osborne.

A spokesperson for BIS told FE Week:  “BIS are not in a position to offer advice or views on matters relating to VAT and the position of training organisations.

“The position on VAT will differ depending on the individual circumstances of different training organisations and therefore it is important that organisations seek their own independent advice.

“BIS have been in discussions with HMRC regarding the treatment of VAT for the fees charged to individuals in respect of education and training.

“This work has focused particularly on the position of private universities but we are also looking at how this applies to the fees charged in respect of provision funded by 24+ advanced learning loans.”

A spokesperson for AELP said the issue had “come out of the blue” and would affect how many providers delivered level 3 and 4 qualifications for adult learners.

“It could have a huge impact on whether providers are in the game or out of the game, because it’s already giving the not-for-profit organisations a huge advantage in price fixing,” the spokesperson said.

Gordon Marsden, shadow minister for further education, skills and regional growth, told FE Week the problem was because of the different legal statuses held by colleges and independent training  providers.

“If that is going to disadvantage independent learning providers, then I certainly think it’s something the government should be looking at,” he said. However, he later admitted there was “nothing immediately that can be done”.

Final FE loans impact assessments come under fire

The shadow FE minister, an independent charity and two trade unions have criticised the FE loans policy following the publication of the final Equality Impact Assessment (EIA) and Regulatory Impact Assessment (RIA) reports.

Gordon Marsden, shadow minister for further education, skills and regional growth, told FE Week: “The EIA adds relatively little to the research that was published previously.

“In fact most of it appears to be derived
from it, and on that basis all the substantial concerns and misgivings that we have about the implications of the research also apply to the assessment.

“It remains the case that neither the research nor the assessment justifies the claims that this is going to be widely accepted by a broad range of learners.”

The scheme – now called “24+ advanced learning loans” – will be introduced next year and will affect all learners aged 24 and above and studying at level 3 or higher.

NIACE’s outstanding concerns about the introduction of loans include not only equality issues around age, disability and gender, but the impact they will have on the learning offer”

Mr Marsden said the Department for Business, Innovation and Skills (BIS) was trying to spin the findings to show that the policy “will not be such a big deal” next year.

“Well, I’m sorry, but all the evidence suggests that it will be a big deal,” he said.

Learners aged 40 and above would be least likely to take out a loan, according to the final EIA report.

“Most people felt that they would not be put off taking out a 24+ advanced learning loan once they understood the full details,” it said.

“However those aged 40 and over seeking a route back into the labour market were still negative.”

The report also showed that women were marginally less likely to take out a loan, although it later said the difference was “not large enough to be statistically significant”.

The National Institute of Adult Continuing Education (NIACE) said that it was “concerned” about the impact of the policy both on female and older learners.

Alastair Thomson, principal advocacy officer at NIACE, said: “NIACE’s outstanding concerns about the introduction of loans include not only equality issues around age, disability and gender, but the impact they will have on the learning offer – especially access to HE – the quality of the learning experience and what subjects might be available.”

The National Union of Students (NUS) has also criticised the reports.

Toni Pearce, the union’s vice president (further education), said: “This poorly researched, poorly analysed and much delayed report is yet further proof that the government has not properly prepared themselves or the sector for the introduction of FE fees.

“The report clearly shows that the worst hit by the changes will be women – who make up two-thirds of the affected group – and the over-40s. Yet the report says all is fine with the former and that they’ll merely keep an eye on the latter.”

She described the reports as inadequate and a “box-ticking exercise”.

The RIA, which modelled the impact of the scheme against four other policy decisions, showed that the number of adult learners studying at level 3 and 4 could drop from 359,000 to about 247,000 once the loans were introduced.

It follows market research, carried out by TNS-BMRB, which revealed that one in ten learners would “definitely” take out a loan.

Sally Hunt, general secretary of the University and College Union, said: “The new loans system will be profoundly unfair and make it harder for people to get the qualifications they need to progress in life.

“The government’s own research shows that the number of learners ‘definitely’ willing to take courses is low – and it has only canvassed the views of people currently in the system.

“Their own budgets have been planned with 20 per cent fewer learners expected under the new system.”

A BIS spokesperson said government funding was being focused on young people without basic skills or taking their first qualifications.

“Access to a loan will ensure no upfront costs for tuition for those aged 24 and over taking qualifications worth an A-Level or higher.”

Ofsted publishes new inspection framework

Ofsted is to reduce inspection notice periods from three weeks to two days.

The change, which will be implemented from September, is set down in an amended Common Inspection Framework, released last week as part of the handbook for the inspection of further education and skills.

Ofsted has already piloted “no notice” inspections, but Matthew Coffey, its national director for learning and skills, said that many providers “raised genuine concerns about logistics”.

Joy Mercer, director of policy at the Association of Colleges (AoC), said that the organisation was pleased there would be two days rather than “no notice”, but concerns remained.

“This is still a tight time-frame and will continue to cause logistical problems for colleges and Ofsted inspectors, particularly in ensuring that they see the fullest range of provision, including the more complicated areas such as work-based, off campus, employment-driven courses.

“That’s why we think it’s even more important that Ofsted is clear about what data it will be using and what evidence requirements it would expect colleges to have to hand.”

There is no parity and it is unfair for a college’s provision to be at risk when a neighbouring school or academy sixth form may well offer poorer quality provision”

The framework has also replaced the “satisfactory” judgment with “requires improvement”, which Mr Coffey said “makes clear that only a good level of education is acceptable”.

Ms Mercer said that colleges accepted that complacency “should have no place in a sector committed to continuous self-improvement”, but that the AoC remained “uncomfortable” with “requires improvement”.

“The implications for colleges are stark,” she said. “A simplistic application of the term ‘requires improvement’ does not capture the wide range of circumstances encompassed by the existing ‘satisfactory’ grade, which range from a so-called ‘coasting’ institution to one that is making solid progress towards improvement.

“However, we’re pleased that Ofsted has moved away from its ‘three strikes’ policy and, if a college has made demonstrable improvements, this will be taken into consideration and the college will not necessarily be graded inadequate on its third inspection.”

The framework says that there will normally be a full inspection of providers judged to “require improvement” within 12 to 18 months.  Those judged to require improvement twice in a row from September this year may be judged inadequate on their third inspection if they failed to improve.

“This will drive up improvement and discourage coasting providers,” Mr Coffey said.

In February this year Sir Michael Wilshaw, chief schools inspector, launched Good Education for All, a 12-week consultation with the further education and skills sector on the proposals for the amended framework.

Mr Coffey said that Ofsted “received hundreds of valuable responses. Often learners were more positive about the proposals than many of the providers,” he said.

In response to the framework, Ms Mercer said that the AoC “remains extremely concerned” about the huge differences between the way that school and academy sixth forms were inspected compared with FE colleges and sixth-form colleges.

“There is no parity and it is unfair for a college’s provision to be at risk when a neighbouring school or academy sixth form may well offer poorer quality provision,” she said.

“There needs to be a common set of data used and a similar methodology, including a grade for school and academy sixth forms, so that students and parents can make a real comparison.”

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