Apprenticeships delivered in six months or less offer “no real benefit” to learners or employers, according to a report published by the Public Accounts Committee (PAC).

Margaret Hodge MP, who chaired the panel, says she is concerned that roughly one in five apprenticeships (19 per cent) were delivered in six months or less during 2010/11.

“The danger is that apprenticeships lasting such a short time are of no real benefit to either the individuals who take part or employers and could devalue the programme,” Ms Hodge said.

“I am pleased therefore that the skills minister announced recently that adult apprenticeships will last a minimum of six months and normally at least 12 months.”

However, the growth in adult apprenticeships has been branded a “success” by the PAC.

The panel of backbench MPs says the Department for Business, Innovation and Skills (BIS) “has done very well” to more than quadruple the number of adult apprentices in the four years leading up to 2010/11.

“We recognise the significant achievement of the Department and its partners in raising both the number of adult apprentices and the percentage who successfully complete their apprenticeship,” the report reads.

The report later suggests that the National Apprenticeship Service (NAS) could be overpaying private training providers due to “out-of-date” funding rates.

“The Service does not know what level of profits providers are making on different types of apprenticeships,” the report reads.

“Nor does it know whether it is subsidising some apprenticeships more than others.”

It later adds: “There is also evidence to suggest some providers are providing training without receiving the expected contribution from employers.

“The Service should work closely with the Agency to link the funding it provides more closely with the delivery costs.”

Ms Hodge said: “If the Service is to get better at targeting of resources, it needs to understand better which apprenticeships in which sectors deliver the best value for money.

“It doesn’t currently know what levels of profit the providers are making and whether it is paying them too much for some types of apprenticeship.”

The PAC report also calls for a structural review of the NAS and Skills Funding Agency (SFA) to ensure there is “minimal duplication” in their responsibilities

“The relationship between the NAS and SFA remains unclear,” the report reads.

“The way in which the two bodies interact, and the question of who is responsible and accountable for what, still needs to be clarified.

“This will be particularly important to settle during 2012, given the Department needs to appoint new permanent chief executives in each body.”

The skills minister, speaking at an evidence session held by the BIS Select Committee for their inquiry into apprenticeships last week, admitted there was “an argument for changing the way the SFA is structured.”

“No government gets all these things right and I remember when we were in opposition looking at the SFA and the NAS, talking about whether that was the right structure and whether the existing arrangements with the SFA, where it’s an external body – not a permanent body – was right,” Mr Hayes told the Committee.

“I’ve increasingly come to the view that we need to bring that more in-house…and we’re looking very closely at that now.”

Apprenticeships delivered in six months or less offer “no real benefit” to learners or employers, according to a report published by the Public Accounts Committee (PAC).

Margaret Hodge MP, who chaired the panel, says she is concerned that roughly one in five apprenticeships (19 per cent) were delivered in six months or less during 2010/11.

“The danger is that apprenticeships lasting such a short time are of no real benefit to either the individuals who take part or employers and could devalue the programme,” Ms Hodge said.

“I am pleased therefore that the skills minister announced recently that adult apprenticeships will last a minimum of six months and normally at least 12 months.”

However, the growth in adult apprenticeships has been branded a “success” by the PAC.

The panel of backbench MPs says the Department for Business, Innovation and Skills (BIS) “has done very well” to more than quadruple the number of adult apprentices in the four years leading up to 2010/11.

“We recognise the significant achievement of the Department and its partners in raising both the number of adult apprentices and the percentage who successfully complete their apprenticeship,” the report reads.

The relationship between the NAS and SFA remains unclear”

The report later suggests that the National Apprenticeship Service (NAS) could be overpaying private training providers due to “out-of-date” funding rates.

“The Service does not know what level of profits providers are making on different types of apprenticeships,” the report reads.

“Nor does it know whether it is subsidising some apprenticeships more than others.”

It later adds: “There is also evidence to suggest some providers are providing training without receiving the expected contribution from employers.

“The Service should work closely with the Agency to link the funding it provides more closely with the delivery costs.”

Ms Hodge said: “If the Service is to get better at targeting of resources, it needs to understand better which apprenticeships in which sectors deliver the best value for money.

“It doesn’t currently know what levels of profit the providers are making and whether it is paying them too much for some types of apprenticeship.”

The PAC report also calls for a structural review of the NAS and Skills Funding Agency (SFA) to ensure there is “minimal duplication” in their responsibilities.

“The relationship between the NAS and SFA remains unclear,” the report reads.

“The way in which the two bodies interact, and the question of who is responsible and accountable for what, still needs to be clarified.

“This will be particularly important to settle during 2012, given the Department needs to appoint new permanent chief executives in each body.”

The skills minister, speaking at an evidence session held by the BIS Select Committee for their inquiry into apprenticeships last week, admitted there was “an argument for changing the way the SFA is structured.”

“No government gets all these things right and I remember when we were in opposition looking at the SFA and the NAS, talking about whether that was the right structure and whether the existing arrangements with the SFA, where it’s an external body – not a permanent body – was right,” Mr Hayes told the Committee.

“I’ve increasingly come to the view that we need to bring that more in-house…and we’re looking very closely at that now.”

Only one in ten adults say they would “definitely” take out a loan to study a level 3 course in FE, according to research commissioned by the Department for Business, Innovation and Skills (BIS).

The study, carried out by the social research agency TNS BMRB, found that 42 per cent of respondents would be unlikely to take out a “24+ Advanced Learning Loan” in the next two or three years.

The findings add to growing concerns about the impact of the new policy, which will affect all learners aged 24 or above and studying at level 3 or higher in the 2013/14 academic year.

Gordon Marsden MP, shadow minister for FE, skills and regional growth, told FE Week: “There were some statistics in this that were very disturbing in terms of what they indicate about the resistance to taking up loans.”

Toni Pearce, vice-president (FE) for the National Union of Students (NUS), added: “It would be a national tragedy if those who have been shut out of education in the past were even further deterred from taking up life-changing routes to learning by the creation of new financial barriers.”

A report published by the Department says TNS BMRB surveyed 405 potential learners, aged between 23 and 64, who completed a full level 2 course in the 2010/11 academic year.

One in ten respondents (12 per cent) who declared they would be progressing to a level 3 course in the next two or three years said they would “definitely” take out a loan, while a further 21 per cent said they “probably” would.

John Hayes MP, minister of state for FE, skills and lifelong learning, told FE Week: “I thought the research was helpful and encouraging – I wouldn’t go too far with this – but encouraging, and provided a useful platform for us to gauge how we now move forward.”

He added: “The interesting thing about the (research) was that there was less fear, ultimately, about loans then some might have claimed.

“Clearly most people said they would continue with their learning and they would take loans as part of the package.”

However, more than 40 per cent of respondents who wanted to study a level 3 qualification in the next two or three years said they either “definitely” or “probably” wouldn’t take out a loan.

Jon Richards, the national secretary for education at Unison, said: “The government must now stop and listen, otherwise it risks inflicting chaos on the further education sector.

“Many learners are going to be priced out of education and skills altogether.

“Ministers should therefore call an immediate halt to their ill-thought out fees policy.”

The research was commissioned by BIS to find out how learners would react to the new FE loans policy, as well as how best to ensure its impact “on learners’ choices and options is minimised’.”

The study, which also included group debates with more than 200 people, found that most potential learners met the idea of an FE loan with “widespread dismay”.

The report states: “(It was) common for respondents to feel that the emotional and financial costs of a loan would outweigh the uncertain and in all likelihood deferred benefits of FE, and suggested that they would have to reconsider taking a course on this basis.”

It later adds: “Only a small minority of ‘career advancers’ did not immediately reject the idea, as they felt their course was their only way forward for their chosen career, so were unwilling to consider alternatives to FE and abandon their plans.”

However, the research by TNS BMRB also found that learners were more supportive of the policy when they were provided with further information.

“When the facts around the link between income and repayment are communicated clearly and immediately, that repayments are low and affordable and that this is a loan from government and not a bank, this research suggests the reaction was much more positive and the impact on course take-up would be greatly reduced,” the report states.

Serious Fraud Office swoop in on Luis Michael Training, former partner of Sparsholt College

Three men have been arrested as part of an investigation into Luis Michael Training (LMT), a sub-contractor that used to deliver football-based apprenticeships.

The Serious Fraud Office (SFO) says the individuals were arrested as part of a search operation on four homes and a business property.

A 29 year-old man was arrested in Southport, along with a 51 year-old man in Cardiff and a 52 year-old man in Heywood, Manchester.

All three men have since been interviewed and released without charge on unconditional bail.

The SFO says the search operation involved 52 of its investigators and 20 police officers from the Gwent, South Wales, Greater Manchester and Merseyside police forces.

LMT was a training provider which enrolled, assessed and verified apprenticeships for young people at football clubs such as Leeds, Millwall and Nottingham Forest.

The accusations against the sub-contractor, which was based in Newport and run by former Welsh football international Mark Aizlewood, relate to their work between 2009 and 2011.

An SFO statement reads: “It is believed that LMT fraudulently overstated the number of students and apprenticeships that they had placed. The suspected offences include fraudulent trading, false accounting and forgery.”

LMT, who worked as a subcontractor for eight further education colleges including Sparsholt College and South Thames College, are suspected to have made fraudulent claims worth over £1.6 million.

The SFO statement adds: “It is suspected that LMT produced false documentation, including registration papers, progress reviews and coaching examination certificates to falsely show to further education colleges and examining boards that training and apprenticeship placements had been successfully achieved and completed.”

A spokesperson for the Skills Funding Agency (SFA) told FE Week: “Although we don’t hold the contractual relationships with Luis Michael Training we do have a duty to protect public funds and learners.

“Since 2010 we have worked with the lead provider who held the contractual relationship to ensure learners were supported and public funds not spent in accordance with the contractual arrangements that the lead provider has with the Agency have been clawed back.”

Sparsholt College held the largest contract with LMT, and said they were unable to make any comment which may prejudice the SFO investigation.

However, a spokesperson for the college told FE Week: “We have been proactive in reporting our concerns to the police and latterly working closely to support SFO enquiries.”

Colleges which delivered training with LMT have been asked to give money back to the SFA.

When asked about Sparsholt College, the SFA spokesperson added: “The Agency has recovered funds from the lead provider.

“We cannot disclose the amount as it is confidential between us and the College.

A Freedom of Information (FOI) request by FE Week has revealed that the SFA’s Investigation Unit is currently handling 14 live allegations of misuse of funds.

However, only one of these is being considered by the police.