FE loans met with “widespread dismay”

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.

Matthew Coffey, National Director at Ofsted, responds to FE Week analysis

I read with interest the article in FE week on a sample of colleges from the 157 group and their inspection judgements.

The first, and most important, point to make is that the inspection framework (CIF) has not changed. The article suggests that a new common inspection framework was introduced in September 2011. It wasn’t. We are introducing a new CIF in September 2012. Our final public consultation on the new framework has just closed and we are planning to publish it at the end of the month.

It may of course be entirely correct that colleges are being inspected for the first time under the 2009 framework. I also accept that our approach to the selection of providers for inspection has changed since 2009.

Selected analysis over a short timeframe will not give a fair representation of the state of the nation”

In 2009/10 around a quarter of providers were selected for inspection based on our published risk assessment process.

This increased to around half of providers in 2010/11 but excluded outstanding providers.

This year we have maintained the selection ratio although outstanding providers have also been assessed, and indeed some have been selected for inspection.

The consequence of this proportionate approach to inspection must not be underestimated. Selected analysis over a short timeframe will not give a fair representation of the state of the nation.

However, this should not detract from the key messages coming out of inspections at the moment. Teaching and learning continues to be a key issue as does the rigor of self-assessment.

I won’t attempt to write an annual report in this space but instead direct you to our quarterly published data which can be found on our website.

Individual published inspection reports explain the evidence behind our grades. Reports also contain details on how providers can improve.

Click here for updated FE Week Ofsted grade analysis, which includes the three most recent results

 

By Matthew Coffey

Arrests over apprenticeship subcontractor

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.

Three arrested in SFO investigation

Three men have been arrested as part of an investigation into Luis Michael Training, a company which 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 early this morning.

Two of the men who were arrested have been interviewed and released without charge on unconditional bail.

The SFO says the third man is still being interviewed, but will also be released under similar circumstances.

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

Luis Michael Training was a training provider, funded by the Skills Funding Agency (SFA), which enrolled, assessed and verified apprenticeships and NVQ programmes for young people through football clubs.

A press release issued by the SFO reads: “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.”

It later adds: “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.”

(A full report will be in the next edition of FE Week)

Time is right for UK further education providers to locate in India

The time is right for UK-based educational establishments in the further education sector to consider locating in India.

India’s education sector is growing rapidly and it is estimated that by 2020 the country will need 35,000 FE colleges and about 800 universities to cater for demand for courses from the local population, of which more than 60% are under 25 years of age. 100% Foreign Direct Investment (FDI) is now permissible in the sector and the new Foreign Educational Institutions Bill is soon to become law in India.

Having recently provided recommendations on the Bill to the Indian Government, it is clear that these changes represent a tremendous opportunity for forward thinking FE institutions.

They may wish to set up joint ventures or create their own independently-run campuses within India’s thriving educational establishment.

This opportunity is particularly compelling when you consider the impact of austerity measures on the sector in the UK. A growing number of colleges are in the process of setting up offices in India to lead their student recruitment initiatives and some are already collaborating with Indian colleges to offer dual course programmes.

Others are considering basing themselves in India and in some instances they are taking advantage of ready-made locations that have been created within new, recently-constructed townships.

Most colleges that are interested in entry to the Indian market are choosing to set up joint ventures with established local partners or with major infrastructure companies. However, there are a number of potential pitfalls they need to be aware of.

The potential gains are phenomenal, but the regulatory landscape in India’s education sector is complex and strict rules apply about how many local tutors must be used, for example.

In addition, regardless which route a college prefers to take, it is important to use legal experts with specialist knowledge of how to conduct negotiations in India in order to fulfill the necessary property and finance-related compliance criteria and meet the requirements set out in the incoming legislation.

Viplavi Mahendra is a corporate lawyer and co-chair of Team India at Shakespeares

City of Bristol College principal to retire after a decade in role

Keith Elliot, principal at City of Bristol College, has announced his plans to retire in July.

The principal, who has held the position for more than a decade, has been praised for helping the college to become “one of the largest and most successful” FE colleges in the UK, achieving Beacon College status and an ‘outstanding’ Ofsted rating.

“I have greatly enjoyed my time at the College and I would like to thank our staff for their support to our students over the last ten years,” Mr Elliot said.

“Thanks to their hard work, the College already makes a difference to many people in the City and I know that it will continue to go from strength to strength in the future.”

Mr Elliot was a founding member of the 157 Group and is also a member of the CBI South West Regional Council, the South West Regional Employment & Skills Partnership Board and chairs the Local Enterprise Partnership Skills Sub-Group.

Neil Middleton, chair of governors at City of Bristol College said: “Keith is an immensely dedicated individual who has taken the College to great heights.

“His direction and leadership has made a substantial impact on the contribution the College has made to the provision of learning for everyone in the region.”

Lynn Merilion has been appointed as the new City of Bristol College Principal and will start in September.

Lynn is currently Principal of Stockport College in Greater Manchester.

Awards ceremony launches Adult Learners’ Week 2012

TV presenter Philippa Forrester enthusiastically kicked off the ceremony.

“This is a celebration. This is a party. This is to say well done. To acknowledge all of that work and the bravery,” she said.

This is the 21st year of Adult Learning Week and there are around 4,000 ‘Have a Go’ events across the country.

The chief executive of NIACE, David Hughes (see photo above), said the week will give around 100,000 people the opportunity to get back into learning.

Mr Hughes also read out congratulatory words from David Cameron, who described adult learning as “part of this country’s lifeblood”.

Ms Forrester spoke about her personal experiences of further education, as did the Business Secretary Vince Cable (see photo above).

Mr Cable talked about his mother, who left school at 15 to work in a factory packing chocolates.

“The stress of being ambitious and able, but the lack of education opportunity, meant that when I was about 10 or 11, she had a very serious nervous breakdown,” he said.

“She eventually put her life together again through adult education, so I shall always be pleasantly indebted to the people who made that possible.”

The first winner to be presented with their award was Corina Scanlan-Messam (see top photo).

After leaving school, which she says she “hated” and gained just two GCSE’s at, she became involved in drugs and petty crime.

When she discovered she was pregnant at 21, she decided she needed to give her child a better quality of life and enrolled at South Cheshire College.

There she completed a Moving On course, taking only two weeks maternity leave.

She cites the emotional, as well as academic support, given to her by her tutor Alison Fenoglio, as a massive help. She said Ms Fenoglio, who nominated her, is like a “friend”.

In September she will begin a degree in Psychology at Keele University.

Farewell, you won’t be forgotten

As I write these words, I’m hurtling through the countryside on a train heading back to Peterborough, having left FE Week for the final time after possibly the busiest and most exciting eight months of my five-year working life.

So why leave? Well, the aforementioned location for writing this piece, as well as the small digitals shining ‘9.25pm’ in the bottom corner of my laptop screen, give you an insight into the decision.

But as the cliché goes, and I love a good cliché, sometimes you get an opportunity you can’t let pass you by – and it is this situation I have found myself in these past few weeks.
But is it goodbye to FE forever? I honestly hope not. These eight months opened my eyes to a vibrant, exciting, and somewhat misunderstood sector.

There is so much good going on in FE and it’s a pleasure to say since the very first edition of FE Week in September of last year, I have been near the forefront of some of its biggest successes.

It was in those first few days that I first heard of what of was to be my favourite part of working at FE Week; WorldSkills London 2011, which took place just two months later in November.
Over four days, the ExCel was my home – reporting live and filing copy from this huge international event. It allowed me to meet many famous faces, from fine dining with Eddy the Eagle, to a very brief “Q&A” with Boris Johnson (well, one question).

But, the more lasting memory is that it also allowed me to see exactly what FE is all about; thousands of students and teachers showcasing their skills, surrounded by proud parents, friends and supporters. And how great was it to see Team UK come away with a record showing?

The same month also saw another major highlight of my time at FE Week, which was the Association of Colleges’ Annual Conference and Exhibition in Birmingham.

Three days of policy and debate – not only busy schedule-wise, but also a steep learning curve for me – still only new in the sector at the time.

You have all contributed to what has been a thoroughly enjoyable part of my career

I doubt I’ll help move a whole newspaper office, computers and all, to set up camp in a hotel for a half-a-week to cover an event ever again!

The conference also introduced me to the sociable side of FE at the FE Week charity auction. Not only was it a really fun night, but to be part of something that raised so much money for a worthy cause, the Helena Kennedy Foundation, is something that will stay with me for a long time.

So, what about the future and FE Week? Well, a new education journalist will arrive next week and she will be a valuable addition to the team. In fact, it may even be easier with one less Nick in the office!

Joking aside, FE Week has grown significantly since launching eight months ago – to be honest, probably more than I expected prior to my arrival! Its impact on the FE sector is clear for all to see and plans for the future are progressing very well.

It has a hugely talented team, especially on the editorial side with Nick Summers and Dan Duke, and great background staff. It goes without saying that I wish them well for the future.

I think that’s everything, other than to say that it has been a pleasure to work with every one of you. You have all contributed to what has been a thoroughly enjoyable part of my career. Thank you and good luck!

Nick Reinis,
former deputy editor of FE Week

FE Week proudly presents FE Weekend

FE Weekend is an inaugural summer conference organised by FE Week, which will provide an opportunity for attendees, from across the sector and at all levels, to receive business critical updates on policy developments and to discuss future changes to further education.

To find out more and register click here.