SFA chief says he is ‘grappling’ with apprenticeship ‘teething problems’

The chief executive of the Skills Funding Agency (SFA) says he is “grappling” with apprenticeship issues after admitting to “teething problems” in the current system.

Geoff Russell, speaking to FE Week at the Association of Colleges (AoC) Annual Conference, said the SFA has “spotted” concerns and is trying to better define apprenticeships.

He said: “One of the important elements of an apprenticeship is experience at work. And you know the benefits of that aren’t necessarily as measurable as perhaps one would like, but I think most people recognise there is a value for spending a year or two working with people in a work environment.

“So it’s kind of a definitional thing and it’s arisen because of the huge, successful increase in the number of apprenticeships.

“There’s always going to be some teething problems and this is the emergence of one. I don’t think you’ll be surprised to learn that it’s been spotted and we’re working with colleagues in the National Apprenticeship Service to get a tighter definition of what an apprenticeship is.”

Mr Russell said the SFA would “probably need to tighten the rules” around what is considered to be a reasonable length of an apprenticeship, while admitting some cases were raising questions about the structure of apprenticeship frameworks.

He said: “I think we’ve probably been operating on the assumption that apprenticeships should be one or two years.

“I guess instances like that provoke the question ‘well should we be a bit more proactive in terms of saying what the expectation should be around the average duration of an apprenticeship?’ If someone is an outlier from that expectation, it’s about having a look at it and saying ‘well is there a good reason for that?’ or maybe we should be saying to people, ‘we think it needs to be a bit longer’.”

Mr Russell (above) said the SFA was “grappling” with issues. He added: “If you are in retail or if you are in health, versus if you broaden into mainstream engineering. These are the kinds of issues we’re grappling with.

“In the meantime, I think I can say pretty conclusively, there are very few people out here that we’re aware of that are just breaking the rules. There are a lot of people following the rules in a way that is to their advantage.

“It’s incumbent on us to possibly look a little more carefully at some of those cases, and we are, but I just think we need to keep it in perspective Of the hundreds of thousands of apprenticeships which are out there, the vast majority, are doing something which pretty much looks like an apprenticeship.”

Mr Russell was also asked about Elmfield Training, one of the UK’s fastest growing training providers.

The firm has been highlighted recently by FE Week and TES magazine for its profit margins and use of public money.

He said: “There’s an issue that says, what is a reasonable amount for an organisation to make, in terms of profit delivering training. I don’t know the details, but my guess is Elmfield is delivering in a way which is quite possibly entirely compliant with the rules.”

Daniel Khan, CEO, the Open College Network London Region

Daniel Khan had his first lessons in entrepreneurship from his father, who ran a corner shop in Trinidad.

Helping out in the shop at weekends and cycling round the neighbourhood delivering groceries, he quickly developed a head for business. “It was a good education because you learned the value of hard work, but you also learned the value of money because margins were so tight. He was flexible with customer service, pricing and going that extra mile,” he says.

These are lessons he has carried through his professional life – particularly the bit about going the extra mile. He has had an impressive portfolio career that has included accountancy, financial management, teaching, college leadership and now a chief executive role at the qualifications awarding body the Open College Network, London Region. At some points in his career, he has had two or three jobs on the go at a time.

As a child, Khan set his sights on studying engineering at university. But as the second of five children, he was reluctant to burden his parents financially and chose to train on-the-job as an accountant instead.

When I first moved back to the UK, my parents were back at home, I didn’t have anyone to rely on…I felt I really had to make myself sustainable and financially independent”

In the early 1970s, he was offered the chance to finish his training in London. But after the “nice weather, beaches and barbecues” he had enjoyed growing up in Trinidad, living in the UK was a culture shock. “It didn’t dislike it, but initially it was different,” he recalls. “It was so vast and impersonal…I found the winter and the grey skies difficult, so I was definitely going back to Trinidad as soon as possible.”

Khan did go back to Trinidad – with his wife, who he had met while studying in London – but returned to the UK in the early 1980s and settled in Kent. After a short spell working for Lyon’s Ice Cream, he landed a financial management role at the University of London and spent the next sixteen years working, amongst others, for the Institute of Education, School of African and Oriental Studies and the Institute of Neurology.

In his spare time, he set up an accountancy practice, did a Masters degree in financial management, a diploma in Theology and had a variety of part-time lecturing roles, including both accountancy and bible studies. In 1986, he became the first “non-white” to be elected as a councillor for Gillingham Borough Council, in Kent, where he served for eight years.

Khan’s strong work ethic and endless energy (he sleeps for just four hours a night) is characteristic of many immigrants, he says. “I think it’s something that drives many of us,” he says. “When I first moved back to the UK, my parents were back at home, I didn’t have anyone to rely on…I felt I really had to make myself sustainable and financially independent.”

But when he was offered a job as deputy principal at York College in 1996, Khan recognised his limits and sold his accountancy practice to a friend. Three years later, he moved to Grimsby College (now Grimsby Institute of Further and Higher Education) as principal; making history as one of just two black college leaders at the time.

Khan gushes about his achievements at Grimsby, where under his leadership, the college turnover went from £15 million to £60 million and hoovered up other institutions until it had “had grown to stretch from Scarborough to Skegness”. His efforts won him an OBE for which he is justifiably proud.

It was also during his time at Grimsby he picked up the title of ‘Professor,’ a source of puzzlement for some, as has has not held a senior academic role at a university. Khan says the professorship was awarded by Yangtze University in China, where he lectured when he visited on college business.

But it came as a surprise to the sector when he left, suddenly, last year. While a confidentiality agreement prevents him from talking about the exact circumstances of his departure (it will all be in his book, he jokes), Khan hints there was a growing gulf between him and some of his colleagues about the future direction of the college.

“I could forsee that my style had taken the college where they were and where they wanted to be – but the general feel was this period of economic growth was over,” he says, clearly choosing his words carefully. “They [colleagues at the college] had to consolidate and maybe even look at if we needed to be involved in all we were involved with.”

In retrospect, the timing of his departure was “miscalculated,” he says. “We had new governors on board and different people bringing different views and I thought maybe the time was coming to leave…but what I probably should have done was leave in six months, but at that time, I had some friends who were starting up a catering business. Because I had said I wanted to leave they said ‘maybe it would be better to leave sooner rather than later; when do you want to leave?’ I said if we could cut a deal, I’d leave straight away.”

My big drive in life is that there are two factors that affect lives – that’s religion and education.”

He left soon afterwards with £100,000 in his pocket. But because Khan had always dealt with journalists direct, there was no one to deal with the media. As a result, it was “not handled well,” he says, which led to speculation in local and trade press about the reasons for his sudden departure.

When the catering venture didn’t work out, Khan moved into consultancy” but a few months after leaving Grimsby, found he was missing working for an organisation and having a direct influence on peoples’ lives. So when a job came up as chief executive of the Open College Network, London Region, he jumped at the chance.

He has taken up the post at an interesting time; the Open College Network, London Region, along with nine other regional networks has recently been given independent awarding status which will give them the freedom to develop qualifications that meet the specific needs of their region alongside the Open College Network qualifications they already deliver. There is a possibility that some may choose to go it alone – and solely deliver their own qualifications – but decisions won’t be finalised until next month.

The increase in university tuition fees, due to rise to £9,000 a year, will mean big changes right across the education sector and Khan predicts a much bigger demand for a “part-time learning, part-time working” model. Universities and colleges will be under far greater pressure to prove they are providing value-for-money – and that their courses help students get jobs, he says.

As well as looking at developing advanced apprenticeship programmes, The Open College Network, London Region, is exploring the idea of partnerships with universities that would allow students to do their first year of a degree at a college, at a reduced cost.

But while there are many advantages to a more competitive education market, quality does need to be monitored carefully, says Khan. “It’s like the American health service – you will find that some providers will want to do the easy things they can make money on. So they will do all the simple operations but the expensive surgeries, they don’t want to do. So, in education, what you will find is lots of business courses and those that are easy to deliver, but the really difficult things like medicine or engineering, they won’t go into.”

Khan, who recently turned 60, says he “loves working” and has no intention of retiring. But after 40 years of working long days and attending functions most evenings, he has recently joined a gym and now tries to keep at least two evenings free a week. What continues to motivate him about further education is its capacity to transform lives.

“My big drive in life is that there are two factors that affect lives – that’s religion and education.

“In religion you can have a life transforming experience and change your life. In education, you can have a better quality of life, a job, work your way up and do things better for yourself, your family and community.

“There is something very satisfying about that,” he says.

AELP calls for clarity on taxpayer spending

Greater clarity is needed to ensure taxpayers know where their money is being spent, a further education (FE) body has warned as a new pilot is launched.

The Association of Employment and Learning Providers (AELP) say that government contribution to employer funded training should be clearly specified and should not subsidise training investment companies “have always made”.

It follows Prime Minister David Cameron’s announcement of a new £250 million pilot fund for businesses to design, develop and buy vocational training. An initial fund of £50m is available in 2012/13 for employers to bid, but if it is a success then a further £200m will available the following year.

However, the specification has yet to be written and the AELP will be making suggestions about how it should be framed. Graham Hoyle, the AELP chief executive, said: “I have absolutely no problems with the concept of ‘employer ownership’ and have indeed argued that the pendulum has swung far too far in the direction of government interference.

“It will be very important, however, for the government to be perhaps clearer than it has ever been about what it, on behalf of the taxpayer, is paying for.”

He added: “What the government should never be paying for is development of specific vocational skills required by employers to run their own, profitable, businesses. These skills have always been funded by employers, who have recognised the bottom line return that such investments invariably bring.”

At the Association of Colleges (AoC) Annual Conference last week, Business Secretary Vince Cable described the pilot as a “radical” approach.

He added: “The introduction of a pilot using employers as purchasers might sound threatening to some providers, and perhaps to some of you, it actually represents an opportunity for the best to expand.

“We aim to build on, not undermine, the strong relationships many of you already have with employers. Our approach will be flexible, rather than bureaucratic – enabling you to work more closely with business.”

AoC chief executive Martin Doel, although admitting that not enough detail was available yet, questioned the plan. Mr Doel asked: “What accountabilities will they accept for receiving or having direct control of skills funding?

“And how will they demonstrate that they are delivering public value, just as colleges deliver public value?” During a press conference, Mr Cable responded to Mr Doel’s questions.

Mr Cable said: “The UKCES, which is the umbrella organisation that actually installs the sector skills councils and operates the levy schemes and so on, that is the main vehicle through which the employers channel their concerns.

“But accountability and the use of public money will be done in the normal way. The Skills Funding Agency is the key agency in government, which will be held to account for the money they spend, just as colleges are when they’re directly funded.”

Ofsted: Too little outstanding teaching in learning and skills

Quality of teaching in further education has been criticised in the annual report education regulator Ofsted.

The report said there was “too little outstanding teaching in learning and skills providers” inspected in 2010/11.

It said only 13 independent learning providers and two employer providers were judged outstanding for quality of teaching, with no colleges, adult and community learning providers making the grade.

The indictment has led to the suggestion that providers should only be graded with an overall outstanding mark if their teaching is outstanding. The plan is being canvassed by the Institute for Learning (IfL), which has received “strong support” for the notion from more than 2,000 members who have replied to a survey on proposed framework changes.

IfL chief executive Toni Fazaeli said: “We agree with Ofsted that excellent teaching and learning are the keys to success. It is disappointing too little outstanding teaching was seen in colleges, adult and community learning providers and prisons inspected this year.”

Other findings include less than half the colleges inspected being judged to be good or outstanding. However, this is in the context of a risk-based approach to inspection, where a greater percentage of previously satisfactory or inadequate providers were inspected during the course of 2010/11.

The most recent inspections for all colleges showed 70 per cent were graded as good or outstanding. But Ofsted criticised “slow progress” of colleges previously found to be satisfactory, with 22 no better and two worse out of 40.

Joy Mercer, director of policy (Education) at the Association of Colleges, is pleased at the overall picture.

But she added: “There are concerns about the number of colleges which continue to be identified as satisfactory under Ofsted’s new ‘at risk’ inspection regime and the one per cent which are deemed inadequate.

“Colleges are never complacent about their performance and continually strive to improve their provision.”

Independent learning providers increased in those judged good or outstanding; from 47 per cent in 2009/10 to 55 per cent in 2010/11. Outstanding grades have increased from four per cent last year to ten per cent this year. Ten of the 16 employer providers inspected this year were judged to be outstanding or good, and six were judged as satisfactory.

Although 33 of the 45 adult and community learning providers inspected were judged good, only one was outstanding overall and no providers were judged outstanding for quality of teaching for the second year.

Graham Hoyle, chief executive of the AELP, said: “It is very encouraging. The chief inspector also highlights high success rates in the independent sector, which means that we are delivering value for money for the taxpayer and the economy.”

Gazelle colleges to teach FE students entrepreneurship

College principals and business leaders have launched an initiative to make the further education sector more entrepreneurial. The Gazelle Group is developing a new curriculum that challenges students to take charge of a college-owned business which operates in their local community.

“We’ve got to create real companies and real businesses on our campuses in order for students to earn real money and operate in a commercial environment,” Fintan Donohue, the principal of North Hertfordshire College told FE Week during Association of Colleges (AoC) Annual Conference last week.

“That’s quite a big, controversial statement. I’m saying a proportion of the students programme will not be teacher led, it’ll actually be exponentially led.”

The Gazelle initiative was created by Generator Enterprises Limited, a new company founded by college principals Amarjit Basi, Mariane Cavalli, Mr Donohue (left), Dick Palmer and Richard Thorold.

Students will work on a real-life business relevant to their course and owned by the college, such as a restaurant, hairdressing salon or music production company.

Mr Donohue said: “Our model, if it works over the next five to 10 years, is if you come into an entrepreneurial college a significant proportion of the student output, including what they learn and what they do, will be gained as if they’re genuinely working in business.”

Participating colleges will give learners real cash to invest, and perhaps lose, in their acquired business. Learners will typically operate the company for six months.

Prinicpals involved in the Gazelle initiative include, among others, Graham Morley from South Staffordshire College, Maxine Room from Lewisham College, and Stella Mbubaegbu from Highbury College.

Businesses run by the students will have some restrictions in place to ensure they don’t lose large amounts of college funding, and by definition public money.

“We put proper legal parameters around it, so although they’re operating as if they’re owners, there is a safety net, because they’re dealing with public money,” Mr Donohue said. The Gazelle Group is working with a number of business entrepreneurs such as Peter Jones CBE and Doug Richard from the BBC television show Dragons’ Den, and Ben Ramsden, founder of Pants to Poverty.

Mr Richard said: “I am a firm believer that entrepreneurship can be taught and must be learned, and that’s why I am hugely supportive of this initiative. “We need a new generation of entrepreneurs who will deliver the young, fast-growth, gazelle businesses that create the new jobs, wealth and innovation, and the further education sector plays a critical part in delivering on this.”

Young ‘NEETs’ reach record levels

Figures released this morning show record numbers of young people are out of education, work and training.

Statistics published by the Department for Education show more than a million 16 to 24-year-olds – which is almost one in five – are considered NEET; not in education, employment or training.

The figures reveal that in the third quarter of 2011, 1,163,000 people in this age group were NEET, which is an extra 137,000 compared with the same point last year.

The data also shows that more than one in five (21.1 per cent) 18-24-year-olds, 1,013,000 in total, are NEET, which is up 129,000 from 884,000 youngsters in the third quarter of last year.

And around one in seven 16-18-year-olds, 267,000 in total, are NEET, compared to 265,000 at the same point last year.

The UKCES announces £61m investment in employer led projects

More than £61 million will be invested in 63 projects to drive employer investment in skills across all the UK, it was announced today.

The investment, provided through the Employer Investment Fund administered by the UK Commission for Employment and Skills (UKCES), will support 18 Sector Skills Councils (SSCs) with employer designed and led skills solutions.

The UKCES received 109 proposals into the fund totalling more than £119m, but following a rigorous assessment process, Commissioners chose 63 of the best solutions “with the greatest potential” to drive growth and employer investment in skills. 

The investments will be across a range of sectors including manufacturing which will receive almost £15m; the service sector which will receive almost £16m and the creative and digital sector which will receive over £13m. Funding will start in April 2012 and last until March 2014.

The UKCES say that “as a direct result of being able to demonstrate strong employer leadership and how to address the skills issues constraining the growth of their sector, the most successful SSCs have secured investment levels more than twice that which would have been anticipated through traditional grant funding”.

Charlie Mayfield, chairman of the John Lewis Partnership and the UKCES, said: “Over the past two decades governments of all hues have driven reform and expansion of the country’s vocational skills system, with some notable successes.

“But the fact is we’ve become less competitive globally on skills, and for many employers the ‘system’ is just too complex.

“The answer lies in moving away from grant funding to investing in employer led skills solutions, building the capacity and capability for employers to take ownership of the skills agenda.

“By working within their supply chains, through business clusters, and with unions, colleges and training providers they can develop the skills they need. That is what this funding is intended to promote.

“It comes at a critical time for the UK economy and will place skills firmly within the growth agenda – giving employers greater ownership of skills, as a vital source of competitive advantage.”

Minister for further education, skills and lifelong learning John Hayes added: “We’re putting power back into the hands of businesses so we can build a skills system that will drive an increasingly dynamic economy.

“With the opening of round two of the Growth and Innovation Fund (revealed by FE Week yesterday), the announcement of the Employer Ownership pilot and the announcement of successful Employer Investment Fund projects, there is now up to £370 million of funding devoted to support employer led skills solutions.

“This will secure greater commitment from employers to invest in skills and support business to achieve their growth potential.”

£60m fund to boost business skills and growth

Ministers have unveiled a £60 million fund to boost business skills and growth.

The second phase of the Growth and Innovation Fund (GIF) will be launched by Business Secretary Vince Cable and Minister for Skills John Hayes today. 

They say it “will support businesses to develop their skills solutions tailored to their own needs, transforming growth in their sector, region or supply chain.”

BIS will be providing £34 million for 2012-13 and there is still £29 million available to bid for.  With matched funding from businesses there will be around £60 million available under GIF this year. 

Comparable levels of investment are planned for the following two years. 

Business Secretary Vince Cable said: “The Government understands we need to tackle the skills shortages that are holding companies back. 

“Through this fund, we will support employers that take collective action to overcome these barriers, helping to rebalance and grow our economy. 

“By putting the employer’s voice at the heart of the process, we will reward inventive approaches to training that deliver real help to get business moving.”

Minister for Further Education, Skills and Lifelong Learning, John Hayes said: “I know times are tough for many businesses, but I am determined to do all I can to build a skills system that creates opportunity for young people, and puts firms on course for growth.

“Government investment in skills works best for individuals and communities when it responds directly to employers’ needs.

“Offering a more continuous process will ensure that public money will be able to fund more projects throughout the year, giving business the power to shape training and directly support jobs and growth.”

The funding is already supporting 15 projects across the country deliver new training to boost innovation and productivity, enable industries to set new professional standards, or support new or extended National Skills Academies.

For more on this story, see next week’s FE Week.

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