FE colleges to be directly funded for pre-16s in 2013


Further education (FE) and sixth form colleges could be funded for 14 to 16 year-olds on a similar basis to schools from 2013.

The Department for Education (DfE) is proposing to fund FE colleges using a “simplified local funding formulae” managed by the Education Funding Agency (EFA) from the 2013/14 academic year.

The new proposals are detailed in the ‘School funding reform: Next steps towards a fairer system’ consultation document, published by the DfE on March 26.

“With effect from 2013 and following Professor Alison Wolf’s review of vocational education, FE and Sixth Form Colleges will be able to make full time provision for 14-16 year olds,” the consultation document reads.

“We need to ensure that there is a fair and effective means of funding this.”

It later adds: “FE colleges making provision for 14-16 year olds should be funded so far as possible in the same way as schools in the local area.

“From 2013-14, we think this will mean using the simplified local funding formulae arrangements.”

The DfE plan to use four of the existing 37 formula factors, currently applied to schools through the “simplified local funding formulae”, for FE colleges in 2013:

a) the Age Weighted Pupil Unit (AWPU) for the relevant age group;
b) deprivation;
c) looked after children; and,
d) SEN.

The consultation document states: “The remaining factors relate to premises and the lump sum.

“These are needed for schools as the funding is for the whole institution.

“It would not be appropriate to include these factors for colleges because the funding is for small numbers of pupils at the margin of the institution’s activities.”

However, it is currently unclear how FE and sixth form colleges will apply for an allocation for this type of provision.

The consultation documents says the EFA will be responsible for calculating the funding for each institution, with payments being made “through the normal channels.”

Responses to the consultation document need to be submitted to the DfE by May 21.

(Read the consultation document, ‘School funding reform: Next steps towards a fairer system’  here.)

Top principal salaries detailed for 2010/11

The Skills Funding Agency has published a new version of the College Accounts 2010/11 spreadsheet detailing the salaries of every FE college principal.

The top ten salaries, shown above, contain some inaccuracies however.

Loughborough College has told FE Week the salary for their principal in 2010/11 was in fact £124,000.

A statement from the college reads: “The salary for the Principal of Loughborough College for 2010/11 reported as £242k in FE Week, 3rd April 2012, is incorrect.

“This figure (242k) represents the total salary for 2010/11 for the three senior postholders of the college.”

A spokesperson for Loughborough College told FE Week the reason for the inaccuracy was because of a mistake in their data submission.

The salary published by the SFA for the principal of Barnfield College is also said to be inaccurate.

“Pete Birkett is chief executive and principal of the Barnfield Federation, which is made up of more than Barnfield College alone,” a spokesperson for Barnfield College told FE Week.

“The Federation consists of an existing four academies, three subsidiary companies, the College and five new academies who will be joining the Federation before September.”

The spokesperson added: “The turnover for the Federation is circa £60 million.

“There is a shared contribution towards the salary shown, so the figures quoted should be viewed from a Federal perspective.

“Within the accounts there is a qualifying statement explaining this.”

Barnfield College says the correct salary for Mr Birkett should be £193,000, with an additional £15,000 in benefits.

Dr Lis Smith, principal of Preston College, has contacted FE Week and said the figure used for her salary is also inaccurate.

“The figure that has been quoted, is a figure which has been taken from the accounts which also includes the previous principal’s salary as well,” she said.

“So my salary is £120,000.”

Dr Lis Smith says the amount published by the SFA is in fact a consolidated amount due to an overlap with the previous principal last year.

Warwickshire College and Sussex Downs College have also contacted FE Week and said that their 2010/11 figures are inaccurate because of a handover period with former principals.

Sussex Downs College has clarified that their salary figure should be  “around £160,000.”

Warwickshire College, meanwhile, say their figure should be changed to £170,000.

Derby College has clarified that while the figures published for 2010/11 are correct, the 2009/10  figures have since been restated due to the college’s merger with South East Derbyshire College.

A spokesperson for Derby College told FE Week that the principal’s salary for 2009/10 was actually £185,000, with benefits in kind of £1,000 and pension contributions of £26,000.

The Newcastle College Group (NCG) has confirmed the salary published by the SFA is correct for Jackie Fisher, chief executive of NCG and not Bev Robinson, principal of Newcastle College.

A spokesperson for NCG said: “Her basic salary was £192,000 and the rest is bonus.

“The reason for the reduction of £29,000 was that Jackie Fisher was given a one off retention payment last year relating to the period August 2007 to July 2010.

“This payment was agreed by Governors to provide continuity and stability within NCG during a period of significant growth and development, NCG’s merger with Skelmersdale & Ormskirk College and the acquisition of Intraining.”

West Nottinghamshire College has also confirmed for FE Week the £205,000 figure is correct for 2010/11.

FE Week is continuing to contact colleges for confirmation of the published figures.

The College Accounts 2010/11 spreadsheet can be downloaded from the Skills Funding Agency website here.

The previous spreadsheet, detailing the College Accounts for 2009/10, can be downloaded here.

(Note: The table above has been created using government data and may include anomalies. FE Week will amend any data which is confirmed as inaccurate in the SFA spreadsheet.)

Call for re-evaluation of apprenticeships following Panorama programme

Image: Apprenticeships England founders Lindsay McCurdy (left) and Peter Cobrin (right) read FE Week

The largest independent group of people engaged in apprenticeships has called for a “root and branch re-evaluation” into how apprenticeships are regulated and administered by government.

A statement by Apprenticeships England, a movement with more than 5,000 members which originated on the social networking site LinkedIn, says: “It is far too easy for cowboy operations to flourish under this regime, often with the active connivance or at best the turning of a blind eye by ‘reputable’ institutions including some colleges.

“We call for a root and branch re-evaluation of the way apprenticeships are regulated and administered.”

The statement, issued by group founders Peter Cobrin and Lindsay McCurdy this morning, criticises the government’s management of the apprenticeship programme following the Panorama show “The Great Apprenticeship Scandal”.

“The current apprenticeship programme has been tarnished/damaged by confusion over policy, definition and administration from Government,” the statement reads.

“This was directly responsible for two of the items featured on Panorama last night – the Zenos training programme which only now does John Hayes disown as “not an apprenticeship”, and concerns over “excessive profits” made by some training providers thanks to a payment regime designed, implemented and administered by government and its agencies, the Skills Funding Agency and National Apprenticeship Service.”

The joint response later says the monitoring of training providers is “unfit for purpose” and also erratically administered, leading to a lack of confidence from within the further education sector.

The real question is what will the government do next, if anything.

The Panorama programme, which was broadcast on BBC One last night, interviewed a number of young people which had been let down by poor quality vocational training.

Kyle Emery, who enrolled on a painting and decorating apprenticeship delivered by Forward Thinking Training Solutions, said the scheme had virtually no training and was ultimately a vehicle for cheap labour.

“All it was, was here’s some paint and here’s a brush, crack on and don’t make a mess,” he said.

Other private training providers including Zenos and Elmfield Training were questioned by reporter Shelley Jofre for delivering apprenticeships within a short time frame or with large profit margins.

Mr Cobrin told FE Week however he believes the Panorama programme will have “little impact” because it focuses too heavily on historical case studies.

“There wasn’t any shock or scandal,” Mr Cobrin said.

“Everything they revealed, we knew about. The colleges turning a blind eye, the training providers milking the system, it was nothing new.”

He added: “The real question is what will the government do next, if anything.”

The Panorama programme featured the relationship between Morrisons supermarket, which has enrolled 40 per cent of its workforce on an apprenticeship, with the private training provider Elmfield Training.

The show highlighted how Gerard Syddall, company director and 95 per cent shareholder of Elmfield Training, used pre-tax profits of more than £12 million in the financial year ending September 2010 to pay himself dividends of almost £3 million.

Neil Lakeland, marketing manager at Hadlow College, tweeted: “Can’t believe the CEO of Elmfield Training got a £3m bonus for a Grade 3 satisfactory. Who needs bankers! #bbcpanorama”

Mr Syddall is said to be one of the speakers at the “Making Apprenticeships Work Even Better” conference, organised by Apprenticeships England and to be chaired by Nick Linford, managing editor of FE Week, in Leeds on July 7.

It follows a successful first conference, entitled “Making Apprenticeships Work”, held by the group in March.

IfL members with QTLS qualified to teach in schools

Institute for Learning (IfL) members with Qualified Teacher Leaning and Skills (QTLS) status have been recognised as being fully qualified to work in schools.

An amendment to the 2003 Regulations, outlined in number 431 of the Statutory Instruments 2012, means IFL members now have Qualified Teacher Status (QTS) and can take up a permanent position without undergoing any further induction requirements.

Staff will also be paid on the qualified teachers’ pay scale provided they remain a member of the IfL.

Toni Fazaeli, chief executive of the IfL, said: “Teachers and trainers with the high-level professional status of QTLS will be able to teach flexibly across schools and colleges, and schools will be able to recruit specialists whose expertise and experience in their subject area is combined with expert teaching and a commitment to staying up to date through continuing professional development.

“For those who already have or will soon have QTLS, the change in legislation is good news.”

Almost 7,000 teachers and trainers in further eduction have obtained QTLS, however the IfL says that number is increasing all the time.

Ms Fazaeli added: “IfL has consistently made the case for the professionalism of our members and for QTLS to be recognised for teaching in schools settings as well as further education, for the benefit of young people’s learning.

“We gave evidence to the education select committee and to the Skills Commission inquiry into teacher training for vocational teachers, and our evidence to Professor Alison Wolf’s consultation in October 2010 was based on over 5,000 IfL members’ expertise in vocational teaching.

“It was a triumph for further education teachers and right and proper that the government chose to accept Professor Wolf’s recommendation that further education teachers with QTLS should be able to teach in schools.

“The national recognition of QTLS has been reflected in these new legislative changes for April 2012 onwards.”

Under the new legislation schools and local authorities will still be responsible for employing QTLS holders, and the IfL will continue to maintain the national register of QTLS holders.

The change follows a consultation by the Department for Education (DfE) which closed last December.

Minimum duration of 12 months unveiled for adult apprenticeships

Adult apprenticeships must take at least 12 months to complete from August this year, the skills minister has announced.

If an apprentice aged 19 or above has prior learning or attainment however, there will be an absolute minimum of six months for achieving a framework.

John Hayes MP, minister of state for further education, skills and lifelong learning, made the announcement on Sunday as part of major reforms to improve the quality of the apprenticeship programme.

“We must be relentless in our drive to ensure all apprenticeships are as good as the best, to identify and root out any instances of poor quality provision, and to raise the bar on standards,” Mr Hayes said.

“We are taking strong and decisive action to tackle short duration so all apprentices receive high quality training and workplace learning setting them on the road to a long, rewarding career.”

Apprenticeships for 16 to 18 year-olds will also need to last a minimum of 12 months following a similar announcement by Mr Hayes in the House of Commons last December.

“The momentum we have created by building the apprenticeship brand has brought about unprecedented success for the apprenticeship programme,” Mr Hayes said.

“The majority of apprenticeships are the gold standard in vocational training.

“They boost individuals’ life chances and build the skills that drive growth.”

The new length of delivery will be introduced following consultation with providers and employers.

There have been real concerns that the apprenticeship brand, which has long been cherished as the gold standard in vocational education, is at risk of being undermined with a spike in short-duration apprenticeships

The Association of Employment and Learning Providers (AELP) say they are disappointed with the announcement and will be using the consultation to ask the Department for Business, Innovation and Skills (BIS) if short duration training can be funded through the Adult Skills Budget.

An AELP spokesperson said: “AELP has long been opposed in principle to any imposition of minimum course durations for apprenticeships, so the BIS announcement is a disappointment although the substance of it is obviously much more palatable than the top line in the BIS release.

“We will be using the consultation to seek reassurance that any valuable training that takes place within the 6 month period will attract funding from the flexible Adult Skills Budget.”

David Way, the new interim chief executive of the National Apprenticeship Service (NAS), says the new minimum duration will help reassure the sector about the quality of the apprenticeship programme.

“We need to ensure that all apprenticeships are high quality,” Mr Way said.

“By ensuring they last between one and four years, we are not only giving employers what they say they want but also giving confidence back to everyone who has questioned the growth in shorter apprenticeships.”

Training providers who want an adult apprentice to complete in less than 12 months will need to claim a reduced amount of funding and ensure all prior learning is recorded.

“We listened very carefully to messages from colleges and training providers at the National Quality Conference last week,” Mr Way added.

“A clear expectation has been set that an apprenticeship involves a significant amount of new learning delivered over sufficient time to practice and master skills in employment.

“There is greater flexibility here than for younger apprentices because older apprentices typically have more skills they have acquired.”

The minimum duration for adult apprenticeships follows concerns about short duration programmes, some delivered in as little as 12 weeks, by private training providers.

Duration is only one part of a complex set of issues. The quality of the experience for the apprentice and the employer, and the impact it has for both of them, is critical.

Gordon Marsden MP, shadow minister for further education, skills and regional growth, said: “There have been real concerns that the apprenticeship brand, which has long been cherished as the gold standard in vocational education, is at risk of being undermined with a spike in short-duration apprenticeships, a lack of new opportunities in traditional areas such as construction and engineering and worries that in-work training has often been re-labelled as apprenticeships under the Tory-led Government.”

Mr Marsden says the Labour party has put pressure on the coalition government and “succeeded in getting ministers to change their minds” about the minimum duration of adult apprenticeships.

“The Government now needs to work closely with all involved in the sector to ensure quality provision can continue and is supported under these new proposals,” Mr Marsden added.

“With more than one million unemployed young people, now more than ever we need an apprenticeship system that can provide opportunities and get people into work.”

The National Institute of Adult Continuing Education (NIACE) has welcomed the government’s emphasis on quality, but says more can be done to improve the programme both for learners and businesses.

David Hughes, chief executive of NIACE, said: “Duration is only one part of a complex set of issues.

“The quality of the experience for the apprentice and the employer, and the impact it has for both of them, is critical.

“The best employers use apprenticeships as part of their wider workforce development strategy and the apprenticeship is just the beginning of a career of lifelong learning opportunities for the employee.”

Panorama to focus on Zenos, Morrisons and subcontracting

Panorama will broadcast  ‘The Great Apprentice Scandal’ on BBC One at 8.30 tonight, and will focus on 16-18 IT apprenticeships delivered by Zenos (although not mentioned in their press release), Morrisons apprenticeships delivered by Elmfield Training and a number of apprenticeship subcontractors.

Read the Panorama press release below in full:

More than 1 in 10 of all apprenticeships created in England last year was with a single supermarket chain.  An investigation for BBC Panorama has found that nearly 4 in 10 of Morrison’s entire workforce are now classed as apprentices.

Norman Pickavance – Group HR Director at Morrison’s defends the high number, saying:

“Forty per cent of people are trying to get a basic qualification.  People who leave school without a qualification often feel that they don’t have access and don’t see the kind of skilled jobs or managerial positions as something they can aspire to”.

At a time of record unemployment, though, the programme asks whether that’s really an apprenticeship and if it’s a good use of taxpayers’ money.

Elmfield Training, the private company that accredits Morrisons’ apprentices has a government contract worth £37 million.  Elmfield made a profit of £12 million in 2010 and the company’s CEO, Ged Syddall, awarded himself a dividend of nearly £3 million.  Yet when the company was inspected by OFSTED recently, its training for Morrisons was rated as ‘satisfactory’, the second lowest rating possible.

The retail apprenticeship, which last year took an average of just six months to complete, has also been criticised by providers of more traditional apprenticeships.

Charlie Mullins – founder of Pimlico Plumbers – employs 18 apprentices out of a staff of 200. Their training takes a minimum of 3 years.  Mr Mullins says of short retail apprenticeships:

“I think all they’re really doing is undervaluing the word apprentice, and they’ve really just seen a loophole in the system that they can claim money on it.”

Nick Linford, Editor of FE Week, says: “We’ve seen record growth in apprenticeships.  Big headline numbers look great on paper but scratch under the surface and maybe we shouldn’t be calling them all apprenticeships.”

A huge rise in coalition government funding has seen the number of apprenticeships in England rise by 63% last year, to 450 000. Traditionally, FE colleges have been used to deliver off-the-job apprenticeship training.  Their teaching is subject to OFSTED inspections every 3 years.

Panorama however has discovered large number of training providers are able to slip through the inspection radar. As colleges struggle to find the capacity to cope with demand, there has been an increase in subcontracting to private training providers which are not subject to the same level of scrutiny. Panorama took a closer look at subcontractors with contracts worth more than £500,000 and found that £230,000,000 worth of work was given last year to companies who haven’t been inspected by OFSTED.

Forward Thinking Training Solutions, based in Basingstoke, is one such subcontractor that hasn’t been inspected.  The company was awarded £2.7 million in government contracts from 4 different colleges last year to train apprentices.  Although its background is in security training, Forward Thinking was contracted through Bournville College in Birmingham to deliver training for apprenticeships in painting and decorating.

18-year old Kyle Emery from Halesowen was one of 291 apprentices accepted onto the course last September.  Kyle says the training was virtually non-existent:

“Basically all it was, was ‘here’s some paint, here’s a brush, crack on, don’t make a mess’.  No one actually came in to teach us what we was doing.”

Kyle and all the other apprentices had their training cut short in January this year and Forward Thinking has now gone into administration.  Kyle says the apprenticeship was a waste of time.  He says:

“I should have either stopped on at college or got a proper job, not an apprenticeship.  The way I see it, it was just cheap labour”

Scott Upton, Vice Principal of Sandwell College in Birmingham, said a formal apprenticeship is the “gold standard of vocational training” and rushing candidates through an apprenticeship programme will devalue the entire system.

“When you get new entrants into the market wanting to put people through as quickly as possible without providing the highest quality, that’s got to be a cause for concern.”

At another firm, JML Dolman in Wolverhampton, Allan Middleton, who left the firm 5 weeks ago, was an internal verifier for apprentices.

Mr Middleton said he understood the company was being paid £9,000 for each apprenticeship completion award issued.

It was his job to verify the apprentices’ work had been done, which would allow JML Dolman to apply for more funding. He said he refused to do so but found evidence it was happening anyway.

In a statement, JML Dolman said there had been no deliberate attempt to deceive or mislead: “There were administrative failing which resulted in mistakes being made. These were genuine errors.

“As soon as these anomalies were identified…those responsible were dismissed and systems put in place to ensure there could be no recurrence of these problems.”

But a current employee has told the BBC that the problems still exist.

The whistleblower told the programme that paperwork obtained by Panorama that shows apprenticeships as complete, could not have been at the time they were signed because the firm did not employ an assessor then.

John Hayes MP, Minister for Further Education, Skills and Lifelong Learning, says that the government will not tolerate subcontractors who’re delivering substandard apprenticeships.  He says:

“The crackdown on subcontractors that we are delivering will be relentless.  The character of subcontracting is something that I was sufficiently concerned about in order to insist that we tighten the screw.”

SFA to monitor growth in 25+ apprenticeships

The increase in apprentices aged 25 and above is to be monitored by the Skills Funding Agency (SFA) throughout the next academic year.

A briefing note published by the SFA on March 30, says: “We will monitor the pattern and volume of 25+ apprenticeship delivery in-year and will not award any growth for 25+ apprenticeship provision.”

The document also says the agency expects a “greater focus” from training providers on recruiting new apprentices aged between 19 and 24, rather than 25 and above, through the adult apprenticeship allocation.

“This will be supported by the roll-out of the new incentive payment for employers recruiting apprentices aged under 25 years,” the briefing note adds.

The announcement follows a new minimum duration of 12 months, for all apprentices aged 19 and above, unveiled by the skills minister John Hayes yesterday.

(Read the ‘Skills Funding Agency Final 2012/13 Allocations Methodology briefing note’ here)

Minister announces 12 month minimum apprenticeship for all ages

A BIS press release published today reads:

Tougher standards introduced by Skills Minister to drive up quality

Apprenticeships will last for a minimum of 12 months guaranteeing improvements in training and workplace learning, Skills Minister John Hayes announced today.

The new standards will come into force for all age groups from August 2012, subject to consultation with providers and employers, as a further measure to drive up quality.

For those aged 19 and over apprenticeships will last between one to four years unless prior learning or attainment has been recorded. Apprenticeships for 16-18 year olds will last a minimum of 12 months without exception.

Mr Hayes said:

“The momentum we have created by building the apprenticeship brand has brought about unprecedented success for the apprenticeship programme.

“The majority of apprenticeships are the gold standard in vocational training. They boost individuals’ life chances and build the skills that drive growth.

“They also provide a great return on public money. This has been independently recognised with the National Audit Office finding that apprenticeships generating £18 for the economy for every £1 spent.

“But we must be relentless in our drive to ensure all apprenticeships are as good as the best, to identify and root out any instances of poor quality provision, and to raise the bar on standards.

“We are taking strong and decisive action to tackle short duration so all apprentices receive high quality training and workplace learning setting them on the road to a long, rewarding career.”

David Way, Chief Executive of the National Apprenticeship Service (NAS), said:

“I am pleased that we have taken time to get the best possible way forward on apprenticeship duration so that we can ensure confidence in all apprenticeships. We listened very carefully to messages from colleges and training providers at the National Quality Conference last week.

“A clear expectation has been set that an apprenticeship involves a significant amount of new learning delivered over sufficient time to practice and master skills in employment. There is greater flexibility here than for younger apprentices because older apprentices typically have more skills they have acquired.

“We need to ensure that all apprenticeships are high quality. By ensuring they last between one and four years, we are not only giving employers what they say they want but also giving confidence back to everyone who has questioned the growth in shorter apprenticeships.”

This announcement builds upon a series of major reforms announced in recent months to drive up quality and standards and ensure every apprenticeship meets the rigorous standards apprentices and employers expect.

These include:

· National Apprenticeship Service (NAS) and the Skills Funding Agency’s comprehensive review of all short duration programmes has already resulted in significant improvements to many apprenticeships and the withdrawal of inadequate sub-contracted provision

· New safeguards are being put in place to strengthen monitoring, reporting and subcontracting arrangements, including requiring subcontractors to be regulated through the Register of Training Organisations in the same way as prime contractors

· New contracts will ensure that training providers not only act according to regulations, but also within the spirit of the apprenticeship programme

· A new ‘enquiry panel’ has been established, reporting directly to the Minister, to manage poor quality providers as soon as they are reported.

Also today a new grant to encourage small and medium sized businesses to take on apprentices will be made available.

The NAS is offering up to 40,000 Apprenticeship Grants to small and medium sized businesses (employing less than 250 employees), to the value of £1,500, that recruit their first apprentice aged 16 to 24 years old.

Elmfield Training and the Morrisons’ apprenticeships

As the Managing Editor of FE Week, the publication which was first to highlight the tens of thousands of Morrisons’ adult apprenticeships being delivered by Elmfield Training in an average of 28 weeks, it feels right to summarise the coverage on the same day that BBC Panorama broadcast their own investigation. Also, yesterday the Minister for FE announced that from August 2012 all apprenticeships, regardless of age, will need to last at least 12 months.

The evidence below strongly points to a significant example of how the coalition government, Skills Funding Agency and National Apprenticeship Service have all pursued apprenticeship growth and ignored obvious signs of Train to Gain rebadging and ‘deadweight’. In essence what the public funding was actually spent on was the delivery of short assessment based apprenticeships to existing adult employees at a large employer that not only paid nothing, but said they would have done it without the funding anyway.

The background

Elmfield Training first came to the attention of FE Week when it was found that their call centre apprenticeships, under the Synapse brand, were openly being advertised as 12 weeks in duration. We published a ‘concern at 12 week apprenticeships’ article in June 2011, and within a few weeks the Synapse website simply stated they no longer offer apprenticeships (although the ‘Synapse academy’ is still referred to on the Elmfield Training contact us website page). FE Week also noticed that the website for the qualification awarding organisation Skillsfirst looked similar to the Elmfield website, and they operated out of the same building in Birmingham. Companies House confirmed that the founder and owner of Elmfield Training, Gerard Syddall, had also established Skillsfirst in 2009.

One year Elmfield job to monitor the ‘certification of 100,000 Morrisons colleagues’

At the same time as FE Week was writing about Synapse, Elmfield Training were also advertising a 12 month fixed term contract for a data analyst that would ‘keep up to date reports on the sign up, assessment, sign off and certification of 100,000 Morrisons colleagues’. Click here to see the advert.

From zero to nearly 18,000 apprenticeship starts aged 25+ at Morrisons in nine months

A Skills Funding Agency response to a Freedom of Information request made by FE Week, dated 29 June 2011,  stated that Elmfield Training had not delivered any apprenticeships at Morrisons for those aged 25+ in the 2009/10 academic year. However, the FoI response also said that in the first nine months of the 2010/11 academic year they had started 17,870 apprentices aged 25+ on ‘Level 2 with over 99% delivered in retail’. In the same period they had started just 290 apprenticeships aged 16-18 and 2,220 apprenticeships aged 19-24.  Click here to download the SFA FoI response in full.

Duration planned as 56 weeks but taking on average 28 weeks

The FoI also stated that whilst the planned duration was 56 weeks the Elmfield Training apprenticeships were taking on average exactly half that, 28 weeks (six months). Read the FE Week article published on June 30 2011 here.

Elmfield Training 19+ apprenticeship allocation increases mid-year from £9m to £27m

The Skills Funding Agency allocation spreadsheets show that at the start of the 2010/11 academic year Elmfield Training had a £23,860,293 allocation with the North West region. This included £9,33,478 for 19+ apprenticeships. The quarter two revised allocation shows that their allocation had been increased to £42,896,356 including a rise to £26,941,086 for 19+ apprenticeships. Therefore within six months of having their first direct contract with the SFA, Elmfield Training saw their 19+ apprenticeship allocation increase from just over £9 million to nearly £27 million. Given the funding for apprenticeships is paid in full for early completers, it strongly suggests much of this allocation increase relates to the Morrisons provision, as it was being delivered in half the planned time.

Elmfield Training has first Ofsted of their own, and graded ‘Satisfactory’

It came as a surprise to us at FE Week that not only was Elmfield Training’s first direct contract with the Skills Funding Agency worth over £42 million by 2010/11 quarter 2, but they had never been inspected by Ofsted as a direct provider. After our initial enquiries in June, Elmfield were inspected by Ofsted on 25 July 2011. The report (click here) graded the provider 3 out of 4, and included the statement: “Elmfield has strong ambitions for the development of the business and has managed the corporate infrastructure well to respond to the significant increase in the size of the business. However, the ambition for learners in retail programmes is not sufficiently challenging.” and “At Morrisons, learners access a training programme that is well structured. The quality of assessment is satisfactory overall, with learners in business, administration and law benefiting from well-planned assessment. Retail employees undertake a timely initial assessment of their literacy and numeracy needs but the results are not always used to develop their individual knowledge further.” It later added: “The provision adequately meets the needs of retail learners. They are very positive about the qualifications they achieve. However, progression routes are underdeveloped” and “The quality of information, advice and specialist support for retail learners is not adequate. Induction does not provide enough programme information to prospective learners. Elmfield’s strategy for providing specialist support is also underdeveloped.”

More assessment than training (rebadging of Train to Gain)?

The Ofsted report quotes suggest that the Elmfield Training programme at Morrisons is satisfactory at the assessment of learners, but less so at other aspects such as developing knowledge or specialist support. This is corroborated by Morrisons themselves. At the BIS Select Committee session the Morrisons HR Director claimed that the supermarket does the training, and Elmfield over-sees the national accreditation. If it is simply an assessment based model of apprenticeship delivery, with little off-the-job training, this would explain the ‘efficiencies’ (thus profit) and ability to deliver in an average of 28 weeks.

The Elmfield Training £12.3m (36%) profit, £3m post-tax dividend and ‘luxury homes’

Mr Gerard Syddall, the founder and 95 per cent shareholder of Elmfield Training, told the BIS Select Committee on 27th March 2012 that all company income came from the Skills Funding Agency (i.e. none of the employers they work with pay them a training fee), and there was much discussion about their last set of accounts filed with Companies House (see profit and loss figures below). Click here for the FE Week write-up. The TES also published an article (click here) in November 2011, which detailed ‘luxury homes’ purchased by Elmfield Training, a topic not raised by the BIS Select Committee.

Deadweight confirmed at the BIS Select Committee

It is not a nice term, but ‘deadweight’ is used to describe government funded training that would have happened regardless of the public money. The Train to Gain scheme was heavily criticised for deadweight, and at the BIS Select Committee hearing on 27th March 2012 the HR director of Morrisons confirmed that their training would have happened anyway, with or without the Skills Funding Agency funding.

Two questions for the government:

1. Why did such a large volume with a single employer not go through a tendering process to secure best value and an employer contribution? In fact, why was Elmfield Training given an allocation at all given most large employers (eg McDonalds and BT) have their own Skills Funding Agency contract? The National Employer Service could have negotiated rates, rather than contributed to an Elmfield Training 36 per cent profit margin (Gerard Syddall told the BIS Select Committee he could not to be blamed for his profits given the Skills Funding Agency paid national rates).

2. Given the vast majority of Morrisons’ apprenticeships were for existing staff, and Morrisons does not make a cash contribution to Elmfield Training, does this not break European rules on State Aid?

What next?

History has shown us that the owners of very large training providers look to sell-up and move on before profit margins are squeezed by changes to over-generous rates and or rules. FE Week is led to believe that Gerard Syddall is already in discussions with at least one company to that effect.

Please do leave a comment of your own below.

 

Nick Linford, editor of FE Week