Clawback will be waived for providers who have delivered 97 per cent or more of their targets, the Skills Funding Agency (SFA) has revealed. The SFA, in Issue 81 of their updates weekly bulletin, say they have agreed principles for managing 2010/11 funding outturn for all grant-funded providers.

This is subject to the final data return for 2010/11, which is due this month. The proposed approach, the Agency say, is intended to ensure that past and current performance is reflected in future funding allocations. It reads: “A tolerance of three per cent will be applied to the final outturn for 2010/11, so clawback will be waived for providers who have delivered 97 per cent or more. Therefore, most providers will not be subject to clawback for 2010/11.”

A number of factors will be taken into account for those below the tolerance, states the SFA, such as performance in previous years and accuracy of mid-year estimates for 2010/11 in deciding whether clawback will be applied.

SFA adds: “Where a provider has delivered more than 100 per cent of the allocation for 2010/11, the assumption will be this year that the Agency will fund over-performance, subject to a normal maximum of 10 per cent of the total allocation or £1m, whichever is lower.”

The update also states “In cases where there has been significant under-performance and where this was not declared in mid-year estimates, the Agency may rebase a provider’s allocation for 2011/12.  This may be in addition to, or instead of, clawback.”

This month, the SFA’s relationship teams will speak to providers who may be subject to clawback or rebasing to “understand the circumstances” behind it. Decisions will be communicated to providers next month. The SFA also revealed it is in a position to allocate additional funding in 2011/12.

The update adds: “This will be used to increase training opportunities targeted at low skilled young people aged 19-24 who are NEET. “Providers who have delivered on target or above in 2010/11 and/or believe they could deliver more provision for this group in 2011/12 are invited to speak to their Agency Relationship Team before November 18.”

Funding Allocations for the next academic year, due to be released next month, will be calculated on the actual performance in 2010/11. The final funding allocation for 2012/13 is due to be issued in March 2012 and it will be updated to reflect mid-year estimates for 2011/12. The update adds: “This means that it may be higher or lower than the initial allocation. The Agency will review mid-year estimates to ensure they are reasonable and realistic, including looking at the accuracy of estimates for previous years. This will ensure that allocations for 2012/13 reflect current performance in 2011/12, as well as past performance in 2010/11.”

The number of learners starting workplace learning continues to thrive despite the government’s focus on increasing apprenticeships.

The number of new starts in Train to Gain/ Workplace learning fell to 444,700 in 2010/11, a figure still higher than the record number of new apprentices, a total of 442,700, praised by the government last week (see page 8).

The figures, found in the latest Statistical First Release (SFR), also mean that there has been little growth in the overall number of people starting work-based training.
Professor Alison Wolf, an advisor to Government on 14-19 vocational learning, said: “If you search for ‘Train to Gain’ on line, you’ll be told that the government abolished it last year in order to free resources for more valuable activities. So these figures are an interesting lesson in government-speak. Given what is also happening with apprenticeships, you have to wonder whether ministers are taking rising youth unemployment an iota as seriously as they should be.”

Overall numbers of Train to Gain/Workplace learning starts did fall, but some areas saw increases. Qualifications in the Leisure, Travel and Tourism Sector Subject Area rose dramatically by 34 per cent in 2010/11.

The SFR supplementary tables also showed an increase of eight per cent in Train to Gain/ Workplace learning starts in Tottenham and Slough, and there was a similar increase of seven per cent in Hastings and Rye during 2010/11.

They assume all apprenticeships are all about making the first step into training and work. Apprenticeships also serve a vitally important function in providing an opportunity for people to add to their skills who are already at work.”

The findings add to fears that some of the new apprentices being praised by government could in fact be existing employees which would have previously been funded under Train to Gain. New apprentices aged 25 and above increased by 126,500 in 2010/11, while new learners starting a Train to Gain/Workplace Learning qualification went down by 130,200.

John Hayes, Minister of State for Further Education, Skills and Lifelong Learning, told FE Week that he was not concerned with the rise in apprentices aged 25 and above. Mr Hayes said: “You’re right. There was growth in 25+, partly of course because we’ve made apprenticeships our principle vehicle for reskilling and up skilling the workforce.

“It’s true that we need to calibrate the system to ensure there’s growth across the piste, and we are looking at that. I wouldn’t want growth to be exclusively in one area, and it isn’t currently, but if there were any risk of that I would take action to ensure there was consistent and sustainable growth. There’s a misunderstanding I think on the part of people who don’t quite get apprenticeships. They assume all apprenticeships are all about making the first step into training and work. Apprenticeships also serve a vitally important function in providing an opportunity for people to add to their skills who are already at work.”

Train to Gain came under heavy criticism from Mr Hayes when he was Shadow Minister. In November 2009 he said: “The service has a massive dead weight cost. Money for Train to Gain will be transferred into a new budget. The scheme accredits existing skills that are on offer and assesses rather than trains. It doesn’t focus on higher-level skills.”

Transparency and accountability will be the joint focus of a review launched this week into the Skills Funding Agency (SFA).

But while its aim is defined, the mechanisms of the review are unclear, with the Department for Business, Innovation and Skills (BIS), and the SFA both tight-lipped when questioned by FE Week.

Also unknown is how long it will take, with its outcome due to be revealed “in due course”.

However, what is known is its reasoning, as it comes in line with the Cabinet Office Public Bodies Review Programme – a commitment to undertake a regular evaluation of key delivery bodies, explained a BIS spokesperson.

“It is a largely technical exercise, aimed at ensuring we have arrangements in place which will work effectively for all concerned and maximise delivery of the further education and skills agenda,” the spokesperson added.

Initial announcement of the review was made by John Hayes MP, minister of state for further education, skills and lifelong learning.

He said: “I would like to inform parliament the government is announcing a review of the status of the chief executive of Skills Funding and the SFA – the body which supports him in carrying out his statutory duties.

“The review is consistent with the Cabinet Office Public Bodies Review Programme, and reflects the requirement…to undertake a regular review of key delivery bodies, and the Government’s ongoing commitment to radically increase the transparency and accountability of all public services.”

The minister also told MPs that he would be seeking consultation from sector as a whole as part of the review.

He added: “I will be writing today to the further education and skills sector and to key stakeholders more widely about the review; and can confirm both the Skills Funding Agency and wider stakeholders will be fully engaged in the review process, whilst meeting the core principles set by Cabinet Office of ensuring that any wider consultation is proportionate and provides clear value for money.”

He concluded by saying that the review would build on the strength of the further education system.

“It is vital that we have the right structures in place to tackle the very real challenges that lie ahead; and this review reflects the Government’s ongoing commitment to building on the strength of the further education system, whilst ensuring rigorous accountability structures are in place,” he said.