Department for Education launch 16-19 Funding Formula Review

The Secretary of State for Education, Michael Gove has launched a consultation to reform and simplify the ‘16-19 funding formula’, for implemtation in 2013/14.

The announcement, published by the Department for Education (DfE) last Thursday, states: “Proposals in the consultation include moving away from the current complex system of funding on the basis of ‘payment per qualification’ to introduce a much simpler system of funding at the level of the learner.

“Such a change is essential if we are to make a reality of the proposals in Professor Alison Wolf’s groundbreaking report on vocational education.

“It also supports the Government’s aims of reducing bureaucracy for education providers and making the funding system simpler, more transparent and readily understood by all.

“Responses to the consultation are sought from 16-19 education and training providers in general and specialist further education colleges, sixth form colleges, maintained schools and Academy sixth forms as well as commercial and charitable providers, and Apprenticeship providers.”

FE Week understands that the consultation launch was originally planned for May 2011 but the DfE delayed implementation so it could also consider the reform of 5-16 year-old funding.

The current formula was implemented in 2008/09 by the Learning and Skills Council (LSC) in an effort to simplify funding.

John Bolt, former  national technical lead for funding at the LSC said: “I am pleased that the DfE and Young People’s Learning Agency have now published the latest consultation.  It was expected earlier this year, and will apply from 2013/14 and not a year earlier as was previously thought.

As ever, it is difficult to strike the right balance between simplicity, fairness and new Government policy, which is reflected within the numerous options within the report.  There seems to be a move towards funding 16-18 learners in a similar way to pre-16 learners, which may simplify things for school sixth forms but less so for colleges.”

The closing date for responses is Wednesday 4 January 2012.

An inconvenient truth

In August of this year the Public Accounts Committee (PAC) published a report of an enquiry into value for money in the education of those aged 16-18. It followed an investigation by the National Audit Office on the same subject but the committee itself took additional evidence from a number of expert witnesses.

Sadly the Guardian Newspaper had a travesty of an article headed “’Money is ‘wasted on badly managed colleges’”, the main thrust of which bore little relationship to anything the PAC had said.”

The full document, which does not take long to read, is available here.

The report deserves to be widely read, not least because it was not well reported in the education press. It does not appear to have surfaced in FE Focus in the TES. The BBC has a competent summary on its website here, but sadly the Guardian Newspaper had a travesty of an article headed “’Money is ‘wasted on badly managed colleges’”, the main thrust of which bore little relationship to anything the PAC had said.

Since the Guardian has been one of the few papers to report anything about FE in recent years, and generally enjoys a good reputation for informed and balanced journalism it is important to point out that the PAC makes no mention at all of ‘bad colleges’. It most certainly does not, as the article explicitly states, warn that ‘the government is wasting money by funding poorly-managed colleges.’

The main focus of PAC criticism is clearly the government, not institutions and it aims its fire accurately at the complex and inconsistent arrangements for monitoring the performance of the sector, not at school heads or college principals.”

Indeed when the PAC mentions colleges specifically it is to point out that their record in terms of increasing efficiency is superior to that of schools. They state for example: “As a result of fewer resources in the past, further education colleges have become more adept at making tough choices to improve value for money.” They also point out that the accountability arrangements for colleges are clearer than those for sixth forms.

‘Colleges were required to meet minimum levels of performance (based on success rates), and the Young People’s Learning Agency set clear action plans where colleges failed to meet them. In contrast, local authorities were not consistent in their approach to dealing with poor performance in school sixth forms.’

The main focus of PAC criticism is clearly the government, not institutions and it aims its fire accurately at the complex and inconsistent arrangements for monitoring the performance of the sector, not at school heads or college principals.

There are in fact three main strands to the PAC report all of which have important implications for government policy. The first is that the committee is clear that larger institutions benefit learners. ‘Larger providers benefit from economies of scale and can provide a wider choice of courses for their students.

The evidence also suggests student achievement is higher in larger institutions’. The PAC is not the first to point to such evidence but the authority of the chief parliamentary watchdog on value for money is such that it must call into question the government’s enthusiasm for opening yet more small sixth forms in areas well provided for by FE and sixth form colleges.

The second strand of the PAC report relates to collaboration. Some of the benefits of scale can be achieved by smaller providers it argues if they are able to collaborate, for example by sharing back office services. The competitive environment in which schools and colleges have to operate however acts as a powerful inhibitor of such collaboration and consequently restricts its impact. Taken together with the comments on the benefits of scale this undermines BIS proposals for the future shape of the FE landscape which once again advocates partnerships and seek to discourage merger.

It is however the third charge made by the committee that is perhaps the most serious. The systems of reporting and performance management for schools and colleges are so different that potential students cannot effectively exercise choice and government cannot be sure that it is obtaining value for money.

Colleges have the more robust systems in place both in terms of efficiency and effectiveness but a direct comparison between the sectors is still frustrated. It is hard to believe that a decade after coming together with colleges under the LSC school sixth forms still cannot produce reliable data on qualification success rates (QSR) that enable real comparison with FE.

It is however reminiscent of claims by DES officials in the 1980s and 1990s that comparing the cost to the public purse of provision in schools and colleges was not possible owing to its technical complexity; and of course the fact that seven years after LSDA research definitively established the scale of the funding gap between schools and colleges officials have still failed to close it.

The current target date for convergence of funding is 2015, well into the future. Conspiracy theories are usually wrong but the difficulties encountered when trying to compare the performance of schools and colleges might be the exception. The Whitehall machine seems really reluctant to allow awkward comparisons to be made: could the reason be that the policy implications might just be too inconvenient.

Mick Fletcher, visiting Research Fellow at the Institute of Education

UCT sells Ufi Limited to Lloyds TSB Development Capital (LDC)

The Ufi Charitable Trust (UCT) has sold part of its business to Lloyds TSB Development Capital (LDC) for £40 million.

Ufi Limited, which is known for its management of the Learndirect brand, was sold to the private equity house on Wednesday.

Sarah Jones, Chief Executive of Learndirect, said: “The change in ownership will allow us to reach more businesses and learners with a wider range of products and services, while continuing to deliver excellent training and raise standards across the sector.”

LDC is part of the Lloyds Banking Group and is authorised and regulated by the Financial Services Authority.

The company has announced that Ufi Ltd will now trade simply as Learndirect.

Joanne Milner, Investment Director at LDC said: “We are delighted to invest in Learndirect. Given the strength of its brand and the greater flexibility it will now have to expand its services, we believe Learndirect has tremendous potential in the wider marketplace.

LDC and the strong, existing management have a clear strategy for growth involving accessing a far greater pool of potential learners and businesses and providing a much broader range of services. “

Ufi Ltd, which until now was owned and overseen by UCT, had a turnover of £140 million in 2010.

John Weston, UCT Chairman, said “The sale is excellent news. UCT will use the endowment created by the sale to assist in achieving a step change in adult learning and employability.

“There is massive potential for e-learning to drive business and boost economic performance, and over coming months we will be commissioning a strategic programme of projects to fully unlock that potential.”
UCT was created by the Government in 1998 to implement new technology into the delivery of learning and skills.

Learndirect is the UK’s leading online learning provider, and has 380 direct employees who deliver learning.

The business receives income from contracts with funding bodies, including the Skills Funding Agency (SFA), as well as the private sector.

Geoff Russell, Chief Executive of the SFA, said: “The sale of Ufi Ltd and its Learndirect brand is good news for UK businesses, learners and the wider economy.

“It will boost competition in the training sector, allowing more people to benefit from learning opportunities and helping businesses thrive through the large scale delivery of learning through technology.”

Ian Crabb, a former Oxford graduate and former CEO of Quadriga Worldwide Limited, has been appointed as the new Chair of Learndirect.

“This is an immensely exciting time for Learndirect,” he said.

“I am delighted to have been appointed its new Chair and I am looking forward to supporting its continued growth and delivering even more opportunities for people during these very difficult economic times.”

Talks to address apprenticeship concerns

Apprenticeship providers plan conference as criticism mounts over numerous “worthless” delivery models

Training providers have called for talks on issues surrounding apprenticeships in the wake of heavy criticism.

A conference led by providers is being arranged for early next year to discuss concerns such as short apprenticeships.

It comes following numerous reports by FE Week on the current state of apprenticeships and also a further story by the Mail on Sunday last week, which claimed apprenticeships are “falling short of  skills as firms collect millions”.

Lindsay McCurdy, group manager of LinkedIn: Apprenticeships London, which was initially set up for providers in the capital but is now open across England, is setting up the conference to tackle issues, while also highlighting the success of apprenticeships.

The group has more than 800 members on the social networking site LinkedIn and around 90 have confirmed their intention to attend the summit, which is due to be held in March on a date and at a location to be arranged.

Mrs McCurdy is unhappy at apprenticeships being handed to already employed workers – a situation which FE Week has highlighted with the case of Asda.

“We must be careful not to undermine the overall apprenticeship brand which is becoming increasingly attractive amongst young people.”

The company is due to create 25,000 apprentices by the end of  2012, with the training by City & Guilds and funded by £8 million from the Skills Funding Agency, but it is believed none will amount to a new job.

She said: “Apprenticeships are about job creation, not giving already employed people qualifications.

“I am not against up skilling of already employed staff, but do not call it apprenticeships.”

She also said: “The members of  my group… have asked that we arrange a conference which is provider led to raise these issues and address them. “I am not against the government giving money to up skill employed staff, it just should not be given under the name of apprenticeships.”

In the Mail on Sunday’s article, concerns were raised “about the term ‘apprentice’ becoming devalued.”

The story has since attracted a raft of comments on the FE Week website.

Kim Cook said: “The apprenticeship name is getting bad press, at a time when we should be growing good quality apprenticeships with employers.”

She added: “I have been in this arena for 25 years and have never seen anything like this. We need stricter control and auditing.”

Andy Wilson added: “We must be careful not to undermine the overall apprenticeship brand which is becoming increasingly attractive amongst young people.”

Professor Alison Wolf, of King’s College London was commissioned by Education Secretary Michael Gove to report on vocational training.

She said: “Traditional apprenticeships have been very valuable for the economy and apprentices because they gave young people new skills plus the genuine workplace experience which they would otherwise not have obtained.

“The growing practice of re-labelling existing adult employees as ‘apprentices’ is, as far as I know, unique to this country, and particularly difficult to explain at a time when youth unemployment is at crisis levels.”

Exclusive World Skills Poster ~ support Team UK

DOWNLOAD, PRINT OUT AND PUT UP OUR ‘SUPPORT TEAM UK’ POSTER: CLICK HERE (8mb)

The world’s biggest competition for young people with vocational skills is set to launch in London today.

WorldSkills 2011, dubbed by many as the ‘skills Olympics’, will pit Team UK against some of the toughest and most skilled countries on the planet.

The home nations will be competing at the ExCel Centre over the next four days and hope to bring home a grand haul of gold medals.

FE Week has given its full support to backing Team UK and will be following their progress with coverage both online and in print. If you are a user of twitter then follow our coverage at #FEWeekWS. New to twitter? The download our guide (click here).

FE Week wants everyone to be able to show their support for the home nations – so we’ve designed a patriotic poster for you to print out and display with pride.

Whether it’s on your office wall, in the car or stuck to your colleague’s window – there’s no excuse for not showing your colours!

Do you have a message you want to give to the team? Leave a comment below to show your support and spur on Team UK to WorldSkills success!

Read our WorldSkills preview by clicking here.

Find out more about the volunteers who make the event happen by clicking here

WHY NOT LEAVE A COMMENT OF SUPPORT BELOW?

WorldSkills London 2011: The people who make it happen

It takes a lot of people to run the globe’s largest skills competition – but WorldSkills London 2011 will not be in short supply of help.

For this week’s event, held at ExCel London and dubbed the skills Olympics, around 2,500 volunteers have been recruited to ensure everything goes off without a hitch.

From greeting competitors, to escorting ‘special guests’ and journalists around the event, it is the volunteers who make it happen.

By day, Doulla Manolas, from London, is a management consultant, but for at least three days this week she is a volunteer at WorldSkills London 2011.

Doulla found the application to volunteer for the event while applying for the London 2012 Olympic Games website.

She sees it as her build up to her Olympic dream – and she is determined to highlight vocational skills in the process.

She is also keen to see people “have a go” at the many skills on offer during the event, which will run from Wednesday to Saturday.

Doullla, who has been working with the volunteer uniform and accreditation distribution, said: “It’s a good idea way to see what you can do.

“You have the opportunity to give things a go.”

However, she admits she was surprised when first entering the exhibition centre at the sheer size.

She said: “It’s a huge event.

“I wasn’t aware how big it was going to be. It’s the first time the ExCel will be used in its entirety for one event.”

Union warns of lost Bombardier apprenticeships

Around 250 young people will be affected by lost apprenticeships and engineering jobs at Bombardier, a union has warned.

Rail union RMT today said the firm will be forced to reduce apprenticeships from the Bombardier Centre of Excellence, if the Government fails to reverse the decision to send the Thameslink fleet contract overseas.

The news coincides with the end of the statutory ninety day consultation on the loss of 1,400 jobs at Bombardier’s Derby factory.

The union said Bombardier would be forced to reduce apprentices by 15 this year, due to the Thameslink loss, and would recruit 10 per year instead of 20 for the next seven years, with the loss of 85 apprentices in total.

In addition, for the Engineering Centre of Excellence the Thameslink contract would have guaranteed an additional 150 permanent engineers.

Also scrapped would be the commitment with JCB academy to develop future engineers where Bombardier had committed to invest in two students per year for the next three years to further develop skills for the future.

RMT General Secretary Bob Crow said: “The Tory Party will be spouting their usual warm words on training and apprenticeships whereas in reality they are on course to destroy career opportunities for a whole generation in Derby through their betrayal of Bombardier.

“They should be shamed into reversing this scandalous decision.

 “With nearly a million young people out of work, kicking the legs from under a skills and training Centre of Excellence in the heart of the Midlands puts us on course for an action replay of Margaret Thatcher’s ‘lost generation’ of the eighties.

“Same old Tories – bankers and speculators get away with murder while the kids who are our future are slung on the scrap heap.”

FE Week reporter has a go in Colleges Week

To get into the spirit of Colleges week, education reporter, Nick Summers went to Lewisham College to have a go at welding

Welding and journalism are two professions that couldn’t possibly be more different. While one involves typing frantically on a laptop and wearing a shirt and tie, the other involves using industrial machinery, grubby overalls and working halfway up the side of steel bridges.

So it should come as no surprise that I was incredibly nervous about trying welding for the first time. Steve Granville, a welding instructor at Lewisham College, was kind enough to put me through the basics and explain how all of the protective gear would save me from instant death. Fireproof overalls, reinforced leather gloves, skull cap and goggles; you name it, I was wearing it.

Steve then showed me a piece of metal that was sharp enough to cut skin with a single stroke. It was my job to smoothen the edges using the machinery, a task that would be simple were it not for the hundreds of sparks flying towards my face. Nevertheless I had a go and I must admit, it was hugely enjoyable to work with the equipment and produce a few fireworks (not literally) in the classroom.

My efforts earned me a lesson on metal arc welding. This is when the afternoon got really dangerous. After being given yet more protective head gear (this time with a high-tech electric visor) I was allowed to use a high-powered blow torch to weld two pieces of metal together. The light emitted would damage the human eye and meant that I was unable to see most of my welding. The bottom of the page shows what I produced – no doubt I could do with some more practice!

Colleges Week is a great chance for students to try some of the courses that FE colleges offer. Lewisham College gave me a valuable insight into welding and I can’t thank them enough for the opportunity. Think I’ll stick to the journalism though…

FE Week gate-crashes the Labour party conference

At this time of year the news is awash with political headlines from party leaders promising what they are going to do for Britain. Conference season is one of the busiest times of the year for any political party. It is an opportunity to showcase a party’s credentials and talents, in the hope of gains in the polls.  This week saw the Labour party hold their annual conference in Liverpool; the first time since 1925.

FE Week’s Shane Mann was invited by the Labour party to take part in the Prosperity and Work session of conference on Monday afternoon. Shane used the opportunity to explore Labour conference and find out who has been keeping up to date with FE news from FE Week.

I first attended the Labour party conference in 2008, which was held in Manchester. At the time Labour were the party of Government and I recall the excitement of walking around the venue whilst casually bumping in to the odd Secretary of State or witnessing journalists running after their next potential story. For those that have had the opportunity to attend a party conference, it is a bewildering experience. But one that captivates you into the realm of politics and policy development.

This year I was asked by the party to take part in the Prosperity and Work debate on Monday afternoon. I was tasked with representing further education and to inform conference about the campaigns I led and worked on in Norfolk, to save the transport subsidy for 16-18 year olds.

I was one of four others to take part in the debate. Joining me were; Gordon D’Silva, CEO, Training for Life,  Sophie Jenkinson, chairwoman, Shropshire Young Labour and  Michael Taylor, operations director at Fosters Bakery and regional ambassador of the National Apprenticeship Service.

The debate followed key note speeches from John Denham MP, shadow business secretary, Liam Byrne MP, shadow work and pensions secretary and Maria Eagle MP, shadow transport secretary. She also joined us for the debate to provide a perspective from the Shadow Cabinet.

The debate focussed on our experiences in recent years and what we believed was needed to increase jobs, growth and improve public services.

Before it was time to enter the conference hall we were all invited back stage for lunch and a quick rehearsal. All of us were nervous; it was hard not to be, especially when an ex-cabinet minister, when asked how they find delivering a conference speech replied, “Its one of the worst experiences known to man.” At that point there was a sudden realisation from the four of us that, if they are nervous what hope is there of us calming down.

Following Eagle’s speech the Q&A commenced. A wide range of issues were bought up from the panellists, from support for smaller companies to enable training to its employees to graduate unemployment. I discussed the issues around the cost of transport for young people in FE and the impact of the withdrawal of EMA. I even “shamelessly” used the platform to plug FE Week, when referring to the survey we published last week from Lsect regarding student numbers this academic year.

For me personally, Maria Eagle’s policy announcement before the Q&A, was music to my ears. Since studying in FE I have believed that transport should be free for young people in colleges and sixth forms. There was wide support from the panel and conference when I concluded that it is simply not good enough to provide a concessionary scheme. The government need to reinstate the EMA to ensure that no young person’s education is hindered due to affordability.

Whilst at conference I also went along to several fringe events which focussed on young people. There was lots of debate around the quality of information, advice and guidance that young people will receive, now that services such as Aim Higher have now been removed.  Liam Burns, National President of the NUS, explained his concern that young people will not be equipped with the information required when it comes to deciding on whether to move on to university.

Both Ed Miliband and Andy Burnham made reference to apprenticeships during their speeches.  On Tuesday Miliband said, “Supporting the producers, that is what it means to be pro-business today. That is why I say all major government contracts will go to firms who commit to training the next generation with decent apprenticeships.”

On Wednesday afternoon Burnham went further to announce Labour’s new vision for apprenticeships. Burnham said “I want young people who aspire to do apprenticeships to have the same clarity, ambition and sense of purpose. I want them to be able to find out and apply for them in exactly the same way as people apply for university.

“So let’s look at a national UCAS-style system for apprenticeships, raising sights, rewarding those who work hardest, giving all children hope and a goal in life.”

Clearly these are only ideas at this stage and the policy of a party in opposition. However the idea of introducing a “UCAS style” application process is something that the sector needs to respond to.

Next week we have the party of government’s annual conference, we await the Conservative party’s next vision for FE.

Rt Hon Andy Burnham MP, Shadow Secretary of State for Education enjoying his copy of FE Week