Consultation report outlines plans for further education loans

A consultation report released yesterday by the Department for Business, Innovation & Skills (BIS) outlines a new loan system for further education learners.

Under the proposed plans FE students in England will be able to apply for a loan that pays the upfront cost of a course on their behalf.

Minister for Further Education, Skills and Lifelong Learning, John Hayes, said: “Our proposals describe the next steps towards a more confident, vibrant further education sector, ready to meet the challenges and seize the chances that a rebalanced, high skill economy will present.”

The proposed loans could pay up to £4,000 (rather than up to £9,000 each year for HE courses) and would be used to cover tuition fees – not maintenance costs.

A student would be considered eligible for a loan depending on their residency and chosen course; their financial situation would be deemed irrelevant.

Tom Wilson, director of unionlearn, said: “We will be responding in detail to the proposal for a new loan system for FE students. Further Education should be provided free, however if loans are to be introduced they need to be equitable and fair and in line with those offered to students in HE.”

The loan, managed by Student Loans Company (SLC) and similar to those operating for HE courses, would need to be repaid once the graduate is earning above £21,000 – and would also be written off completely after 30 years.

Lynne Sedgmore CBE, executive director of the 157 Group, said, “We welcome the steps that have already been taken to give colleges greater freedom to meet the needs of their local communities and are delighted that the government is signalling its intention to go even further.”

The consultation, titled New Challenges, New Chances confirms the funding policy that will be put in place for FE Level 3/4 diplomas and apprenticehips.

The loans will apply to all provision at Level 3/4 for students aged 24+, including Access to HE courses, Advanced and Higher Level Apprenticeships.

An AoC spokesperson said: “We welcome the intention to continue funding level 3 courses before the FE loans system is put into place. There remain many questions that need to be answered about what that system would look like, not least how the repayment mechanism might operate.”

The introduction of FE loans is said to reflect the principle ‘that those who benefit more should contribute more to the costs of their learning’ set out in Skills for Sustainable Growth, a ‘radical’ strategy published in November 2010.

You can read New Challenges, New Chances here. The consultation questions are listed below:

Issue 1: Communications

Q1) What information do learners, employers, colleges training organisations and careers advisers need about FE loans to cover learner contributions?

Q2) How can we engage individuals and employers so that they make use of loans to support skills and training?

Q3) How can we support learners who are progressing from FE to HE using loan support?

Q4) Will the introduction of FE loans to cover learner contributions for Level 3/4 for those aged over 24 create any particular barrier(s) to access provision based on (i) race, religion or belief; (ii) disability; (iii) gender; or (iv) age?

Issue 2: Model for FE Level 3/4 loans system

Q5) How can we minimise (additional) bureaucracy as we implement the FE loans model?

Q6) What safeguards should be in place to ensure that learners make the best use of the loans available to them?

Q7) Do respondents believe that payment of FE loans to colleges/training organisations should be made (i) 3 times a year (in line with HE); (ii) quarterly or (iii) monthly?

Q8) Do respondents believe that allocations should be reassessed (i) annually but not in-year, (ii) once during the year and at the end of the year or (iii) more regularly during the year?

Q9) In a demand-led system, what would be the most effective way of ensuring that our spend and commitments stay within the available loans budget?

Responses to the consulation need to be submitted by 21 October 2011. The model for the loans system will be finalised by December 2011 and launched in March 2013.

Judging them by their results: MPs, sixth forms and value for money

Yesterday the House of Common’s Public Accounts Committee (PAC) published its report on Getting value for money from the education of 16– to 18– year–olds.

While few people are excited by a select committee report, I was a little dissappointed by the PAC report. There was plenty of common sense in the report including the observation that larger sixth forms benefit from scale economies and a promise to scrutinise the impact of the abolition of Educational Maintenance Allowances on staying-on rates. That is all reasonable and useful. Nevertheless the PAC report was a let down.

Back in March, the National Audit Office (NAO) published its own research on sixth forms and value for money – indeed, it sailed under the very same title. Many of the findings and recommendations of the NAO fed into the PAC report. However, a key finding of the NAO was that sixth form colleges deliver impressive value for money:

Sixth-form colleges, which perform best on most measures of learner achievement, are paid at a lower funding rate than school sixth forms. While the Department has taken some steps to reduce differences in the funding of different types of provider, colleges receive £280 per learner less than schools.

Sadly this message was somewhat diluted in the PAC report which noted: School sixth forms currently receive £280 per student more than colleges.

Why was this lost in translation? I have no idea. Maybe it is because colleges lack political friends and public profile. (How many party manifestos have spouted off about schools and universities but forgotten that colleges even existed?)

To add insult to injury, the normally excellent Education Guardian had an article headlined: “Money being wasted on badly-managed colleges, say MPs”. No! The PAC may have failed to applaud sixth form colleges but it did not question college management. In fact, it observed: “further education colleges have become more adept at making tough choices to improve value for money”.

The Guardian article was better than its headline. It noted that PAC was concerned about the comparability of data for assessing value for money. (The NAO report pointed to the weaknesses in the quality of data coming out of school sixth forms although this was not evident in the PAC report.)

As results are published for the nation’s sixth forms, there is no way that the PAC (or the sub-editors at the Education Guardian) deserve an A*.

Bob Deed is a financial consultant in the college sector tweeting as @deedconsulting

FE Week follows Top2Toe charity challenge through Birmingham

Over the last couple of days FE Week has been following the Top2Toe charity fundraiser lead by Dave ‘Blind Dave’ Heeley and South Birmingham College Principal Mike Hopkins.

Mike and Dave are currently riding on a tandem bicycle as part of a gruelling 10 day charity ride, completing a total of 1,000 miles from John O’Groats to Land’s End.

‘Blind Dave’ is hoping to raise £100,000 for Macmillan Cancer Support by completing a marathon each morning before continuing on the tandem with Mike.

FE Week watched the pair arrive in Birmingham on Monday evening to widespread cheer and applause. The tandem, joined by a number of other cyclists, were greeted in front of the Birmingham Town Hall by a variety of well wishers, journalists and members of the support team.

We had the chance to interview Mike Hopkins and Dave Heeley during the mayoral reception held in the Town Hall later that evening. The lively pair spared a moment from the celebrations in order to speak to us about their progress and how they had been coping so far. The video interview can be seen in the YouTube player below (also available in HD) and identifies how close they are to reaching the £100,000 fundraising target.

Mike, Dave and rest of the team regrouped the following morning (Tuesday) at 5:30am in front of the Town Hall. Among the supporters and fellow fundraisers were six members of staff from South Birmingham College, who were planning to run the marathon and raise additional money for Macmillan Cancer Support.

FE Week was able to interview some of these individuals and follow the marathon as it moved out of the city. We travelled with the group via bicycle, documenting the experiences of the runners and cyclists throughout the day. This included a moving interview with Mike Hopkins and an interview with Ben Hawkins, a media production student from South Birmingham College.

We left the group during a quick pitstop on the motorway. Our video report can be seen below (also available in HD), including exclusive photographs shot during the early morning preparation.

The challenge is taking place between 10-19 August and you can continue to follow Mike and Dave’s progress via these links:

www.blinddaveheeley.co.uk/top2toe/
www.principalmiketop2toe.blogspot.com
www.flickr.com/photos/blind_dave_100
www.youtube.com/user/blinddave100

Youth unemployment shows no improvement in latest quarter

The latest government statistics show that youth unemployment has changed very little in the last three months.

The Labour market statistics, released today, announced that the unemployment rate for 16 to 24 year olds was up to 20.2% of the population in the three months leading to June 2011 – a small increase of 0.2 percentage points from the previous quarter.

There were also 949,000 unemployed 16 to 24 year olds in this period, an increase of 15,000 from the three months to March 2011.

A closer look at the statistical bulletin shows that there was a small improvement for young people aged between 16 and 17.

Young people unemployed at this age decreased by 5,000 in the quarter to reach 206,000.

Elsewhere though, the number of unemployed 18 to 24 year olds rose by 20,000 in the quarter to reach 744,000.

The statistical bulletin emphasises that young people in full-time education are counted as unemployed if they are available to work and looking for a job.

When these are excluded however, the statistics show that there were 671,000 unemployed 16 to 24 year olds in the three months to June 2011, an increase of 25,000 from the three months to March 2011.

The number of 16 to 24 year olds not in full-time education was 18.8%, up 0.5 percentage points from the three months to March 2011.

Elsewhere the Labour market statistical bulletin announced that unemployment had hit 7.9% of the economically active population, an increase of 0.1% on the previous quarter.

The total number of unemployed people increased by 38,000 to reach 2.49 million, the largest quarterly increase since the three months to June 2009.

This has lead to 1.56 million people claiming Jobseeker’s Allowance (JSA) in July 2011, up 37,100 on June.