FE charity in administration ~ FE Week investigates

Learning and Skills Network (LSN) placed in administration after turnover dips by £29 million in two years and pension liability leaves an £8 million hole – but it is ‘business as usual’ for staff as buyers are sought.

Struggling for income and with a crippling multi-million pension liability, a charity with more than 25 years of experience in education has been forced into administration amid claims of diminished funding due to government spending cuts.

Ian Oakley-Smith, David Hurst and Karen Dukes of global financial experts PricewaterhouseCoopers (PwC) were last week appointed as the joint administrators of Learning and Skills Network (LSN), which provides educational expertise for businesses and agencies the public and private sector in the UK and abroad.

PwC say the charity, which was due to publish its annual report and financial statement this month, had a turnover of around £13 million for the 2010/11 financial year – a small figure compared to £27.5 million over the previous tax year and £42.6 million in 2008/09.

However, administrators have also revealed that although LSN has “no debt”, the charity does have a “contingent pension liability” of £8 million.

In other words, if every member of staff retired and drew their pension LSN would left with a multi-million pound deficit.

It is for those reasons that PwC say the board of trustees at LSN came to the difficult realisation that they could not carry on any further.

Mr Hurst, joint administrator and a director at PwC, said: “The charity operates a number of businesses and has suffered a dramatic decline in contract income since 2009, with its funded programmes diminished due primarily to the cuts in government spending.”

He also added: “As a result of the decline in income and significant pension liabilities within the charity, the trustees concluded that they were unable to continue and have placed the charity into administration.”

However, enquiries by FE Week have revealed the move may have taken up to nine months to make, with the Charity Commission, which regulates charities in England and Wales, aware of LSN’s financial troubles back in February.

A spokesperson for the regulator confirmed that they have been made aware of LSN’s current position but said their involvement would be limited.

The charity first contacted us in February regarding its financial position and has been providing us with regular updates on its situation”

The regulator also denied that they had been reviewing or investigating the charity prior to the news.

She said: “We have been informed by the LSN that the charity has been placed into administration.

“The Charity Commission cannot intervene in the internal administration of a charity; therefore our role in these circumstances is limited.”

However, she added: “The charity first contacted us in February regarding its financial position and has been providing us with regular updates on its situation.

“Although we have been in regular contact with LSN, we are satisfied there is currently no regulatory role for the Commission.

“We have not ‘reviewed’ or investigated the charity.”

A closer look at LSN’s financial statements for 2009/10 revealed that despite a decline in the income from the previous year, the charity had highs hopes for improvement in the proceeding year.

The report says a “new financial strategy in 2009” resulted in four key points which “will generate a significant increase in income” in 2010/11.

Those included the acquisition of three businesses at a cost to LSN of £8.87 million, a merger in July 2010 with National Extension College, the joint management of Reading College from August 2010 and also the establishment of a Shared Service programme for colleges.

These hopes caused LSN to aspire to reach an income of £50 million for 2010/11, which it planned to grow year-on-year, according to the report.

The same report also revealed the £8.87 million investment cost of the three businesses LSN acquired – FE Associates, Learning Resources International and Connections Oxford – also included £7.46 million in “goodwill”.

This would be the amount of money by which LSN paid above the net tangible assets of the three companies.

It appears there is a good deal of interest in a number of LSN’s activities and we are hopeful they will be able to continue under different ownership.”

LSN employs 117 staff over five locations – with 48 at its London base. A further 14 work at offices in Oxford, 16 in Olney, 26 in Cambridge and 13 in Belfast.

They work at five separate businesses: Technology for Learning, National Extension College (NEC), Education, Skills and Research, Development Services, Learning and Skills Development Agency (Northern Ireland) and Learning and Skills Network.

For the staff, PwC say it is “business as usual” as they look for buyers for the “successful businesses” within the charity’s structure.

Mr Hurst said: “Our immediate priority is to seek buyers to enable their long term survival, preserve jobs and continue supporting customers and students. We would encourage any interested parties to contact us as a matter of urgency.”

Although unusual to see a charity in this kind of financial situation, Mr Oakley-Smith, the director and head of charity advisory at PwC, said it is becoming more and more common.

He said: “There has been an increase in the number of financially distressed charities approaching us for advice and assistance in recent weeks and months as the Spending Review begins to impact the charities reliant on government support.”

However, Mr Oakley-Smith is confident of finding a buyer for LSN.

He added:  “LSN has more than 25 years of experience of high quality delivery in the education sector.

“It is an organisation which has excellent relationships across all levels within the sector, previously working to deliver large scale projects and innovative solutions for clients including UK government and its agencies, FE institutions and large private sector clients.

“It appears there is a good deal of interest in a number of LSN’s activities and we are hopeful they will be able to continue under different ownership.”

Government gives go ahead to FE college merger

The merger of two further education (FE) colleges has been given the go-ahead.

Stroud College and Filton College will, from February 1 next year, be legally known as South Gloucestershire and Stroud College after the proposed merger was agreed today by John Hayes MP, secretary of state for further education, skills and lifelong learning.

Both Principals – Kevin Hamblin from Filton College and Dr Beri Hare from Stroud College – have welcomed the decision as an endorsement of the colleges’ shared ambition to improve choices and create new opportunities for learners of all ages.

John Huggett, chair of governors at Filton College , said: ‘The Secretary of State’s decision to approve the merger gives us the green light to join together two high-performing colleges so that we can innovate and grow.

“It is a merger of equals, with each college in a strong financial position and well-matched in terms of our ambitions to increase learning – and life – opportunities for all our students.”

He added: “The merger means we will be able to expand our engineering and sports provision at Stroud and introduce other new courses. Across our campuses, we will focus on apprenticeships and the skills demanded by employers.

“We will be sharing resources to reach into the rural communities south of Stroud and north of Filton – many of which are among the most deprived in the country – to offer employability skills and improve the education choices for people living there.”

Mike Farmer, chair of governors at Stroud College, added: “The case for a merger was strong and everyone has worked hard for it – I am delighted by the decision.

“My thanks go to all the people of the Stroud area for their support which undoubtedly helped the minister make the right decision, and to college staff who have continued with their day-to-day jobs through this period of uncertainty.

“The new college will offer significantly enhanced opportunities for local communities and businesses, and I am sure that people from Stroud will play a major role in how it develops over the next few years.”

The next stage will see the creation of a new combined Board of Governors, elected from the present governing bodies of both colleges, and including staff and student representatives.

Establish an FE newspaper? Where did that come from?!?

FE Week has been a remarkable journey for me, personally.

I am all too aware that some college principals are confused about my intentions, and wonder where Nick ‘Meddling’ Linford will pop-up next. Now feels the right time to explain more about me and what FE Week is all about.

I had wanted to set up a newspaper for FE for some time, but I knew it was only worth doing if it was done properly, and properly would cost lots of money.

I began trading as Learning and Skills Events Consultancy & Training Ltd (Lsect) in January and following a successful conference season, I was able to invest ‘properly’ in FE Week in the spring.

It’s November and we’re going great guns. We have a talented team; including two experienced journalists, a sales team, designer and a number of freelance specialists. We are continuing to do things properly.

Since I started FE Week, I have visited Number 10, been invited to speak with ministers and shadow ministers and hosted several debates in Parliament.

I have met principals and CEOs and have been invited to some of the sector’s most important conferences. FE Week has most definitely earned its place at the table.

You don’t need me to tell you that journalists do not embrace FE; it’s a complicated sector with its own language. It has been frustrating for me in the past to get journalists to write about FE, and horizon gazing as we do, it’s going to get increasingly difficult.

The newspapers that have had education sections or supplements, like The Times, The Independent and The Guardian have been hemorrhaging pages, education content and in particular FE coverage has suffered. Even the TES’ FE Focus is a shadow of its former self.

I love and champion FE, have an affinity with funding policy and implementation but it seems I am also a businessman with a creative passion.“

FE Week is plugging that gaping hole and because of our campaigns, we’re able to bring FE to a wider audience. We’ve been quoted in national newspapers, on BBC channels and websites galore. We’re doing what I intended, we’re bringing FE to the fore.

This is our 11th edition and I’m thrilled. If you’ve been with us since our first pilot back in June, you’ll agree that we’ve been getting better every week.

So, what makes me credible to be the owner and the managing editor of an FE newspaper? I have worked in the FE sector since 2001, most of you know my recent work as an author, consultant and through Lsect but my first taste of news was actually at university.

The University of Edinburgh student newspaper is nationally renowned and I quickly became immersed in the publication. I went from being a photographer to the picture editor, and then design editor all within my first year. From there my first full time job was with the Press Association at the HQ in Victoria.

I love and champion FE, have an affinity with funding policy and implementation but it seems I am also a businessman with a creative passion. In fact I set up my first limited company, specialising in graphic design, in 1999. FE Week is a combination of my passions but it’s not a hobby and it’s not an altruistic venture. It will only survive as a business.

We’ve had some amazing feedback, not all of it good. Most recently we have had to query public accusations of inaccuracies from the National Apprenticeships Service, which they have now withdrawn. I also make not apologies for including some ‘fun’. As I tell my team – if they’re talking about us, “it’s all good”.

There is a real FE Week buzz and I truly believe that we have created a newspaper that the sector has been crying out for.

So, my guarantee is that I am listening, and will strive to ensure FE Week improves week on week. Rule 1: FE only deserves the best.

Nick Linford is Managing Director of Lsect and Managing Editor of FE Week @nicklinford

Delivery of FE to radically change by 2020, says new report

 A report predicts that most further education (FE) establishments will need to radically change the way they deliver course content to keep up with future of technology.

The report, commissioned by Access UK, who supply HR software to the FE sector, predicts a rise in connectivity as technology becomes available across all platforms and devices, resulting in 50 billion devices being connected by 2020.

It also says smartphones will overtake PCs as the most popular device for accessing the web by 2013.

The report, The future of technology: transforming mid-market business operations, was produced by the Centre for Future Studies.

It suggests the UK is entering an era of “pervasive connectivity” where students are able to access content and information instantly from almost anywhere in the world via a range of devices, such as smartphones and tablet devices.

It adds that FE institutions which can effectively harness the power of all these connections and digital tools will be able to attract talent, improve the quality of their education experience, and create a more collaborative and productive learning environment.

The report also suggests the increase in demand for personalisation online will lead to students demanding more individualised curricula and coursework that can be continuously adjusted to accommodate the interests and pace of each student individually.

“This report offers an invaluable insight into some of the key technological trends and impacts facing all organisations, regardless of size or industry,” said Chris Bayne, CEO of Access UK. 

“We are already beginning to see the impact of mobile internet adoption, and a demand for hybrid technology platforms combining traditional on-site solutions with web-based software components.

“Many of our clients are using Access technology to manage their organisation across multiple sites, using a mixture of desktop and mobile devices.  We can only see the demand for these solutions increasing.”

BIS Select Committee to launch enquiry into apprenticeships

An enquiry into apprenticeships will be launched by the Business, Innovation and Skills (BIS) Select Committee in the new year.

Adrian Bailey MP, chairman of the committee, made the announcement at the ‘Real or Rebrand?’ apprenticeships debate, organised by FE Week, at the House of Commons last week.

Although terms of reference for the enquiry are yet to be decided, it is hoped it will be heard in February. An early call for evidence could also be sent out next month.

Mr Bailey, speaking during the debate, said: “My committee will be doing an enquiry into apprenticeships, probably February of next year, and I’m sure there are an enormous number of people in this room today, who would want to submit evidence to that enquiry.

“So please look out for that and submit it, but don’t feel constrained about the committee’s timetable, I’m very happy to receive your submissions at any time on issues surrounding apprenticeships.”

James Davies, clerk of the committee, said: “We haven’t got as far as publishing the terms of reference.

“This is an issue the committee has identified as one they wish to proceed.”

The National Apprenticeship Service (NAS) said: “The NAS welcomes the Parliamentary interest and is happy to contribute to the enquiry. The NAS will review the recommendations and the Government’s response in due course.”

Mr Bailey also used the debate to raise his own questions about apprenticeships.

He said: “Obviously there is great political support, both business and public support for apprenticeships.

“But the important thing is that they are genuine apprenticeships, contributing to the economic and business objectives which they are designed to realise.

“We have these figures of the substantial increase in apprenticeship, but what is the reality of them? Is it just a rebadging of train to gain, or are they genuinely targeting the issues surrounding young people?”

Robert Halfon, MP for Harlow

“I always think the best test of a person is not when they’re winning; it’s how they recover from defeat and adversity,” says Rob Halfon. And he would know. It took him three attempts to win his seat in parliament. On his second go, he lost by just 87 votes.

But the Harlow MP, best known for pioneering apprenticeships in Westminster, has faced struggles in his own life, which may go some way to explaining his persistence and determination. Halfon was born with Spastic Diplegia, a form of Cerebal Palsy, which affects the lower extremities – usually the legs, hips and pelvis.

Halfon says he has a moderate version of the disease (he was a late walker and underwent several major operations as a child) and things were “relatively good” until his early thirties when he started to suffer with osteoarthritis, as a result of all the surgery he’d had as a child.

He jokes stoically that his worsening health problems were the “curse” of becoming a Tory candidate. But he refuses to feel sorry for himself and is keen to point out that he has “no hang ups”. In fact, he says, he has been very lucky in life.

By his own admission, he had a privileged upbringing in a Jewish family with traditional values and went to Highgate, an independent school in north London. His father had a fruit and vegetable wholesalers in East London. “It was work hard, save hard and do the right thing…that kind of mentality,” he recalls.

His father, and his grandfather before him also knew about struggle, he says. They fled Libya in the early days of the Gadaffi regime, after the family house and business were seized by the dictatorship. His father came to the UK with nothing, made money, and lost it all again in the recession of the 1990s.

Halfon says he was “terrible” at school, always wanting to do his own thing, (lying on his bed reading and listening to the radio, mainly). Academically, he didn’t start to shine until sixth form when he only had to study things that interested him, he says. By that point, he was already active in the Conservative party, “canvassing…knocking on doors and stuffing envelopes – the whole thing.” He also had his heart set on becoming a Tory MP and his inspiration was Margaret Thatcher.

“I loved Mrs Thatcher from the beginning,” he says, practically drooling. “I remember seeing a cartoon about her in the Express and think ‘God she was strong.’ I love strong women, always have done. Queen Elizabeth was always my favourite queen, my favourite monarch in history.” So while other teenage boys’ bedroom walls were plastered with Blondie, Linda Lusardi and Sam Fox, Halfon had the Iron Lady’s signature on his. “My dad took me to a St. John’s Ambulance event when I was about 16 and I shook her hand and she signed the invitation which I framed,” he explains, still clearly chuffed about it. “In fact, I have it framed in my loo.”

Halfon went on to Exeter University to study politics, where he became chairman of Exeter University conservatives and the Western Area Conservative Students. He also famously took the National Union of Students (NUS) to the European Court of Human Rights – and won – on the issue of compulsory membership.

After a stint selling hotel memberships at a posh London hotel, he got a job as a part-time researcher with Harold Elletson (who subsequently defected to the Liberal party) and over the following decade worked for various Tory MPs including Michael Fabricant, MP for Lichfield. But after losing the Harlow seat a second time in 2005, he decided it was all or nothing.

“It’s not like any job when you’ve got another interview next week,” he says. “You’ve got to wait another four years and campaign more. The count went on for three days, and when you have wanted something from the age of 10 and you’re that close…it was terrible but you can either make a decision of crying and sitting in a darkened room and thinking ‘I’m never going to fight again’ or dust yourself down and try again.”

And that is exactly what he did. He quit his job (by then he was Oliver Letwin’s chief of staff) to work as a freelance consultant, so he could devote more time to his campaign. Halfon says he chose Harlow, where he now lives with his girlfriend (unlike many MPs, he doesn’t have a second home, he is keen to point out) because of its “incredible community spirit.” He also wanted to work in a place where there were social issues, because despite all the “nasty party stuff” the Conservatives are interested in helping the vulnerable or disadvantaged in society, he says.

I think it’s criminal when people leave school unable to read. Whoever’s responsible for that should be shot really”

In fact, it was this kind of work that first got him interested in apprenticeships. “I was visiting a charity called Catch 22 and I met these kids who’d had various problems with the law…and they all started talking about apprenticeships. They starting saying that there were no opportunities for them and if they looked at the National Apprenticeship Service website they might be lucky if there was one apprenticeship advertised in Leeds or something. The God’s honest truth is that I was moved.”

And he wasn’t alone, he says. At a hustings debate at Harlow College, in the run up for his third attempt to win the Harlow seat, he recalls seeing “everyone just wake up” when he started to talk about apprenticeships. “It was incredible, the feeling from the room. And when I talked to parents that was what they wanted…I decided to make it a central plank of my manifesto.”

Since then he has gone on to recruit the first apprentice in parliament, help launch a National Apprentice Card (in conjunction with his old nemesis, the NUS) and a professional society for apprentices is in the early stages of development.

Halfon has also been instrumental in setting up a new parliamentary apprentice programme with the charity New Deal of The Mind Known as the “school of apprentices”, it will offer 16- to 19-year-olds the chance to spend up to three days a week working in Westminster, along with two days working towards a level 3 apprenticeship (equivalent to A-level) in business administration.

It’s early days for the cross-party scheme, but around 12 of the 650 MPS have signed up so far and more are thought to follow. His second apprentice, Louis Luck, has just been appointed
But in an age of Blackberries (Halfon is certainly addicted to his) and Twitter, being an MP is more 24/7 than it ever it was and he admits it can be hard to find time to relax. He still reads a lot, mostly news, but also gadget and techie magazines. He also collects watches and has almost 200 displayed all over his house.

Watching “rubbish” on the telly (he is a fan of soaps and of course Essex-based reality TV show The Only Way is Essex) is another popular pastime, which acts “like a vacuum cleaner of the mind” for him. But, he admits, it can be tough to switch off and he is often up at ridiculous hours of the night, tweeting or writing his blog. While he finds it easy enough to drop off, he is often awake, a few hours later, his mind racing.

Like many Westminster folk, caffeine and adrenaline gets him through the long days in parliament.

As well as his apprenticeships work, Halfon is also an active campaigner on tax cuts (particularly on petrol) and says he believes in “tax cuts for the many, not for the few.” But education and training is what really seems to drive him; he is a big fan of university technical college and would like his next campaign to focus on basic literacy. He explains with his typical candour. “If you look at the statistics of young delinquents and criminals and so on…most of them have dyslexia or reading problems. I think it’s criminal when people leave school unable to read. Whoever’s responsible for that should be shot really.”

A closer look at non-traditional delivery models

In the last few weeks, the National Apprenticeship Service (NAS) revealed to FE Week that a review was underway into short apprenticeships. Delivery models, the NAS said, which do not come up to scratch with specific guidance in the Specification of Apprenticeship Standards for England (SASE) may need to change or face the loss of funding. However, the body also said the review will judge some cases as “appropriate”, despite not meeting the SASE.

FE Week takes a closer look at two different delivery apprenticeship models being advertised at present.

SQi training provider pays the wage for 15 week apprenticeship

A training provider is offering free work placements to businesses including the cost of the wage for an apprentice.

SQi Watford Ltd (SQi) has revealed to FE Week it advertises free placements and pays the wage as an incentive to businesses to take on apprentices.

But West Herts College and its subcontractor Best Practice Training and Development (BPT) say the arrangement is “compliant” with Skills Funding Agency (SFA) guidelines.
BPT is subcontracted by West Herts College to provide training to apprentices. They then pay SQi but insist it is not from their SFA pot.

In August, the NAS, reiterating a document from the SFA, said providers should not use money from the SFA to pay apprentices.

In Paragraph 66 of the SFA’s Apprenticeship Funding Requirements 2011/12 document, it reads: “Apprenticeship funding cannot be used to pay Apprenticeship wages, as its primary function is to fund learning. Therefore, where the Provider is the employer, or an associate organisation is the employer, the Provider must be able to positively demonstrate that Agency funds are not being used in this way.”

SQi offers Level 2 Business and Administration apprenticeships over a 15-week course for 16 to 18-year-olds. It includes a 10-week work placement, with apprentices placed into local businesses “free-of charge” by SQi, who pay £2.60 per hour apprenticeship minimum wage for a 30-hour week.

Mikki Davis, apprenticeship manager at SQi, said: “SQi pay the wages. People find it very difficult to get work placements.

“It’s tight and businesses don’t have money to pay apprentices. We couldn’t find placements when they (businesses) had to pay. We are trying to bring that (businesses paying the wage) into effect.”

Duncan Murray, the director of skills and enterprise at the college, said BPT is “registered separately at Company House” to SQi. A check by FE Week found they share the same two directors and registered address.

Mr Murrary added: “West Herts College is aware SQi pay the wages of apprentices registered with us, and this is completely compliant with SFA guidelines. Our compliance team is perfectly happy with the arrangement as is the NAS and their Best Practice team.”

David Allenstein, director at BPT, said SQi are funded by a different arm of BPT, which does not involve SFA funding.

He said: “SQi does not draw funding from the Skills Funding Agency for the payment of apprenticeship wages. This area is funded by the commercial training arm of Best Practice Training.”

The NAS are investigating the case.

Bloom offer Estate Agents 26 week Level 3 apprenticeships

Changes will be made to a delivery model to ensure it is an “accurate reflection” of its outcome.

Training provider Bloom offers Level 3 apprenticeships in Sale of Residential Property and Letting and Property Management, which appear to take place in half of the time of the suggested framework.

As set out by Asset Skills, the Sector Skills Council, in their Property Services apprenticeship framework document, it is “envisaged that the apprenticeship will take 12 months” to complete.

However, the courses delivered by Bloom are said to take place over “26 weeks” which includes “a mixture of classroom based activity and work placements” with two sales and two lettings models run each year.

A schedule on the firm’s website shows a typical plan, which details the mix of work at the Bloom Training Centre and on work placements.

Following an induction week and week two on IT training, the apprentice is put on the placement for week three and four. The programme continues in the centre completing three NFOPP units, interspersed with time on placements.

In total, the apprentice will spend 16 weeks on placement and the remaining 10 weeks working to qualifications. A final 27th week is for graduation.

However, Steven Proudfoot, Chief Operating Officer at Asset Skills, said: “It’s an ambitious timeframe. Our concern is to ensure everything is done correctly and the right learning hours are allowed and it’s being delivered effectively.

“We have been working with Bloom and delivered 10 to 12 certificates for Bloom, which have taken nine months to complete.

“We are working with them to make sure their website is updated to show it is a more accurate reflection to the actual model.”

He added: “We always want to work with the providers and the sector to make sure the model is the best for the candidate.”

Di McEvoy-Robinson, director at Bloom, said they set the 26 week model after talks with the employers in the sector.

However, they are now working to rework the model.

She said: “However, the reality for the first 14 to 15 candidates is that it’s taken nine to 10 months. If some take 15 months, then that’s fine too. It’s about meeting the candidates individual needs.”

Concerns over funding for FE teacher training

Questions have been raised over the further education (FE) sector’s ability to attract experts into teaching in the face of proposed government reforms.

The Institute for Learning (IfL) has expressed concerns about proposed teacher training reforms and the implications of funding changes for initial teacher training (ITT).

In responses to two government consultations – Attracting, training and retaining the best teachers and New challenges, new chances: next steps in implementing the further education reform programme – the IfL highlighted several policy areas for closer examination and review.

It was concerned about the sector’s ability to attract experts from industry into the teaching workforce, when ITT tuition fees rise significantly from 2012, and the lack of parity between teacher training opportunities in the education sector.

IfL’s chief executive, Toni Fazaeli, said: “Our data shows that the average age of new teachers and trainers coming into our sector is around 37, by which time individuals are likely to have a family, mortgage, and other financial commitments, including perhaps existing student loans.

“The prospect of taking on additional debt of at least £6,000 for ITT qualifications could deter them from moving into teaching as a second profession, where their pay is likely to be lower.

“We owe our international competitiveness, the influence of our innovation and the strength of our communities to the skills of our teachers and trainers, and we should be welcoming the most talented individuals into our sector with open arms.

“It cannot be right that while teacher training in schools attracts generous bursaries of up to £20,000 for priority subjects, there is no such support for those wishing to teach or train in FE and skills, even if their professional expertise lies in science, technology, engineering or mathematics.”

The IfL also believes the Troops to Teachers programme should be funded in FE, while the facility for young people aged over 14 to benefit from being taught by vocationally trained experts should be “at the heart” of the education system.

Mrs Fazaeli added: “The dramatic change in the accessibility of post-compulsory teacher training is unprecedented and poses significant risks to the sustainability of our high-quality teaching workforce.

“The education select committee should recommend an urgent review of the likely implications and potential remedies to mitigate the impact of tuition fee increases, such as writing off student debt for trainee teachers, providing tax relief or offering generous bursaries on a par with those for school teacher trainees.”

IfL’s concerns are shared by the Universities Council for the Education of Teachers (UCET), whose executive director, James Noble-Rogers, said: “The new fees regime could undo progress towards professionalisation and parity of esteem with schools, have an adverse impact on widening participation and damage the quality of students’ education.

“The problem could  easily be solved through bursaries or a continuation of direct funding for training courses.”

Learning and Skills Network in administration

A charity with more than 25 years experience in the education sector has been placed into administration.

Ian Oakley-Smith, David Hurst and Karen Dukes of PricewaterhouseCoopers (PwC) were appointed joint administrators of Learning and Skills Network (LSN) on Thursday.

The charity, with a turnover of around £13 million for 2010/11,  employs 117 staff and is based in London (48 employees), with offices also in Oxford (14 employees), Olney (16 employees), Cambridge (26 employees) and Belfast (13 employees).

It is not known at this time whether those jobs are secure.

It operates five separate businesses: Technology for Learning, National Extension College, Education, Skills and Research, Development Services, Learning and Skills Development Agency (Northern Ireland)/Learning and Skills Network.

David Hurst, joint administrator and director at PwC, said: “The charity operates a number of businesses and has suffered a dramatic decline in contract income since 2009 with its funded programmes diminished due primarily to the cuts in government spending.

“As a result of the decline in income and significant pension liabilities within the charity, the trustees concluded that they were unable to continue and have placed the charity into administration.”

He also said that buyers are now being sought.

“Our immediate priority is to seek buyers for the successful businesses within the charity, to enable their long term survival, preserve jobs and continue supporting customers and students. 

“We would encourage any interested parties to contact us as a matter of urgency,” he said.

Ian Oakley-Smith, joint administrator, director and head of charity advisory at PwC, said: “There has been a marked increase in the number of financially distressed charities approaching us for advice and assistance in recent weeks and months as the Spending Review begins to impact those charities reliant on government support.

“Learning and Skills Network has over 25 years experience of high quality delivery in the education sector.

“It is an organisation which has excellent relationships across all levels within the sector, previously working to deliver large scale projects and innovative solutions for clients including the UK Government and its agencies, FE institutions and large private sector clients.”

He added: “It appears that there is a good deal of interest in a number of Learning and Skills Network’s activities and we are hopeful that they will be able to continue under different ownership.”

FE Week has approached LSN for comment, but no one was available at the time of publication.