MP calls for bankers’ bonuses to provide Apprenticeships for jobless youngsters

A Labour MP is urging the government to provide apprenticeships for jobless youngsters with small businesses – by using bankers’ bonuses.

Introducing a bill under the ten minute rule,  the MP for Selly Oak, Steve McCabe, wants training and employment schemes for young people, better careers guidance and help for companies offering on-the-job experience.

He wants:” A mechanism through which banks and other providers of financial services are required to allocate part of their bonus payment budget to support these measures,” he said.

The MP told the House of Commons: “How can we be optimistic about the future if we are prepared to subject our young people to a life of worklessness?”

With youth unemployment hovering around the 1 million mark, his bill would bring a “fresh initiative” to tackle the problem.

“I want us to create a training and employment programme for those aged 16 to 25, because I believe that that is the only realistic way to tackle a problem of that size. That kind of unemployment can have long-term damaging effects.”

The MP added: “We owe it to our young people to do everything we can to prevent the scar of unemployment.”

Youth unemployment costs more than £23 million in benefits every week. What was needed, he said, was an employment programme “that offers hope and opportunity, and we need training designed to address the structural gaps in our system.”

Read the debate by clicking here

Mr McCabe told his fellow MPs the public were ahead of them on this matter. “Because they know that we should fund such a programme from a levy on the money set aside for unearned bonuses for wealthy bankers, who are continuing to pay themselves money that they have not earned while the rest of the country suffers as a result.”

Labour MP for Hayes and Harlington, John McDonnell opposed the plan because it failed to address unsafe working conditions for apprentices.

But MPs voted 241 to 35 to allow Mr McCabe to bring in his Bill. It will be read a second time on November 25.

Funding agency fears over fraud

The Skills Funding Agency has promised a crackdown on fraud and misuse of public money in the FE and skills sector, which it admits is likely to get worse under the government’s new subcontracting arrangements. The extent of the concern is revealed in communications leaked to FE Week between Geoff Russell, chief executive of the agency and John Hayes, the FE and Skills Minister.

£11m was lost to fraud or misuse in 2010-11 of which only £3m is so far accounted for. Police are involved in nine investigations, says Mr Russell in a letter to the minister which reveals that the agency was pursuing 88 new allegations – “a record high” – with a further 17 being investigated by other agencies including the police.

The Government’s increased emphasis on subcontracting is certain to make things worse, he suggests. “Subcontracting is the area most prone to mismanagement and abuse, and is responsible for about 70 per cent of our current investigations.”

But there are question marks over the agency’s capacity to investigate. In his letter, Mr Russell says a dedicated Investigations Unit is “fully engaged”. However, there are only six people in that unit and, while he says he is “increasing the unit’s size within the current restructuring exercise”, only 18 of the 55 cases currently on the unit’s books were being fully investigated.

The letter makes clear the crackdown will involve “tighter procedures” including exclusion of providers where there are “reasonable grounds” for deciding they cannot be entrusted with public money. The agency will also interview learners to make sure outcomes are achieved, rather than “relying solely on paperwork and certificates.”

“Subcontracting is the area most prone to mismanagement and abuse, and is responsible for about 70 per cent of our current investigations.”

While the government promised providers greater flexibility and less red tape, Mr Russell insists this will not reduce the need for accountability. With less prescriptive use of public funds “we need to be even more vigilant about propriety”, he says, adding that “the risk is likely to increase in the context of the economy, funding challenges and greater levels of subcontracting”.

Lead contractors must ensure subcontractors have sufficient “capacity, capability, quality and business standing”. Nevertheless, he is concerned that “subcontracting increases risks because work will be done by organisations with which the Agency has no direct contractual relationship. Therefore, subcontracting directors and senior managers must provide guarantees so that in the event of fraud or gross negligence, we can pursue their personal assets in recovering money,” the letter says.

While neither the agency nor government would comment directly on the leaked letter, a spokesperson for the SFA said: “The Agency takes allegations of financial irregularity very seriously.   We rigorously investigate any allegations of wrong doing to the fullest extent to ensure public funds are protected.” Six staff were fully engaged in the agency and “contributing to a number of cross-Government counter fraud initiatives”.

A BIS spokesperson said: “Ensuring value for taxpayers’ money is upmost in the Government’s priorities. We treat allegations about the misuse of public money very seriously and we work with the Skills Funding Agency to ensure they are investigated thoroughly.”

South West Colleges excel at the national BCS Watersports Championships

More than 100 watersports enthusiasts from all over the country donned their wetsuits and took to the waters in Cornwall on 22nd June when Cornwall for  the 2011 British Colleges Sport (BCS) Watersports Championships.

Students from colleges as far North as Stockport converged on Cornwall all keen to compete on the water. Many of the events had opportunities for both the novice and the more advanced performers to compete in.

The national event, which was held on the Cornish north coast was a test of endurance, concentration and ability for all involved, as competitors battled their way through a series of gruelling heats to qualify for the finals in a range of activities: surfing, body boarding, surf lifesaving, windsurfing, sailing, kayaking and gig-rowing.

Competitors came from colleges across the country.

The day provided some fantastic competition and produced some very high levels of performance, which made the finals a really exciting climax to the event.

The overall winners were Richard Huish College from Taunton, followed by Truro & Penwith College in second place and Bournemouth & Poole College in third.

Why it pays to be Business Intelligent

In this time of economic turbulence, Business Intelligence (BI) initiatives stand out for their potential to improve overall college performance for a relatively modest investment compared with other enterprise level IT projects.

This is achieved through better use of a key college asset: its data. It is this information that holds the key to future success. In order to achieve success, one needs to unlock the secrets that lie within the confines of the central college database. In essence, the data needs to work for us.

In simple terms, BI is the catalyst for making the right data available to the right people at the right time fostering a culture of data driven decision making. It is a means by which an organisation can interpret its data to derive insights that are critical in making informed business decisions at every level by utilising specialist software and technologies designed specifically to gather, store, analyse and provide access to data.

BI is the catalyst for making the right data available to the right people at the right time”

Although BI has been around since the 1960s, it is only in the last decade that BI has become mainstream with a strong trend in finding ways of making it more available, easier to use for the end user and accessible from mobile devices. It has become possible to generate data driven reports, visualise data in any number of ways, conduct ad-hoc queries and in depth analyses as never before.

However, there are a few key points to consider before implementing a Business Intelligence initiative:

1. Central repository. Consolidate your data into a central data repository which is separate from your main college database. This needs to be kept up-to-date.

2. High quality data. Any insights gained from a BI system will only be as good as the data that feeds it. If the quality of the data is poor, any output will not be worth the paper it’s printed on. Users will lose faith in the system and find alternate ways of getting the information they need.

3. Start small. The majority of large BI projects fail due to sheer size and complexity. Implement a solution for a key business area and build on it. That way you will be able to see results in a shorter timescale.

4. Make it meaningful. The goal is not merely to generate more reports and pretty graphs. The data needs to be meaningful and suggest an appropriate course of action. This means working in collaboration with the key business areas within your college to understand what data is important to them

I think the message here is have realistic targets and clear communication is essential at all levels but with BI technologies offering such potential to succeed for little investment…can we afford not to?

Stephen Parry is the Information Systems Development Team Leader at the Colchester Institute of Further Education

Annual Assocation of Learning Providers conference write-up

At the Association of Learning Providers (ALP) annual conference in London, the Chairman Martin Dunford announced that the representative body would be renamed as the Association of Employment and Learning Providers (AELP) with immediate effect. The name-change, which was well received by delegates at the conference, will now be put to members for formal ratification at a forthcoming EGM.

AELP Chief Executive Graham Hoyle, in writing to all members at the conclusion of the conference, explained: “It has been apparent for some time now that our name – the Association of Learning Providers – was too restrictive and did not properly reflect the diverse range of activities that have long been undertaken by you – our members – working as you are with hundreds of thousands of employers, supporting them to develop the skills of their workforces through the delivery of Apprenticeships and other forms of work based learning, with many also working with the unemployed, preparing them to enter the workplace and sustainable employment.

The full extent of this involvement has often not been recognised or appreciated by those your Association seeks to influence on your behalf and the introduction of the word ‘employment’ clarifies and emphasises the employer facing role that has been a key strength of our members over many years.”

Presentation highlights from day one

As well as making the announcement of the name-change, Martin Dunford used his keynote speech at the conference to call for the government to formulate a single cross-departmental strategy that would fully join up the employability needs of the unemployed with the skills needs of employers. He said that the success of the government’s new Work Programme would depend on providers bringing together the employment, employability and skills agendas.

Skills minister John Hayes told AELP members that they were ‘integral to realising the government’s skills strategy’ which had been driven to the top of the political agenda. He confirmed that BIS was looking for better measures of programme outcomes. In taking questions from the audience, the minister said that despite the reported frustrations of providers’ employer customers about funding provision for the over 25s, the government had to prioritise public expenditure on the younger age groups.

He reported that the current ESOL impact assessment was looking at the issue of effectiveness as well as fairness. He also said that the door was not closed on a possible single line budget for 16-18 provision.

Speaking for employers, David Frost of the BCC said that the apprenticeship brand must be protected as a quality badge. Simon Waugh of the NAS acknowledged that there was a lack of available places for young people wanting to become an apprentice and he expressed concern that they would become disenfranchised if their demand was not met. The NAS planned to treble level 4-5 apprenticeships in areas like engineering. Bio-sciences, digital, creative and travel/tourism were other priority sectors.

[John Hayes, the FE Minister] also said that the door was not closed on a possible single line budget for 16-18 provision.”

Lord Kenneth Baker of the Edge Foundation said that apprenticeships should be regarded as a possible first choice for all and not just for some. He reported that there would be an announcement in mid-July concerning the 40 applications for setting up University Technical Colleges (UTCs).

Nigel Snook of the conference headline sponsor EDI looked ahead at what was on the horizon for learning providers. He highlighted the greater use of technology and elearning, tougher regulation with more focused bureaucracy, new funding models and the need for some stability in the system.

For GTA England, David Sherlock said that apprenticeships benefited from the more heavy involvement of employers in their design. Rob Wye of LSIS expressed concern that there had been a decline in ‘outstanding’ grades among providers. He said the future priorities of a slimmed-down LSIS would include improving teaching and learning, STEM, apprenticeships, learner voice, new technologies, leadership and management, and curricula development.

Glenys Stacey of Ofqual emphasised that her organisation’s role was to regulate the awarding bodies and not to check on individual qualifications. She called on providers to get involved with Ofqual’s innovation project, details of which were on the body’s website.

The YPLA’s chief executive Peter Lauener closed the first day of the conference by confirming to AELP members that the YPLA was prepared for an open dialogue on flexibilities within ‘build your own’ programmes for the 16-18 cohort. This followed his letter to Graham Hoyle which had been posted on the AELP website. He added that there was money available for imaginative provision for the NEET group and that there would be a funding formula consultation in the summer for programme funding.

Presentation highlights from day two

The conference’s second day began with SFA chief executive Geoff Russell telling independent providers that ‘the doors had been flung open’ with the arrival of a single budget, but he warned them not to underestimate the colleges’ ability to compete. Later he added that it was expensive for the SFA to close a failing college, so other alternative solutions had to be considered like mergers or for private providers to become involved in their management.

 ‘the doors had been flung open’ with the arrival of a single budget”

Looking ahead, he said that the expected full implementation of ‘outcome incentive payments’ by 2013 was important because providers would only get full payment if the learner secured both a job and a qualification as a result of the provision. In answer to a question from the floor, Mr Russell explained in detail the on-going development of the ACTOR register, acknowledging that there was room for improvement and additional questions on the form, including one on a provider’s investment in facilities.

He stressed that ACTOR was a highly objective system, based around performance, which meant that contract awards were no longer dependent on bid-writing and local relationships. The SFA was looking at being more transparent about providers’ scores in comparison with others but it needed to avoid a position where providers could ‘work the system’.

Peter Van Den Broeck of Virgin Media explained how his company’s apprenticeship programme delivered a 90 per cent retention rate and a 96 per cent success rate. Virgin believed that apprentices represented a good return on investment because they are ‘committed’. Dave Simmonds of CESI began his speech by asking why AELP had taken so long to change its name, adding that the integrated employment and skills message was getting though to policymakers. He said that the payment by results system for the Work Programme and the high bar which had been set for the programme’s success rates meant that skills provision would play an important part in achieving sustainable employment for clients.

Employment minister Chris Grayling thanked providers for their hard work in getting the Work Programme off the ground so quickly and then stressed to them that there would be no caps on their provision. He underlined the importance of the Merlin standard in protecting the interests of subcontractors and thanked AELP’s Paul Warner for his part in its formulation. The minister also stated his support for the integrated employment and skills agenda and added that he worked very closely with John Hayes on the issue.

He said that Jobcentre Plus offices were making it their business to know of local employers’ skills needs. On youth unemployment, he said that the government’s response comprised four strands: the 8-week Work Experience scheme; Work Academies; the expansion of apprenticeships; and support into the Work Programme for the hardest to help. He added that the services of new national careers service would be visible and accessible at DWP/JCP offices and websites.

In a farewell address before his retirement, Alan Tuckett of NIACE stressed the importance of learning for adults to achieve sustainable employment although he said that the latter term meant different things for different people. He said that a number of issues needed to be addressed for greater progress including looking at the role of qualifications and whether licence to practise should become more widespread. Bert Clough of unionlearn explained how employers liked unionlearn projects and pointed out that a government investment of £120m over the last ten years had resulted in an extra £50m of private investment being leveraged in. He urged more independent providers to apply for unionlearn’s Quality Award.

services of new national careers service would be visible and accessible at DWP/JCP offices and websites.”

The conference was addressed by two AELP provider members. Jane Quarmby of TQ Training said that a lot of the ongoing reforms to the skills system resembled Groundhog Day and she called for more stability and less inspection. Policymakers had to be careful when talking about ‘more for less’ that quality was not compromised. Jane Quarmby also expressed scepticism on the proposed loans system for learners, arguing that poorly waged people would not be able to afford them.

Frank McMahon of YH Training Services said that employers were willing to negotiate a price for training just like any other service they paid for, if they perceived that they were getting value. Employers should therefore be making a financial contribution to over-25 apprenticeships, but it would not happen if quality providers were being undercut by other local providers who marketed the programme as ‘free’ to employers.

A session on the NEET issue ended the conference. Peter Little, the independent chair of the DfE LLDD advisory group, presented evidence that over many years young people with special education needs (SEN) and disabilities were over-represented in the NEET cohort. For example, 46 per cent of 22-24 year old disabled people were NEET. Mr Little had been working with DfE on redefining the apprenticeship offer for young people who have a disability or learning difficulty and he said that he would welcome provider and employer input into this. He also flagged up that the outcome of the SEN green paper consultation would be published very shortly and this might include opportunities for providers.

Jane Stacey of Barnardo’s set out how the charity re-engages young people with education and training. She pointed to the advantages of open enrolment, flexible start dates, extra time to complete qualifications and individualised learning programmes. Flexibility in allowing young people to set their own pace was important while a good and supportive relationship between the teacher and learner was helpful although teachers should never be ‘mates’ with learners.

AELP Chief Executive Graham Hoyle summed up some key themes from the conference, including the danger that funding rate cuts might mean that quality provision can no longer be afforded in sectors such as catering. He also highlighted the funding divide between pre and post 25 provision as an increasing frustration for employers and providers, while loans represented ‘a huge unknown’ for the skills system. The system still suffered from unnecessary bureaucratic costs which suggested a lack of trust in providers.

Low train and hot house apprenticeships

Simon Waugh, Chief Executive of the National Apprenticeship Service (NAS) spoke about how successful the sector had been in recent months at recruiting apprenticeships (see page 1). However. as outlined in his slide below, the NAS are keen to eradicate ‘low train’ and the sort of ‘hot-house’ apprenticeship delivery models that were described on the front cover of the first edition of FE Week.

He said of other challenges that “quality is improving but need clearer definition”,  “Growth in Advanced and Higher (level 3+) Apprenticeships has been slower than in entry Intermediate (level 2)” and there is a “need to diversify programme by level and sectors”.

NCN students give it All that Jazz

Start the car I know a whoopee spot, where the gin is cold but the piano’s hot. It’s just a noisy hall where there’s a nightly brawl…

New College Nottingham (ncn) Level 3 Musical Theatre and Dance students performed All that Fosse – a selection of ensemble pieces from musical theatre shows and films, originally choreographed by dance legend Bob Fosse – for their end of year production in this month.

Songs included All that Jazz from the smash hit Chicago and Big Spender from Sweet Charity.

Can colleges profit from the new HE market?

At first sight the HE White Paper looks like good news for FE providers of HE.  It speaks warmly of their distinctive contribution to higher education, highlights them in its strategy for diversifying the range of providers and recognises the difficulties they face in competing with universities when the latter still validate their degrees and franchise their funding.  A closer look however suggests that while the government proposals certainly promise a tough time for some universities that doesn’t automatically mean a rosy future for FE colleges.

The White Paper is primarily about creating a competitive market based on the firmly held but largely un-evidenced view that competition will raise standards.  It proposes to do so in three ways; relaxing controls on student numbers; introducing new providers; and providing more information to students.  Each offers opportunities for colleges but also threats.

The arrangements for relaxing student number controls are elegant.  Some 20,000 first year places will be cut pro rata from all HE providers.  At the same time students with grades AAB or better will be ‘off-quota’.  This means that high status universities will not face a cut at all.  They will be able to grow or indeed optimise numbers by increasing the proportion of high grade applicants they take, transferring the problem to lower status institutions.

The 20,000 places will be distributed competitively between courses where the fees are less than £7,500.  The rules of the competition are not clear, though price will probably play a part.  While some colleges will benefit, it seems probable that the government will fix things to ensure that some new ‘for-profit’ providers get an economic slice of the action, so there may not be that much growth to go around.

while the government proposals certainly promise a tough time for some universities that doesn’t automatically mean a rosy future for FE colleges.”

A lot will depend on how lower status universities respond. The theory is that those that persist in charging fees above their station in life will see their numbers progressively shrink; and this may encourage them to cut prices.  To the extent that they do the opportunity for colleges is diminished.  There may however be interesting prospects for collaborative work; an average fee of £7,500 would allow an HEI to collect £9,000 for a third year after two years in an FE college paid at £6,750.

The White Paper clearly recognises the difficulty that colleges face competing with universities when they rely on them for validation.  It is strangely reluctant however to spell out the obvious answer – make it much easier for colleges with a decent track record to award their own degrees.  It seems that the government is much happier to see degrees awarded by commercial enterprises or even dodgy foreign institutions than humble FE colleges.  While this will help competition it will come at a price: the lucrative business awarding bodies have built up in schools and FE will now extend even further.

Finally the White Paper doesn’t quite reject the proposal in the Browne Review to control overall numbers by setting a minimum tariff for eligibility for public support.  The danger is that such an approach would discriminate against FE by not counting non traditional qualifications. The government has agreed not to adopt it ‘wholesale’ and what that means is anybody’s guess.

Mick Fletcher is the Visiting Research Fellow at the Institute of Education

Cornwall College works with green power to embed STEM subjects early

One thousand school children from 60 schools gathered at Newquay Cornwall Airport this week to race electric cars that the pupils designed and built from scratch.

The annual South West Regional Heat of the Greenpower schools electric car races, organised by Cornwall College, is the culmination of months of hard work from primary and secondary schools across the region.

Greenpower is a competition which aims to spark an interest in engineering by allowing children to design and build electric cars, finding their own sponsors, resources and support they need to make their designs reality. The project incorporates maths, engineering, physics, design, marketing, team building, technology, problem solving & communication, and following its proven success in these areas, many schools now incorporate Greenpower into their curriculum.

Archie Miller (pictured), age 12 from Penair School in Truro, said:

“It’s been really good fun, a great atmosphere. It was great to race against so many other teams. I’ve enjoyed doing the project as you have something like this to aim for at the end.”

Winners go on to the national finals at Goodwood later this year.

Potential ‘dragons’ at Chichester College

Chichester College is calling all young entrepreneurs to “Pitch for a Place” at their new Peter Jones Enterprise Academy.

The event will take place on 4th July at 4:30pm, and the college is encouraging young people from all over Sussex to ‘come and present’ their potential business ideas to a panel.

If you think you know someone who could be the next Peter Jones, Sir Richard Branson, Jacqueline Gold or Lord Sugar, tell them not to miss this opportunity to launch their business. Contact Helen Manuel, Admissions Advisor: helen.manuel@chichester.ac.uk or call 01243 786 321 ext 2333.

Visit www.chichester.ac.uk for more details.