Interview: AoC president finds her voice

Corrienne Peasgood is preparing for her mainstage address for this year’s Association of Colleges (AoC) annual conference.

This will be the second time she has addressed college leaders as the thirteenth president of the membership body.

But taking on the presidency last year very nearly didn’t happen at all.

“This wasn’t the plan, Shane. I’ll be honest.”

Peasgood’s journey from plumbing apprentice to principal, and then to president, hasn’t featured in one of this publication’s famous profile interviews, despite our best efforts.

What I’m getting on an individual level is a feeling it’s never been as tough

“I explained right from when FE Week first started, [profiles] was the one lot of articles I never really liked. To be honest, I have read other people’s but … it’s never been about me as a person.”

However, approaching retirement after nearly 30 years at City College Norwich, the last ten as principal, the spotlight finally beckoned. At her final meeting as a member of the AoC board last year, the president role, shortly to be vacated by Dame Sally Dicketts, came up and Peasgood’s interest was piqued.

“I started to think about all the skills that I’ve developed and the experiences I’ve had during my time in FE, going right back to being an apprentice in further education. So, learning in FE, teaching and being a leader in FE: what am I going to do with all of that?”

Peasgood admits she didn’t know too much about what the role involved, other than a mainstage keynote speech at the AoC conference. “That was definitely something I thought I didn’t want to do,” she confesses. 

Chats with fellow principals convinced her to take the leap. 

Now, re-appointed unopposed for a second term, she has no regrets about taking on the role and is preparing for what could be a momentous year for colleges. 

Finding her ‘sector voice’

Peasgood could be the first AoC president to work with a Labour government since the former St Helens College principal Dame Pat Bacon held the post in 2009/10. 

While Dicketts’ term in office was dominated by supporting the sector through the pandemic, Peasgood’s attention is on politics. 

With extensive college experience in the bag, representing the whole sector on a national stage requires the president to quickly pick up a whole new set of skills. Early in her term, Peasgood describes how “finding my sector voice” took time. 

“When you’re on panels or in meetings representing the sector, you truly have to have a broad sector voice, rather than before it would have been my college voice.” 

Research, experience, and exposure to different college contexts through AoC’s regional principals’ groups helped. 

And it was at this summer’s political party conferences – which saw Peasgood speaking from panels and answering live Q&As alongside ministers and shadow ministers – that she says she came to realise she had found her sector voice. 

“I could not have done that as effectively at the beginning of the year,” she says.

Which is good for colleges. 

Peasgood says “there can’t be anything more important than finding every opportunity to influence, to advocate and lobby for the sector in the build-up to this election. It just must be that single focus.” 

Another upcoming change in education is the appointment of the new Ofsted chief inspector, Sir Martyn Oliver, who takes over from Amanda Spielman on January 1. Peasgood has some advice for him.

“I listened to his select committee hearing … I didn’t hear any reference to the broader [post-16] sector. You would think that anyone going into a new role, if they’ve got an area that they are not as familiar with it’ll be the first area that you’ve reached out to. I really hope he does that.”

Peasgood speaking from the AoC conference podium in 2022
Peasgood at AoC conference 2022

Level three fears worsening

This time last year, in her first speech as AoC president, Peasgood announced her three priorities in post: “system leadership” within the sector, broadening the FE voice, and protecting student opportunities, particularly at level three.

“We need to leave as many doors open to students as possible,” she said from the stage.

Fast forward 12 months, Peasgood has stories to tell about how she’s worked on system-level policy with AoC officials and members, and on encouraging more and different principals to take to the airwaves to represent the sector.

Peasgood chairs AoC’s 2030 strategy group which guides AoC policy on “what’s the system we want to see in 2030, and what are the steps that we need to take to get there.”

Wins on the system leadership side include AoC’s ‘Opportunity England’ document earlier this year which proposed a single “tertiary” funder and regulator for all of further and higher education, and preserving apprenticeships for new employees.

But on qualifications reform, Peasgood says the outlook is looking worse.

I think we’re probably in a more challenging position than we were at this point last year

The first trench of level 3 qualifications deemed to overlap with T Levels will lose access to public funding in August 2024.

So, students that have just started in year 11 will have fewer post-16 options to choose from if they want to go on to study a subject where there’s a wave 1 or 2 T Level.

“We’ve done a lot of work [on qualifications reform] over the year. Lots of letters, lots of lobbying. I think we’re probably in a more challenging position on that than we were at this point last year.”

Peasgood says this year’s increased intake of 16-year-olds enrolling at colleges, particularly with GCSE retake requirements, makes defunding T Level alternatives even harder to swallow.

“When we look at the GCSE grade profiles of this year’s year 11s and what that’s done for the enrolments we’re seeing in colleges, the huge amount of extra students needing to re-take English and maths … I don’t think I’ve spoken to a college leader that hasn’t had to put on more level one and two provision at the expense of level three provision.”

Peasgood’s hypothesis is that declining entry-grade profiles coming through the system means the leap to a rigorous T Level could be too much for a growing cohort of young people, with colleges unable to offer level three alternatives.

Peasgood speaking from a podium in Westminster
Peasgood

“You can almost see the unintended consequences of lots of young people being channelled into provision that’s not in their best interests,” she warns.

As colleges delete swathes of BTECs and other level 3 qualifications from their websites for 2024 entrants, Peasgood feels for the parents and careers advisers guiding young people nearing the end of their school journey.

“You’ve got the tried and tested A-level route that everybody knows about. Then you’ve got a T Level route, and I’m a great advocate of T Levels for the right students in the right areas, that is still untested. We haven’t had enough cohorts of students go through all of the T Levels.”

The AoC is not a member of the Protect Student Choice campaign, a coalition of organisations, spearheaded by the Sixth Form Colleges Association, lobbying against the government’s defunding plans.

Instead, it has lobbied on this independently.

But neither has been successful in securing a government U-turn.

Indeed, the government is pressing ahead with defunding even though they’ve announced they now want to overhaul the system again by replacing A-levels and T Levels with the Advanced British Standard.

Light at the end of the tunnel

Peasgood ponders her response carefully when I ask her about her interactions with ministers and civil servants when making the case for colleges.

Decision makers are “in listening mode” she has found but admits “a skill I need to get better at” is pushing back when politicians dodge questions. When pressed, she wouldn’t name names.

Meetings with skills minister Robert Halfon have “in most instances” reflected his public passion and enthusiasm for FE. And in early discussions, his new Labour shadow, Seema Malhotra, has been asking AoC for “very sensible” requests for information.

Politics aside, Peasgood says she is interested in testing the mood of college leaders at this year’s conference.

This year’s student over-recruitment challenges come on top of existing pressures on staff retention and recruitment and continuing rising costs.

“What I’m getting on an individual level
is … a feeling it’s never been as tough on a day-to-day basis.” And being a principal is still “the best job in the world” though “can be lonely.”

Though new funding for staff pay awards and hearing colleges feature in the keynote party conference speeches by the prime minister and leader of the opposition this year, Peasgood thinks there is a, “very, very initial sense of optimism, that maybe there’s light at the end of the tunnel.”

The year ahead

Talking about legacy when you’ve just been reappointed might feel premature. Recent AoC presidents have all made their mark on the role. People remember Ian Ashman’s focus on mental health, Sally Dicketts’ interest in the future of learning, and Steve Frampton bringing sustainability in colleges to the fore.

Despite having spent the year rubbing shoulders with the movers and shakers of education policy, Peasgood retains her earlier humility.

“If people know that I really helped to lobby and advocate for the sector in the run-
up to what’s going to be one of the most important general elections for a generation, I’ll be pleased. I’ll have done what I can do.”

The AoC’s annual conference takes place November 14 to 15 in Birmingham.

Frank McLoughlin to chair ETF

The Education and Training Foundation has appointed Sir Frank McLoughlin as its next chair. 

McLoughlin will return to the FE sector body in January having previously been its associate director for leadership where he spearheaded the launch of its training programme for principals and CEOs in 2017.

The former City and Islington College principal’s association with the foundation goes even further back. 

McLoughlin chaired the Commission on Adult Vocational Teaching and Learning, which launched a report in March 2013. The then-fledgling Education and Training Foundation was tasked with seeing through some of McLoughlin’s recommendations.

He re-joins ETF as the organisation plans to launch a new strategy and mark it’s 10-year anniversary, which he described as its “second phase of development.”

“I am delighted to have been appointed as the new chair of the ETF to help steer the organisation through its second phase of development. The ETF has a critical role in supporting the FE and Skills workforce to strengthen the UK in facing the challenges of an increasingly complex and volatile global economy,” McLoughlin said.

Knighted in the late Queen’s 2015 birthday honours list for services to further education, McLoughlin currently sits on the advisory board of the Education Endowment Foundation, is an associate fellow at Saïd Business School and is a companion of the Chartered Management Institute. 

He succeeds Peter Latchford who is stepping down at the end of December after four years in the chair.

“Our focus with recruiting a new chair was on placing the further education and skills sector at the heart of the organisation, with someone who understands first-hand the challenges and opportunities within this vibrant ecosystem, who is a role model for professionalism, who champions inclusion and who can authentically engage with stakeholders at all levels to enable sector change. I am confident that Sir Frank will make a huge contribution to the future success of the organisation,” Latchford said.

The ETF said their upcoming strategy will “set a bold new ambition for the charity to drive professionalism” and “set out how the charity will continue to support everyone working in the sector by championing the vital role of educators and leaders in transforming the lives of learners aged 14 and over.”

Katerina Kolyva, chief executive of the ETF, said she was “thrilled with Sir Frank’s appointment.”

“His passion for a professional and inclusive FE and skills sector, and the transformational opportunities it offers to all who work and learn within it, combined with his extensive experience, knowledge and understanding of the sector will be a great asset in steering the ETF so it can continue to successfully support the sector,” she said.    

MOVERS AND SHAKERS: EDITION 441

Jennifer Coupland

Board Member, WorldSkills UK

Start date: November 2023

Concurrent Job: Chief Executive, Institute for Apprenticeships and Technical Education

Interesting fact: Jennifer has a particular talent for coming up with ideas that cost her husband money


Jatinder Sharma

Board Member, WorldSkills UK

Start date: November 2023

Concurrent Job: Principal & Chief Executive, Walsall College

Interesting fact: Jatinder has a Black Belt in karate


Kenneth Avery Clark

Owner and Principal, SLP College, Leeds

Start date: October 2023

Concurrent Job: Co-founder and Principal at The International College of Musical Theatre

Interesting fact: Kenneth has performed for royalty twice – once in the Royal Variety Performance along with Elton John, Liza Minnelli, Olivia Newton-John and Cliff Richard to name a few.

College enrolment: Influx of resitters and 16-19s as HE and adults drop

Colleges are taking on trainee teachers from universities, expanding class sizes and hiring additional invigilators to manage an influx of GCSE resit students this year, which are set to dent their finances.

But other areas of recruitment, such as higher education and adult courses, have taken a hit.

FE Week looks at the latest data on college enrolment, after 95 – nearly half of all FE colleges in England – responded to a survey run by the Association of Colleges (AoC).

English and maths resit boom costs colleges £24m

FE Week reported in August that there would be around 60,000 more students needing to retake English and/or maths compared to last year, after they failed to achieve a grade 4 or above.

The AoC estimates this flood of resitters will cost the sector around £24 million, including £21 million for additional teaching time and an additional £3 million in exam registration fees.

Colleges speaking to FE Week cited instances of 50 per cent increases in the number of resit students, but with little in the way of financial support to meet those demands.

Newcastle and Stafford Colleges Group is expecting to spend north of £500,000 this year due to an extra 770 resitters – to be spent on hiring five extra teachers, holding extra online tuition, exam registration fees and more invigilators for the November and May resits.

For Craig Hodgson, principal of NSCG, teacher recruitment poses the biggest challenge.

“Everything is a challenge, but the recruitment and retention of good English and maths staff is the biggest,” he said.

To cope with that, NSCG partnered with Keele University so that trainee teachers from the university could work part time at the college. They will not be running their own courses, but will work alongside teachers in larger classes.

At City College Norwich, which has an extra 1,000 resitters, class sizes have risen from around 16 to 28, while they are expecting to fork out £100,000 on extra exam entry fees alone. The college also expects up to half of its exam entrants to have special educational needs.

That means more of them will be spread across different rooms, and that more staff will be needed to invigilate all the exams and to assess the students for their exam needs.

16-18s on the rise

Most colleges saw an increase in 16- to- 18-year-old enrolments, compared to 2022/23.

But while there was a similar trend last year, the level of growth was much greater in 2023/24, with 38 per cent of leaders who responded to the survey saying their college had seen a growth of 10 per cent or more. Last year, just seven per cent reported the same.

In total, 85 per cent of colleges said they recruited more than they had targeted for, compared to 58 per cent in 2022/23.

The proportion of colleges which took fewer 16 to 18 enrolments than they had targeted did drop as a result, at six per cent in 2023/24. Last year, 24 per cent recruited fewer 16-18 learners than they had targeted.

ESOL recruitment booms, waiting lists creep up

Colleges have also been coping with an uptick in ESOL learners, or English for Speakers of Other Languages.

Nearly half of all the colleges recruited more than their target, with 18 per cent of that amount taking on a fifth more than they had planned.

The AoC said “by far the biggest reason” for the increase was an increase in demand due to “displacement, refugee status, and asylum seeking”.

Many colleges also increased their waiting lists after they realised they could not meet the high demand.

The number of adult Ukrainians enrolling for ESOL courses also stayed high, after the Russian invasion of Ukraine last year. More than a fifth recruited between 51 and 200 Ukrainians this year, up from four per cent last year.

Around four in ten colleges took on up to 50 Ukrainians for ESOL courses, which was similar to last year. But the data also shows a quarter of colleges did not take on any Ukrainians, up from 16 per cent last year.

HE numbers slip

Fewer colleges are meeting their targets when it comes to higher education enrolments. The survey data shows that just 31 per cent successfully met their targets in 2023/34, in comparison to 42 per cent the year before.

Nearly a fifth missed their targets by between 10 and 19.9 per cent.

Those who are managing to grow their higher education enrolments also remain few and far between. Just nine per cent grew their enrolment numbers compared to 2022/23 – the same proportion as last year.

Adult education numbers improve, but continue to miss the mark

Two in five colleges recruited their target number of adult learners this year – more than the third that did so in 2022/23. Over a third had more adults enrol on courses than their target number – with the remaining portion seeing a small decrease, in all but one cases, of below 14.9 per cent.

AoC’s survey showed that six per cent of colleges saw increased recruitment of over 20 per cent beyond their target recruitment number.

Keegan to get her own camera person (on £50k a year)

The Department for Education is recruiting a videographer to film regular content of the education secretary for her social media channels. 

An advert for a senior digital videographer on an annual salary of nearly £50,000 went live earlier this week. The “social media native” would “primarily work” with Gillian Keegan to capture “high-profile engagements across the country”, as well as in the department’s own studio. 

They will “lead” on videography for Keegan’s social media channels and capture “high-quality and engaging” content. This will help develop “a regular drumbeat” of videos for channels such as X – formerly known as Twitter. 

Pay is advertised at £48,701 a year, although the role is for six months. 

The education secretary is a keen user of social media, regularly posting face-to-camera videos. One of her special advisers is also a social media expert who previously produced content for Matt Hancock and Rishi Sunak’s leadership campaign.  

The recruit would join the department’s social media team and work with ministers and special advisers, the advert states. 

Other departments have advertised for similar roles, although they were not specifically for a secretary of state. 

Last November, The Department for Levelling Up, Housing and Communities advertised a senior videographer role in London on £40,390 a year. 

A Ministry of Justice social media videographer job, which closed in February, was advertised with a London salary range of between £35,405 to £39,000.  

A DfE spokesperson said: “This is an existing post in the department’s social media team, with responsibility to deliver communications in line with the department’s priorities, helping us communicate and inform people about key policies that impact their daily lives.” 

FE faces ‘double edged sword’ as Procurement Act hikes risk of litigation

Private providers and colleges could be further driven away from subcontracting by the government’s new Procurement Act as it risks more litigation, experts have warned.

The act, which got royal assent last month and will come into force from next October, will also “create additional bureaucracy” across the board in further education, lawyers and sector leaders have told FE Week.

It covers procurement across all industries, but FE bigwigs say it could have far-reaching consequences for the sector. The Department for Education has itself been on a mission to significantly reduce the amount of subcontracting in FE, in a crackdown prompted by concerns about poor oversight and fraud.

The Procurement Act means that anyone tendering across the public sector, and failing to win a tender, will receive a breakdown of the individual scores awarded to the winning bid and their own, which they can then compare.

Chris Murray, legal director at Eversheds Sutherland, said the risk is some colleges do not know they are implicated in the Procurement Act.

“A lot of them do, but there are quite complicated definitions as to which contracting authorities are implicated here for the purposes of procurement law,” he added. For instance, independent training providers are subject to these rules too if they are competing for public money.

“One of the government’s key objectives with the change in rules is to ensure greater transparency in public procurement,” he said.

Currently, when any public organisation finishes its procurement process, it must send letters to each losing bidder with some detail on why it has lost a procurement procedure. But this change will mean they receive “assessment summaries” for their own bid and the winning bid. That will include the individual scores for each criteria, and feedback on each score.

“They will just give you both assessments and you can look at it you can say: ‘Wait a minute, I’ve been given a one out of 10 for question one and the winner has been given an eight out of 10 for the same question, and yet the feedback is quite similar’,” Murray said.

That means an “increased likelihood of [legal] challenge”, he said. However, he stressed any challenges will need to be made within 30 days of the receipt of the “assessment summaries”.

There are also concerns around an “administrative burden” for contracting authorities and ITPs. More notices around procurement will be legal requirements – such as “pipeline notices” which will give all bidders extra time to prepare for tenders, and abandonment notices, which show when a contracting organisation has decided to cancel its procurement procedure.

That will add, Murray said, to the already high amount of paperwork needs around procurement.

But there is more positivity around the Act’s new “debarment list” – a Cabinet Office list of firms that are disqualified from procurement, such as those who have committed corporate manslaughter or fraud.

Businesses which are bankrupt or have been flagged for their “poor performance” on other contracts will also be on the list. Those, however, will be “discretionary” disqualification grounds, meaning the procuring body will need to decide if they should be allowed to tender.

It will include any example when a minister has determined any supplier is “an excluded or excludable supplier”, or if an investigation has taken place into them, according to the Procurement Act itself. Businesses will need to apply to the cabinet office to be struck off the list.

That will mean procuring organisations such as colleges will not need to approach individual subcontractors to check if they are allowed to procure for work.

Simon Ashworth, director of policy at the Association of Employment and Learning Providers, welcomed the move to “improve procurement rules” including the requirement to include a “provider’s track record”.

But, he said the act could be a “double edged sword” for providers.

“There is a real concern that new procedures will create additional bureaucracy that may end up discouraging subcontracting opportunities due to the risk of new litigation. AELP is calling for a minimum value exemption threshold to be introduced into procurement rounds below which additional bureaucracies wouldn’t apply.”

Julian Gravatt, deputy chief executive of the AoC said the reforms “may provide some benefits in terms of transparency but there are risk and costs at a time when college capacity is already really stretched”.

A spokesperson for the Cabinet Office said the new act “slashes red tape and introduces one single set of simple, flexible rules, removing more than 350 complicated and bureaucratic rules as a result of Britain leaving the EU, opening up competition for new suppliers, especially SMEs”.

“It will also create a more open and transparent system, stimulating competition and ensuring procurement teams have the flexibility to design a tendering process to their needs.”

Ofsted grades changed for 5 FE providers last year after challenges

Five FE providers managed to secure an Ofsted grade increase last year after initially being handed the wrong judgement, FE Week can reveal.

Complaints from the further education sector about inspections conducted by the watchdog have also almost doubled since 2018 – although they remain well below the level in schools.

It comes against a backdrop of increasing legal challenges against Ofsted ratings from FE providers, while the inspectorate also rolls out changes to its complaints procedure – after admitting it is “not fit for purpose”.

Data obtained by FE Week through a Freedom of Information request revealed there have been eight changes to FE providers’ Ofsted grade since 2018. Two were in 2019/20, one was in 2021/22, and five were in 2022/23 (see table

Ofsted refused to specify the names of providers, or provide a breakdown of provider types nor did it specify what the grades were changed from and to.

FE Week did however reveal one case last year. In December 2022, the watchdog took the unprecedented step of unpublishing an ‘inadequate’ report for UK Training & Development Limited (UKTD) and carried out a reinspection following an appeal which resulted in a ‘good’ judgement.

Several other independent training providers have tried and failed to challenge Ofsted grades since the pandemic, with most alleging the inspectorate is not taking into consideration the impact of Covid on their delivery.

FE representatives said judgement changes entail a lot of stress, anxiety and workload on staff and leaders.

Geoff Barton, general secretary of the Association of School and College Leaders, said: “We’re pleased that Ofsted has been responsive in these instances, and has been prepared to review and change judgements, but we are obviously concerned that these providers were not given the correct rating in the first place.

“The current system is so blunt and reductive that negative grades act as a cliff-edge and are very likely to feel unrepresentative of what a provider actually does across all its provision and services.”

FE Week’s FOI data also shows the number of complaints Ofsted received from FE providers has grown in recent years, albeit with an expected drop during the Covid years when inspections were suspended.

There were 22 in 2018/19, 13 in 2019/20, nine in 2020/21, 31 in 2021/22 and 40 in 2022/23.

Paul Joyce, Ofsted’s deputy director for further education and skills, at last week’s Association of Employment and Learning Providers conference

Paul Joyce, Ofsted’s deputy director for further education and skills, told last week’s Association of Employment and Learning Providers conference that the figures are low.

“Let me assure you for the FE and skills, we get very few complaints,” he told delegates.

The inspectorate said in its latest annual report that “unsurprisingly” most of the complaints were from providers that have received the lowest grades. In 2022/23, over half of which were judged as ‘inadequate’ or ‘requires improvement’.

“Many of these also include concerns about inspectors’ conduct or how the inspection was carried out, for example about the opportunity for a provider to present evidence, meetings as part of the inspection visit, or inspectors giving on-site feedback,” the report said.

“Some also feel that we did not fully consider the comments they gave on their draft inspection report.”

Compared to the school’s sector, complaints from FE providers are small. In 2022/23, Ofsted received 40 complaints from FE and 247 from schools.

However, Ofsted does not provide schools complaint data prior to 2022/23.

It’s important to note the number of inspections in FE has shot up post-pandemic. There were 237 FE inspections in 2018/19, compared to 486 in 2022/23.

An Ofsted spokesperson said: “Even considering the disruption to our inspections between 2019/20- 2020/21 due to Covid, you’ll be able to see that the number of changes to overall effectiveness grades are very small when considering the number of inspections. The number of complaints is still also very low when set in context.”

However, Ofsted is making several changes to its complaints procedure after admitting it was not up to scratch earlier this year.

From January 2024 there will be enhanced on-site professional dialogue during inspections to help resolve any matters, and there will be a new opportunity for providers to contact Ofsted the day after an inspection visit if they have any unresolved concerns. 

FE Week’s FOI data comes weeks after former chief inspector Sir Michael Wilshaw told MPs that the watchdog’s remit was “far too big” and should have just stuck to inspecting schools.

Ofsted’s capacity also may be stretching further than it can handle. According to Ofsted’s annual reports, the average number of staff employed has only grown just five per cent since 2018/19 to 1,893 in 2022/23, despite a huge increase in inspections.

College’s traineeship learners worked illegal hours, DfE audit finds

Hundreds of young adults on security and rail traineeships were made to work illegal hours, a government investigation into a college subcontracting debacle has found.

Strode College is currently negotiating a “substantial” clawback with the Department for Education after an extended audit identified breaches of two funding rules. The issue threatens to drop the college’s financial health from ‘outstanding’ to ‘inadequate’.

The investigation spans the three academic years between 2019/20 to 2021/22 when the college received around £7.5 million and subcontracted it out to other training providers to deliver traineeships.

Principal John Revill, who discovered the blunder on the first day of the job when he joined in June 2022, described it as a “technical breach” which occurred due to weak subcontracting oversight processes in place under the former leadership.

He is clear that this wasn’t intentional fraud, all learners were real, and the majority had good outcomes that led to employment.

Katy Quinn was principal of Strode College between 2017 and 2022, before she left to lead the newly merged City of Portsmouth College. Quinn and Portsmouth College did not respond to requests for comment from FE Week.

Revill said he is currently weighing up whether to take action against the training providers the college subcontracted to, including by demanding they repay the funding they received. The providers remain unnamed at this stage.

Traineeships were introduced in 2013 as a flagship pre-employability programme but were scrapped this year as a standalone qualification amid years of low starts. The course involves pre-employment training and unpaid work placements from six weeks to one year for eligible 16 to 24-year-olds.

Under government rules, all elements of the programme, including work placement, are subject to a maximum of 35 hours activity each week to “meet the requirements of state benefit rules”.

Revill told FE Week a “good chunk” of the college’s traineeship learners were working up to 50 hours a week in the security and rail industries.

“They were doing consecutive days without a break and working over Christmas,” he said.

Revill said the government’s investigation also found rail traineeship learners working on unofficial railway lines, which is against funding rules. The learners were working on steam and recreational lines, for example, but because they were not official British Rail (Network Rail) lines they were deemed ineligible, the principal explained.

In his first week in the job Revill put a stop to subcontracting at the college, and five senior leaders who were involved in traineeship provision at a decision-making level have now left the organisation. A new chair is also in place, as well as a vice chair.

He said: “This was a technical breach of the rules, which should have been spotted. But I’m struggling to see where that would have been picked up with the processes that were in place at the time.

“Within traineeships, it’s a binary funding system, so if you breach any elements of it, you lose the entire funding, which is where it can rack up to be quite significant clawback.”

Revill said the learners the college works with are mostly “extremely disadvantaged young people in London”, some of whom are ex-offenders, ex-gang members and rehabilitating drug users. He claimed that 75 per cent of the traineeship learners moved into permanent employment in 2021/22, which is a “fantastic thing”.

“This is why it’s a technical breach, my mitigation is that we’ve met policy intent.”

The government published a financial notice to improve for Strode College last month after discovering the misuse of funding, which also explains why the college is yet to publish accounts for 2021/22.

Its financial statements for 2020/21 show the college recorded 1,264 students undertaking traineeships, a big increase from 467 the year prior.

According to those accounts, the college had ‘outstanding’ financial health after it returned a cash operating surplus of £1.58 million.

Strode College is now due a visit from the FE Commissioner’s team.

Revill said it is “too early to say” just how badly the clawback will impact the college. “We’re financially robust, we have money in the bank, but if the debt is a significant debt, then that would be a different conversation,” he warned.

He added that the fiasco “is a distraction and it really is business as usual for the college”.

Ex-college principal banned from education

The principal of the first college to be put in administration has agreed to never work in the education sector again, FE Week can reveal.

In what is thought to be a sector first, Paul Hannan (pictured right) will be fined £250,000 if he breaches the ban which has been imposed following a three-year investigation by BDO, the liquidators for both Hadlow and West Kent and Ashford Colleges.

However, a secret deal has been struck between his deputy Mark Lumsdon-Taylor (pictured left) and BDO that keeps the details of his “undertaking” under wraps. Lumsdon-Taylor, who appears to have already agreed to pay £5,000, will be forced to pay further compensation if he breaches this confidential agreement, and on that basis the liquidators have withdrawn all claims against him in full.

Both leaders of the Hadlow Group resigned in 2019 after applying for emergency funding from the government to keep the colleges open, as Hadlow had run up £40 million in debts, while WKAC owed over £100 million.

The college entered the new education administration process later that year and were moved into liquidation in August 2022. Top Department for Education civil servants previously revealed how the process has cost the taxpayer around £60 million, with a “gut-wrenching” £6 million spent on administrators’ fees alone.

Hundreds of staff lost their jobs and thousands of students had to be moved to other colleges.

The government’s Insolvency Service has been investigating the conduct of the former leaders of the Hadlow Group since the catastrophe unfolded, but it concluded last year that “no further action” should be taken.

However, liquidators BDO have also been investigating the former directors and came to a different outcome.

A recently published creditors’ report states that the joint liquidators “undertook detailed investigations for over three years and intimated claims against Mr Paul Hannan in a letter before action”.

Hannan “disputed liability regarding the claims” and a “full and final settlement was reached on commercially acceptable grounds without any admission of specific liability”.

The settlement required an undisclosed “nominal initial payment”, which was received by the liquidators.

A “further payment of £250,000 in the event of breach of Mr Hannan’s personal undertaking not to take a position in the education sector as a trustee, director, governor, principal, manager, consultant and/or employee,” the report added.

It means that while Hannan has not received an outright directors’ ban from the Insolvency Service, he has been barred from working for another college.

FE Week could not reach Hannan for comment.

‘It’s right that those responsible are held to account’

Lumsdon-Taylor “strenuously disputed all liability”, according to the same BDO report, which revealed his settlement required an initial nominal payment of £5,000.

Lumsdon-Taylor has also “given an undertaking to the joint liquidators” but this is “subject to confidentiality provisions between the parties”.

In the event of a breach, Lumsdon-Taylor will “pay compensation and on that basis the joint liquidators have withdrawn all the claims in full”, the report said.

Responding to the report, a representative for Lumsdon-Taylor told FE Week: “The Hadlow College compulsory liquidation notice confirms that the joint liquidators have withdrawn all claims against Mark J Lumsdon-Taylor unequivocally and in full. This reconfirms our position that there was no case to answer for any ‘claims’ reported or otherwise stated. This matter is concluded.”

Lumsdon-Taylor refused to share any details about the undertaking he has agreed with the liquidators.

The Hadlow and West Kent insolvencies were the first carried out under the laws passed in 2017 which created a special administration regime for colleges.

Julian Gravatt, deputy chief executive of the Association of Colleges, said he is “fairly sure” that this is the first case in which liquidators have “agreed restrictions with former college employees”.

Gravatt said the insolvencies were “exceptional cases in a sector where leaders have an impressive track record of professionalism and skills at leading and managing complex organisations with great probity and integrity”.

“Where things go seriously wrong, it’s right that there are investigations and that those with responsibility are held to account for their actions,” he added.

The liquidators’ fees are different to the £6 million charges paid during the education administration process. BDO’s report reveals the joint liquidators have also racked up remuneration costs of more than £200,000 between August 2022 and August 2023, at an average rate of £175 per hour.

Significantly reduced hourly rates have however been agreed for this work between BDO and DfE. For example, standard charge out rates for a BDO partner ranges between £869 to £994 per hour, discounted to £320 for DfE, and for the £1,304 per hour rate for the BDO tax department has been discounted to £221 per hour.

The process and costs could drag on for years, with the creditors’ report revealing they may need to wait until 2026 for the college’s land at Court Lane to be sold. This is due to a “pre-emption agreement” which currently requires the land to be offered to a third party before it can be sold on the open market.

BDO said it could not provide any further detail than what is already included in its report.