Justifying the subcontracting top-slice

Colleges are increasingly at risk of being percieved to be ripping off partners by “top-slicing” 30 per cent or more in subcontracting agreements.

Although the Skills Funding Agency (SFA) does not impose a maximum percentage charged by colleges under subcontracting arrangements – its guidance states this should not exceed 15 per cent without a detailed explanation. Yet colleges including Barking and Dagenham, Blackburn, Craven College and Grimsby Institute of Further and Higher Education are listed in publically available SFA records as charging far more.

A consultant working with a training provider, who wishes to remain anonymous, told FE Week that the contracting college has informed them that they will double their management fee from 15 per cent to 30 per cent in the next academic year with no explanation as to why.

Blackburn College claims its 30 per cent fee is reflective of its costs in terms of quality assurance, provider support and calculated risks to its students, as well as the college’s risk of meeting its student number and funding targets. “Our intention in all partnership work is to build partner capacity and widen participation and we have a very good relationship with our six subcontractors,” says a spokesperson.

Other colleges contacted by FE Week that are publically listed as charging 30 per cent – and in some cases over 50 per cent – in one or more of their subcontracting arrangements either declined to comment or even denied the percentage. Hull College told FE Week that they would not release the information unless we went through the Freedom of Information act process.

Several circumstances have led to the recent increase in subcontracting. Most significant is the introduction of the £500k Minimum Contract Levels for 2011/12, meaning that several hundred providers (even after exemptions) will need to subcontract their funding or lose the ability to continue providing courses. The Department for Business, Innovation and Skills (BIS) has also been encouraging colleges to subcontract, whilst officials have been promoting it in newspapers, “in order to maximise the funding which reaches the front line.”

But there is widespread concern that the move will see a return to the stories of fraud and scandal that were rife during the 1990s. During that era, inadequate funding led many colleges – with the encouragement of their funding body, the then Further Education Funding Council (FEFC) – to enter into franchising agreements. This involved colleges subcontracting out the teaching, training and assessment of students, claiming the public funding and passing on a portion to the subcontractors.

Whilst the trend was justified as a means of widening participation and providing them with much-needed funds, the Serious Fraud Office was called in to investigate misuse of what turned out to be millions of pounds of public money. Mindful of this scandal – and that  (as stated on the front page) £11m was lost to fraud or misuse in 2010-11, of which only £3m is so far accounted for – the SFA currently has plans to crack down on misuse of public money, which it admits is likely to get worse under the government’s new subcontracting arrangements.

“Levels of management fee, predominantly levelled by colleges, have often – but not always – been scandalous giving rise to its more common description of ‘top slicing’,” says Graham Hoyle, AELP’s chief executive, who says the term franchising has never recovered any positive credibility within the FE system. “The key is to approach subcontracting as a positive business mechanism, negotiated properly and thoughtfully between partners enjoying a reasonably balanced level of relative ‘power.’ It is only when one player is in an overtly more powerful position than the other that unhelpful, indeed damaging, exploitation can ensue.”

Toni Fazaeli, CEO, Institute for Learning

Friday has become Toni Fazaeli’s least favourite day of the week. Before boarding the train into London – where she commutes to the office from Leicester each day – she buys a strong coffee to help “brace herself” for opening the trade industry paper, the TES.

It has been a bumpy few years for the Institute for Learning, which has attracted a lot of press and social media coverage – and not all of it accurate – claims Fazaeli.

“Personally, it is tough,” she says. “There’s a sense of injustice when comments aren’t accurate and might be influencing others, but my belief is that there will always be a reason why people are angry and we respect that right to freedom of speech.”

It all started back in 2009, when the professional body for FE lecturers heard it was to likely lose its government subsidy, totalling around £5m a year.  As chief executive of the troubled organisation, Fazaeli had to take the difficult decision to set annual fees from £30 to £68 for 18 months.

This angered some members, who felt it was unfair to be asked to pay higher fees for an organisation with compulsory membership, particularly when school teachers were only paying £33 a year to belong to the General Teaching Council (which later became a casualty of the Coalition government’s quango bonfire).

Members also pointed out that many FE lecturers (many of whom also practise another skill, trade or profession) work on an occasional or part-time basis. Why should a practising plumber teaching a day a week at the local college or a dancer, teaching just a few classes in adult education, have to stump up the annual fee, they argued.

There is no reason for a member of the public or anyone else to insult colleagues in a personal way, individuals who are just doing their job.”

Since then, there have been boycotts and wrangles with unions to contend with. After the department for Business Innovation and Skills (BIS) stepped in last month and agreed to provide transitional funding for two years (funds were cut off as part of the last government’s Skills for Growth strategy, with the aim of the Ifl becoming self-funding in three years) an agreement was reached with trade unions, the Association of Colleges and employers.It stipulated that those who had already paid their £68 would get two years’ membership. Additionally, there would be an annual fee of £38 for everyone else and reduced fee levels for those earning £16,000 or less. But in a ballot held last month, UCU members voted overwhelmingly to reject the proposals.

Fazaeli’s 33-year career in the FE sector includes teaching in prisons, colleges and adult education, college inspection – and 4 years as a senior civil servant at BIS (then known as DIUS). Her move to Ifl in June 2008, was motivated by a desire to “start working more closely with teachers again,” she says. But she readily admits that this is her toughest career challenge to date.

“You develop the skin of a rhinocerous. Questions, criticism about the organisation, the service we offer to members, ideas and suggestions on what we can do better…that’s all legitimate and proper and we want to hear these.”

But not all of the feedback has been constructive, she says and what has really hurt has been the personal attacks on herself and colleagues on website, blogs and other forms of social media.

Fazaeli is characteristically careful and measured, with a tendency to lapse into jargon and management speak, but on this issue she is impassioned.

She recalls a cartoon of a naked body, with her head stuck on top that was posted on the internet and there have been hurtful nicknames, too, like ‘Toni Fazbelly.’

  “My name is Iranian, so playing light with that name sounds a bit different, inappropriate,” she says, angrily. “In the same way that people who work in public services – in hospitals or on trains or tubes – should be treated with respect, so should staff working for Ifl. There is no reason for a member of the public or anyone else to insult colleagues in a personal way, individuals who are just doing their job.”

What has kept her going during the last year or so is her unfailing passion for teaching. “I love the difference that teaching can make to young people and adults. I see it week in, week out with our members. Those small kindnesses, the positive words from teachers about the difference we are making can really give me the strength to carry on.”

Fazaeli identifies strongly with learners, because she knows what a struggle getting educated can be. After ‘A’ levels and a year out in Amsterdam, she started a degree in English and Sociology at Kent University, but left a year into the course, after falling pregnant unexpectedly, she ended up starting again at Leicester University, and while her eldest daughter was small she combined part-time study with teaching in a prison and waiting on tables in a restaurant in the evenings. “My experience mirrors the challenges facing many in the sector, many of whom have financial pressures and are having to juggle other jobs,” she says.

But when – as Fazaeli herself has pointed out on numerous occasions – other professions like nursing or midwifery have to pay hundreds of pounds per year out of their own pocket for membership of their professional bodies, why are lecturers so cheesed off about having to pay £68?

For some, it may simply be about principles. Because the fees have indirectly been paid by the government in the past, some members feel strongly that they shouldn’t have to foot the bill.

Timing also has a part to play, says Fazaeli who is keen to point out that “some, not all members” are upset about the hike in fees. With many in the public sector already concerned about budget cuts, pay freezes and pension changes – on top of the recent increase in VAT and rising cost of living – this may have been the straw that broke the camel’s back. “I felt to an extent that it (the rise if Ifl fees) was a bit of a lightning rod, attracting frustration and anger about much bigger things that are happening.”

What also needs bearing in mind, she says, is that the Ifl is a relatively young organisation. “As a professional body it is quite new, compared with say the Law Society, which has centuries behind it, or the Royal Society of Midwives, which has decades. But in this sector, we have people who have only been members of a professional body for three years or so – so there is also the getting used to it (Ifl) being part of the fabric of the sector.”

As a result, some people – even its own members – can be unaware of the breadth of support the Ifl offers. And one of the most powerful aspects of the organisation’s role is influencing policy, says Fazaeli. The views of Ifl members contributed to the government’s agreement – following the recent Wolf review of further education – to introduce legislation that puts QTLS (the professional teacher status for FE lecturers that the ifl confers) on an equal footing with PGCEs and other qualifications held by school teachers. This means FE lecturers with QTLS should soon be able to teach in schools – something they have hankered after for years.

Fazaeli admits she has made mistakes during her time at Ifl, the biggest being not to offer professional development services and training directly to its members. But over the coming months, she is keen to develop some of the support services the organisation offers its members, particularly the thriving online communities for teachers in different subject areas. The Ifl has also asked the government to carry out an independent enquiry into what makes quality teaching and learning in vocational subject areas – an area that very little is known about at the moment. She is keen to point out that it is “some, not all” of members that are unhappy about the changes at Ifl, pointing out that of the 140,000 members estimated for the coming year, 54,000 have already renewed their subscriptions (the renewal deadline is 3 weeks away).

If she could achieve just one thing during her time at Ifl, it would be to see the first FE lecturer with QTLS get a job at a school. “When that finally happens, it will be of such great personal and professional satisfaction – a real day of celebration.”

 

Daily Mirror probes subcontracting “scandal”

The award-winning Daily Mirror Investigations team, Andrew Penman and Nick Sommerlad, this week launched an in-depth probe into the activities of Luis Michael Training which has run into trouble as a subcontractor providing sports apprentice courses.

Big colleges including South Thames and Sparsholt in Hampshire pulled out of contracts and stopped payments, claiming the outfit had “failed to deliver to our expectations” and reporting other “irregularities”.

The colleges insist Coalition Government emphasis on subcontracting was a key factor influencing their decision to sign contracts. The collapse, just one year into the new government raises the spectre of earlier “franchising” scandals that blighted private training provision in the 1990s and led to the spectacular collapse of Bilston College with £9m debts.

Luis Michael Training claims to be “one of the UK’s largest training providers to the active leisure sector, earning a reputation as a leader in our field.” But this did not impress angry parents interviewed at the start of the Mirror probe.

One furious mother of a trainee said: “The apprentices shovelled snow and cleaned boots and have been completely let down.” The angry father of another trainee said his son was “completely exploited”. More than 1,000 Sparsholt apprentices were left without training and the charity arm of Barnet FC, North London, is owed £7,500 as courses for 20 apprentices were scrapped.

Sparsholt College told the Mirror it was trying to help the students but wouldn’t comment further because it is “embroiled in a legal dispute with Luis Michael Training”.

The Skills Funding Agency says it is working to help colleges but has no contractual arrangement with Luis Michael Training.

LSIS Leading the Learner Voice Award winners in full

Last night was LSIS’s annual ‘Leading the Learner Voice Awards’. The awards were created to recognise the contributions that staff, students and colleges make to their communities.  A record 96 entries were received.

Bournemouth & Poole College bagged a double award, the college won the top accolade, Provider of the Year and college student Matt Tonge won the Learner of the Year Award.

Presenting the Awards, Dame Ruth Silver DBE, Chair of LSIS, said: “I am delighted with the standard of nominations we had for this year’s Awards. It has been inspiring to learn about the tremendous achievements being made by the sector supporting and promoting learners. Each Award recipient demonstrates the very best of the excellent and innovative work that is being undertaken up and down the country.”

FE Week congratulates the following winners:

  • Learner Voice Practitioner of the year, Tracey Whitehead, East Riding College
  • Leading Learner of the Year, Matt Tonge, Bournemouth & Poole College, Chris Hinton – BMW Plant
  • Student GovernorCedric Irankunda, Stratford upon Avon College
  • Principal or Senior Leader,Graham Razey, Thanet College
  • Health and Wellbeing, e-Responsibility, Gateshead College
  • Outstanding Contribution to the leadership of learners, Graham Wooldridge, Tresham College
  • Social Cohesion and Civic Participation, Human Rights Activism, City of Sunderland College
  • Most Improved provider – FE College, Prior Pursglove College
  • Most Improved Provider – WBL/ACL/Offender Learning, Peaks Education Trust, NHS Notts
  • Provider of the Year, Bournemouth and Poole College

Central Sussex College students – by royal engagement

Hospitality students from Central Sussex College played a vital role in the 50th anniversary celebrations of the Blond McIndoe Research Foundation, in East Grinstead.

The eight strong group, who are studying level one Diplomas in Hospitality, served food and drink to distinguished guests including: Dame Vera Lynn DBE; some of the original ‘Guinea Pigs’ (British airmen who were burnt during World War II); soldiers representing the ‘Help the Heroes’ appeal, family members of the late Sir Archibald McIndoe; and guest of honour, their patron, HRH Princess Royal.

Event organiser, Roshni Shah, Communications and Marketing Manager at the Blond McIndoe Research Foundation said: “The College is renowned for its great catering and hospitality training, and we wanted to offer students some work experience at a high profile event. Guests were most impressed by the way in which the students presented themselves.”

Student, Georgina Rhodes, 17, said: “I felt privileged to be asked to work at the event. It’s a once-in-a-lifetime experience to meet a member of the Royal Family.” And student Jack Cherriman, 17, agreed, saying: “I was proud to represent the College, and would love to work at another big occasion.”

CBE for Bedford College principal

Bedford College Principal & Chief Executive, Ian Pryce, has been awarded a CBE in the Queen’s Birthday Honours for services to further education locally and nationally.

The college says that the award reflects the transformation of the college over the last twelve years from an institution of 5,000 students, 250 staff with pass rates in the bottom 10 per cent, to an Ofsted Outstanding Beacon College with 18,000 students, 750 staff and pass rates now in the top 5 per cent in the country.

Ian said; “I always tell anyone I meet I have the best job in Bedford.  This honour reflects the dedication and talent of all of our staff.  To get such a senior honour is very humbling.  It is a great privilege to be asked to advise Ministers and senior civil servants, and to be rewarded for just doing my job is a lovely surprise.”

City of Westminster College tutor launches Barbados project

City of Westminster College tutor Sheromie Brewster has launched the CATCH youth project (Cultural Arts, Sports & Visual Literacy) for Barbados.

CATCH will teach skills including communication, photography, music and film making, as young people create an online magazine with mentoring from sports stars and professional artists, editors and web designers.

CATCH launches as a four-week programme this August at Kensington Oval Test Cricket Centre in Bridgetown – an area characterised by high youth unemployment. Sheromie, who has close family ties to Barbados, says: “This is about helping the community, as well as sharing good practice about ways to increase aspirations among young people.”

And the principal with the cutest pet is…

It all started with an Lsect update (see www.lsect.co.uk/updates.asp) in January where there was a reference to a local news story which included a quote from Geoff Hall. The story mentioned his dogs. Geoff sent me a picture of his two dogs, so it seemed obvious to create this competition.

Principals and CEOs were encouraged to email Lsect their pet pictures and names, and they have been posted on the Lsect website at www.lsect.co.uk/principals-pets.asp

To encourage participation an online vote was held for the cutest pet, with the prize being £200 in vouchers (preferably to be spent on learning materials).

In all, there have been more than 500 votes each for one of the 26 pet pictures.  The run-away winner with 28% of the votes is Karen Dobson, principal of Newcastle-under-Lyme College, with her 8 year-old golden retriever Lizzie. The vouchers are in the post, and as a thank you to all those that got into the spirit of this barking mad competition, Lsect has donated £200 to the Helena Kennedy Foundation (HKF). To find out more about this great charity, which supports FE learners progressing onto higher education, and even make your own donation, please visit: http://uk.virginmoneygiving.com/Lsect-for-HKF

Diversity in Challenging Times

An inspiring conference succeeds through collaboration

Partnership working at its best was evident recently when the Women’s Leadership Network (WLN) and the Network for Black Professionals (NBP) delivered yet another successful conference – Diversity in Challenging Times.

Following on from last year’s joint event, the WLN and the NBP designed and created another inspirational and thought provoking agenda for a crowd of over 150 (women and black/education) professionals. Supported by Protocol National and LSIS, this timely and pertinent event focussed on key equality and diversity issues for managers and leaders in the learning and skills sector. One critical aim of this conference was to encourage more women and more Black, Asian and Ethnic Minority (BAME) professionals to apply for senior roles in order to redress the imbalances in the sector.

Critically, the current state of diversity both within the sector and in the country as a whole, and the challenges this presents were debated throughout the day, in plenary and in workshops. Other issues discussed covered the significance of strategic leadership as a core ingredient to successfully responding to the challenges. What kind of a leader do colleges need was raised and three leaders described their own personal career journeys.

The spectre of funding was never far away.  The delegates were asked to consider innovative ways to offset the impact of the current and planned cuts, particularly among women and BAME staff. In addition, entrepreneurship was presented as a strategic driver for much needed change. A concept educationalists need to embrace, according to Finton Donohue, Principal of North Hertfordshire College, as it is essential for developing an enterprising as well as a diverse workforce of the future.

The spectre of funding was never far away.”

One particular highlight of the day was hearing Derrick Anderson, CBE, now the Chief Executive of the London Borough of Lambeth describe his life growing up in Britain as the son of a Cuban immigrant, during the last century.  He cited the significant role of mentors and others in his life whose words supported him and drove him forward.

Participants’ evaluations told us what they appreciated about the day, and the opportuntiy to network as well as interesting debates and workshops featured highly.

The importance of mentoring is recognised by both the WLN and the NBP as they have set up and jointly contribute to a mentoring programme managed by Rajinder Mann of the award winning Black Leadership Initiative.  The BLI also provides coaching support, secondment and work shadowing opportunities.

A panel of experts expressed their thoughts about the challenges surrounding equality and diversity and then answered tough questions from the floor.

The disquieting facts quoted by Helen Hughes of the Equality and Human Rights Commission that there are currently only ten BAME Members of Parliament and that talented women are missing from the top jobs in this country is a salient reminder for F/HE to pay singular regard to codes of practice when making appointments. There is a high price to pay for not electing more women onto boards and not reducing the pay gap.

Rob Wye of LSIS challenged the audience to accept responsibility for the diversity agenda and to create the ‘golden thread of equality and diversity’ in their institutions.

of the 53 colleges that appointed principals this year, 43% were women.”

Meanwhile, on the same panel, Carole Stott, Chair of City Lit governing body, echoed the responsibility refrain but for governors who need not only to be more diverse in their recruitment practices but also need training and upskilling for their roles. The fourth panel member was Commander Jerry Saville of the Metropolitan Police Service and he had this to say about learning from the challenges: “It’s time to turn the rhetoric into operation.”

Robin Landman, Chief Executive at the NBP and Sally Dicketts, Chair of the WLN co-facilitated the day and introduced the various keynote speakers as well summarising the main messages from the conference to send to relevant ministers. Maxine Room, Principal and CEO of Lewisham College opened the day’s event by setting the scene in terms of the state of diversity in FE with an astonishing array of statistics of which one, in particular, stands out.

If FE leadership was to reflect the national profile of 11.4%, there would be 40 BAME principals nationally – but there are only 16!

For women the news has slightly improved – of the 53 colleges that appointed principals this year, 43% were women. There is still some chipping away at the glass ceiling to be done.*

What key messages were taken away from this challenging diversity conference? The sector needs more women and BAME staff to apply for top jobs and Protocol National’s Director of College Leadership Services – Peter Daley’s contribution in supporting those seeking leadership roles has been outstanding.  He offered sage advice to women and BAME professionals considering promotion: play to your strengths and get to the core of what you can bring to make the match.

If FE leadership was to reflect the national profile of 11.4%, there would be 40 BAME principals nationally – but there are only 16!”

It’s clearly time to shift the sector’s mindset to overcome the funding issues and develop a diverse and more risk-taking workforce, with the college as the ‘engine of change’.  Thanks to Finton Donohue for suggesting that image to us in his keynote address.

The outcomes of one particular workshop facilitated by Vicki Fagg, Principal of the College of North West London and Gary Chinn, Principal of Greenwich Community College provided the third key message of the day: the sector’s resilience when faced with challenges and our determination to protect students’ interests.

Three significant outcomes to help redress the potentially negative equality impacts of the funding changes were suggested by those in this workshop. Specifically, these were:

1. Seek solutions and case studies from the wider sector and promote them widely

2. Lobby against cuts which have negative impact on equality issues e.g. ESOL fees

3. Press for national equality impact assessment of cuts.

Nick Linford, Dr Christine Rose, John Stone, Derek Hooper and Wally Brown CBE were amongst a dozen other workshop leaders that engaged participants with practical strategies and tips to take back to the workplace.

An optimistic future for women and black professionals in the learning and skills sector is not guaranteed. Funding reductions affect women and BAME staff significantly, but events which inspire and motivate, such as this diversity conference, keep the spirit of expectancy alive and confirm the power of collaboration and the commitment to and challenge for change going.

To find out more about the WLN please see www.wlnfe.org.uk and for NBP please go to www.nbp.org.uk