Skills England urged to confront government on FE funding

Skills England should challenge the government over FE funding gaps and “excessive competition and poor alignment” between colleges and universities, a new report has said.

The Association of Colleges (AoC) and Universities UK (UUK) have today published a joint report called Delivering a joined-up post-16 skills system that calls for deeper collaboration between FE and HE. The document highlights opportunities for economic growth and “a more prosperous and fulfilling life” for learners.

Colleges and universities face a “highly marketised” environment, short-term and “disjointed” policy-making, and “funding pressures”, the report said.

AoC and UUK call for Skills England to be empowered to identify barriers and make “recommendations for action”.

The new executive body, which now reports to the Department for Work and Pensions, should highlight coordination issues such as “excessive competition and poor alignment” that drive inefficiencies in the system, according to the report.

It should also highlight financial issues such as when the cost of delivery has failed to keep up with available funding and “challenges” where employers are “impeding demand” from learners due to pay, conditions or progression opportunities.

Not our job, guv

However, it is unclear whether the remit of Skills England allows officials to express strong opinion about competition between colleges and universities, or whether it is able to stand up to the government to whom it answers.

When grilled about funding by MPs on the education committee earlier this year, bosses of the quango said that budget decisions were “up to ministers”.

In an interview with FE Week, the executive agency’s chair, Phil Smith, said he is “slightly neutral” on whether it lacks independence or strength and has not pushed for more powers.

Smith dismissed the idea that “putting more money” into FE will fix its problems, arguing that navigation of educational pathways through careers is a bigger problem.

Much of the solution is marketing, he added.

The goals of the quango are to identify skills gaps in the economy, use this insight to “improve provision”, and ensure people have “clear education and training pathways”.

Since its launch, Skills England has published two reports, covering skills needs in the government’s priority sectors and analysing expected demand over the next five years.

‘We can do more’

The report comes ahead of the government’s post-16 education and skills white paper, which is expected to set out a more “joined up” system that includes unified funding and regulation across both colleges and universities.

David Hughes, chief executive of the Association of Colleges, said colleges and universities have “common and complementary missions” to support people into higher levels of learning and act as “anchor institutions” in their communities.

He added: “Many already work together to help achieve those ambitions, but we believe more can be done to achieve even more. 

Vivienne Stern, chief executive of Universities UK, praised the report’s examples of collaboration that are “already happening”.

This includes Loughborough College’s and Loughborough University’s 30-year partnership over sports-related degree courses, which are delivered by the college and validated by the university.

It also cites London South Bank University Group as a success story, for merging a university, college and academy trust under one “group structure” that provides a “united academic framework” such as level 4 college courses which “guarantee entry” on to the second year of the university’s bachelor’s degree.

AoC and UUK have vowed to “take this challenge on ourselves” by forming a joint group of college and university leaders to demonstrate commitment to “delivering on the prime minister’s ambition” of two-thirds of our children either going to university or taking on a gold standard apprenticeship.

The group will focus on delivery of the white paper’s priorities, identifying opportunities to “deepen alignment” and exploring “stronger partnership working”.

ASCL joins Ofsted preparation ‘cottage industry’ it once criticised

A union which criticised an “unhelpful cottage industry around preparing for inspections” is running its own webinars to help leaders prepare for Ofsted report card visits – at nearly £150 per school or college.

In a policy paper published in 2023, the Association of School and College Leaders called on Ofsted to publish inspector training materials to “dispel myths about what Ofsted wants and reduce the unhelpful cottage industry which has grown up”.

The watchdog now publishes training materials on its Ofsted Academy website, and is running free webinars for the sector on its new report cards, due to be introduced next month. 

But ASCL said schools and colleges are still clamouring for more information on how report cards will work, caused by the short timeline between final plans being revealed last month and the restart of inspections in November.  

The union is now advertising its own webinars with “analysis, recommendations and support” on the inspections.

One session will cover “the type of evidence that inspectors will look for to make judgements and will suggest a possible self-evaluation method to aid leaders in their preparation”.

The cost for five sessions is £120 plus VAT per school or organisation.

Three “bonus sessions” covering early years, post-16 provision and further education are also included in ASCL’s webinar series.

ASCL’s Ofsted webinar offer

Ofsted ‘strongly discourages’ paying for prep

When asked about the ASCL webinar, an Ofsted spokesperson said: “We strongly discourage schools spending their limited resources on training materials that purport to prepare them for inspection. 

“Ofsted recently hosted a series of free webinars for every different kind of education provider, where we explained first-hand what they can expect from the new approach to inspection. 

“Many thousands of education professionals attended, and we are uploading all of the recordings onto our YouTube channel, where they can be watched back any time – for free.”

But Pepe Di’Iasio (pictured), ASCL’s general secretary, said Ofsted’s “determination to rush through the implementation of a significantly changed inspection system has given schools and colleges little time to prepare for a new set of high-stakes hurdles”. 

He added: “We have already endeavoured to meet this need by providing information and answering questions about the new framework through our regular communication channels. This is, of course, provided without charge as part of our normal service to our members.

“It is clear that some schools and colleges are seeking a more extensive programme of practical support and as a trusted source of high-quality professional development provision we felt that it was right for us to make that available through our Ofsted webinar series.”

The union charges annual membership fees from £258 for business managers up to £486 for executive heads or CEOs.

Di’Iasio said the “substantial programme” works out at £24 per session and is recorded so it can be shared. “We think this delivers good value and provides a cost-effective option,” he added.

Ofsted has long complained about consultants selling schools and colleges training on inspections.

In a 2018 blog titled ‘The myth of Ofsted consultants: do not buy the snake oil’, former national director for education Sean Harford said the “lucrative industry that sells schools consultation into ‘what Ofsted wants’ and ‘preparation for Ofsted’ seems to thrive”.

“Please, do not hand your silver to these Mystic Megs,” he added.

Under reforms following the death of headteacher Ruth Perry, the Ofsted Academy was set up to publish materials relating to inspector training.

The watchdog said this would “open up Ofsted to those we inspect, and pass on what we know”.

“We will become increasingly transparent about what we do by sharing our training in context and making our processes visible,” Ofsted stated on its website.

Despite this, schools were still contacted by consultants looking to sell training around new report card inspections earlier this year – even before final plans were published.

Speaking to TES about the issue in March, Di’Iasio said this practice was “a sign of just how high-stakes the inspection system is”.

The union said it continued to “call on Ofsted and the government to rethink the five-point grading scale and timetable for implementation as we are deeply concerned about the pressure this places on leaders and their staff with detrimental consequences for their wellbeing”.

An anti-fraud law for business has big implications for FE providers

The Economic Crime and Corporate Transparency Act 2023 introduces new legal responsibilities aimed at improving corporate accountability and fraud prevention in the UK. While originally designed with corporate entities in mind, it has important implications for FE colleges and independent training providers.

Managing fraud risks is nothing new for colleges. Indeed, the College Financial Handbook, the funding rules and accountability agreements all contain obligations on fraud prevention. But this act does create a new layer of obligations and risks which colleges will need to feed into their processes.

Key changes:

‘Senior management’ offence (“SM offence”)

Colleges and ITPs could face criminal liability if a senior manager (such as a principal, finance director or senior leadership team member) commits a specified economic offence (such as false accounting or fraud) whilst acting with the authority of the institution. If this occurs, the college itself could be found guilty of the same offence.

This SM offence applies to all colleges and providers and there is no defence available, meaning everyone needs to be alive to this risk.

‘Failure to prevent fraud’ offence (“FTPF offence”)

This provision, which only came into force this month, means that colleges that meet the definition of a ‘large organisation’ may also be held criminally liable, and receive an unlimited fine, if someone associated with the college or ITP (such as staff, governors, contractors, or agents) commits fraud with the intention of benefitting the provider, even if the provider was unaware of this.

A college or ITP is considered ‘large’ if it meets two of the following three criteria:

  • It has more than 250 employees.
  • Its turnover exceeds £36 million.
  • It has assets greater than £18 million.

If an institution is part of a larger group, note that these thresholds apply to the entire group.

Even if a college or ITP is not classified as ‘large’, the Home Office and the Department of Education (DfE) recommend that all education providers adopt good practice in fraud prevention.

Unlike the SM offence, there is a defence if the institution can demonstrate that it was or was intended to be a victim of fraud, it had reasonable fraud prevention measures in place, or it was not reasonable to expect such prevention procedures to be in place.

How can colleges and ITPs prevent fraud?

Recommended fraud prevention procedures:

  • Risk assessments: Undertake and regularly review risk assessments. Identify areas of vulnerability, such as procurement, payroll, student funding and sub-contracting arrangements.
  • Due diligence: Have proportionate and risk-based due diligence procedures in place to vet third-party providers, agents and contractors (especially those involved in financial transactions or student recruitment).
  • Policies and training: Ensure anti-fraud and whistleblowing policies are up-to-date and clearly communicated, and that staff receive regular training.
  • Contracting: Make sure that relevant contracts contain clauses to protect the college as far as possible. To take one example, there have been high profile examples of frauds by subcontractors to colleges. So subcontracts should put obligations on subcontractors (ours does).
  • Anti-fraud culture: Ensure staff are comfortable to speak up about concerns and that reporting channels are clear and accessible.
  • Governance and oversight: Ensure senior managers understand their responsibilities and that oversight mechanisms are in place.

DfE has issued sector-specific guidance on fraud prevention which outlines common risks and provides useful templates. Colleges and ITPs are encouraged to develop a fraud response plan, use DfE’s fraud indicators checklist and align with cyber security standards to prevent digital fraud. Colleges should review this guidance in detail.

Conclusion

The act marks a significant shift toward greater transparency and accountability and raises the bar in terms of how colleges and ITPs are expected to manage fraud risk.

There have been a number of matters before the Teaching Regulation Agency for example in the past where senior members of the leadership team have been prohibited from teaching due to fraud.  If such fraud had been undertaken since the act came into force, there is a real chance that the incorporated body could have faced liability, too.

Whether or not your college or ITP is a ‘large’ organisation, adopting recommended procedures is a proactive step toward safeguarding it’s reputation and finances and protecting against possible criminal liability. Now is the time to review policies and staff training, update internal processes, and seek professional support where necessary to ensure you meet the evolving regulatory requirements.

Three thousand voices spoke and what they said shocked us

Our new Three Thousand Voices research, published today, offers a powerful insight into what it is really like to grow up as a young person in south-east London today.

As the largest survey we’ve undertaken across our group’s FE college and schools, we did this work to ensure our learners’ experiences inform and directly shape the priorities of our new charity, the LASER (London and South East Region) Education Foundation.

While we all work hard to understand our different cohorts, some of what our learners told us was unexpected and likely to be reflected across the FE sector.

For example, only 16 per cent of learners we spoke to believe the people running the country listen to their views, and this figure drops to single figures on some vocational courses.

This is sobering given that many college learners are developing the skills the country urgently needs – yet are feeling unheard and invisible in national decision-making.

There were, however, many clear positives in the data. Seventy per cent of learners agreed they had great lecturers who supported them – a powerful reflection of the dedication and care shown by staff every day, which is no doubt mirrored at colleges across the country.

Even among the minority of learners who didn’t agree, their comments reflected not criticism but concern for the pressures their lecturers face, such as staff changes or the difficulty of meeting every learner’s individual needs.

It is clear that young people value their lecturers’ commitment and the personal connection that makes college a place where they feel they belong and can succeed.

Another revealing finding was the link between enjoyment of college and attendance. Those who said they enjoyed college life were also the best attenders.

It is, as ever, a bit of a chicken-and-egg relationship, but reinforces what many practitioners instinctively know: connection and motivation are the foundations of engagement. If we want attendance to improve, we must ensure that learners feel supported and that they are a valued part of their community.

Focus groups with college learners highlighted uncertainty about the future. Young people are worried about career choices and the options open to them, with their fears often tied to the pressure of passing GCSE English and maths resits.

This challenge is reinforced by the requirement for learners to re-take these exams until they achieve at least a grade 4 – which for some is a huge barrier, deeply affecting their confidence and sense of possibility.

Behind these worries lies a picture of a generation growing up amid labour-market instability and rising costs of living, trying to make choices in a world that feels unpredictable.

It highlights the importance of high-quality careers guidance within FE, with mentoring made widely available alongside meaningful employer engagement.

Despite the anxieties, there was optimism too.

When asked what they would prioritise if they were running our new charity, learners overwhelmingly focused on mental health support, activities to make friends and promoting understanding of different identities. They want to explore new places, reduce exam stress and find ways to stay physically healthy while studying.

These are grounded, empathetic priorities. Many also expressed a strong desire to give back – to support their peers, mentor younger students and use their experiences to make a positive difference. In that generosity of spirit lies the true strength of our FE community.

What struck us most was not just what learners said, but how it challenged assumptions.

Their views underline why understanding wellbeing through a local lens is so important.

National data can show the trends, but only by listening directly to our own young people can we grasp the complex realities and then take the right action to make a difference.

The answers are there – in their own words – so now we must act.

Learning a new language reminded me how hard it is for my ESOL students 

I’ve been teaching EFL (English as a Foreign Language) and then ESOL (English for Speakers of Other Languages) for about 20 years. I am Polish and English is my second language, learned as a teenager, and I used to think that this gave me a natural empathy with my learners. But at the start of this year I signed up for a Spanish course, partly to put myself back in their shoes. The experience has been eye-opening. 

As a complete beginner, I felt overwhelmed after the very first class. Nothing was familiar. The teacher introduced expressions I couldn’t connect to anything I already knew.

The effort it took just to be able to say ¿Cómo te llamas? the following week truly astonished me. I couldn’t remember new words, and I was grateful that I could at least read Spanish letters, as they resemble the sounds in my native language. My English-speaking classmates had no such advantage. 

I thought I already understood the barriers my ESOL learners at WM College face, but I had underestimated them. I also discovered how much small moments matter. When I finally remembered how to introduce myself without hesitation, I felt a tiny spark of pride. I couldn’t understand what the teacher was asking mein front of my classmates and felt self-conscious – key reminders of the emotional rollercoaster many ESOL learners face daily.

The contrast between my situation and my students’ is also striking. I chose to learn Spanish as a hobby. My learners need English to navigate daily life in the UK – booking medical appointments, filling in forms, or even asking for the right bus. I come with study skills, grammar knowledge, and experience of learning other languages. Yet the classes still felt challenging. Many of my learners had only basic education, or none at all. For them, the challenge is even greater. 

As a learner, I noticed I thought more slowly, needing time both to gather my thoughts and to express them. I felt helpless and frustrated when I lacked words or grammar. Tasks that seemed simple from the teacher’s perspective could feel overwhelming on the other side of the smartboard. I also observed how different teaching methods – visual aids, repetition, and peer interaction – helped me, and I realised how crucial these are for all learners, particularly in ESOL classrooms. 

Experiencing another person’s teaching has revealed my own shortcomings and helped me to improve. I now spend more time revising in class, and I’m more forgiving when learners say they didn’t study at home – I have to juggle it too.

 I’m more generous with timing and remind both myself and my students that learning takes time and patience. I’ve always understood the importance of paired speaking exercises or using visual prompts in my teaching but experiencing them as a learner has made me place even greater emphasis on these techniques with my learners.

This experience has also made me reflect on the wider ESOL sector.

FE colleges operate under tight budgets, yet investing in teacher wellbeing and development – even just through free courses – should not be seen as a financial burden, but as a worthwhile investment in better teaching, more engaged learners, and stronger institutions.

ESOL provision faces mounting pressures amid funding cuts and growing demand. Positive sector-wide change cannot happen at the expense of teacher development. Supporting teachers to step back into the classroom, even briefly, is one practical way to achieve this. 

Learning Spanish has been enjoyable, but more importantly, it has made me a more empathetic teacher at WM College. Adult colleges such as ours provide ongoing professional development, but I believe every teacher, whatever their subject, should occasionally become a learner again. provide ongoing professional development, but I believe every teacher, whatever their subject, should occasionally become a learner again.

Stepping back into the classroom reminds us just how hard it really is, and how essential patience, resilience, and small victories are for every learner. Becoming a learner again doesn’t just benefit the teacher – it strengthens the classroom community, encourages resilience, and reminds us that learning is a lifelong journey. It’s a perspective every teacher could benefit from, and one that ultimately helps learners thrive. 

¡Buena suerte! 

Careers can’t be a one-person job…so we’ve made it everyone’s job

Since independent training providers were told in May to follow the government’s updated guidance on careers provision from September this year, I’ve spent the past few months connecting with colleagues across the country to see how they’re preparing.

Many colleagues welcomed the clarity. But others worried the benchmarks were still too aligned with schools and colleges. For those of us delivering apprenticeships and other provision in real workplaces, we’ve had to ask how do we make the framework work in practice?

Personal guidance (benchmark eight) is a hot topic. Some are concerned that delivering impartial, structured guidance within a workplace learning model feels like trying to hammer a square peg into a round hole. Beneath this sits another challenge: how do we ensure careers education isn’t just a compliance exercise, but something strategic, embedded and owned from the top down?

For me the answer is simple: stop seeing careers as the job of one individual.

In education, distributed leadership is the idea that responsibility for an area doesn’t sit with a single leader or department. Instead, it’s shared across the organisation, with each role contributing to a bigger picture.

For careers, this means that while there is a named ‘careers leader’ (a completely essential role), accountability and ownership run through the whole provider – from the boardroom to delivery staff.

Too often with ITPs, the careers leader is seen as the person who “does Gatsby”. But the new guidance is clear: careers provision must be embedded in strategy, quality processes, and learner outcomes. That can’t happen if one person is left holding the responsibility.

At Learning Curve Group, we’ve taken small but deliberate steps:

  • Executive and board-level oversight: Senior leaders, including our CEO, executive team and board members, ensure careers delivery is part of performance discussions and strategy. They are regularly briefed on careers priorities by the director of student services and head of careers, and understand how these link to Ofsted’s education inspection framework (EIF) judgement areas, particularly leadership and management and personal development.
  • Director of student services: This person ensures careers guidance is integrated within learner support services and personal development strategies. They collaborate across safeguarding, enrichment, mental health and destinations planning.
  • Head of careers: Leads on strategy, compliance and innovation in careers guidance, ensuring alignment to Gatsby benchmarks, EIF expectations and statutory duties.
  • Heads of department and regional operations managers: Champion consistency and quality across sites and subject areas. They support the implementation of the careers strategy at delivery level and ensure staff have the tools and time to prioritise meaningful careers integration.
  • Careers champions: These are nominated staff across academies who act as on-the-ground advocates and conduits for high-quality careers guidance. They localise strategy, drive innovation, and share examples of best practice to motivate and inspire teams.
  • Delivery teams: Teams are supported to embed careers guidance through training, professional development and high-quality resources. Careers is not a ‘bolt-on’ but is integrated into schemes of work, conversations and learner journeys.
  • Investing in Edtech development: We’ve significantly invested in the development of several edtech platforms, including CareersPro which records, tracks and enhances independent careers guidance and delivery, and DestinationsPro which captures long-term learner outcomes.

We are one of the largest ITPs in the country but we know ITPs come in all shapes and sizes. We all face the same risk: if careers remains “someone else’s job,” the Gatsby benchmarks will never feel authentic in our sector.

The steps we’ve taken show that distributed leadership isn’t about creating extra layers. It’s about embedding careers in what people already do.

We don’t have all the answers, but we believe that sharing practice is the key to collective progress. We’d love to see more providers, leaders and careers professionals come together to explore how the benchmarks framework can work for ITPs. Because if we keep treating careers as a one-person responsibility, we’ll keep hitting the same walls.

At Learning Curve Group, we’re ready to keep the conversation going. From our CEO to our frontline staff, we’re all in. And we’re inviting the sector to join us.

Lindsay Conroy appointed Association of Apprentices CEO

The former head of apprenticeships at UCAS is set to become CEO of the Association of Apprentices.

Lindsay Conroy (pictured above), who left the universities and colleges admissions service this summer, will replace Emily Rock at the association in January 2026.

The AoA is a support network for almost 50,000 apprentices, founded by the government’s former apprenticeship ambassador Jason Holt, former Lord Mayor of the City of London Sir Peter Estlin and a co-founder of venture builder Blenheim Chalcot, Charles Mindenhall.

Conroy spent four years as UCAS’ head of apprenticeships and was instrumental in the organisation’s move to add apprenticeship vacancies to its website and allocation of tariff points to apprenticeships so that they can be used for higher education applications.

Estlin, chair of AoA’s board, said: “We are delighted to welcome Lindsay as our next CEO. She brings deep experience, proven credibility, and a clear vision for growth. With Lindsay at the helm, AoA is well placed to expand its reach and impact, ensuring apprenticeships continue to thrive and contribute to the prosperity of communities and employers across the country.”

Conroy, who previously worked in multiple training providers including Learndirect, First4Skills and Haddon Training, has consulted for the 5% club – a membership body for employers chaired by AoA co-founder Jason Holt – since leaving UCAS.

She said: “I am honoured to be appointed as the next CEO of AoA. Apprenticeships have been part of my story for 25 years, and apprentices will remain at the heart of everything AoA does as we embark on this exciting next phase.

“Building on the exceptional work Emily has done to establish AoA as a community for apprentices, I am determined to amplify their collective voice – across government, employers, and providers – to shape policy and create a system that truly works for apprentices.”

Rock joined the AoA in 2020 when it was being set up and became its first chief executive in 2022.

Emily Rock

Rock said: “Leading AoA has been an immense privilege. Together with our members, partners and supporters, we’ve built AoA into a strong national voice for apprentices and established a platform that truly champions their success. As we enter a new phase of exciting growth, I feel this is the right moment to hand over.

“I am proud to be supporting Lindsay through the transition and confident that under her leadership, AoA will go from strength to strength, helping apprentices to flourish across the country.”

Estlin added: “I want to thank Emily for her outstanding leadership in establishing AoA as the national voice for apprentices. Her commitment has built a strong foundation and a respected platform for the future.”

Rock will continue to work in apprenticeships and skills through membership body The St Martin’s Group.

The construction industry can’t build the future without diversity

An extra 140,000 construction workers will be needed annually for the next five years to support the government’s Warm Homes Plan. But with skills shortages plaguing the sector and the need to resource other large-scale infrastructure projects, the industry urgently needs to focus on inclusive recruitment that attracts people from all walks of life.

Attracting a diverse talent pool has many benefits. Having a broader range of perspectives and skills bolsters capabilities and expertise, which in turn makes for increased innovation and better decision-making. This, over time, will improve the quality of work and increase profits. Businesses with diverse leadership teams are thought to be 39 per cent more likely to financially outperform those that don’t have diversity as a focus.

Inclusivity and diversity are also vital for employer brand and reputation, particularly in the construction sector where competition for skilled talent will only increase as the country powers forward with its infrastructure and housebuilding programmes.

Being able to demonstrate a business’s ESG (environmental, social and governance) and EDI (equality, diversity and inclusion) values during the recruitment process is key for attracting talent; around two thirds of UK workers think acceptance and inclusion are an important factor when job-searching. 

The construction sector is heavily male-dominated. Failing to recognise that the potential workforce is much broader than traditionally imagined is shortsighted. Being open, transparent and proactive with EDI-focused hiring practices is key in unlocking pockets of employees who might otherwise fly under the radar. 

While many organisations have connections with schools, colleges and universities as part of their recruitment outreach, this doesn’t include candidates who are already in the workplace and want to switch careers. While this group can be more difficult to reach, they form a large talent pool that needs to be tapped into to tackle the construction skills shortage.

This is also essential for offsite or modular building, as the public typically has less awareness of the skills needed. Offsite building demands a slightly different skillset to traditional construction, with a focus on data management and quality control, so it may suit people who had not considered it as a career path. 

Hosting a careers session, where candidates can ask questions, meet the team and tour the workplace, helps form a relationship between the employer and candidates, making them more likely to apply and consider a construction career which might not have occurred to them before. It also gives the team an idea of the candidate prior to them formally applying. 

Jobseekers also look for progression and there is a common misconception that apprenticeships don’t offer lifelong career options. Communicating retention rates and apprenticeship success stories is crucial. If a business has a cohort of employees who started as apprentices and have stayed with the business, moving up to more senior roles, this should be celebrated.

One way of finding new ways to be inclusive is to collaborate with peers and other industry bodies, such as your local skills improvement board (LSIB). LSIBs are made up of local businesses, training providers, government-linked bodies and other industry experts with the aim of working together, build relationships and share knowledge with a common goal of attracting and upskilling local talent.

It’s crucial that businesses take a holistic approach to diversity. For example, offering apprentices a higher wage than the minimum required will attract older candidates looking for a career change who may have higher financial outgoings than a school leaver. 

Other policies to consider are flexible working, which particularly helps single parents manage their professional and parental responsibilities. While this may not always be possible for onsite roles, it may be possible for office, design or management roles. This in turn will help attract more talent through word of mouth.

Employers in sectors with skills shortages, such as construction, urgently need to embrace EDI to take on the huge number of projects coming down the line. Not only will employers benefit from a diverse talent pool, but being forward-thinking with hiring and recruitment has tangible benefits for businesses as well.

ITPs face automatic ‘inadequate’ financial rating for late accounts

Independent training providers that fail to submit their accounts to the Department for Education on time will be automatically hit with an ‘inadequate’ financial health rating, according to new rules.

The move, revealed yesterday, comes as the deadline for submitting financial statements is due to be shortened from nine months after the academic year end to five months (see table below).

The DfE said it is keen to obtain “earlier clarity” over ITPs’ financial risk levels, but the tighter deadline and harsher consequence of late accounts submissions have prompted fears that providers risk being punished, even if there are “extenuating circumstances”.

According to government guidance on how ITPs, special post-16 institutions and non-maintained special schools are assessed as financially healthy, failure to submit financial statements on a timely basis, or when requested, “will result” in an ‘inadequate’ financial health grade until statements are submitted and assessed.

The rules previously said late filing of accounts “may” result in the lowest possible health rating.

Consequences of a business or organisation being rated ‘inadequate’ – which the DfE defines as at a “significant risk” of failing to fulfil its contractual obligations – are severe and include the threat of contract termination.

Ben Rowland, CEO of the Association of Employment and Learning Providers, said: “While robust financial oversight is vital when taxpayers’ money is at play, I do worry this is a change that risks punishing providers who have extenuating circumstances rather than genuine financial weakness.

“Independent training providers play a critical role in delivering apprenticeships and skills programmes, often operating on tight timescales and margins.

“We’d urge DfE to take a proportionate approach that distinguishes between late paperwork and real financial concern.”

The DfE declined to comment further.

The latest rule change on accounts follows the DfE’s joint goals of identifying financial risks as soon as possible while offering “certainty” to providers about what good management looks like.

Rules outlined in the financial handbook, unveiled last year, argue that shorter deadlines for submitting full accounts would bring ITPs in line with the five-month deadline that colleges and higher education providers already face.

For colleges, a consequence of late submission of 30 days or more, or beyond an agreed deadline, can be formal intervention.

A festive inconvenience

Mark Dawe, chief executive of The Skills Network, said the threat of being rated inadequate combined with shorter deadlines will be “an issue for everyone”.

He added: “In the preparation for this last year we squeezed our timing together and we managed to do it within six months.

“But the deadline is the 31st of December – getting the board together at the Christmas period is a real challenge. We did it and it was hard work and if anyone had problems it would have been a real challenge.

“You can see why the DfE wants audited accounts earlier, but there are just practicalities about achieving that.”

Luke Muscat, CEO of the Back 2 Work Group, said: “In principle I don’t have a problem with this. Organisations accessing public funding should be able to demonstrate that they are financially robust.

“You would, however, hope that there is a degree of common sense applied to this and that the provider was engaged prior to any action being taken. 

“For example, it would not be appropriate for an automatic ‘inadequate’ rating to be issued in scenarios where it was administrative error, or simply an oversight in filing accounts with the department.”