Sue Pittock and Chris Claydon have been elected to serve on the Association of Employment and Learning Providers’ board.
The appointments of Pittock, who leads Remit Training, and Claydon (pictured right), who runs JTL Training, were announced following the trade body’s annual general meeting this afternoon.
It was also announced that AELP vice-chair Rob Foulston (pictured left) will be standing down from the board following Pittock’s appointment.
Foulston is owner of Remit and even though has been on the board since 2018 in his capacity as a college chair of governors, AELP’s updated constitution prevents two people from representing the same organisation on the board “directly or indirectly”.
An AELP spokesperson said arrangements to fill the vice-chair vacancy will be announced “in due course and we hope Rob will be able to continue to support us in an advisory capacity in future”.
This will be Pittock’s second time on the AELP board, having previously served from 2017 to 2019.
Pittock, who was made an OBE last year, will represent medium-sized training providers that have 1,001 to 4,999 learners.
Claydon, who became JTL chief in February 2023, will represent large providers with 5,000 learners or more.
Both will serve a four-year term on the AELP board.
Ben Rowland, AELP chief executive, said: “I’m delighted that we will have two new members joining the AELP board imminently. Both Sue and Chris have a huge amount of experience and will give us some fresh impetus at a crucial time for the skills sector. I would like to thank Rob in particular for his work on the board, and his support for me as I continue to get my feet under the AELP table.
“The AGM is also a time to set out my priorities for the year. These will be to create a vibrant and compelling membership experience while delivering tangible impact on government decisions, and I am looking forward to working closely with the AELP board and staff to help deliver that for our members.”
AELP chair Nichola Hay added: “I want to give a huge welcome to our new board members Sue Pittock and Chris Claydon. With Sue and Chris joining the board, I am sure AELP can do even more to represent its members across the skills sector. I would also like to pay tribute to Rob Foulston who will be stepping down from the board. He’s been an invaluable source of support as both a board member and as AELP’s vice-chair.”
Last Saturday marked two years since the conflict in Ukraine began. While media attention has waned, the FE sector can be proud of its ongoing response for Ukrainian learners, here and at home.
As of last June, 179,500 people had arrived in the UK on one of the Ukraine visa schemes. That’s a significant number of people looking for a new life, and while they hope it’s only temporary, they bring with them valuable skills and ambitions, and a need to carry on their education, or their career.
The language barrier
Colleges have increased their teaching English as a second language provision to meet the resulting increase in demand. This isn’t just vital for those trying to access jobs but more broadly for day-to-day life.
At Newcastle College, part of NCG, we launched new classes designed specifically for Ukrainian refugees in June 2022, focused on employability and English language skills. These classes have allowed students to get the skills they need at the time that’s right for them, often supporting them to progress onto a college course which leads to employment.
A port in the storm
It’s not just the language barrier that is a challenge. It is hard for us to imagine some of the challenges that refugees continue to face, such as cultural events like Bonfire Night, where the sound of fireworks can be triggering for those who have fled a war-torn home.
Creating a learning space which feels safe has been a focus for many colleges. There are now 19 ‘Colleges of Sanctuary’ in the UK – a network of staff, teachers and students working together to make education inclusive and empowering.
Across our group, we are working to become Colleges of Sanctuary. Our colleges are also proud supporters of local efforts to establish more cities as a ‘City of Sanctuary’, a programme which engages with city stakeholders to welcome refugees and people seeking asylum, and to offer sanctuary to those fleeing violence and persecution.
Through NCG’s Our Community is Your Community programme, we have also continued to support refugees in our colleges’ local communities, to overcome the barriers of starting over in a new location and a new culture. Focusing on building social bonds and connections, employability, refugee entrepreneurship, and health and wellbeing, the programme helps newcomers navigate challenges such as automated telephone systems, setting up accounts and paying bills, or filling in forms to access support.
An ongoing commitment
Many colleges responded to the initial invasion of Ukraine by setting up donation points to collect essentials via organisations like our local Polish Centres and the Ukraine Humanitarian Appeal from the Disaster Emergency Committee. This is something that we, along with many others in the sector, continue to do because we know the people who remain in Ukraine need food and medical supplies more than ever.
But while our strength as a sector is built on community and values, our raison d’etre is education. And why should war be allowed to stop that? One of the initiatives we are proudest to support – and you can too – is the Ukraine Twinning Initiative.
We are twinned with the Ukraine college Kryvyi Rih, to which we provide practical assistance and resources. This includes a donation of 25 laptops from our IT supplier to support its remote learning offer. Kryvyi Rih is in an area targeted by recent airstrikes and regularly experiences loss of power and water. While the conflict has prevented students and staff from attending the college, our partnership aims to support remote learning and ensure that the college community can continue to access education and training.
In addition,colleagues at Newcastle College continue to deliver regular professional development sessions to staff at the Kryvyi Rih college, providing access to new teaching resources, updates on practical techniques and an opportunity for colleagues to keep up-to-date with industry skills. Our ESOL department have held weekly English classes with those students, and we’re now exploring plans to teach joint classes to Ukrainian students.
It’s a partnership that has been valuable to our college as well as theirs, and while we hope to see a resolution to the conflict soon, we also hope to continue our partnership with our new Ukrainian colleagues beyond this crisis.
Having recently left the Department for Education, I am now amazed every morning at the speed Windows logs in when you don’t have to get through a VPN designed to check civil servants are suitably proximate to a Pret a Manger and not staring into their fridges at home. But I used to take a mitigating moment of pride seeing the one bit of the DfE corporate background still peeking out through all the files I’d saved chaotically to my desktop: “Put learners and children first.”
It’s the calling that unites everyone who works with young people, and since moving to the National Youth Agency and talking every day to youth workers across the country, I’ve felt at home because – just like FE teachers – what they want to talk about are the young people they work with, the innovative ways they are engaging them and what more they wish they could be doing.
No teacher or youth worker ever found themselves in their underpaid vocations because they wanted to do the bidding of imagined ‘employers’, yet somehow the sensible awareness of employability as one aspect of education and progression has become an excessive focus of how we evaluate the experience of FE.
I’ve started counting mentions of employability, employers, employment etc in Ofsted inspection reports. The average in the last ten FE college inspections (as of early February) was fourteen mentions per report. In contrast, mentions of student wellbeing averaged less than once per report. Whimsically, I even looked for mentions of students’ happiness. Bravo to North Hertfordshire College for achieving the lone mention of happiness across ten recent inspections.
The 2022 introduction of the local skills statement in college Ofsted reports formalised the industrialist grip on college curricula. The unspoken inconsistency is that school sixth forms are subject to no such requirement. Most inspections of schools with sixth forms don’t mention employers at all. The overbearing need to have line of sight between classroom and income-tax contribution only applies when thinking about other people’s children.
FE misses out on being celebrated for its excellent work
This means FE misses out on a chance to be celebrated for the excellent work it does in supporting student mental health and wellbeing, and that its direct link to employability is overlooked. We know that anxiety and depression increase young people’s chances of not engaging with employment. No matter how well you align your curriculum with local skills needs, it’s not going to make a difference if your attendance is through the floor.
Finding a happier balance between employability and wellbeing in Ofsted reporting doesn’t require major changes to inspection. It just requires better use of the existing personal development judgment, which lags so far behind the skills statement in terms of word count that it has almost disappeared.
The inspection handbook notes that personal outcomes may not emerge until much further on in young people’s lives, so directs inspectors to look at quality and intent. This sounds great, but then a series of prescriptive bullet points about British Values and sex education lead to many reports reading as, “learners are taught about radicalisation and sexual consent: job done.”
The approach to personal development would do well to draw from the professional practices of youth work, where similarly the ‘outcome’ cannot be prescribed. The process of youth work is centred on the young person and their needs, rather than a dictated syllabus. The NYA’s National Youth Work Curriculum is built around the cornerstones of Education, Empowerment, Equality, and Participation.
Rather than asking whether radicalisation has been taught, “tick”, ask whether the young people have influence over issues that concern them and are engaging with democratic processes.
Rather than ask if healthy relationships have been taught, “tick”, look for the signs of respect in the connections young people are making.
That would offer far more opportunity for the things I love best about FE to get the credit they deserve: exemplary student voice, fierce tolerance and incredible diversity of learning.
At our core we want to put learners first. Of course seeking employers’ views is important – and that shouldn’t be limited to just colleges – but let’s elevate the voices of our young people and ask them, “Are you happy?”
We are privileged to live in a time when there is so much acceptance of LGBT+ people in FE and in society more broadly. However, there is a long way to go, and we can never take that acceptance for granted – something we are inclined to do especially with young people, who we assume are somehow generationally inclusive.
This means we still have to have those difficult conversations with them about LGBT+ issues. And a risk associated with that is of assuming that all of our colleagues are equally prepared to do so.
To help with both of these, here are three questions I am regularly faced with, and some ideas about how to answer them if you are asked.
Why do we even need LGBT+ history month?
This event plays two important roles: It takes place in February to mark the anniversary of the end of section 28, and it acts as an impetus to make visible and to celebrate LGBT+ people and their impact on society.
Sadly, this question still often arises among our learners. In part, that’s because they don’t know the historical (and ongoing) levels of inequity that affect the LGBT+ community. The question can take different forms, such as “why don’t we have a straight history month?”, “why is it pushed in our faces?”, “it’s against my religion”.
More so than awareness, the aim of the month is to create cohesion. To that end, our aim as teachers isn’t simply to encourage tolerance but to foster respect. I’ve never been bothered about gaining acceptance or changing the hearts and minds of society (though it’s a bonus if it happens). I just want others to respect my right to be who I want to be, live how I want to live and express myself freely.
As teachers, our best tool for fostering respect is knowledge. Why don’t’ we have a straight history month? Because we have 12. Why is it pushed in our faces? So that it will never again be brushed under the carpet. It’s against my religion! Respect is a precept of every major faith.
Can someone be Muslim and gay?
This is a question I have been inundated with since I entered the profession. As an openly gay Pakistani Muslim I have researched Islam’s stance on same-sex relationships. There are many schools of thought and individual interpretations, but the short answer is yes, but not easily.
The general Islamic consensus is that same-sex relationships are a sin. The next logical question is then: how can you be both? Well, according to Islam, all of humanity sins in one form or another and to varying degrees. Sinners should not judge other sinners.
The three major sexual sins in Islam are homosexuality, fornication and adultery. Yet only homosexuality is widely frowned upon and only the LGBT+ community is vehemently persecuted. This makes the issue one of culture more than religion.
So how do we successfully articulate this response? The answer is you don’t. We can educate and we can draw attention to gay Muslims. But identity is a highly personal business, and it is not our job to influence how young people navigate these complex issues. I encourage any learner from any background asking this question to simply do their homework.
What about my freedom of speech?
A common refrain of those who try to justify using derogatory language about the LGBT+ community or individuals, the answer here is a simple one: Using homophobic language to abuse someone is illegal. Sexuality and gender are protected characteristics under the Equalities Act 2010, and punishment under the law has lasting consequences. Hate crimes go on your record, must be declared to future employers and stay with you forever.
Some might ask why, if British values promote tolerance, they can’t express their beliefs in public. This might be a good moment to introduce Karl Popper’s paradox of tolerance.
“But it’s just words,” or “it’s just a joke,” some will protest. No. They are words with social, emotional and psychological effects that cannot be understated. Victims often suffer long after experiencing homophobic language or behaviours. They can lead to depression, anxiety and PTSD.
As with our first question, the impetus here is not to change beliefs but to educate and, where necessary, to sanction.
I am at risk of offering platitudes by stating employers play a crucial role in the success of apprenticeships. Their ability to be either custodian or antagonist of quality is profound. When we talk about their role, the emphasis often sways towards the policy expectation that places them in the ‘driving seat’ of programme design. Yet in my experience, employers (except those with their own contract) are at their most impactful when sitting in the training provider’s passenger seat during programme delivery.
Research from The St Martin’s Group backs up the outcome of low involvement. Unsurprisingly, it shows the most common reason apprentices cite for leaving their programme as lack of employer support.
‘Support’ manifests in different ways: giving apprentices time off the job to learn, actively participating in progress reviews, challenging training provider practices when left wanting, noticing when apprentices are overwhelmed or demotivated, encouraging achievement of functional skills, giving formative feedback, and appreciating why careers guidance really isavaluable part of an apprenticeship.
Ensuring this jigsaw pieces together requires a relationship between employer and provider that is multifaceted and dynamic. It’s more like rally driving than F1: it needs a driver and a co-pilot in the car – and employers make better co-pilots.
Successfully managing this relationship demands the dedication and expertise of delivery staff, whose responsibilities extend beyond just their apprentices. It is not uncommon for their duties to include guiding a line manager on providing constructive feedback or confidently holding them accountable when they fail to meet the needs of their apprentice.
Leaders who cultivate these skills within their teams understand the pivotal role they play in the success of an apprenticeship. This is because the employer’s commitment, which is crucial if we are to reduce withdrawals or delays beyond the planned end date, needs much more than just a signature at the outset.
Employer commitment needs much more than a signature at the outset
As an SME ourselves, we have noticed a shift in expectation and demand on our time. We respond to this in accordance with our values and will continue to do so, but it would be wrong to understate the effort it takes by us and the providers we work with each year to make it work in practice.
Whatever comes for FE on the other side of an election, the direction of travel for active employer participation is unlikely to be reversed and nor should it. We have experienced first-hand the significant impact our team has on developing T Level placement students and are proud of the role we play in creating meaningful apprenticeships.
Yet in truth, we have experienced mixed fortunes when it comes to the effectiveness of how well we partner with providers, with challenges on both sides. What we have noticed is the Ofsted grade has not always been a useful proxy for our experience and I am left curious as to why that is the case.
‘Employers’ are referred to just once in the inspection framework under the ‘quality of education’ aspect, highlighted under ‘Intent’. Further detail appears under the apprenticeship section but I am unconvinced that this is keeping up with a sector where employers are increasingly integral to implementation.
My aim here is not to create more work for providers; rather, it is to ensure there is regulatory recognition for the effort needed to build and manage complex relationships with diverse employers beyond the design stage.
Ofsted is a powerful voice in a system that struggles to access the funding to match the political narrative that technical education is Very Important. It is a voice that I hope can demonstrate through its thematic research that if we want FE to be successful, there are hidden costs and capabilities involved. And I hope it is a voice that will be heard by new ministers from the outset of their tenure, because big turns in the road will need to be navigated, and that’s best done with our eyes wide open.
The Labour party has created for itself a potentially serious election wedge issue on apprenticeships which will get aired on the doorsteps in red wall seats unless it has a rethink.
At the Annual Apprenticeship Conference (AAC), shadow skills minister Seema Malhotra doubled down on Labour’s proposed ‘growth and skills levy’ in spite of concerns it will “destabilise” apprenticeships. This follows government ministers claiming that the proposals would halve the number of apprenticeships and would take us “back to square one” – a Conservative attack line that appears to be central to their approach to other wedge issues during the election campaign.
An ongoing lack of transparency over apprenticeship levy funding means that it is difficult to judge impartially. But it won’t be difficult for the proposal’s opponents to make a convincing case that reserving ‘at least half’ of the levy for apprenticeships will translate into a halving of our 337,000 annual programme starts.
Bearing in mind that levy receipts and the apprenticeship programme budgets across the UK’s four nations are not the same thing, several key factors need to be taken into account. These include whether the devolved nations will still receive their respective share of the £3.7 billion pot according to the traditional Barnett formula and whether the Treasury under Labour would maintain its habit of top-slicing the levy by approximately £500 million each year to spend on other priorities. Currently, this results in the DfE being allocated an apprenticeship programme budget of £2.7 billion to manage for England.
Shadow chancellor Rachel Reeves said recently that it will be good to have someone in charge of the Treasury who can do maths. So, leaving aside for a moment devolved nation allocations and top slices, let’s do some maths of our own based on Labour’s proposals.
Half of the £3.7 billion levy receipts is £1.85 billion which might be reserved for apprenticeships. This is considerably less than the 98 per cent of the £2.7 billion apprenticeship budget which has been spent on apprenticeships annually in England over the past two years. In fact, it would mean almost a billion pounds less being allocated to the programme each year.
Levy underspends were an outcome of the pandemic
This implies either significant cuts to apprenticeship starts under Labour unless the treasury agrees to a larger levy to keep the same annual apprenticeship budget before the receipts can be used for other skills programmes. It also assumes that the shadow education team has reached an agreement with the shadow treasury team that they will end the top-slicing, but has it? Given the widely predicted doomsday scenarios for public expenditure after the election, a new chancellor might decide that the money is still required elsewhere.
For Labour, the alarm bells must start ringing every time Seema Malhotra refers, as she did at the AAC, to £3 billion of unspent levy money since 2017 as if the money were still available to fund Labour’s wider skills levy. But the levy underspends were simply an outcome of the Covid pandemic when the lockdowns prevented employers from recruiting apprentices. In 2019, the National Audit Office predicted an overspend of the apprenticeship budget, and in the two years following the pandemic, the underspends rapidly disappeared.
Ms Malhotra also talked again about the large levy-paying employers who complain that they cannot spend all of their entitlement on apprenticeships. But the levy was designed for this probability in order to fund SMEs’ apprenticeships. And when asked, she wouldn’t repeat her predecessor’s promise that apprenticeships for smaller firms would be protected by a ring-fenced budget.
Labour is reportedly “bombproofing” its election manifesto against Conservative attacks. Therefore, it should follow the recent example of the Australian Labor government of committing to a thorough review of apprenticeships with a view to reform but without any predetermined outcomes such as widening the levy’s scope.
This summer, 60 years after they were cut, passenger services will resume on the Newcastle to Ashington railway with the Mayor of North Tyne saying this week that young apprentices will now be able to travel to take up opportunities on the programme. It would be ironic if the actions of a Labour government were to limit the number of opportunities available.
We started Colleges Week in 2018 to raise the profile of colleges, celebrate their successes and impact and to engage more politicians, employers and stakeholders with the work they do. At the time we believed it could help us engage more people in power to really understand and respect colleges, and from that we hoped we would start to see more funding and better policies.
Seven years on, with a general election looming and politicians’ respect and understanding more important than ever, it seems like a good time to take stock of whether it has achieved those ambitions.
There’s no doubt about it: Colleges Week has allowed staff, students and governors to show their pride in their college. Every year we see an explosion on social media of people using their creativity to celebrate the impact going to college has had on their lives, their life chances and their confidence and abilities. If that was all we had achieved it would be enough, but there is a lot more.
Colleges Week has proved to be a great vehicle for engaging partners, stakeholders and politicians. Some of them will be longstanding supporters, but the week offers new opportunities to bring people into college for the first time. It’s incredible how many people in positions of power – politicians, officials, employers, journalists – have never been inside a college, and it is telling that their most common response after visiting is to be amazed at what they see and experience. Secretly I think many never realised how good they are: how impressive the staff, how motivated the students, how up-to-date the facilities and how exciting the learning culture is.
All of that exposure has helped raise the profile of colleges. Back in 2018, colleges were viewed in Whitehall as a problem and as poor performers. In 2016, for instance, then-Ofsted chief inspector Sir Michael Wilshaw boldly told a parliamentary committee that he would ‘prefer all 16- to 19-year-olds to be educated in schools’ rather than in colleges which were ‘inadequate at best’.
A group of new MPs will want to understand and engage
That he had no evidence for the statement and had rarely visited colleges didn’t matter; his prejudice was a common one in the corridors of power. Colleges Week has helped to change that. The understanding is better and the respect improved – not enough on either count, but very different to where we were.
Now, don’t misinterpret me; I’m not saying the change is all down to Colleges Week. That is clearly not true, but the week is the pinnacle of a lot of hard work throughout the year by colleges, by AoC and by a range of important partners to engage, inform, enthuse and bring people on side. The week matters because all sorts of people are happy about celebrating the successes of students who have such great things to say about their college experiences, and who so often inspire with their stories.
The week has also coincided with the growing confidence among college leaders about their part in society, in education, in places, in the labour market and about the need for them to promote their college and build partnerships locally. That confidence is helped every year when we all see the weight and breadth of support colleges have from across the political spectrum and from all of the stakeholders that matter in every place.
By celebrating all that they do, it’s become clearer that colleges truly are anchor institutions, as vital to their communities and economies as they are to students and their prospects. That confidence matters, because it is infectious, and it attracts people leading other organisations to want to engage.
So, Colleges Week has been successful, and I hope it will go on showcasing a set of anchor institutions which have struggled to be noticed in the past. This election year gives every college the chance to engage with parliamentary and mayoral candidates, forging relationships with people likely to be in power for the next five years or more. A group of new MPs in Westminster will want to understand and engage with the anchor institutions on their patch and be seen to do that in the local media. Colleges Week is the perfect time to make sure they really do #LoveOurColleges.
Londoners now often undertake lifelong learning as they take their first steps into work, reskill for a career change or pursue a personal interest. Local colleges are the driving force, supporting thousands of Londoners every day to develop new skills. That is why I’m proud to support Colleges Week, which celebrates the life-changing impact of further education and the important role of colleges in unlocking adult education opportunities.
London’s skills system is the highest performing in the country. Since taking control of London’s Adult Education Budget (AEB) in 2019, the Mayor has worked closely with London’s skills providers and colleges to s help over a million learners to participate in his skills programmes. Enrolments have increased by twenty percent, compared to just eight per cent for non-devolved areas administered by central government. This wouldn’t have happened without the strong partnership between our excellent colleges and City Hall, made possible by devolution.
It’s been a pleasure to see first-hand the transformative impact of adult learning on Londoners, reflected by winners of the annual Mayor’s Adult Learning Awards. At New City College Ilford, Nabeel Ahmed, last year’s winner of the Inspirational Adult Learner of the Year award, overcame significant barriers to become more independent and build the confidence he needed to explore new opportunities. Our 2022 winner Shirley Joseph, who took a leap into a career change after being made redundant to reskill in track engineering at Newham College has now built a brilliant career at Network Rail.
I’m pleased to see how working in partnership with colleges has allowed us to tailor London’s adult learning offer to local contexts and make a real impact on the lives of Londoners. The pioneering London Learner Survey which tracks how the AEB has helped Londoners showed how training is improving access to work and further learning, boosting earnings and led to improved wellbeing and confidence. Over 100,000 Londoners reported positive economic outcomes with those in work on average 10 per cent better off financially once they had completed a course, helping them with the rising cost of living.
Any incoming government must give cities and regions the control they need to meet demand for lifelong learning
Adult learning opportunities need to reach all Londoners and the Mayor has taken steps to improve the accessibility of our skills system, removing barriers that prevent Londoners from gaining the training they need. Removing some of the residency requirements on accessing training has meant that more migrant Londoners can get onto courses, upskill and contribute to our economy.
Since opening up funding to Londoners in low paid work, we’ve helped over 90,000 Londoners previously locked out of training to get the skills they need. We’ve also invested in important community outreach activity to signpost Londoners who are less likely to engage with adult learning into skills training, through our community’s grant programme where we fund grassroots organisations to connect local people to learning. Thanks to these changes, and the hard work of colleges across the city, London’s skills system is now the most accessible in the country.
However, we need to go further. Power and funding must be devolved regionally to make meaningful change and build on the success of London’s Adult Education Budget. Participation in training is growing but we are reaching the limits of what is possible within current funding levels, which have remained stagnant since 2019.
After a decade of low economic growth and high inequality, more investment in skills is crucial for boosting productivity, incomes and prosperity in London and across the country. London and regions across England have shown the success that is possible with greater control over local skills funds. Any incoming government must look seriously at increasing our investment in skills, increase funding and give cities and regions the control they need to meet the demand for lifelong learning.
Most independent training providers (ITPs) will have to submit their annual accounts to the government within five months of their year-end, beginning in 2026, a new financial handbook has outlined.
The earlier submission deadline will be phased in over the next three financial years and has been rolled out to allow the Education and Skills Funding Agency (ESFA) to identify “financial risks” and make better funding allocations in the future.
The rule is part of a new financial “bible” handbook unveiled today. It is part of the ESFA’s pledge to provide “certainty about what good governance and financial management looks like” to the sector, which chief executive David Withey in 2022 shortly after assuming the post.
The change will bring ITPs into line with the five-month deadline for colleges and HE institutions to ESFA and the Office for Students respectively.
The handbook said current deadlines align with statutory filing deadlines required by Companies House or the Charity Commission, which “often mean it is too late for ESFA to identify financial risks or make effective decisions to help”.
Earlier submission will “also enable ESFA to make better informed decisions about future funding allocations”.
The rule will be phased in after the ESFA admitted that the change is likely to “impact existing business and audit cycles, particularly for ITPs with group structures”.
ITPs who fail to submit by the deadline will see their ESFA financial health rating suffer, which could have future contract bidding implications.
ITPs organised into four funding groups
The handbook provides a framework for the financial oversight of ITPs and assist the Department for Education (DfE) and ESFA to identify and manage risks.
It outlines how ITPs should arrange their counter fraud and error policies, cash flow forecasts and governance.
From this August, all ITPs will belong to one of four cohorts depending on the level of total annual funding from DfE / ESFA (see table below).
ITPs reaping more than £8 million in funding must have an independent audit and risk committee and at least one non-executive director or equivalent when the rules come into effect.
Total annual funding the ITP receives directly from DfE
Funding group 1
More than £8 million
Funding group 2
More than £1 million up to £8 million
Funding group 3
More than £100,000 up to £1 million
Funding group 4
Up to £100,000
Source: DfE
The top three groups must maintain a rolling 12 month cash flow forecast but this is discretionary for ITPs receiving lower funds from the ESFA.
Meanwhile, the largest ITPs will be required to have a counter fraud and error policy and take “appropriate action” where identified.
Around 250 small ITPs belong in funding group 4, which experts say will ease the burden as most of the new rules are discretionary.
The financial handbook will come into effect from the August 1 this year. DfE said it was publishing the document now to allow ITPs sufficient time to prepare for “any requirements that are not already being met.”
Ben Rowland, chief executive of the Association of Employment and Learning Providers, said many ITPs already carry out the “appropriate controls, safeguards and oversight” as published in the guidance.
“For ITPs who have underdeveloped approaches to governance and appropriate financial control the requirements laid out in the handbook now give clear expectations on protecting public money and ensuring appropriate rigour and challenge about key decisions ITPs make,” he added.
“AELP has encouraged the ESFA to use this as an opportunity to tackle the unnecessary regulatory burden which distracts ITPs from focusing on delivering high quality training. We are pleased they have taken this challenge on board. As a result, this new handbook is not an arbitrary one-size fits all approach and ensures that the requirements are tapered based on ESFA income with the smallest providers being completely exempt.”
Withey said: “We know that many providers have robust processes already and we want to help ensure this is the case across the sector. Financial stability and good governance are the bedrock in creating a stable and effective training environment with high educational standards where learners can realise their potential.”
Robert Halfon, skills minister, added: “Diversity is a key strength of the sector, enabling very small to very large providers to deliver a wide range of learning and skills, customising their delivery to the needs of learners and employers. The handbook reflects the sector’s diversity by sharing best practice and tailoring our expectations of providers based on the size of providers’ business with the department.”
Accounting year
Funding group 1
Funding group 2
Funding group 3
Funding group 4
1 August 2024 to 31 July 2025
Within 7 months*
Within 9 months
Within 9 months
Within 9 months
1 August 2025 to 31 July 2026
Within 5 months*
Within 7 months
Within 7 months
Within 9 months
On or after 1 August 2026
Within 5 months
Within 5 months
Within 5 months
Within 9 months
Time to submit accounts to ESFA after ITP’s year-end * can apply for up to two month extension
Summary of arrangements according to each ITP cohort
Arrangement summary
Area of handbook
Funding group 1
Funding group 2
Funding group 3
Funding group 4
To have at least one non-executive director (or equivalent) in place (companies only) to provide independent oversight of financial & governance processes
Governance
Required
Discretionary
Discretionary
Discretionary
To have an audit and risk committee in place to direct and oversee independent assessment of financial & governance processes
Governance
Required
Recommended
Discretionary
Discretionary
To have a funding compliance scrutiny function in place to oversee the submission of data that triggers funding
Governance
Required
Required
Recommended
Discretionary
To comply with all contractual obligations and DfE / ESFA guidance in relation to sub-contracting arrangements and delivery
Governance
Required
Required
Required
Required
To comply with a relevant published governance code
Governance
Required
Recommended
Discretionary
Discretionary
To submit annual accounts to ESFA within timescales as set out in this handbook*
Financial Management and Oversight
Required
Required
Required
Required
To maintain a rolling cash forecast which sets out expected financial position for the next 12 months
Financial Management and Oversight
Required
Required
Required
Discretionary
To submit financial health records as per any request from DfE / ESFA
Financial Management and Oversight
Required
Required
Required
Required
To have a counter fraud & error policy and procedures in place, and fraud awareness training for staff
Financial Management and Oversight
Required
Required
Recommended
Discretionary
To have risk management processes in place to include a risk management policy, risk register, business continuity policy, and conflict of interest policy
Financial Management and Oversight
Required
Required
Recommended
Discretionary
To have a whistleblowing policy in place which references how to make disclosures directly to DfE / ESFA
Financial Management and Oversight
Required
Required
Required
Discretionary
To have and to follow a formalised internal review process in relation to the ITP’s financial management and governance procedures
Assurance
Required
Recommended
Discretionary
Discretionary
To appoint an external auditor to provide an opinion on whether the annual accounts are true and fair, even if not a statutory requirement
Assurance
Required
Required
Discretionary
Discretionary
For ITPs whose annual accounts are externally audited, to provide management letters to ESFA
Assurance
Required
Recommended
Discretionary
Discretionary
*ITPs which only contract with DfE to deliver Skills Bootcamps are exempt Source: DfE