Long-awaited three-college Hampshire merger gets over the line

A three-way merger that aims to secure the future of a troubled Southampton college has finally got over the line.

City College Southampton has today officially merged with Eastleigh College and Fareham College to create the South Hampshire College Group (SHCG).

The merger, given the green light by the Department for Education, will combine the three colleges’ student numbers to over 14,000 learners and a total combined turnover of over £50 million.

Andrew Kaye, principal of the former Fareham College, will take the helm and become chief executive of SHCG.

The two other principals – Martin Sim of City College Southampton and Paul Cox of Eastleigh College – will stand down. 

Cox will leave to take up a “new private sector leadership role”. He has been at Eastleigh College since 2017, and principal since late 2019.

Sim, interim principal at City College Southampton, will return to his deputy FE Commissioner role.

Kaye said: “This merger has created a single, financially strong, responsive and ambitious FE organisation to serve the education and training needs of South Hampshire.

“We will pool all our resources and expertise to enhance the range and quality of courses in this region.”

City College Southampton was rated ‘requires improvement’ by Ofsted last year, as was Eastleigh College which is also yet to file accounts for 2022.

Fareham College is currently judged ‘outstanding’ although it hasn’t been inspected since 2017.

Multiple previous merger attempts involving City College Southampton – one of which included Eastleigh College – have been abandoned since 2016 when the FE Commissioner said City College Southampton was not sustainable as a standalone college.

City College Southampton has since received around £12 million in bailout funding from the DfE to stay afloat.

Chair of the new board of governors at SHCG, Sandra Prail, who is also a DfE national leader of governance, said: “We are tremendously excited to be at the helm of the new SHCG, and our board members look forward to contributing their expertise and skills from many industry sectors into the new venture.”

Geraint Davies, former chair of City College Southampton, added: “The merger will create a college for the future and we are proud to have a place in it.  

“SHCG will produce skilled people to join South Hampshire’s workforce and contribute to the success of the economic landscape. We are looking forward to the future.”

BCTG changes owner and ‘removes’ CEO after Ofsted battering

A large training provider has changed owners and “removed” its chief executive following an ‘inadequate’ Ofsted judgment.

BCTG Limited was downgraded from ‘good’ to the lowest possible rating in a report published by the watchdog today, which slammed a “lack of focus” on the quality of education amid a “significant strategic decision” to switch from subcontracting to direct delivery.

The provider offers training to almost 2,250 learners and apprentices nationally through multi-million-pound contracts with the Education and Skills Funding Agency (ESFA) and West Midlands Combined Authority (WMCA). At least one contract has already been terminated in light of Ofsted’s judgment.

Since the inspection last month, BCTG’s owner Chris Luty has handed control of the company to Alan Phillips.

Phillips told FE Week the senior leadership team was “devastated with the result”, adding that he has taken “swift and decisive action, resulting in removal of the CEO” Sarah Matthews.

Matthews, however, claimed that she “resigned” from the role after Ofsted’s visit.

Phillips would not comment on the future of the company’s funding contracts or other potential job losses but said: “Communication has been ongoing with stakeholders, partners and funding bodies and our priority now is to continue supporting our learners and customers whilst also initiating an immediate and incisive action plan.”

The WMCA told FE Week a recently awarded pre-employment contract for an undisclosed amount, which has no starts to date, will be pulled from BCTG.

But the combined authority has ruled that BCTG can continue to manage a £9 million sector-based work academies consortium contract that was awarded in January 2022, although it is up for renewal in December. A spokesperson added that WMCA will “enhance its quality oversight of supply chain delivery and management at BCTG” during this period.  

The ESFA declined to comment on whether BCTG will be allowed to keep a £1.6 million skills bootcamps contract as well as its near-£4 million advance learner loans contract. Nor would the agency say whether the provider would remain in the apprenticeships market, which is a possibility considering Ofsted judged apprenticeships as ‘requires improvement’ despite the overall ‘inadequate’ rating.

A lack of focus on the quality of education’

BCTG launched in 2001 and has largely offered publicly funded training as a prime provider who subcontracts the delivery out to other providers. It still currently works with 26 subcontractors who provide adult work-based learning through short courses in sectors like health, care, public services and construction.

The government has cracked down on subcontracting in recent years which forced BCTG to move to more direct delivery. As well as adult education budget courses, the provider delivers apprenticeships, study programmes to 16- to 19-year-olds, skills bootcamps and advanced learner loans.

Today’s Ofsted report said: “During this period of change, leaders rightly recognise that there has been a lack of focus on the quality of education that learners on education programmes for young people and learners with high needs receive.”

Senior leaders have recently introduced additional advisory board members which has led to “early improvements” following changes in adult courses and apprenticeship curriculums and a halt to recruitment in some subjects. 

But the quality of education across subjects and learner groups “remains inconsistent”, inspectors warned, adding that delivery for high-needs learners and young people is “poor”.

Leaders also “do not sufficiently risk assess” their subcontractors, nor do they conduct visits to their subcontractors “frequently enough to ensure that they continue to provide high-quality education”.

Ofsted did find that “most” learners on adult short courses, such as sector-based work academy programmes and skills bootcamps, develop substantial new knowledge, skills and behaviours. But the proportion of learners who move into employment following completion of their short course is “low”.

Too many apprentices also do not complete their apprenticeship on time, an issue which has held apprentices back from taking their next career or education steps.

Today’s report did however praise BCTG’s training advisers for creating an inclusive environment as well as a “positive and respectful culture”. Safeguarding was also judged to be “effective”.

Phillips said: “BCTG has made a substantial contribution to the skills and education sector over many decades, supporting individuals, employers, partners and communities across a range of projects and initiatives.”

Top apprenticeships civil servant to retire

The government’s top civil servant in charge of apprenticeships, Peter Mucklow, is set to retire.

He will be replaced in the job in the Department for Education by Kate Ridley-Moy “later this year”.

Mucklow has been a civil servant working in the education and skills sector for over 25 years, mostly recently overseeing the apprenticeships reform programme and rollout of skills bootcamps.

Ridley-Moy is currently a senior civil servant at the Home Office, working as head of central crisis command. She previously worked at DfE for over 11 years as assistant director and head of participation and careers.

Kate Ridley-Moy

Mucklow assumed the position of apprenticeships and skills bootcamps director from fellow high-profile civil servant Keith Smith in 2020, who left the DfE to become chief executive of Harrow College and Uxbridge College.

That year, Mucklow was also named the official delegate for WorldSkills and WorldSkills Europe.

Before that, he worked as the Education and Skills Funding Agency’s director of further education from 2018 to 2020.

The DfE told FE Week: “Kate Ridley-Moy has been appointed as Peter Mucklow’s successor as director of apprenticeships and skills bootcamps and is currently working alongside Peter at the Department for Education ahead of his retirement later this year.”

Teenager arrested in exam board cyber attack investigation

Police investigating exam board cyber attacks have arrested a 16-year-old boy. 

Earlier this term, FE Week revealed how Cambridgeshire Police were investigating a “data breach” involving exam boards Pearson and OCR

The boards had exam papers “extracted from their systems and sold online,” the force previously said. 

Police confirmed this week that a 16-year-old boy from Hertfordshire was arrested on July 4 on suspicion of theft, fraud by false representation and computer misuse. 

He has been released on bail until early October. 

Surrey Police is also investigating another allegation of fraud and computer misuse at England’s largest exam board, AQA.

No arrests have been made during its investigation, which is ongoing. 

The Joint Council for Qualifications – which represents exam boards – previously said that “every year, awarding organisations investigate potential breaches of security.

“When investigations are complete, sanctions, which may be severe, are taken against any individuals found to be involved.”

Multimillion-pound competition launched for net zero training

Nearly £9 million is up for grabs to subsidise specialist net zero courses in retrofitting and energy efficiency.

The package, worth up to £8.85 million, will “heavily” subsidise training courses for aspiring retrofit and insulation experts in England, and is funded by the Department for Energy Security and Net Zero

It could provide training for up to 8,000 people, according to the department, and will “develop the skills and expertise needed to retrofit homes with energy saving measures”. Training providers can apply for up to £1 million to run the courses.

As well as the costs of the training courses themselves, the fund could cover trainers’ costs, including accommodation and transport, plus any costs trainees take on including accommodation or transport.

The courses will run from this September until the end of March 2024, and comes as the government moves towards its target of reaching net zero by 2050.

Lord Callanan, minister for energy efficiency and green finance, said the fund would mean training providers can “put on the courses needed to help create the skilled workforce ready to join this rapidly-growing market, with people able to benefit from these courses at low or no cost”.

“We’re investing billions of pounds to improve energy efficiency across the country – saving households hundreds on their bills while making sure Britain’s homes are fit for the future,” he added.

“We’ve already helped millions of people to do this, but we need an army of skilled professionals able to install insulation and other energy-saving measures in homes across the country.”

The providers will need to show that there is demand for the courses in their area, either by providing minutes of meeting with local providers or job centres or evidence of enquires for the courses. They will also need to prove a track record of delivering courses in construction, energy efficiency or energy assessment.

Teaching could be online or in person.

Most of the courses provided via the funding will focus on insulation in homes, with plans to fund around 5,000 training packages. The rest will focus on retrofit work.

Though the department is funding the project, it is being led by the Midlands Net Zero Hub, which will visit all the training centres to make sure the right courses are being led with the right accreditation, and will also attend the online courses. 

The hub will have the power to remove the funding if the providers do not perform, though it will first offer “supportive steps” to providers that are struggling.

Providers will be able to apply to the fund from Friday 28 July by completing a form available here, which should be sent to HDTrainingCompetition@nottinghamcity.gov.uk. They have until 25 August to submit their bids.

‘Broken’ Skills Training UK employees won’t be paid in full this month

Employees at Skills Training UK have described feeling “broken” as bosses confirm they will only be paid for seven days this month.

This comes on the day the Association of Employment and Learning Providers (AELP) has demanded that ministers take urgent action to prevent “total collapse” of the training system in the wake of multiple providers exiting the publicly funded training sector.

Skills Training UK is not yet officially in liquidation, but staff were told on Friday not to come back to work.

In an update today, seen by FE Week, staff were told that managers were unsuccessful in obtaining an overdraft to cover July’s payroll in full. Only a partial payment was granted meaning staff will only be paid for seven days this month. This reduced payment will still be subject to deduction like tax and pension contributions.

While they wait for the appointment of a liquidator, employees can’t make a claim for unpaid wages, notice pay or redundancy pay. Meanwhile, staff are also worried learners could miss out on getting their qualifications this August as they’re not at work to liaise with awarding organisations.

Stunned staff, some in tears, told FE Week they had been “left drowning” and out of the loop at a time when living costs are spiralling and after they have worked at the provider for years.

“We’re just broken, some of us have children and mortgages, it’s completely crazy. Management went completely quiet on us.”

More than 200 staff members will be made redundant if the provider does go under. In an update issued on its website, Skills Training UK said it expects to appoint liquidators on August 2, and that all delivery to all learners has stopped. 

There are also concerns that learners will not receive the qualifications they were studying for, as staff have been locked out of their computers and systems and are not able to communicate with the learners or awarding organisations such as Pearson. As emails were shut down, staff could not tell learners that the provider is about to shut its doors.

“They’ve abandoned them,” one staff member said. “Some of the learners that I started working with a year ago have behavioural issues, and now they are going to get nothing after a year’s work. And there’s no one to be held accountable.”

Skills Training UK declined to comment.

AELP has meanwhile warned the sector “risks total collapse” thanks to a “perfect storm” of rising costs, reduced adult education budget (AEB) contracts, the end to the traineeship programme last year and real-terms cuts to apprenticeship funding bands. 

It has called for an across-the-board uplift of 10 per cent in funding for all apprenticeship standards and a minimum government spend of £5,000 per year across all apprenticeships to keep apprenticeship providers afloat, alongside an increase to the maximum contribution above the current £27,000.

Nichola Hay, chair of AELP, warned any collapse of the skills system would “have a huge impact on learners and employers, as providers withdraw from the market and their choice is drastically reduced”. 

“At a time where skills are vital in our country’s plan for growth and stability, we need a quick government response to save the skills sector, including an immediate 10 per cent across the board rise in funding for all apprenticeship standards, alongside a long-term plan to stabilise the skills system,” she added. A national skills strategy would help to stabilise the sector by “identifying and properly funding the country’s skills needs.”

A spokesperson for the Department for Education said it was “committed” to supporting high-quality delivery of apprenticeships across all levels and sectors of the economy.

“Over the last year we have reviewed the funding of more than 50 standards, with 75 per cent receiving an increase of around 20 per cent,” they added. They also highlighted a plan to introduce immediate funding increases to ten apprenticeship standards, which they announced last month.

Earlier this month, Skills Training UK was one of several big-name training providers that missed out on a national adult education budget (AEB) contract in the Education and Skills Funding Agency’s most recent procurement. The provider does though hold a devolved contract in London worth £525,000, and other devolved contracts in South Yorkshire.

It also scooped spots on three lots of the DfE’s bootcamps contracts which were tendered out last September.


FE Week updated this article with a statement released on Skills Training UK’s website regarding the expected appointment of liquidators, which was issued on July 25.

Skills Training UK then appointed Matthew Roe and Richard Hawes as joint liquidators from Teneo Financial Advisory on August 3.

The liquidators said they are are “assisting former employees of Skills Training UK Limited to claim any entitlements available from the redundancy payment service”.

Revealed: ‘Front line’ boost to 16-19 funding

The national funding rate for 16-18 year olds will be 2.3 per cent higher than planned following the education secretary’s announcement of a £185 million cash injection for academic year 2023-24.

Details published late last week outline how programme cost weightings and disadvantage funding will rise alongside the base rate.

The Department for Education (DfE) announced it will be increasing the national funding rate for students aged 16 and 17, and students aged 18 and over with high needs in band 5, by injecting £111 more per student to colleges and other 16-19 providers.

The new base rate of £4,753 per learner, is a much-needed funding rise, college leaders say.

James Kewin, deputy chief executive of the sixth form colleges association, said: “This is a good news story. Credit should go to DfE for keeping hold of the underspend that will be used to fund this increase and to ESFA for getting the rates out so quickly.” 

It comes as part of a £185 million funding injection in 2023-24 and £285 million in 2024-25 to “address key priorities” in the further education sector which was announced alongside the 6.5 per cent pay rise for school teachers.

Unlike in schools, the government does not set staff pay in FE, but the education secretary has told colleges the extra funding coming next year should be spent on staff retention and recruitment.

Gillian Keegan, the education secretary, told MPs in the House of Commons last week that she “expects” this extra funding “to go to the front line.”

“I hope the investment will support the FE sector to address its recruitment and retention challenges,” she said.

The base rate was due to be £4,642 for the next academic year, rising from £4,542 in 22/23.

The DfE said that other funding bands – including for part-time and T Levels – will increase proportionately. It also lifted the disadvantage block 2 funding, which takes into account the additional cost of teaching and supporting low prior attainment students, by £55 per student, making the total funding £559 per student, up from £504.

The disadvantage block 2 rate will go up to £341 for bands 2 and 3 students and £758 for T Level students.

All programme cost weightings in the 16 to 19 funding formula will also be increased. This means that the low weighting of 1.1 becomes 1.13, the medium weighting of 1.2 becomes 1.26 all the way up to specialist, which moves from 1.75 to 1.975.

“It is right that 16-19 providers receive funding when it is extended to pre-16 providers,” added Kewin. “We’ll continue to campaign for the rate to be raised even higher, but today’s news is a welcome step in the right direction.”

Skills Training UK on brink of insolvency

A high-profile independent training provider, Skills Training UK, is close to collapse, FE Week understands.

The national provider, which has centres across the West Midlands, London and the South East, could file for insolvency and go into liquidation next week with the loss of over 200 jobs.

Staff were told this afternoon that they are not required to come back to work as bosses hold crunch talks with liquidators. A final decision on the future of the business is expected early next week.

Earlier this month, Skills Training UK was one of several big name training providers that missed out on a national adult education budget (AEB) contract in the Education and Skills Funding Agency’s most recent procurement. The provider does though hold devolved contracts in London and South Yorkshire.

The company also had traineeships as part of its portfolio, a government programme that was scrapped by ministers earlier this year. Its 16-19 allocation for 2022/23 was worth £4.2 million.

On apprenticeships, Skills Training UK started 820 apprentices in 21/22 and 550 in the first three quarters of 22/23. Apprenticeship numbers have gradually reduced from a high of 1310 in 2018/19 according to DfE data.

Ofsted last inspected the provider in 2017 and gave it a ‘good’ overall judgement.

Skills Training UK recorded a loss of £3.5 million in its 2022/23 accounts, in comparison to a profit of £1.2 million the year prior. Turnover also slipped to £10.3 million from £18.0 million, which it blamed on the coronavirus pandemic, the economic troubles and their high fixed costs.

The provider’s cash pot also vanished last year, from £2.2 million the year prior. Skills Training went into its overdraft by more than £6,000.

Skills Training UK also elected not to pay out a dividend “given the poor performance of the company”. It paid out a £3.9 million dividend the year before.

Colleges need better funding to perform their crucial role for refugees

With immigration minister, Robert Jenrick warning of an ‘intolerable pressure’ on our ability to integrate new arrivals, we need to acknowledge the services that drive settled communities and skills for work – and commit a stable and flexible budget to them.

Going to college is more than a transactional encounter where you learn a trade, take an exam and tick a box. Further education provisions support young people and adult learners far beyond the classroom: providing packed enrichment programmes including sport, societies and cultural learning.

They also provide service links to mental health support, financial services and copious amounts of in-house assistance. English for Speakers of Other Languages (ESOL) programmes are the epitome of these wrap-around services that colleges deliver. 

Colleges support ESOL students – many of whom have made difficult journeys to the UK and arrive as refugees – to understand life in Britain, learn the language and prepare to contribute economically. They work proudly with asylum seekers – having done so since the arrival of the first Vietnamese boat people in the 1970s through to Afghan refugees today – teaching British Values, helping them to access services appropriately and supporting social integration country-wide.

Colleges are busy, in the background, creating skilled migrants who are ready to contribute economically. By doing so, they are supporting assimilation and communities where people live in harmony with each other. Without them, we would see a dystopian landscape of more ghettoised and isolated communities, a strain on mental health services and more social unrest.

Without colleges, we would see a dystopian landscape

We work with incredibly motivated ESOL students and refugees who are prepped at college to progress into work. Many go on to graduate into sectors which benefit from an international talent pool –  as well as industries which are, like colleges, struggling to recruit and maintain staff. We have seen qualified accountants retrain as teaching assistants, and other refugees go into all kinds of work including community outreach, law and barbering. 

But the bottom line is that funding does not go far enough for adult education. We have reached a point where historic underfunding of the national FE pot needs to be addressed, just as we are seeing a rise in overall demand for services like ESOL in the post-pandemic environment. At Harrogate College, a College of Sanctuary in Yorkshire, we have seen an increase of nearly 100 ESOL students enrolled from last year, with 60 on the waiting list and significantly more in Leeds.

The refugees we work with are incredibly motivated to contribute economically and in many cases are living in real poverty. Many have experienced trauma and left their home country under duress.

As committed sanctuary partners we want to welcome and support them to achieve the better lives they deserve. Let’s commit stable funding to the services that benefit them and our communities at large.