Government confirms end to LEP funding

Funding for local enterprise partnerships (LEPs) is set to end in April 2024, the government confirmed today.

The money earmarked for LEPs since their inception in 2010 will now be allocated to mayoral combined and some local authorities.

Moving the funding over to the authorities will boost the scope for “greater join-up, efficiencies, and clarity for the private sector” involved in the LEP programme, according to a government letter sent to all authority leaders and LEP chairs today.

LEPs were originally set up as a way to determine the local skills priorities, and are made up of local authorities and private sector businesses. Nearly £12 billion was pumped into LEPs by 2019/20, and there are currently 36 LEPs.

But government has now moved forward with a decision to cut that funding, after it first touted the idea in this year’s spring budget.

A consultation launched in March showed that there was “overlap between some of the functions being discharged by LEPs, local authorities and combined authorities”, the letter said, which was signed by Dehenna Davison, the minister for levelling up, and Kevin Hollinrake, the minister for enterprise, small markets and business.

The consultation also found “there is already a high level of integration of LEP functions in mayoral Combined Authority areas”. Combined authorities will take on the funding to deliver the LEP’s function, while county councils will get that funding where a combined authority has not yet been set up.

Funding earmarked for the work LEPs currently do will go to the local and mayoral authorities until 2024/2025, but government has not committed to funding after that.

“The government remains committed to our goal that by 2030, every area in England that wants a devolution deal will have one,” the letter added. 

Discrimination? Providers slam apprenticeship visa rule change

Training providers have accused the Department for Education of discriminating against people on visas following a change to apprenticeship funding rules.

For several years the rules have stated that individuals must “be able to complete the apprenticeship within the time they have available” to be funded.

Version one of the 2023/24 rules changed this section to include the examples “because their visa will expire or because they have a fixed term contract which is shorter than the duration of the apprenticeship”.

Visa extensions can be a lengthy process and are generally only extended in the six months before expiry. Experts told FE Week that before the DfE’s rule change was made, it had been understood that checking the learner had every intention of reapplying for their visa when they could was deemed to be sufficient to start the visa holder on an apprenticeship.

Providers have been lobbying the DfE since the 2023/24 rules were published in May to warn that given the average apprenticeships is around two years long now, this change is “clearly and openly discriminating against people on visas”.

A DfE spokesperson claimed its policy had not changed and the addition in this year’s rules was simply a “clarification”.

“Our policy remains that individuals with visas and eligibility to remain can undertake an apprenticeship provided the duration of the apprenticeship is not longer than their time remaining in the country,” the DfE told FE Week.

“This is because it is not fair to the individual to allow them to commence an apprenticeship which they will not be able to complete, nor is it an appropriate use of public funds.”

FE funding expert Steve Hewitt said the DfE’s response “fundamentally, willfully, misunderstands the UK’s visa system”.

“Those on the route to Indefinite Leave to Remain and even Citizenship do not have the luxury of long-dated visas and must reapply several times before they reach that stage,” he explained.

“To suggest that those who have come to build their life here and support the British economy should not be able to access apprenticeship training for unnecessary, purely bureaucratic, reasons is a travesty.”

Dan Ball, quality director at England’s largest apprenticeship provider Lifetime Training, called for further guidance on how the new requirement is to be regulated. He said as it stands he anticipates the visa rule change “will have an impact on apprenticeship uptake, and particularly affect those from diverse backgrounds”.

The DfE does not publish statistics showing how many people on visas take up apprenticeships, so the scale of the impact is unknown.

Association of Employment and Learning Providers director of policy Simon Ashworth said his membership body, alongside several providers in the professional services sectors, has raised this issue with the DfE and will be “continuing to look for greater flexibility as part of the ongoing simplification project”.

He said: “With apprenticeships becoming longer in duration we believe the department should work more closely with the Home Office to come up with a pragmatic, flexible solution to support those individuals who clearly intend to stay for their programme and beyond.”

The DfE said it will continue to keep all aspects of its rules under review and will set out any changes in version of the 2023/24 rules in October.

College set for ‘inevitable’ court battle with football club after mediation falls flat

A London college is poised for a court battle following allegations it owes a six-figure debt to a football club.

Mediation talks between Stanmore College and Barnet FC to resolve the historic dispute were held last week but a settlement was not reached.

The college is accused of failing to pay fees for sponsorship of the football club’s women’s team, as well as hire of its pitches and academy training services in 2015.

Barnet’s academy alleged earlier this year that Stanmore College breached an agreement to pay more than £110,000 for those services and sued the college for £168,180 in total. But the college refused to pay up, claiming that emails between its former principal and the football academy were not on their behalf and did not show “offer and acceptance” of the deal.

The judge suspended the trial in June in the hope that the case could be settled out of court. But mediation held on July 27 failed to reach an agreement meaning a drawn-out court case appears “inevitable”, according to the football club.

In a statement, it said it was “disappointed that a settlement could not be found”.

“We would prefer to avoid any dispute with a local college – especially one with whom we had previously enjoyed a good relationship,” a spokesperson added.

“However, like any organisation, we have bills to pay and salaries to meet, so cannot allow our services to go without payment and for so long.”

Though it appears court proceedings “are now inevitable”, the football club said it is “always open to an amicable resolution”.

A spokesperson for Stanmore College confirmed that mediation talks took place on July 27, and said that the college is “progressing matters with parties concerned”. But it declined to comment further on the case.

College group wins High Court battle to sell closed campus

A college group has overturned a covenant that was preventing a defunct campus from being sold for non-educational purposes, following a battle with its local council and campaigners in the High Court.

Judge Simon Gleeson yesterday ordered Malvern Hills District Council to lift the legally binding restriction placed on Malvern Hills College in 2008.

In siding with owner Warwickshire College Group (WCG) which closed the site in 2021 due to a “diminishing customer base”, judge Gleeson said it was “beyond doubt” that there was not a viable option for further education in the area.

WCG had argued that it was clear there was no need for a college in the local area, and that the restrictions on who they could sell the site to significantly suppressed its sale price.

The group welcomed the verdict, with chief executive Angela Joyce saying closing a college site is “always a last resort decision”.

“Nobody who works in further education ever wants to see provision reduced,” she added, but said the college was still “open to offers” and could sell the site to the community. However, the college will be looking at other options such as leasing the site until it has agreed a sale, after “various community bids” fell apart.

‘Great sadness’

The move to sell the site to a non-educational group faced strong opposition from locals and their MP, Harriet Baldwin. In a statement released following the verdict, Baldwin expressed “great sadness” over the “asset-stripping exercise” and threw her support behind the council if it does appeal the decision.

The council meanwhile was part of a consortium that put together a £1.2 million bid to buy the site for a newly formed arts and community college.

Up until it was closed, the college mainly offered self-funded leisure courses for adults but also offered some 16 to 19 provision – which it then transferred to another part of the college following the outbreak of the coronavirus pandemic. In 2021 the Education and Skills Funding Authority ruled that there was “no functional need” for 16 to 19 provision in the area, but was not able to judge on the self-funded adult courses.

On that basis the local council refused to issue a letter to the college which would have allowed it to sell to non-educational groups such as housing. The college then took the local council to court.

No cogent evidence

The council had argued that “poor marketing” by the college was the reason for historically low FE student numbers, and that there was demand for the courses. However, judge Gleeson found there was no “cogent evidence” backing up the implication that the college was “actively harming its own financial interests” and that there was a difference between demand for courses and a local “need” for education in the area.

The council also disputed the ESFA’s decision that there was a lack of local demand, calling it “irrational”. But the judge dismissed that as well.

“Put simply – and brutally – the users of the college had in practice determined that its services were not necessary, since they were not prepared to pay enough for their courses to cover its operating costs,” he said. After the college moved its 16 to 19 provision, he could not see “any conceivable way in which the College could have continued to operate without a very significant annual financial subsidy”.

The council said it was “disappointed” by the ruling, but that it would respect the court’s decision.

“The future of the college is in the hands of Warwickshire College Group and we continue to urge them to find a way forward that supports the long tradition of education on this site.”

Joyce said her college group is “not here to profiteer, but as a charity our governors do have a duty to achieve appropriate value for our assets”.

A WCG spokesperson added that the college group “regrets that the behaviour of a number of key individuals within the community has created unnecessary unpleasantness and considers that the court hearing may well have been prevented if individuals had behaved differently”.

A spokesperson for the Save Malvern Hills College Campaign said it was “devastated” by the decision and accused the college group of “withdrawing marketing materials, introduc[ing] a redundancy programme and ma[king] it difficult to enrol on courses” since it acquired the site.

The spokesperson added: “WCG says that any ‘profits’ from the sale will be reinvested in local education. That may be the case but it won’t be in Malvern. We hope that somehow there is still a positive way forward and remain grateful to all those involved in supporting the campaign.”

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.