‘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.

Let’s stop talking about soft skills – They are power skills

Within the tech sector, job adverts tend to focus on the technical skills a candidate needs to possess to be successful in the role. While proficiency in certain software or the ability to code, for example, are enormously important for tech roles, they are not the only qualities an employee needs to thrive once they are in the job.

Those who have strong communication, organisational and interpersonal skills find they can adapt quickly to new roles and flourish in busy workplaces. For too long these qualities have been known as soft skills, but increasingly voices in the recruitment sphere are referring to them as power skills because of the impact they have on the workplace.

Power skills encompass areas such as leadership, teamwork, critical thinking, communication and productivity, and many will already be excelling in these areas without even knowing it. Being aware of one’s own strengths and weaknesses in the power skills department can help job hunters hone their search to find roles that suit their skillset.

By identifying where they thrive, candidates can also make sure they draw attention to their best power skills during the application and interview processes. Candidates can also proactively build up their skills in the areas they struggle with, and this personal growth could make securing jobs easier in the long run.

A recruitment superpower

When many candidates with the same technical skillset are applying for roles, power skills can act as key differentiators. Power skills are known to impress recruiters, so candidates must showcase these when trying to land a job. This is crucial throughout every stage of the recruitment process, from a candidate’s initial application to the first few weeks of a new role.

Clear communication skills can shine through in a written application, while strong problem-solving abilities and emotional intelligence can impress in an interview situation when presented with scenarios. Power skills like professionalism, honesty and passion for the role will put a candidate in good stead and can increase their chances of progressing to the next round of interviews and, hopefully, receiving a job offer.

When starting in a new role, candidates who understand the value of teamwork will learn the ropes quickly as they will be prepared to lean on other people for support, ask questions and muck in with projects when required. Equally, being confident enough to use their initiative when situations call for it will help the whole team to progress.

A helping hand for graduates

Power skills are especially important for Gen Z and Millennials as they are now embarking on the start of their tech careers and applying for entry-level roles. In a competitive job market where work experience, internships and extra training have never been more important, candidates will need to rely on their power skills to make an imprint on recruiters’ minds and stand out among a sea of other candidates.

If a candidate falls short on technical skills but ranks highly on power skills, an employer might consider them as a potential candidate if they are demonstrating the right attitude. Technical skills can be taught, and recruiters may see potential in a candidate who wants to learn and grow over one with all the right technical skills but little interest in the job they’re applying for.

Longevity in tech careers

Experience becomes hugely important when applying for senior job roles, but power skills are also likely to have been developed over their many years in the working world. Strong leaders, critical thinkers and good listeners all possess power skills in abundance. When combined with strong technical skills, these individuals make invaluable contributions to their workplaces and are likely to soar through the ranks.

Power skills are important in any job, but they have particular weight in the world of technology. The tech sector continuously evolves, and keeping up to date with the latest changes and technological advancements is crucial to staying ahead of the curve. Those who possess power skills like self-motivation, adaptability and a keen desire to learn will find it easier to grow and navigate their careers as they inevitably evolve over time.

Why childcare is the FE sector’s business too

Early Years and FE can often feel like distant relations in the education family – linked but at opposite ends of the learning journey. Yet the connection between the two is much closer than many appreciate.

The most obvious link is the critical role FE plays in providing new entrants to the childcare sector with the skills and knowledge required to deliver high quality provision to both children and their families.

We also have the equally important responsibility – especially given the ongoing retention issues in the early years workforce – of providing professional development opportunities and career progression to ensure more experienced staff not only remain in the sector but thrive.

But what we don’t always consider are the less tangible connections between the two sectors – and how the childcare sector supports FE in return. 

Beyond childcare

Childcare is defined as care for children, especially that provided by either the government, an organisation, or a person, while parents are at work or absent for another reason. Every parent and carer should have access to affordable, great quality childcare and early education for their child.

Campaign for Learning’s recent policy paper – Expanding Childcare: time for children, parents and family learning – points to the need to better appreciate childcare as a social good; one that’s not only important for facilitating work and child development, but also allows parents to train, re-train, and take their first steps back into learning.

At present, childcare entitlements and the Government’s proposed expansion are focused on working parents who are required to work 16 hours a week to be eligible for free childcare.

On a policy level, the paper’s authors and Campaign for Learning make a strong case for treating 16 hours of skills training as 16 hours of paid employment, to ensure parents partaking in training would also get continued access to free childcare.

This could apply to parents taking part in Skills Bootcamps or taking relevant childcare qualifications in FE, which would also support the expansion of the childcare workforce. There is also potential for supporting parents to learn online at home, so they are able to go back into the labour market.

The paper goes on to look at support for family learning and routes into further learning, and how time for family learning could also be included within the 30-hour and 15-hour free childcare entitlements for children aged 9 months to under 5.

Understanding its value

As a sector, FE needs to better understand childcare’s multifaceted value. Accessible and high-quality provision allows parents to pursue their own education, engage in training programs, or re-enter the workforce with confidence.

By providing a safe and nurturing environment for their children, parents can focus on personal and professional development, acquiring new skills, and advancing their careers. It helps parents balance their work and family responsibilities, contributing to their economic stability and reducing barriers to employment.

Childcare facilities can also act as centres for family learning, where parents can actively participate in their children’s education. Family learning programmes promote positive parent-child interactions, enhance early literacy and numeracy skills, and foster a lifelong love of learning.

Recognising childcare as a social good also highlights its potential to provide career opportunities. Family learning initiatives and childcare settings can serve as stepping stones for parents interested in pursuing careers in both education and childcare. By engaging in these activities, parents may discover a passion for working with children, leading to future employment or training.

A further benefit of the early years sector within society is its impact in helping to address gender disparities. Historically, the burden of childcare has disproportionately fallen on women, limiting their educational and career opportunities. By appreciating childcare as a shared responsibility and valuing it as a social good, we can promote gender equality by enabling both parents to actively participate in education, training, and employment.

Changing the mindset

Too often childcare is seen solely through the lens of convenience or child development. By changing this mindset, we can better understand its potential to empower parents, facilitate family learning, create pathways into the workforce, encourage early education, and promote gender equality.

In valuing childcare in this broader context, we can advocate for policies and investments that support its accessibility, affordability, and quality, thereby benefiting individuals, families, and society as a whole.

It’s time to get the whole education family around the table to better understand what connects us and how we can all support each other.

Leaders sound alarm as 2024 exam entry fees soar by up to 16.5%

England’s largest exam board has increased fees for some of its most popular GCSE and A-level subjects by as much as 16.5 per cent, more than double the current rate of inflation.

AQA and its competitors Edexcel and OCR stand to net millions in extra revenue between them from price increases for 2024’s summer exams.

Next year entry to AQA’s maths GCSE will cost £48 per pupil, up 16.5 per cent from £41.20 this summer, according to analysis by Lee Hitchen of the Academic Enrichment Centre and a former staffer at OCR.

Entries to AQA’s GCSE English and statistics qualifications and A-level history will cost around 10 per cent more, while English A-levels will increase by around 9 per cent.

However, fees for most other subjects will only rise by 4 per cent at the exam board, whereas OCR and Edexcel have implemented 7 per cent increases across the board, just shy of the current rate of CPI inflation, which was 7.9 per cent in the year to June.

It comes after Ofqual analysis found the cost of general qualifications rose 6.5 per cent this year and 2.6 per cent between 2021 and 2022, though these rises were below rates of inflation over the same period.

Geoff Barton, general secretary of the Association of School and College Leaders, said schools and colleges were “under huge financial pressure and this is yet another example of the kind of challenges they are facing”.

“Exam fees represent a significant cost to schools and colleges and this latest price hike will only serve to stretch budgets even further. We completely understand that exam boards will also be facing rising costs, but we cannot understand why there is such variation between different exam boards and subjects.”

Ofqual warned this week that rising prices across the country for this summer’s exams suggested exam boards “have likely been under increasing cost pressures from the general economic environment over the reporting period”.

AQA awards the lion’s share of GCSE qualifications every year, including the majority of English language and literature GCSEs. From the price rises in those subjects alone, the exam board would net an extra £4.4 million if qualifications issued matched numbers seen in 2022.

For a school or college, the cost of entering 200 students for AQA’s maths GCSE would rise from £8,240 to £9,600.

A spokesperson said the board had “experienced a rise in the cost of providing our services which means that we, as an education charity, have had to take some difficult decisions”.

“For most of our qualifications, we have increased entry fees for 2024 well below the rate of inflation. Entry fees for some of our qualifications have increased above inflation so that they better reflect the market and the true cost of delivering those qualifications.”

Edexcel issues the highest number of maths GCSEs, and would net £1.6 million from its price increase for that subject if the number of certificates is the same next year as in 2022.

A spokesperson said qualification fees “cover the delivery of each qualification from first teaching to successful completion of the course, assessment and issuing certificates”.

“We recognise that school and college budgets are stretched, and we will always aim to keep fee increases to a minimum, while providing as much value for money as we can for our qualification fees.”

OCR said it knew schools and colleges “are facing severe financial challenges”.

“As a not-for-profit organisation, we aim to keep our fee increases as low as possible while covering our costs. We’ve set our fees for the next year below the current rate of inflation.

“We continue to invest in support, resources, training and technology for teachers and students as well as in the development of new qualifications.”

It comes after Ofqual board minutes from December, only published yesterday, revealed how exam boards were reminded last year “of their obligation to notify Ofqual of any proposed fee increases that exceed inflation and that Ofqual is monitoring price increases”.

“It was agreed that Ofqual would bring a deep dive into qualifications pricing to a future board strategy event.”

It is not clear whether the deep dive went ahead, or whether its findings had been presented.

An Ofqual spokesperson said: “We recognise the financial pressures schools and colleges face and require awarding organisations to make their qualification pricing transparent.

“Ofqual monitors those prices throughout the year, and reports on changes in the annual Qualification Price Statistics report. This enables schools and colleges to compare costs against industry averages and rates of inflation when making purchasing decisions. We continue to brief the Ofqual board on developments in this area.”

Keegan wants ‘extreme caution’ from colleges after trans advice delayed

Schools and colleges should “proceed with extreme caution” over transgender issues, education secretary Gillian Keegan said as she confirmed long-awaited guidance has been delayed again.

In a parliamentary statement, Keegan said pushing back publication of the guidance would “allow more time” to speak to teachers, parents and lawyers to ensure it “meets the high expectations that these groups rightly have for it”.

However national newspapers have reported the delay relates to some of the proposed guidance breaking laws and cabinet split on how to proceed.

Academies minister Baroness Barran has said guidance will set out legal duties and provide “clear information to support their consideration of how to respond to transgender issues”.

DfE’s transgender guidance will include colleges

But Keegan said today: “It is a difficult and sensitive area and more information is needed about the long-term implications of a child to act as though they are the opposite sex.

“We also need to take care to understand how such actions affect other children in the school or college. These decisions must not be taken lightly or in haste.

“It is vital that the guidance we publish gives clarity for schools and colleges and reassurance for parents. 

“So, we have made the decision to allow more time – to speak to teachers, parents, lawyers and other stakeholders – in order to ensure this guidance meets the high expectations that these groups rightly have for it.”

The delay has frustrated unions representing leaders who have long called for the guidance to be published. 

Geoff Barton, general secretary of ASCL, said: “At present, schools and colleges have to navigate this complex and sensitive subject entirely on their own.

“Clear, practical guidance on this matter is important as long as it is genuinely supportive to schools and pupils and does not add to the existing and onerous expectations on schools.”

Rye College school faced a snap Ofsted inspection after a national media and political storm over a leaked recording of a teacher talking to pupils about gender.

Keegan said that, “in the meantime, schools and colleges should proceed with extreme caution” when dealing with such issues.

“They should always involve parents in decisions relating to their child, and should not agree to any changes that they are not absolutely confident are in the best interests of that child and their peers,” she said.

“They should prioritise safeguarding by meeting their existing legal duties to protect single sex spaces and maintain safety and fairness in single sex sport.”

Oliver vows to ‘work with whole sector’ to ‘create best’ Ofsted

Sir Martyn Oliver has vowed to work “closely with the whole sector” to “create the best system” for children after being confirmed as the Department for Education’s preferred candidate for Ofsted chief inspector.

Gillian Keegan confirmed the selection of the Outwood Grange Academies Trust boss this morning.

In a statement, Oliver said he was “deeply honoured and hugely privileged” by the recommendation. 

“Subject to the pre-appointment hearing, I can promise that I will work extremely hard and very closely with the whole sector so that we can together build on what has been done to date to create the best system in all areas of education, children’s services and skills for the benefit of children and young people,” he added. 

Oliver will now be subject to a pre-appointment hearing by the education committee in September.

Keegan said Oliver has “demonstrated exemplary leadership and an unwavering commitment to driving up standards in areas of disadvantage in his time as a school and trust leader.

“I am confident the breadth of Martyn’s experience will enable him to build on this vital work as Ofsted moves into the future.”

She thanked current chief inspector Amanda Spielman “for successfully steering Ofsted over the last seven years, introducing key reforms including hugely important new education and social care inspection frameworks”.