National Skills Fund consultation launched

A consultation has been launched on the government’s new level 3 qualifications offer, its skills bootcamps programme and how it can “meet critical skills needs”.

The consultation on the offers, all run through the £2.5 billion National Skills Fund, was originally meant to begin in the spring but was pushed back.

The Department for Education has invited providers, awarding bodies, employers, local authorities, regulators, representative bodies and the public to take part before the September 17 cut-off.

“The responses from this consultation will help shape the provision which is currently funded through National Skills Fund investment,” the consultation document explains.

FE Week has pulled out the important information from the document’s three sections: free level 3 qualifications for adults, skills bootcamps, and meeting critical skills needs.

 

Free level 3 qualifications for adults

The DfE is eager for the entitlement for a first, full, free level 3 qualification for anyone aged over 24 to “be delivered in a way that works for them, helping adults overcome barriers to accessing learning”.

This section focuses on such barriers, including financial ones, and asks respondents for their thoughts on how barriers can be overcome. Perhaps through flexible start dates, breaks in learning, or weekend and evening classes, it poses.

Officials are also looking for answers to how adults can access the level 3 entitlement without that level of learning.

“We recognise that for some adults accessing the free level 3 qualifications may prove challenging as they may lack some of the prior learning or experience needed to engage in learning at level 3,” the consultation document reads.

How employers can “benefit from this offer and the skills it provides” is also explored in this section.

 

Skills bootcamps

The new short courses in digital and technical skills are being rolled out to every region of England, following pilots across the nation last year.

Ahead of the wider introduction of bootcamps, the DfE is asking providers what they find most valuable about the courses.

It is also questioning what challenges providers face delivering them and how the courses could be changed, including by asking them for their thoughts the current 16-week maximum period for bootcamps.

consultation“Some further education colleges and other providers have said to us that they have held back from delivering skills bootcamps because – while they have been delivered on a smaller scale – skills bootcamps have been funded through a separate procurement process,” the consultation reads.

While employers are already being asked to pay 30 per cent of course cost for training their own employees, the consultation is also seeking views on non-financial contributions employers could make.

This may include giving up space for training, providing equipment, or allowing their workers time to learn.

Additionally, “to ensure that adults can easily move onto other training or learning after completing a skills bootcamp” the consultation wants answers on how the courses can fit into progression routes.

Respondents are asked what further learning bootcamp participants should progress onto, ranging from no further learning to an apprenticeship or other further training or learning opportunities.

 

Meeting critical skills needs

The consultation highlights a “growing employer demand for higher technical skills which is not being met,” in industries such as manufacturing and construction, on top of a shortage of STEM skills.

To meet this problem, the DfE is asking respondents for skills gaps below degree level they think will not be met now or in five years’ time.

One possible solution the government is seeking views on is shorter courses lasting under 12 months in areas of emerging technologies or industries in a period of transition.

The consultation asks if there are particular sectors or occupations which short courses may help, or if short courses might help adults overcome barriers to learning.

Employers and providers are also asked if they have funded or delivered short courses.

Simplifying FE funding and accountability consultation launched by DfE

The government has launched a consultation on proposals to simplify funding and accountability systems in further education.

As promised in the ‘Skills for Jobs White Paper’, the reforms aim to give colleges and providers more autonomy by relaxing ringfences, introducing a multi-year funding regime, and holding them to account for the outcomes they deliver.

You can read the 68-page consultation document here. It will be open until October 7.

The reforms to funding will only apply to adult streams and not 16 to 19 or apprenticeships.

Plans for simplifying the funding system that the government is seeking views on, in the words of the Department for Education, include:

  • Establishing a new Skills Fund to bring together all direct funding for adult skills.
  • Ensuring the system can support both qualification-based provision and non-qualification provision so adults can retrain and upskill in the most effective way.
  • How a needs-based approach could be introduced to distribute funding across the country.
  • How funding can be most effectively distributed between colleges in non-devolved areas, in particular:
    O What a simpler formula might look like if a system based on funding learners is retained
    O Moving to a lagged funding system
    O Delivering a multi-year funding regime
  • What entitlements and eligibility rules should apply in a new system.
  • How funding for Independent Training Providers and other non-grant funded providers would work in a reformed system.

 

The accountability reforms will focus on “outcomes and will take a strategic approach to support and intervention”. Views, in the words of the DfE, are being sought on the following areas:

  • Specifying the outcomes we expect colleges to deliver through a new Performance Dashboard.
  • Introducing a new skills measure that will capture how well a college is delivering local and national skills needs.
  • Introducing a new Accountability Agreement that will reinforce colleges autonomy while providing a clear sense of mission.
  • Exploring an enhanced role for Ofsted to inspect how well a college is delivering local and national skills needs.
  • Enabling the FE Commissioner to enhance its existing leadership role, with a renewed focus on driving improvement and championing excellence.
  • Improving data quality and reducing the requirements we place on providers through student data collection and financial reporting.
  • Retaining the necessary regulation and oversight to ensure the effective operation of the market, including providing assurance on the use of public funds.

Revealed: The local skills improvement plans trailblazers

The employer representative bodies that will lead pilots for new local skills improvement plans (LSIP) have been named.

Eight different chambers of commerce will spearhead the development of the plans in eight trailblazer areas this year, backed with £4 million of revenue funding.

First mooted in the FE white paper, the plans will aim to make colleges to align the courses they offer to local employers’ needs.

They are hoped to address concerns that employers do not currently have enough influence over the skills provision offered in their locality and struggle to find staff to fill their skills gaps.

The LSIP trailblazers are:

In application guidance published in April, the Department for Education said the LSIPs will “set out the key changes needed to make technical skills training more responsive to employers’ skills needs within a local area”.

They should be created in collaboration with colleges and training providers, with employers “setting out a credible and evidence-based assessment of their skills needs, to which providers will be empowered to respond”.

“The plans will help ensure provision is more responsive to emerging and changing skills needs and being locally driven, can be tailored to the challenges and opportunities most relevant to the area,” the guidance added.

Pilot areas for £65m Strategic Development Fund announced

The Department for Education has revealed the pilot areas for the new Strategic Development Fund.

The £65 million fund, first mooted in the Skills for Jobs white paper, went to tender in April.

Eighteen winners have now been announced, of which eight will be Local Skills Improvement Plans trailblazer and development fund pilot areas.

The remaining ten will just be piloting the development fund, which the application guidance stated is intended to “begin building the local collaborations that will create a stronger and more efficient overall delivery infrastructure and support a more co-ordinated offer across the local area”.

The pilots will also “support the development of a high-value curriculum offer in support of longer-term skills priorities” in a local area and “strengthen the relationship with employers”.

Sixty per cent (£38 million) is meant to be spent on capital and 40 per cent (£27 million) is for revenue, and this money must be used by March 2022.

Eight employer representative bodies have also been announced as LSIP trailblazers today.

See the full list of joint-trailblazer and development fund pilot areas, and solely development fund pilot areas, below.

 

Joint Trailblazer and Development Fund pilot areas

Pilot area Collaboration members Endorsing Employer Representative Body College Business Centre
Weston College Bath College, City of Bristol College, Gloucestershire College, Hartpury College, South Gloucestershire and Stroud College, University of West of England and Yeovil College Business West Chamber of Commerce No
Lakes College Cumbria Carlisle College, Furness College, Kendall College and Cumbria University Cumbria Chamber of Commerce Yes
Barnsley College Barnsley College, Sheffield College, RNN Group, DN Colleges Group, University of Sheffield Advanced Manufacturing Research Centre, Linkage College, Thomas Rotherham College and Oakwood High School, Sheffield Hallam University, Landmarks College, Mears Group Aspire/Igen Doncaster Chamber of Commerce No
Loughborough College Leicester College, SMB Group, North Warwickshire & South Leicestershire College, Chartered Institute for the Management of Sport & Physical Activity, Leicester and Rutland Sport East Midlands Chamber of Commerce Yes
Mid-Kent College EKC Group (East Kent Colleges) and North Kent College Kent Invicta Chamber of Commerce No
The Education Training Collective Hartlepool College of FE, Middlesbrough College, Darlington College, Teesside University, Learning Curve Group, Tees Valley Collaborative Trust and Queen Elizabeth SFC North-East England Chamber of Commerce No
Myerscough College Blackburn College, Blackpool & the Fylde College, Blackpool SFC, Burnley College, Cardinal Newman College, Lancaster & Morecombe College, Nelson & Colne College Group, Preston’s College, Runshaw College and West Lancashire College North and West Lancashire Chamber of Commerce No
Chichester College Bexhill College, BHASVIC, College of Richard Collyer, East Sussex Colleges Group, Greater Brighton Met College, Plumpton College and Vardean College Sussex Chamber of Commerce No

 

 

Development Fund only pilot areas

Pilot area Collaboration members Endorsing Employer Representative Body College Business Centre
Cheshire South and West Cheshire College South and West, Warrington and Vale Royal College, Macclesfield College, Reasheath College and Priestly College West Cheshire and North Wales Chamber of Commerce Yes
Derby College Nottingham College, Burton and South Derbyshire College, The University of Derby and Nottingham Trent University East Midlands Chamber of Commerce Yes
Fareham College Isle of Wight College, Havant and South Downs, Eastleigh College, Blackburn College, Southampton City College, Highbury College Portsmouth, Portsmouth College, Itchen College, Barton Peveril College and Lighthouse Learning Trust Hampshire Chamber of Commerce Yes
Halesowen College Halesowen College, Dudley College of Technology, Walsall College, Sandwell College, City of Wolverhampton College Black Country Chamber of Commerce No
Milton Keynes College South Central Institute of Technology, Open University, Cranfield University, Learning 2050 and Milton Keynes Artificial Intelligence (MKAI) Milton Keynes and Northants Chamber of Commerce Yes
Tech Partnership Grimsby East Riding College, University of Hull, Bishops Burton College, DN Gorup, Selby College, Wilberforce Sixth Form College, Grimsby Institute of F&HE, Hull College, Modal Training Ltd and Scarborough TEC Hull and Humber Chamber of Commerce No
Telford College Herefordshire, Ludlow and North Shropshire College, Shrewsbury Colleges Group and SBC Shropshire Chamber of Commerce and Enterprise Ltd Yes
Truro & Penwith College Cornwall College Group Cornwall Chamber of Commerce Yes
Warwickshire Colleges Group Coventry College, North Warwickshire & South Leicestershire College, Solihull College and University Centre Coventry and Warwickshire Chamber of Commerce No
West Nottinghamshire College West Notts College, Chesterfield College, RNN College Group, Lincoln College Group, Futures, Inspire East Midlands Chamber of Commerce No

Staff vote to strike at 15 colleges

University and College Union members in 15 colleges across England have voted for strike action in a row over pay.

College bosses have until September to increase staff pay by more than 5 per cent or they will face walkouts, the union said today.

Eighty nine per cent of members who voted backed strike action, on an average turnout of 62 per cent.

Pay ballots covered Carshalton College, City College Plymouth, City of Bristol College, City of Liverpool College, Croydon College, Kingston College, Lambeth College, Merton College, New College Swindon, Sheffield College, Wandsworth & Tooting College and Weymouth College.

Separate ballots over working conditions, compulsory redundancies and pay covered City & Islington College, Westminster Kingsway College and the College of North East London, which are all part of Capital City College Group. The group is planning to make 30 staff redundant while investing in a controversial “teacherless” tech venture, as revealed by FE Week in June.

In December, the Association of Colleges recommended colleges give their staff a 1 per cent pay rise because of the unforeseen and “severe financial pressure” colleges are facing owing to the Covid-19 pandemic that has “forced many into deficit”.

The UCU said staff are “angry” about this offer after years of joint campaigning with colleges, which won further education £400 million of increased government funding.

A spokesperson added that £224 million of the funding arrived in August 2020 and “should have been used for staff pay, with the AoC indicating it would make a more significant pay recommendation as a result”.

The pay gap between college and schoolteachers currently stands at £9,000 as staff working in further education have suffered real terms pay cuts of over 30 per cent in the past decade.

 

‘Staff will not sit back while their pay is held down’

UCU general secretary Jo Grady said: “This ballot result is an emphatic message from college staff to principals that they will not sit back while their pay is held down. College leaders urgently need to come to the negotiating table or they will face severe disruption in the autumn.  

“Colleges need to understand that delivering top class education is reliant on looking after your staff and ensuring they are paid fairly.

“The employers who engage with us on pay and conditions will receive a positive hearing, but those who refuse should not be surprised at the determination of staff to take action.

“Pay in further education is a problem, and it is time for colleges and the AoC to get serious and do something about it.”

National adult education budget tender results revealed

There are 83 winners sharing £62.6 million from the Education and Skills Funding Agency’s adult education budget tender, FE Week can reveal.

Results for the delayed procurement were finally communicated to training providers last night.

They will now be observing a voluntary ten-day standstill period until July 26 before commencing contracts on August 1.

Tender documents, seen by FE Week, show that 25 of the winners have been awarded their full bid values while 58 received pro-rated awards of 48.4 per cent of their original bid.

A total of £66 million was available in the procurement. There is no explanation as to why only £62.6 million is being dished out.

According to the documents, potential contractors were ranked in order of “technical score” which resulted in “blocks of scoring”.

The process was as follows: “’Block 1’ comprised of the potential contractors with the highest final technical score (FTS). These scores ranged from 500 – 410.

“’Block 2’ comprised of potential contractors with the second highest FTS achieving scores of 400.

“The AEB Budget was allocated to the highest scoring potential contractors until the budget had been used in full blocks. Potential contractors in Block 2 whose bids included SWAPS (Sector-Based Work Academy Programme) as part of their delivery were prioritised.”

Results for the national AEB tender have been hit with multiple delays.

Outcomes were originally supposed to be communicated on June 24. The ESFA then said they could not meet that deadline and bidders were told the outcomes would be ready for June 28, only for this date to be further pushed back.

Association of Employment and Learning Providers chief executive Jane Hickie said: “Congratulations to the precious few independent training providers (ITPs) who have won contracts in the latest AEB procurement and my commiserations to those of you who missed out. I am sure that among the hundreds of bids, there were many of high quality with a real focus on retraining adults as part of the pandemic recovery effort.

“Knowing that there are clawbacks in this programme and underspends in other programmes, it is so frustrating to know that ITPs are queuing up to spend a very small pot of funding in relation to the total budget and that much more funding could have been allocated to this procurement.”

She continued: “Here is a classic example of the levelling up agenda being failed miserably and we should see this in the context of the likelihood of a very tough Spending Review.

“The appalling handling of the procurement has resulted in stress and anxiety for our members and their staff, not knowing whether they would be in a position to deliver the programme after 31 July.

“The procurement has been another miserable experience all round and the whole process has been hugely damaging in a number of ways.”

 

ESFA boss Eileen Milner to become combined authority chief executive

Eileen Milner will become the chief executive her local combined authority when she leaves the Education and Skills Funding Agency.

The Cambridgeshire and Peterborough Combined Authority announced today that the senior civil servant will take up the position in the autumn.

Its board voted unanimously on the appointment on June 30, the same day that FE Week revealed Milner had told staff that the “time has come” for her to “go to a new challenge”.

Milner, who is based in the greater Cambridge area, was appointed to lead the ESFA in 2017 shortly after the organisation formed through the merger of the Education Funding Agency and Skills Funding Agency.

She said she was “delighted and honoured” to have been appointed into the Cambridgeshire and Peterborough Combined Authority. She will earn just over £200,000 annually as its chief executive.

“The area covered by the combined authority is an extraordinary one, rich in history, talent, innovation and opportunity and I am excited to join an organisation that has such an important remit in respect of making our area the very best place to live, work, invest and learn,” she added.

Mayor of Cambridgeshire and Peterborough, Nik Johnson, described Milner as an “outstanding, experienced individual”.

“She is a dedicated and determined public servant and will be challenged to help me continue to embed the 3Cs of Compassion, Co-operation and Community in the delivery of our projects and to help improve the lives of everyone in Cambridgeshire and Peterborough,” he said.

Milner joined the ESFA from the Care Quality Commission, where she was an executive director. According to her profile on the government’s website, she started her career in local government, specialising in education services, before moving into higher education.

A recruitment process for Milner’s successor at the ESFA has not yet been launched.

Following the news of Milner’s departure, ESFA chair Irene Lucas-Hayes said today: “Eileen has been responsible for successfully overseeing billions of pounds worth of funding into the education and skills system and delivering on its promise, as a funding agency, to ensure year-on-year funding is delivered on time and with accuracy, including throughout the past year during the pandemic.

“I, and her colleagues at ESFA, have welcomed and very much appreciated Eileen’s measured and calm approach, and her authentic communications and leadership style. I truly believe that Eileen has led the ESFA with great skill and competency and it has been a pleasure working with her.”

What you need to know from the government’s response to the level 3 qualification review

The government has published its long-awaited response to the consultation for the level 3 qualifications review.

The Department for Education set out plans yesterday to streamline the qualifications offer by funnelling students onto an ‘academic’ or ‘technical’ route.

It followed a two-stage review, launched in 2019 to consider future funding for tech levels, technical certificates and applied general courses such as BTECs.

The government’s plans involve defunding most of them, to focus progression routes on A-levels, T Levels and apprenticeships.

A flurry of documents, including guidance, impact assessments and the government’s response to the second stage’s consultation were released today.

FE Week has picked out the key things you need to know…

 

1. Which qualifications will be reviewed when

The ‘approvals process for academic and technical qualifications’ document released today reveals digital qualifications will be the first to be reviewed and approved to be taught from 2023.

The Institute for Apprenticeships and Technical Education will approve other technical qualification categories, to be taught from 2024, if the Skills and Post-16 Education Bill passes Parliament.

IfATE will be publishing criteria for approving qualifications in each category next year.

The Education and Skills Funding Agency and qualifications regulator Ofqual will be reviewing the necessity and quality of academic qualifications.

The government’s consultation response explains technical qualifications which could overlap with T Levels will be assessed for funding according to whether they support entry to employment in specific occupations; if its outcomes are similar to those of T Levels; and if the qualification aims to support entry to the same occupations as a T Level.

Further guidance and approval criteria will be published in 2022.

Small alternative academic qualifications, equivalent to one A-level or smaller, will be approved for funding if they are studied alongside A-levels, even if they overlap with them or T Levels.

However, the DfE has said in a policy statement for the review this does not mean a “blanket approval” for qualifications in areas of applied general qualifications.

It will set a “high bar” for demonstrating their value, and will demand evidence of “successful outcomes for students taking those subjects and links to further study in important HE subjects”. Such a high bar that the government predicts…

 

2. BTECs will become ‘rare’

The government announced that other level 3 qualifications like BTECs could still access public funding if they “give employers the skills they need or lead to good higher education courses and demonstrate why there is a real need for them to be funded”.

However, the policy statement reads: “Study programmes made up of alternative academic qualifications such as applied general qualifications will be rare.

“In the new landscape, large academic qualifications that overlap in content with T Levels, which might include AGQs such as Pearson BTEC and OCR Cambridge Technical qualifications, will no longer receive public funding,” it adds.

Instead, most students on the academic pathway who are progressing to HE without any A-levels will be “those taking large alternative programmes such as in the performing arts”.

The DfE estimates it will be defunding 43 per cent of non A-level level 3 qualifications by 2025, accounting 15 per cent (276,000) of level 3 enrolments.

 

3. Tough funding future for awarding bodies

An impact assessment report for the proposals sets out how ten awarding organisations out of more than 130 could lose at least a fifth of their publicly funded 16-to-19 enrolments at level 3 and below.

qualifications

The assessment states three of them have over 500 16-to-19 enrolments at these levels funded by the Education and Skills Funding Agency.

And up to seven awarding organisations’ publicly funded 16-to-19 enrolments could drop by 80 per cent or more.

The revised assessment finds no change for funded adult enrolments from its predecessor: up to five awarding bodies could lose at least 80 per cent of their funded adult enrolments under the changes.

The combined impact of 16-to-19 and adult enrolments means an estimated four awarding bodies could lose at least 80 per cent of their funded enrolments.

The DfE said it is taking a phased approach to these plans to mitigate against resourcing issues for awarding bodies.

 

4. Impact on disadvantaged ‘justified’ by overall student benefit

The consultation response and impact assessment for the plans note how students from SEND, Asian ethnic, and disadvantaged backgrounds, as well as males “are disproportionately likely to be affected by the changes”.

They “may no longer be able to progress to level 3,” the impact assessment posits.

The assessment explains these students are disproportionately represented on these courses, something the Association of Colleges and Ofqual have raised.

Yet the DfE argues this will be a minority and the proposals will be “justified by the overall benefits to students”.

The department said it is trying to improve transition provision for students who take three years to complete their level 3 and are bringing forward proposals to improve outcomes at level 2.

 

5. Nearly everyone disagrees with slashing courses which overlap T Levels

Almost 1,350 people responded to the consultation and a vast majority – 86 per cent – disagreed with the DfE’s plan to strip funding from qualifications which overlap with T Levels.

Respondents “typically raised concerns around the accessibility of T Levels, as opposed to the approach to overlap, citing that T Levels may reduce flexibility and choice for students.”

Many called for the retention of applied general qualifications, as they believed the “breadth and stretch of T Levels would not be appropriate for all students and levels of achievement”.

 

6. Widespread concern about narrowing options

Respondents expressed concern en masse about narrowing options for students finishing their GCSEs.

It was cited as a reason for 56 per cent disagreeing with proposals to approve qualifications for funding if they provide occupational competence against employer-led standards not covered by T Levels or if they develop specialist skills.

Respondents were also cautious about narrowing options for alternative programmes of study and of pathways into HE, in response to plans to fund a small number of qualifications supporting progression to specialist HE courses as A-level alternatives.

ESFA U-turns and allows AEB clawback business cases

The Education and Skills Funding Agency has announced colleges will be allowed to submit business cases to avoid adult education funding being clawed back.

An update published this afternoon said the agency is developing a process for grant-funded providers to plead as to why they should be given leniency for missing their allocation by more than 10 per cent in 2020/21.

The ESFA had ruled out such a process when they announced the controversial threshold in March.

Grant-funded providers will be allowed to apply for a business case where “local circumstances made it impossible for the provider to deliver at or close to the 90 per cent level and recovery of funds based on the 90 per cent threshold would lead to the provider’s costs of AEB delivery not being covered,” today’s update reads.

Or, if “applying the full amount of AEB clawback would cause significant financial difficulties for the provider”.

ESFA chief executive Eileen Milner said they had “recognised that there is a risk that some colleges will face financial difficulty so we will continue to monitor them, offer early support, and intervene when necessary.

“As part of the support offer, after extensive talks and listening to the sector, we are developing a process to consider business cases through which providers apply for support.

“The process will consider whether local circumstances made it impossible for the provider to deliver at or close to the 90 per cent level and whether recovery of funds based on the 90 per cent threshold would lead to the provider’s costs of AEB delivery not being covered. It will then determine how much (if any) help should be provided.”

AEB reconciliation arrangements will return to the normal clawback threshold of 97 per cent in 2020-21, she added.

Colleges have been up in arms about the threshold being set at 90 per cent in a year when they have still suffered from the knock-on effects of Covid-19.

Leicester College told FE Week in March it was forecast to spend 53 per cent of its £11 million allocation for 2020/21, so would have to hand back 37 per cent up to the threshold.

When business cases were ruled out, Leicester’s principal and former Skills Funding Agency executive director Verity Hancock said she did not “understand the basis for a decision that refuses to recognise the very exceptional position that Leicester College is in, given that it was the worst affected city in the country from continuous lockdowns, and has the largest AEB offer in the country”.

Adult education network HOLEX’s policy director Sue Pember, who previously worked on the DfE’s post-19 education policy as a civil servant, said about today’s announcement: “Although we would have liked the DfE to have accepted that grant providers needed assurance about their funding last year, we welcome this clarity and decision to accept a business cases.

“We hope the process is not over complex and doesn’t put further administrative burden on providers who are now working hard to get learners through assessments and progress on to further learning.”

The Association of Colleges’ deputy chief executive Julian Gravatt said they were “pleased” colleges will be able to submit business cases, as: “The hardline 10 per cent tolerance was never going to be fair in a year disrupted by the pandemic from the outset and now more than ever, colleges need to stabilise their finances.

“The timing will be tight, with colleges given just a few weeks to return financial information, but ESFA’s flexibility is better late than never.” 

Shadow further education and skills minister Toby Perkins said the decision had come “so late colleges may well have already made redundancies based on the financial crisis they expected”.

It is expected the process will be set out in early September 2021.

Milner also said the government will still fund delivery up to 103 per cent of providers’ nationally-funded AEB grant allocation.

They have also increased the threshold from 110 per cent to 130 per cent for 16-18 and 19-24 traineeships in 2020-21.