The first ever court battle to challenge a failed adult education budget application has been dropped.
East Birmingham Community Forum (EBCF) has withdrawn its case against the West Midlands Combined Authority following “discussions with our legal counsel”.
The training provider previously claimed it was wrongly denied a fair run at securing a slice of £28 million of funding put out by the authority, which took control of the AEB for the region last year.
Lawyers were set to go to battle at the high court in January, but this was then pushed back to November 20.
EBCF told FE Week this week that it decided to drop the case altogether over the summer as it could not afford the legal costs of seeing the challenge the whole way through. A spokesperson confirmed that there was no out-of-court settlement.
The West Midlands Combined Authority declined to comment.
In documents seen by FE Week ahead of the original January 31 court date, the independent learning provider had alleged the authority’s AEB procurement was “flawed” and that WMCA admitted in writing that it had made scoring errors.
The forum also claimed the WMCA did not abide by legislative procurement rules.
If the EBCF challenge had been successful, two parts of the area’s AEB provision bid could have had to have been retendered.
A college in dire financial straits is looking to sell off one of its campuses to balance the books, the FE Commissioner has reported.
The commissioner’s team intervened at Greater Brighton Metropolitan College (GB Met) following a request for emergency funding and a Notice to Improve from the Department for Education.
Their report, published this morning but dated August 2020, reveals: “Liquidity is weak, debt levels are high, and the underlying operating performance is poor.
“Total income is declining, staff costs are too high, and the college is operating across five main delivery sites.”
Had the government bailout not been granted, the report adds, it would have left GB Met in “a significant negative cash position”.
Despite that, the report also covers a number of positive aspects of the college’s progress since FE Week reported in July it had received emergency funding and principal Nick Juba had been replaced by Chichester College Group executive principal Andy Green, who was seconded on an interim basis.
But the college’s five campuses – from East Brighton across to West Worthing: a range of nearly 20 miles – are “not sustainable” and GB Met is currently working on selling one of them.
The report says: “The overhead cost of running five sites is expensive and efficiency opportunities for curriculum rationalisation are diluted by falling learner numbers.
“The resolution of the estate infrastructure will be a key feature of improving financial operating efficiencies and further work on an estate solution is required.”
Three of the sites are owned and two are leased, with specialist facilities across all sites, but space utilisation was rated as “low” in the report.
Subcontracting is also an area of concern for the FE Commissioner, with over half of GB Met’s learners in 2018-19 being delivered “poor” provision from outside the college.
The college had planned to go against its own policy and increase subcontracted activity in 2019-20, yet a data return from this summer showed it had reduced against the previous year.
The quality of the Ofsted grade three college’s apprenticeships, since it was formed from a 2017 merger of Northbrook College and City College Brighton and Hove, was called “disappointing” in the report – GB Met is planning to rationalise the breadth of its apprentices offer to streamline provision.
The report also highlights the “excess” number of management posts after FE Week reported last month up to 20 of those postholders were at risk of redundancy as part of a clear-out.
But the report is complementary of the actions taken by chair Sue Berelowitz, a former deputy children’s commissioner for England, who was appointed in April.
She has “led a refresh, review and recasting of the board’s committee structure and membership,” the report reads, and Green’s approach and grasp of the challenges is also “encouraging”.
Governors and staff were said to be positive about the change in leadership and style of engagement.
In a letter accompanying the report, skills minister Gillian Keegan told Berelowitz she was “encouraged” by the college’s “prompt and decisive actions,” but she remains concerned “by the numerous outstanding issues that threaten the college’s immediate and long-term future”.
Green has said the college is “pleased the commissioner recognise the hard work and innovative thinking that the team have undertaken in a very short space of time.
“We have all the foundations of an Ofsted ‘outstanding’ college—passionate, dedicated staff who are committed to delivering for their students, state-of-the-art facilities and fantastic achievement rates across much of our course provision. By all working together, we are confident we can make the college sustainable again; both in terms of quality and financially.”
Almost 100 jobs are at risk at one of the colleges which took over part of the first college group to go through education administration.
North Kent College (NKC), which took over the main Hadlow College campus and the Tonbridge campus of West Kent in August, has confirmed to FE Week that 90 staff are at risk of redundancy under plans to cut 44 posts.
Meanwhile, three staff have lost their jobs after East Kent College (EKC) Group closed a motor vehicle centre when they took over the Ashford campus and Hadlow’s Canterbury site.
Hadlow College was the first of its kind to enter the insolvency regime last May, and its sister college West Kent and Ashford became the second in August.
North Kent principal David Gleed said: “Given the financial reasons that drove Hadlow into educational administration before the break up, acquiring nearly 100 per cent of the costs and around 70 per cent of the income was never going to be sustainable without making cost reductions.
“While we do face some very difficult decisions surrounding staffing, these reductions represent a small percentage of the college workforce and North Kent College will do all that it can to prevent compulsory redundancies.”
The college has entered into a 30-day period of collective consultation with the University and College Union over the losses.
NKC inherited 630 staff, with 2,175 students at Hadlow and 2,611 students at Tonbridge, when it took over the two campuses, as well as the Princess Christian Farm facility and Hadlow’s equestrian centre in Greenwich.
At the time, it said a voluntary redundancy scheme had been launched at the request of staff at Hadlow and Tonbridge.
EKC Group chief executive Graham Razey said, other than the three at the motor vehicle centre, no other redundancies had been made.
Ashford College had 1,077 students and apprentices and 103 members of staff at the time it was taken over by EKC, while the Canterbury site had 158 students and apprentices and 33 members of staff.
Hadlow was plunged into insolvency after running up £40 million in debts, while West Kent and Ashford racked up over £100 million, and they had to apply for emergency funding from the government.
The two colleges were run as part of The Hadlow Group, along with a number of other businesses, including a country park and a garden centre.
An interim principal and chair had to be brought in after original principal of both colleges, Paul Hannan, deputy principal Mark Lumsdon-Taylor, and the chairs of both colleges, as well as several governors, resigned.
After the High Court put the colleges in administration, FE Commissioner Richard Atkins recommended their assets be split between NKC, Capel Manor College – which took over Hadlow’s Mottingham campus in January – and EKC Group. The transfer of assets to NKC did suffer some delays, missing three deadlines in March, May and July.
The Mottingham site had 186 learners and 23 staff at the time it was transferred, and Capel Manor has said it has not made, nor does it plan, any redundancies.
A National Audit Office report published in September said that the cost of the first two education insolvencies cost £26.6 million – with millions paid to administrators BDO.
FE Week explores how the government’s £96 million tuition fund is being put to use by colleges and whether it is enough to help 16-to-19-year-olds catch up with education that was curtailed by lockdown
Prime minister Boris Johnson and education secretary Gavin Williamson were set to announce to great acclaim on June 18 that colleges would be able to take a share of a £1 billion fund aimed at helping students catch up on the teaching time they have lost because of the coronavirus pandemic.
However, the praise of organisations such as the Association of Colleges was cut short when, just two hours later, the Department for Education removed colleges from the initiative.
This led to a political and sector outcry, with the decision – blamed on the Treasury – branded “indefensible” by Association of Colleges chief executive David Hughes and “unforgivable” by the Labour Party.
The uproar then forced a screeching U-turn from the government, which a month later announced the £96 million 16-to-19 tuition fund, paid for out of the £350 million National Tutoring Programme.
The fund can be used for small tuition groups of around three to five students to study English, maths and other courses where learning has been disrupted.
The remaining £650 million of the £1 billion is being put towards additional funding for the 2020-21 academic year for school pupils catching up on education missed through the Covid-19 pandemic.
Colleges had to opt in to receive the tuition fund money, which is being allocated at £150 for each student without a grade 4 pass in English and maths.
The Department for Education told FE Week it had received requests for £92 million of the catch-up funds at the time of going to press, and providers have flexibility on how to spend it.
Although the DfE has said funding should be prioritised for those students who have not achieved a passing mark, grade 3, in GCSE English and maths, it can be used to support students who achieved grade 4 – meaning students who achieved grades 5 to 9 are not eligible.
Colleges who spoke to FE Week said the £96 million 16-to-19 tuition fund has been spent on hiring extra pastoral and study staff, and in a couple of cases on hiring young people either about to start, or just graduating from, university to make the people delivering this tuition more relatable for students.
Activate Learning, based in Oxfordshire, is one of the providers to hire tutors around their students’ own age. It has paid for 20 young people who have recently completed their A-levels, but have deferred university, who can provide online tuition to students resitting GCSE exams in November, with the help of peer-tutoring company Yipiyap.
Each of the tutors created an online profile of themselves so the student could choose who teaches them, based on their personality and availability.
The funds will help our young students recharge their batteries
A spokesperson for Activate said: “Having worked on peer tuition before at our City of Oxford campus, we recognised the value that young people brought to our students’ learning process.
“By working with Yipiyap we have been able to roll out this innovative approach at scale and in a timeframe where it will benefit those learners going into their GCSE resits in November.”
Between 600 and 700 students resitting their maths and English exams this month will “directly” benefit from Yipiyap’s provision, the spokesperson added, and roughly 5,000 students across Activate’s seven colleges will benefit from other schemes funded under the programme, including subject specific catchup tuition and performance coaches.
College group NCG is approaching catch-up tuition with a similar tack and has used some of the £1.5 million of funding from the tuition fund on specialist tutoring services, such as educational charity Get Further, which uses graduate students to provide tuition on-site and via the internet.
The 5,000 NCG students this funding covers can also benefit from small group tutoring sessions, including some that ran during half-term, and expansions to the group’s English and maths teaching teams and pastoral and learning support teams.
Meanwhile, Birkenhead Sixth Form College has spent the £46,000 it received, which will cover 132 students, on an academic skills tutor to help students’ writing skills and a pastoral support worker who helps students organise their studies and ensures that they have a go-to person for their needs.
Carol Layall, director of quality of education at the Yorkshire-based Luminate Education Group, said the £1.3 million it received from the tuition fund for its colleges is a “good chunk of money”, which it is spending on helping nearly 9,000 students.
With the funding, Luminate is putting on breakfast, lunchtime and after-college sessions to provide the catch-up tuition and have recruited “several” English and maths teachers, study support coaches, and English and maths coaches.
Carol Layall
Layall also said their sixth-form “has got a study support coach, so that’s about getting students back into studying, developing study skills, making sure they were at the right level to take on that A-level provision”.
But making up for lost learning is not the only objective college leaders have got their eye on for this money.
City of Bristol principal Andy Forbes has placed a heavy emphasis on using the £474,000 the college received to manage students’ mental health and classroom performance, saying: “The catch-up funds will help our young students get their batteries re-charged as they come back into education after the lockdown.”
“Several hundred” students will benefit from the funding, which will also focus on study skills and improving their English and maths, he said.
However, it will partly also go towards a staff development programme to “ensure that we develop the coaching and mentoring skills of our dedicated team of teachers and learning support staff”.
Nevertheless, the funding has come in for some criticism from college leaders for being insufficient, ill-targeted and ill-timed.
Mike Kilbride, principal of Birkenhead Sixth Form College, told FE Week: “I’ve got students who were awarded, through the centre assessment grading process, fives and sixes in maths, who are currently on A-level natural sciences. And they’re really struggling.
“So those students who are having to do quite high-level maths, particularly in biology, chemistry, and physics, and haven’t done any meaningful maths since March, they’re the ones who are critically behind.”
But due to the cap on grades, the funds the college received cannot be spent on helping those students.
Mike Kilbride
While Kilbride says the funding is “better than nothing” and shows a “desire to try and help out”, he added:
“It’s not a huge amount when you actually spread it across the sector” and “I don’t know anybody who thinks this is the way to solve the problem.”
Layall also had a problem with the fund concerning timing: “Because colleges are ahead of the game with timetables, you’ve got your plans already in place and it was announced in July, so we’re playing a bit of catch-up on how we’ll use it, when it’s supposed to be used, and then looking at adding in those extra hours for the students.
“So that wasn’t the best. It would have been much more ideal if we had known this in April or May. But that’s just how it is, we’re not going to say no.”
Following on from his comments about colleges “indefensibly” being excluded from catch-up funding, David Hughes has said the £96 million is a “welcome recognition of the need to address lost learning”.
But, echoing Kilbride’s comments about the students who have been cut out of funding due to their grades, Hughes said the Association of Colleges would like “wider eligibility to help this resource reach all those students who need extra support”, along with extra investment and flexibility.
Deputy chief executive of the Sixth Form Colleges Association James Kewin labelled the initiative “micro interventions” aimed at particular subjects or qualifications which “will only ever have a micro impact”.
“These sort of eye-catching, but short-term, funding streams, however well-intended, are no substitute for a sufficient level of core funding.”
A Department for Education spokesperson said they provided the funding so that “no student should fall behind as a result of the pandemic”.
A college exploring merger options has used a multi-million-pound exit dividend from an international venture to make a staff pay award and to repay a government bailout.
Portsmouth-based Highbury College signed up to the Saudi Arabian Colleges of Excellence programme in 2013 and launched the International Technical Female College in Jeddah, a female vocational training institute run in partnership with Burton and South Derbyshire College.
But Highbury, which parachuted in an interim principal and chair last year after it was hit by an expenses scandal and was placed in formal FE Commissioner intervention, has now “stepped away” from the international project in favour of developing collaborations closer to home.
As part of an agreement that will now see the overseas programme solely managed by Burton and South Derbyshire College, Highbury was handed a £3.5 million financial dividend on October 19.
The amount will go towards repaying the government a £1.5 million emergency bailout that was granted to Highbury earlier this year after its new leaders discovered the college had run out of cash just a month after taking over.
As well as using the remaining funds to invest in the college’s IT resources, staff – excluding interim management – who had not received a pay award for “several” years were given a flat rate and pro-rata £300 “honorarium” payment.
Minutes from a board meeting in July 2020, which said the pay award would only be possible once withdrawal from the Saudi venture was agreed, state that the payment should act to recognise the “hard work of staff” during the Covid-19 pandemic and “considerable turbulence in the past two years, resulting in much adverse publicity”.
Commenting on the decision to withdraw from the Saudi venture, interim principal Penny Wycherley said: “This is an important step for the college and demonstrates our commitment to investing in our local students and the future of Portsmouth.
“We’d like to thank Burton and South Derbyshire College for their partnership and support and wish them all the best for the future.”
A Burton and South Derbyshire College spokesperson confirmed they will “continue to operate in Saudi Arabia through our highly successful privately registered company, Highbury Burton Saudi Arabia”.
The spokesperson added: “We would like to thank current and, in particular, past leaders of Highbury College, Portsmouth for their insight, leadership and contribution to this excellent example of the UK effectively exporting high-quality technical education.”
Colleges of Excellence was founded seven years ago to boost technical and vocational education and training in Saudi Arabia through partnerships with international providers.
But a number of providers dropped out of the programme early on as challenges with operating in the region became apparent.
An FE Week investigation in 2016 uncovered grave financial problems at some of the colleges taking part. Colleges were later warned off overseas ventures following the collapse of AoC India, which fell just four years after launching when 25 UK college members quit.
Highbury also attempted to run a technical education project in Nigeria some years ago, but this failed and the college is still in a legal battle to recover £1.4 million that it claims to be owed.
Interim principal Wycherley has agreed to stay on until August 2021.
The decisions come as the college continues a structure and prospects appraisal with FE Commissioner Richard Atkins. While there is currently no deadline for the appraisal’s conclusion, the college told FE Week that “all options” are being considered, including merger.
Highbury’s former chair Tim Mason and principal Stella Mbubaegbu stepped down in late 2019 after FE Week revealed how £150,000 was spent on Mbubaegbu’s corporate college card in four years, including extravagant items such as numerous first-class flights, stays in five-star hotels, a boozy lobster dinner and a £434 pair of designer headphones.
Around the same time the college had to make redundancies, scrap its A-level provision and dropped from Ofsted ‘outstanding’ to ‘requires improvement’.
Coronavirus and “unnecessary delays” by the exams regulator have been blamed for disrupting the roll out of free, government-developed, basic IT qualifications for adults.
Despite the August launch date for the “entitlement”, which covers fully funded digital skills courses at entry and level 1, qualifications watchdog Ofqual revealed last week it had forced all but one awarding organisation to resubmit plans.
It has been four years since the Department for Education first announced, with great fanfare, it would develop and fully fund new Essential Digital Skills Qualifications (EDSQs) through the adult education budget.
But in the past year many awarding organisations, including education giants Pearson and OCR, and the body responsible for standards in the IT industry, BCS The Chartered Institute for IT, have either walked away from the opportunity or failed to gain approval to accredit them.
Skills minister Gillian Keegan stressed to parliament during a debate on Wednesday the importance of basic courses like those under the digital entitlement, which she called “key”.
Yet so far just EDSQs developed by Gateway Qualifications have been signed off for delivery.
A further nine are still going back and forth as part of a “technical evaluation process” with Ofqual.
Speaking to FE Week the chair of the All Party Parliamentary Group on digital skills, Sunderland Central MP Julie Elliott, urged the government to press ahead on this with speed and to “use every avenue available to it to upskill workers and provide effective and accessible adult education, sooner rather than later.
Julie Elliott – UK Parliament official portraits 2017
“As unemployment rises, and more and more jobs require baseline digital skills, they are no longer just key skills, but essential ones,” she said.
Ofqual has argued that the hold-up is not due to them, instead saying that these have been “difficult times for awarding organisations, some of which have furloughed staff and all of which have had to work incredibly hard, in unprecedented times, to ensure the safe delivery of results this summer; and to plan that for next summer”.
However, one of the awarding organisations, The Learning Machine, has hit out at the watchdog.
Managing director Rosemary Lynch said: “It would have been more helpful if we could have had a more open, iterative dialogue with Ofqual.”
Lynch added this would have avoided “many small inconsequential misunderstandings” which could have been “easily answered” during the preliminary technical evaluation, and better dialogue would also have prevented “unnecessary delay in making these much-needed qualifications available at this very important time for those desperately needing improved IT skills”.
Furthermore, major exam board OCR has withdrawn its submission for EDSQs, with a spokesperson saying they have decided to instead focus on supporting existing IT qualifications where “funding has been extended”.
BCS has also hit a few bumps in the EDSQ approval process. Lucy Ireland, managing director for institute member group BCS Learning and Development, said they expect to launch the “for work” set later this autumn, but no timescale for sign-off has been given to “for work”.
NOCN is another awarding organisation working on Ofqual approval but told FE Week it had been “busy for the last few months” with the centre-assessed grading system introduced for assessments this summer, as well as other matters such as remote invigilation and the reformed functional skills qualifications.
“For this reason, we have had to prioritise our resource elsewhere,” the spokesperson continued.
“We have been looking at developing our Essential Digital Skills offer over the past month and have been working closely with Ofqual to fully understand their requirements and expectations for these qualifications before we resubmit.”
The lack of progress is a blow for the DfE, which has pushed to make digital skills as important as English and maths skills, going so far as to enshrine the entitlement to these fully funded courses in law, with the 2017 Digital Economy Act.
From August the ESFA will pay an unweighted base rate of £300 each for the qualifications funded from the adult education budget.
The demand for these qualifications is expected to be “high”, according to Gateway Qualifications director of business development Paul Saunders.
He told FE Week their qualifications went live on August 1, as planned, and interest in them has been “significant right across England, including all provider types”.
In contrast to The Learning Machine, Saunders said Ofqual had been “very rigorous”, with communication “very good… It was not a painful process; it was a supportive process.”
Things could be looking brighter for the rollout of more EDSQs, with NCFE saying their qualifications are “very close” to completing the process and they anticipate approval will be “imminent”.
“We are ready to implement our go to market strategy as soon as this happens, with a focus on adults within the communities we operate, addressing the digital generation gap which not only remains wide open but has been exacerbated by the Covid pandemic.”
And Pearson said it would hope to have their qualifications available by the end of the year.
The final awarding organisation still working on approval, OCN London, did not provide a comment.
A DfE spokesperson said Covid-19 has had a “significant impact” on approving these qualifications and they expect other awarding organisations to have qualifications approved “over the coming months”.
A teaching union has accused the government of putting staff and student safety “at risk” by keeping colleges open during November’s national lockdown and called for campuses to close “wherever possible”.
But one principal has defended Whitehall’s decision, claiming that colleges have now been made Covid-secure and the emotional impact of isolation is more profound than the virus.
On Thursday, the Department for Education published updated guidance for delivering FE on the eve of the new month-long national restrictions that will be in place from November 5 until December 2.
The guidance told colleges and training providers to continue to deliver “the majority of education on site” for 16-to-19-year-olds during the lockdown unless they have had written public health advice to move some of this age group to remote teaching, in which case the department should be informed.
For adults, the DfE has told providers to “consider moving to online teaching where possible to do so while still achieving educational objectives”. But, where adult education needs to continue on site to enable access to equipment, or where students cannot access remote delivery, this “can continue in a Covid-secure way”.
The University and College Union hit out at the guidance, saying that the 16-to-19 age group has been demonstrated to be “as, if not more” likely to get infected by Covid-19 as other adults and should be “afforded the same protection”.
“UCU is now calling for all course delivery for young adults in further education to be moved online wherever possible during the lockdown in England,” the union’s head of further education Andrew Harden told FE Week.
“This has not been an easy decision to take but the health and safety of students and staff and their communities must come first.”
He also called on ministers to “match” the commitment of staff to their students by providing colleges with “the extra funding they need to create and resource Covid-safe spaces and extra support for those students who for whatever reason are unable to effectively continue their learning remotely”.
In an FE Week investigation in June, college leaders warned of spiralling Covid-19 safety costs – with many having to fork out hundreds of thousands of pounds on items such as personal protective equipment, hand sanitiser, signage, shields and temperature guns. The Association of Colleges previously called for a £70 million government fund to ease these budget pressures.
Responding to the UCU’s call for colleges to close during November, Ali Hadawi, the principal of Central Bedfordshire College, said it is “vital to strike a balance between the emotional wellbeing of staff and students and their safety in relation to Covid-19”.
“It is critically important to create a safe learning and working environment, which we have done by working collaboratively with staff and student groups,” he continued.
“However, the emotional impact of isolation on learners, especially young people and the most vulnerable, and staff, is more profound than the anxiety in relation to Covid-19. Evidence from learner and staff feedback, as well as their attendance and retention, supports this fact.”
AoC chief executive David Hughes said colleges are doing “all that they can” to protect staff and students and are “continuously monitoring and adapting to changes – often at speed, with no precedent, and at great cost”.
He concurred with Hadawi’s comments that it is “good for students’ mental health and for their social wellbeing” to continue learning on site.
Hughes added that the DfE’s guidance should give college leaders the “confidence that they are being trusted to make complex judgments and decisions that are best for their students and staff”.
The guidance also states that apprenticeships and other training in the workplace will “continue where those sectors remain open” but the DfE expects to see “particular impacts in hospitality and retail”.
It adds that face coverings must now be worn in the communal areas of secondary schools and FE providers in an extension of rules that will apply through the new lockdown.
Clinically extremely vulnerable young people, adults and staff have been advised not to attend college or their training provider while the national restrictions are in place.
Education secretary Gavin Williamson said: “We must put the interests of our children and young people first, especially when the benefits of being in the classroom are clear.
“Education is a national priority and we cannot allow it to be disrupted again.”
The government’s much-anticipated traineeships tender received 370 bids – a fraction of the number that had been anticipated by some in the sector.
The Education and Skills Funding Agency finally launched the bidding process for 19-to-24 traineeship funding on October 7, which was run on an “accelerated” timetable with a deadline for bids set for just three weeks later.
Up for grabs initially is a slice of £65 million to be spent between February and July 31, 2021, which will be split across nine regions in England – ranging from £20.8 million for London providers to just £2.6 million for the south-west.
The bidding window closed on October 28 and the ESFA has now told FE Week that 370 applications were received. The agency could not provide the total value being asked for at this stage.
Jim Carley, a tender specialist in the FE sector, previously said he expected “in excess of 3,000 bidders” based on the fact that the procurement did not have any provider eligibility criteria and the level of interest and oversubscription seen on previous ESFA procurements, such as the controversial non-levy tender.
Many eligible providers might have been put off applying owing to the minimum tender value, which was set at £250,000.
While providers were bidding for an initial £65 million in total to fund around 20,000 starts in the latter half of 2020-21, a further £315 million was made available to support continued delivery through to July 2023.
The traineeships tender is one way the government plans to triple the number of traineeships starts this year – as pledged by chancellor Rishi Sunak over the summer as part of his plan to combat youth unemployment following the coronavirus pandemic.
Employer cash incentives of £1,000 have also been made available, as has growth funding for providers to deliver 16-to-19 traineeships.
The ESFA intends to award contracts from the tender in January 2021.