Providers are taking the blame for a broken apprenticeships system

The government’s numbers on apprenticeships don’t add up. Worse still, they lead to blaming the wrong people and make necessary reforms less likely, writes John Hyde

For all the finger-pointing at apprenticeship providers about the substantial drop in the ESFA’s Apprenticeship Achievement Rate (AAR), the truth is that it neither gives a true picture of the quality of provision, nor an accurate reflection of apprentices’ achievements.

Some 87 per cent of those who complete their apprenticeships remain in employment with the same employer, over 40 per cent gain promotion, and one-third progress to a higher apprenticeship. If employers were not satisfied with apprentices’ training they wouldn’t continue to employ them, let alone increase their pay. In fact, the ESFA’s own annual survey shows most providers score in the high eighties and nineties for both learner and employer satisfaction. And since the introduction of apprenticeship standards there has no outcry about culinary apprentices poisoning their customers, or construction apprentices causing buildings to collapse.

Over 90 per cent of apprentices who reach gateway succeed in their end-point assessments (EPAs). At HIT Training, it is 97 per cent. If there is a problem then, the reasonable conclusion is that it must lie with the apprentice journey and the data the ESFA collects along that journey to produce AAR.

When Matt Hancock introduced apprenticeship standards and EPA, and when Nick Bowles implemented them, they promised there would be initial pilots and evaluations. These never took place, and many apprentices started towards the new standards without knowing how they would be assessed, or who by. Such major changes to curriculum, assessment and funding – implemented without trials, modelling or pilots – were destined to cause difficulties.

“The statistics can’t possibly offer a true picture”

Worse still, government has always funded FE staff development and training, especially to implement new policies and curriculum, since the 1994 introduction of modern apprenticeships. Yet when it came to these most fundamental changes, the DfE discontinued that funding without consultation or explanation, leaving providers to retrain their staff without support, guidance or financial assistance.

The rationale for introducing employer-led standards and EPA was to improve the quality of apprenticeships. Raising the bar, by default, meant achievement rates would drop, and this doesn’t appear to have even factored in considerations of acceptable minimum completion rates. Reform was always going to take time to embed, and without pilots or guidance, it shouldn’t be a surprise to anyone that early-adopting providers and “guinea-pig” apprentices have been disadvantaged. With some adopting the new standards while others remain with frameworks, and some using both, the statistics can’t possibly offer a true picture.

The major problem appears to be that over one-third of apprentices are failing to attain the EPA Gateway, but historically around 20 per cent have consistently left during their minimum one-year journey, for a variety of reasons. The question should be why this has doubled since the introduction of the levy.

Current skills minister Gillian Keegan was right when she noted recently that achievement rates decreased when the levy was introduced, but it’s probably not for the reasons she thought. Prior to these changes, enduring government policy was that “the funding follows the learner”. Now, it follows the employer. A subtle change, but it has had many unintended consequences and a host of these are employers’ responsibility. They can’t be blamed on the provider, yet it is the provider that the system penalises. Employers recruit and place employees on apprenticeships. They select, brief and oversee providers. They provide workplace mentors and on-site skills training. And at any time, it is they who can change provider or remove apprentices.

The ESFA’s statistical data should take into account the reasons apprentices are taken off their programmes and recognise that this is a combination of commercial factors driven by employers (largely evidenced by the proportion of apprentices reaching EPA) and the quality of providers’ delivery (largely evidenced by the proportion of learners reaching EPA who complete successfully).

Providers should be judged on the elements that they alone can influence. That would give government confidence in the quality of provision, and allow the ESFA to better understand the actions of employers and amend their policies accordingly. For the training provider to carry responsibility for the entire success rate with so much outside their control is simply unsustainable.

Union blasts college redundancy plans during coronavirus crisis as “unnecessary and unfair”

A large general FE college has announced its seventh round of job cuts in six years.

Blackburn College has put 29 jobs at risk, with 11 posts (6.98 full-time equivalent positions) expected to be cut.

Affected staff members were informed of the redundancy consultation via video chat yesterday, in a move which union officials do not believe is “legitimate” and feel “fails to consider the wellbeing of members at this time of national crisis”.

Principal Dr Fazal Dad said: “We are living through challenging and unprecedented times but we also need to ensure the continued efficiency of college operations.

 “We are confident that as a result of current proposed efficiencies no student or employer in the region will notice a change in the level of service they receive from the college at any time throughout this process.

“We face some very difficult decisions over staffing but these reductions in staffing represent only a very small part of the overall workforce.”

He added that the college will “do all it can” to prevent any compulsory redundancies.

The University and College Union (UCU) said the decision was “another blow” to the college and that the latest round of job losses are part of the seventh redundancy exercise since October 2014.

UCU regional official Martyn Moss said: “We are in unprecedented and difficult times as we all try to deal with the current crisis.

“Sacking staff at a time when there simply is not work available elsewhere is unnecessary and unfair.”

He added the college needs to recognise commitments made by employees in dealing with the coronavirus pandemic and work with the union to protect jobs.

According to the latest college accounts, Blackburn employs 688 full time equivalent staff, of whom 396 are teachers.

The college generated a deficit of £1,215,000 in 2018/19, compared to a £943,000 surplus in 2017/18.

Its 2018/19 financial statements also said it has seen a decrease in its net assets from £18.5m the previous year to £11.8m, which was “mainly a result of increases in the pension liability from £10.5m to £17.9m”.

Blackburn College fell two grades from ‘outstanding’ to ‘requires improvement’ in 2017 after not being inspected for ten years.

It has since received a second grade three from Ofsted in 2018 but, most recently, a monitoring visit at the start of this year found Blackburn College to be making ‘reasonable progress’ in the two assessed areas.

It has approximately 11,000 students.

In a time of uncertainty, here are some predictions for the sector

The skills system has done an amazing job during the corona crisis and will be critical as the UK economy tries to get back on its feet, says David Marsh

Most people will be pretty clear – the biggest challenge has been uncertainty. Everything has changed so much in the past two months that many would struggle to remember everything that we have been through. Government has moved quickly, but it has still led to much uncertainty and confusion for employers, learners and providers. This has made dealing with the situation difficult – not knowing whether employers would place learners on breaks, whether learners could learn on furlough, eligibility for financial support from government, and so on.

How have we reacted?

Our vision at Babington is developing better futures. We have really focused on that vision and the opportunity we saw to make a difference. We knew that the first thing was for us to ensure we remained stable and viable for the future – as otherwise we weren’t going to be able to develop anyone’s future! We have had an absolute focus on three things during this really difficult time.

Firstly, staff: we have been open and transparent. We have discussed the challenges and the solutions with the whole business wherever possible and talked about how we are all in it and will get through it together. We have been as visible as we can be and if anything, have got even closer to the business. We started holding daily “Coffee and Chat” sessions with the business to update them on what we know. In these times the main question people want answered is “Is my job safe?”, and we have done everything we can to reassure. Our aim was to treat everyone as fairly as possible.

Secondly, learners: we have worked hard to keep them informed and communicated with. We believed the best thing was to keep them on programme, motivated and supported and in the main we have been able to do this. Our teams have been able to support learners through much of this difficult time and give support with the many challenges they face, including mental health. We have quickly increased the amount of virtual training that we deliver and this has been received incredibly positively.

“The key things we will keep doing are communicating and being agile”

Thirdly, customers: our diversity in sectors and programmes has really allowed us to be flexible and react to market needs and requirements. We have seen some sectors and programmes more significantly affected than others. Particularly hard hit has been our new-entrant programmes where we saw a reduction of nearly 80 per cent, but there are other areas and sectors that have actually delivered more learners than ever before.

What are employers saying?

Many employers state that they will significantly reduce their new recruits but still want to utilise their apprenticeship levy and hence are looking at the opportunity to develop current employees – especially if they furloughed. Productivity and new skills will become even more important in the near future and employers will be looking for new and different skills to meet the challenges they face. We are looking to focus on these areas and also to look at how we can support the sectors that will likely sustain and grow.

There will also be a lot of people who are unfortunately left unemployed and they will need support and re-skilling to get back on the employment ladder, so we have maintained our employability team and infrastructure even though we have seen very little activity.

What is the outlook for training providers?

It is difficult to predict exactly how things will work out, how the economy will recover and what the outlook for different sectors will be. The key things that we will keep doing are to communicate and be agile.

There are two main challenges coming down the road that will potentially affect the quality, brand and capacity of the apprenticeship system and impact learners. These are both around the effect of the current crisis on the stability of providers in the medium term.

• The reduction in the number of new apprenticeship starts from employers will impact for the next two years when those learners would be on programme.

• The increased amount of time and support that learners will need to achieve their programmes will lead to a very large number going out of funding, meaning providers will not have funding coming in and hence will struggle to keep supporting these learners.

The skills system will be critical to the future of the UK economy – getting people re-skilled and driving productivity. It has done an amazing job during this crisis to support learners both academically and pastorally – this shouldn’t be ignored. Officials will need our support and ideas to create solutions to continue to make the system sustainable and fit for purpose for the future.

MOVERS AND SHAKERS: EDITION 318

Your weekly guide to who’s new and who’s leaving.


Sally Gibbs, Group Director of Strategy and Growth, Seetec Group

Start date: May 2020

Previous job: Head of Business Development, Shaw Trust

Interesting fact: Outside of work you’re most likely to find Sally in a dance studio, she attends several classes a week


Elaine McMahon, Interim Principal, Richmond upon Thames College

Start date: September 2020

Previous job: Interim Chief Executive, Cornwall College Group

Interesting fact: Her first career choice was to work in the theatre. Some of the most memorable plays she has seen have been produced and acted by students in FE colleges


Deborah Bhebhe, Head of Apprenticeships, Mercuri International (UK) Ltd

Start date: April 2020

Previous job: Apprenticeships lead, Birmingham Metropolitan College

Interesting fact: When she was a teenager Deborah wanted to learn another language, so she learnt British sign language

Ofqual publish final plans for exam alternatives this summer

This afternoon, as promised, Ofqual has published final details for their “exceptional arrangements for awarding qualifications this summer”.

Click here to read the announcement and download the accompanying documents.

Sally Collier, Chief Regulator, Ofqual, said: “In the unprecedented circumstances we face this summer, these exceptional arrangements are the fairest way of making sure students have the grades they need in time to progress to further study or employment.

“It is important that students; their parents, carers and teachers; and others who rely on these qualifications, such as universities and employers, have had an opportunity to feed back views. I would like to thank everyone who has taken the time to respond.”

Exam boards seeking more than £16 million from DfE for Covid flexibility costs

A “formal” request for more than £16 million to be “reimbursed”  has been submitted by awarding organisations (AOs) to the Department for Education to pay for extra resources needed to implement an alternative to summer exams, FE Week can reveal.

The Federation of Awarding Bodies (FAB), which represents over 100 AOs, has written to the DfE director of professional and technical education with estimates of the “additional costs associated with implementing two of the Secretary of State’s directions to Ofqual, issued on 31 March (general qualifications) and 9 April (vocational technical qualifications) respectively”.

The letter ,seen by FE Week, is from the FAB chief executive Tom Bewick (pictured above) and argues an “additional resource requirement of £16.3 million averaged across the regulated community is a realistic estimate of what awarding organisations have spent to adapt their qualifications to the demands of the extraordinary regulatory regime (ERF)”.

Ofqual, which regulates AOs, is due to publish the final details of their ERF at 1pm today, which will include final details on how some qualification grades will be estimated.

In the letter, Bewick says the FAB “is formally requesting that the Secretary of State make a grant fund available to the regulated AOs affected by his two directions; and to disperse these funds on an evidenced claimed basis from the Department”.

An accompanying document describes and calculates additional costs for up to 162 active AOs, and says one, that is unnamed, has “reported a £3 million loss in income and £500,000 of additional expenditure as a result of the coronavirus crisis”.

Costs incurred are said by Bewick to be significant “in terms of staff time and technological adaptations”, and will need to include “procurement of external resource”.

The £16.3 million estimate is made up of £1.1 million for up to 57 small AOs, £9.1 million for up to 89 medium sized AOs and £6.1 million for up to 16 larger awarding organisations.

Bewick adds that “FAB understands that the additional spend illustrated in this proposal is significant and that the Department may wish to consider carefully which additional costs are reimbursable”.

The DfE has been approached for comment.

Second college merger postponed due to Covid-19

A merger involving a college that previously warned it was dependent upon the move for survival has been delayed by a year due to the coronavirus pandemic.

Southampton City College is now set to join Itchen Sixth Form College in August 2021, having scheduled the move for this summer.

It is the second college merger to be delayed because of Covid-19 this month.

As previously reported by FE Week, Southampton City is currently keeping afloat on government bailouts.

It received around £2.5 million in emergency funding last year and the college’s 2018-19 accounts warned that cash would run out by October.

It also stated that if a merger attempt failed, then the college would “require additional financial assistance” to stay open.

Sarah Stannard, principal at Southampton City College, claimed the college’s financial position this academic year is now “secure” and said the Department for Education is providing financial support.

However, she refused to say whether the DfE has stumped up any new bailout funding this year to keep the college running as a standalone until next summer.

Stannard would only say that the college is reassured by the department making it “very clear that colleges are essential community institutions” when looking ahead to 2020-21.

She added: “Covid-19 has had a small negative impact on our income but we can manage this.”

A Department for Education spokesperson would also not say whether it has given the college any new emergency funding but said: “We continue to work closely with City College Southampton and other key stakeholders to achieve a sustainable solution for further education in the city.”

The college’s 2018-19 accounts were signed off on a “non-going concern” basis and stated the “current intention and most likely outcome” would be for a merger on August 1, 2020, whereupon the college would “dissolve after the transfer of trade, assets and liabilities at carrying value to another FE organisation”.

Stannard said that Southampton City and Itchen College are committed to merging but have had to prioritise responding to the outbreak and are likely to have to organise continued changes to the teaching and training of students and apprentices this autumn.

“Both colleges believe it’s appropriate that they focus on delivering the best student experience possible at this difficult time and give themselves time to prepare an effective and high-quality merger in the summer of 2021,” she added.

The move would affect more than 6,000 students and a consultation is due to start at least four months before the merger.

Alex Scott, principal at Itchen College, told FE Week: “Itchen College continues to work with City College in preparing a merger proposal, although the current pandemic has understandably had an impact on timescales as we have switched to supporting our learners remotely.

“We are working towards a provisional date of August 2021, but will move more quickly should the proposal be agreed and circumstances allow.”

Stannard added Richard Taunton Sixth Form, another college in Southampton, could also join the merger at a later date.

The FE Commissioner has been assisting with the merger after conducting a local provision area review last summer.

Southampton City College was re-issued with a financial health notice to improve by the ESFA in February, which it first received in 2016, while its financial health was rated as ‘inadequate’.

The college generated an income of £13 million and a deficit of £1.65 million in 2018- 19 – a significant increase from £585,000 in the previous financial year and £257,000 the year before that.

In addition, it lost an agreed £500,000 overdraft after Santander withdrew the facility in August 2019 when loan covenants were breached.

Southampton City College has had two other merger attempts with different partners fail.

The first proposal, with Southampton Solent University, fell through in 2018, while a plan to join Eastleigh College collapsed at the 11th hour in March 2019 after an application for emergency funding was rejected by the ESFA.

The other college merger to be delayed this month because of coronavirus involved Cheadle and Marple Sixth Form College and Trafford College Group. They had planned to join up by August but have now pushed this date back to October 31.

Colleges in administration enter second year with more delays

The transfer to new ownership for the first colleges to be placed by the government into insolvency has been struck by a second delay as concerns heighten over the spiralling costs.

The Education and Skills Funding Agency has failed to agree a financial deal with North Kent College to take over both Hadlow College and West Kent College.

Administrators were originally due to hand over the keys on March 31, which was then pushed back to May 31 and has now been rescheduled for July 31, FE Week can reveal.

Tomorrow (May 22) is exactly a year since Hadlow College’s insolvency process began, with West Kent and Ashford, part of the original Hadlow Group, officially entering education administration three months later.

David Gleed, a qualified chartered accountant, has been principal at North Kent College for over a decade.

It is unclear why the transfer deal remains unsigned and Gleed has denied that the college board are holding out for better terms, which could include transitional protection, or a more immediate financial reward.

A source close to the transaction suggested one of the many “complexities” relates to the substantial land and many properties owned by the two colleges, including residential accommodation.

Kent-based law firm Thomson Snell & Passmore, where the North Kent College chair of the board Alex Lewsley is a partner, is being paid by the college to undertake due diligence on the deal.

FE Week understands the administrators, BDO, have become frustrated by the lack of progress on the deal between North Kent College and the senior ESFA representative, Matt Atkinson.

At the same time, BDO has come under increasing pressure from the ESFA to keep their costs down as they continue to run the college for far longer than had originally been planned.

The most recent administrator report lodged with Companies House showed that senior BDO staff were charging up to £310 per hour, as agreed with the Department for Education, and the costs to the public purse were already in the millions.

The DfE told FE Week the costs of this project are regularly reviewed with consideration of value for money.

A spokesperson added: “We continue to work closely with North Kent College and the Joint Education Administrators for Hadlow College and West Kent and Ashford College towards a planned transaction date of July 31, 2020.”

A spokesperson for the administrators said “good progress” has been made with the transaction “but Covid -19 has and will continue to impact on the pace of the work that remains to be done”.

“Taking this into consideration, and with the end of the academic year approaching, the completion date has been moved to a target date of July 31. All parties continue to proceed positively towards a successful conclusion,” they added.

A spokesperson for North Kent College added that the transaction “continues to proceed positively and is fully expected to reach a successful conclusion in the summer”.

A successful conclusion to the administration is not alone in being beset with delays as the DfE continues to hold on to an independent report, led by Dame Mary Ney, into their own oversight of college finances following the Hadlow Group scandal.

The Hadlow Group came under investigation by the government once financial irregularities were uncovered, including submitting partial information to the agency which generated a ‘good’ financial health rating.

But the FE Commissioner later found that had the ESFA looked at Hadlow’s published accounts, they would have rated the college as ‘inadequate’ and intervention would have taken place far sooner.

Ney was then commissioned to undertake the review in August and her so far unpublished final report has been with the DfE since December.

While North Kent’s transfer has been delayed, East Kent Colleges Group did take over Ashford College, which was part of West Kent College and a site in Canterbury at the beginning of April as planned.

The break-up of the Hadlow Group got under way on January 1, 2020, when its Mottingham campus was taken over by Capel Manor.

The three-way split was recommended by FE Commissioner Richard Atkins back in July.

Most of the Hadlow Group’s senior leaders and governors resigned once the FE Commissioner stepped in and their role in the demise of the institution remains under active investigation by the insolvency practitioners.

Hadlow went into administration in May with £40 million in debts, and West Kent and Ashford College went into administration in August with debts of over £100 million when capital grants for the construction of K-College are included.

With complexity and costs proving to be far higher than anticipated, the government has not gone down the education administration route with several other colleges that ran out of cash since, choosing instead to provide longterm loans.

ESFA rejects one-third of all AEB and non-levy supplier relief applications

A third of training providers that bid for the Education and Skills Funding Agency’s apprenticeship and adult education Covid-19 supplier relief scheme were rejected because they struggled to “prove need”.

The agency told FE Week that of the 165 applicants, 107 (65 per cent) “met the criteria for funding”.

All bidders have now been informed of their outcome, the process for which was supposed to be wrapped up by May 12 but had to be delayed after a “very small number” of providers suffered technology issues when attempting to submit applications.

The ESFA said providers that were unsuccessful can appeal the outcome “where they believe that the ESFA has failed to follow its own policy and / or processes, and / or that the ESFA failed to understand or recognise the evidence submitted in the application”.

Previous FE Week analysis found that only a quarter of eligible providers for the scheme had actually applied.

Karen Woodward, the ESFA’s deputy director for employer relations, told an FE Week webinar on Monday that many providers struggled to “prove need” for the financial support as a “number of them are not really facing huge cash flow problems at the moment”.

“Currently the guidance is only up until the end of June, and many of the providers have got sufficient cashflow, maybe have got reserves, and didn’t feel that it would be appropriate for them to apply at this stage under the rules of the Cabinet Office procurement notice,” she said.

Woodward described the supplier relief scheme as a “rigorous process” and that some providers did not feel “comfortable” in sharing the financial information that was being requested by the ESFA.

“It was looked at both by the further education directorate and also by the provider market oversight team. It was a deep look at whether people would be prepared to share some openbook work around the monies we were looking at. Some providers didn’t feel comfortable about some of that.

“But most of it was a failure to prove need. That there was such a requirement that you need a cash injection over the next few months and that you couldn’t actually manage that as an organisation in your own right.”

The Cabinet Office’s supplier relief policy, which the ESFA’s was based on, is currently set to finish at the end of June. FE Week asked the Cabinet Office if there were any plans to extend this, but a spokesperson said they have nothing to add to existing guidance.

The ESFA had come in for a lot of criticism over its handling of the relief scheme.

They took more than a month to launch the support after Cabinet Office gave contracting authorities the green light to pay their suppliers in advance of delivery on March 20, and when it was released, it excluded the majority of apprenticeship providers.

All apprenticeships recorded on the government’s digital system, mostly with levypaying employers, were made ineligible as the ESFA believes the contractual relationship is between the employer and the provider, rather than the government.

The Association of Employment and Learning Providers challenged this legally. James Goudie QC, a senior silk at 11KBW, as well as a deputy High Court judge and a master of the bench of the Inner Temple, was instructed by the law firm VWV to help present the case in a letter on behalf of the membership organisation.

The letter was sent at the end of April. The DfE has now responded and the AELP is currently deciding its next steps.