The government is working on a plan to bring colleges in England back into public ownership, FE Week understands.

Work has begun on a White Paper to be followed by legislation, after recent attempts to financially stabilise the sector with an area review programme and restructuring funds totalling around half a billion pounds were deemed to have failed.

The number of colleges in formal intervention over their finances, currently more than 30, continues to rise and government bailouts have not stopped in recent months despite attempts to end them last March with the introduction of a new education administration regime.

But it is understood that civil servants have concluded the first and so far only colleges to be put into administration, Hadlow College and West Kent and Ashford College, have been both too slow and too costly.

This newspaper first revealed the government was working on a new FE Bill in January and last week Gavin Williamson (pictured), the education secretary said the reforms would be “revolutionary” – but until now the potential for the nationalisation of the college sector was unknown.

A key option being considered is to reverse legislation introduced in the Education Act 2011, which removed the need for colleges to seek consent before borrowing from banks and limited government powers to intervene where a college is being mismanaged or is performing poorly.

Government is understood to be concerned that even in instances where a college has been issued with an inadequate financial grade, an inadequate Ofsted assessment, received bailout funding and placed into ‘Administered College Status’, the college governing body remains independent.

This means the government has no overall control of which courses are run, whether they must merge and with whom, and more generally how they spend public funds.

Government powers became so limited under the 2011 Act that in May 2012 the Office for National Statistics took colleges in England out of the public sector classification.

It is understood Williamson and the team around him are becoming increasingly frustrated by this inability to step in when they deem there to have been leadership failures.

In his annual report for 2018/19, the FE Commissioner, Richard Atkins said that in the severe problems he saw “they were frequently the result of poor governance and leadership over a number of years, resulting in weak decision-making”.

The government has started to parachute in paid chairs from their National Leaders of Governance programme as well as investing in a Strategic College Improvement Fund – but this has not gone far enough, and the general lack of control will now be addressed.

Work on the White Paper has picked up a pace in recent weeks, as concern over college finances has heightened with the coronavirus. It is led at the DfE by Keith Smith, who was redeployed from the Education and Skills Funding Agency.

Smith is working closely with Williamson but reports to Paul Kett, director general for HE and FE at the DfE.

Another key civil servant is Matt Atkinson, who was initially drafted in from PWC to oversee the college restructuring deals and is now director of the provider market oversight team.

FE Week understands Atkinson will take over the FE Commissioner’s team when Atkins finishes his second two year contract this October.

There has been tension between the FE Commissioner’s team, which is part of the DfE, and the ESFA’s intervention team, something that could be revealed once the Dame Nay report into college financial oversight is published.

The Department for Education did not deny the plan to take greater control of colleges.

A spokesperson said: “The education secretary has already made clear that we are working on a White Paper aimed at delivering ambitious reform in our vital FE sector.

“The FE sector is playing a pivotal role in making sure more people can access the high-quality education and training they need to progress and will support our economic recovery following the Covid-19 outbreak. Our reforms will build on and strengthen the excellent work already happening across the country and will ensure the FE sector is at the heart of every community.

“We have been working very closely with the sector on the development of the reform programme from the start and will continue to do so. We will outline further details in due course.”

David Hughes, chief executive of the Association of Colleges, when asked about the secret plans said: “Ministers and officials are already engaging us as they shape their reforms and I am confident that will continue.

“It is too early to be sure where it will end, so it would be wrong to pre-judge what the reforms should be or to rake over old problems when what we need to be doing is to work on a better system for the future.”

The government is considering a U-turn on its planned date to switch off old-style apprenticeship frameworks as providers raise major concerns over the deadline.

Numerous training firms and colleges that spoke to FE Week warned they will have to pause starts in areas such as construction, stonemasonry, hairdressing, beauty therapy and logistic operations as they do not yet have a viable replacement standard ready for delivery.

The situation has been made worse by the Covid-19 outbreak, with many planned starts on the frameworks being withdrawn in recent months as employers battle cashflow issues.

New starts nationally for 2020 will be even more dismal reading

The deadline for stopping new starts on all frameworks is set for July 31

Rob Nitsch, the chief operating officer of the Institute for Apprenticeships and Technical Education, said last month that talks to extend this deadline were under way, but that the decision ultimately lies with the Department for Education.

A spokesperson for the DfE confirmed this week that they are “continuing to monitor the situation closely” and will “consider what further action may be needed so that apprenticeships can continue and businesses can meet their skills needs”.

The consideration is part of their attempts to measure the “full impact of the Covid-19 outbreak”.

Many providers shared their frustration at the current cut-off date with FE Week.

Building Crafts College delivers frameworks in stonemasonry to around 20 new apprentices every year.

A replacement level 2 stonemasonry standard has been in development since November 2017 and while it was finally “approved” by the IfATE on May 1, it still needs an assessment plan created and funding rate decided before it can be delivered.

The college has been involved in the trailblazer group for the standard, but quality manager Frances Hill said that when they have asked what to do with new apprentices this year, once the frameworks have been turned off, “we were told, you will have to hold them off as there will not be any funding for them as the end-point assessment is not ready”.

She added that the “official estimate” for the assessment plan is “six months, whereas the more realistic but unofficial estimate is 12 to 18 months”.

Michelle Turner, a director of Stone Restoration Services Ltd and lead trailblazer contact for the stonemasonry standard, said they are “aiming to finalise and submit the end-point assessment plan at the earliest opportunity, taking into account the added challenges around Covid-19”.

“We are planning for the long term and are confident that the new standard will be a major improvement on the old framework and will serve the sector well for years to come,” she added, but stopped short of giving an expected date for it to be ready for delivery.

Derek Whitehead, principal of Leeds College of Building, said there are “major concerns” that there “aren’t enough level 2 standards” in construction and the built environment to replace existing frameworks.

While there are 84 construction standards ready for delivery at various levels, Whitehead said there are “gaps in provision” such as “no standard for plumbers who just do bathroom installations”.

“New standards were put in the hands of employers to drive and unfortunately it’s not happened and it doesn’t help where the bulk of their employers, for example, in construction, are small and medium-sized businesses and micro companies, at that. The current Covid situation isn’t helping with such developments,” he told FE Week.

Whitehead said the frameworks cut off “definitely needs to be delayed” until a “full review by all sectors is undertaken together with end-point assessment capacity”.

Giles Holmes, senior account manager at Leicester College, shared similar concerns and called specifically for the level 3 and 5 built environment frameworks to stay on.

The college was planning to work with its employers this spring to decide what standards in construction they could use instead, but this has not been possible due to the impact of coronavirus.

Holmes said the “ability to be able to continue to deliver” the built environment frameworks in 2020-21 would mean “we can secure good numbers of starts in construction and work with the local levy construction employers to ensure we are preparing to deliver the right construction standards that meet their needs”.

David Rose, chief executive of KEITS Training Services Ltd in Hertfordshire, raised concern that there are no apprenticeship standards yet in animal care level 3 and floristry levels 2 and 3 ready for delivery to replace their frameworks.

He said the pandemic has put a stop to their planned recruitment and they will “miss the opportunity now, should the switch-off not be delayed”.

“Without extending frameworks, new starts nationally for 2020 will be even more dismal reading and there will be less opportunity for young people to follow an apprenticeship route,” Rose added.

Multiple providers named beauty therapy and hairdressing at level 3 as a gap in apprenticeship standard provision.

Standards are not like-for-like replacements for frameworks

While the beauty therapist level 2 standard was approved for use in 2018, Carla Hales, the business director at Debut Training Academy, said: “The standards for our industry have not been released yet, therefore if frameworks are discontinued we will not be able to start any new apprentices in August.

“This will be detrimental to our business as we have now had no new starts since March 2020.”

Charlotte Moreland, managing director at the National Hairdressing Training Academy, said they are “stuck between a rock and a hard place if the July date happens for switch-off”.

In response to the concerns, a spokesperson for the IfATE said standards are “not like-forlike replacements for frameworks”.

When asked what advice they would give to providers who believe there is no standard available that could be used instead of the current framework, such as for stonemasonry, the institute would not give a straight answer.

Instead, a spokesperson said: “We are committed to supporting the sector fully through the challenge of the lockdown and against the impact of Covid-19.

“We are looking at how we can progress all standards in development at best speed in the prevailing circumstances without compromising quality.”

The DfE added that where employers believe that there is a genuine occupational gap that is not met by existing standards, they should contact the institute via enquiries.ifa@education.gov.uk.

A sixth-form has brought forward plans to build extra temporary classrooms as colleges across the country brace themselves for an expected influx of students due to the coronavirus pandemic.

Hereford Sixth Form College has applied for planning permission to install two mobile classrooms in time for new learners arriving in September.

Principal Peter Cooper estimates the number of students could increase by 10 to 15 per cent, from around 2,000, in the wake of the current crisis and expects some social distancing measures to apply.

This is based on the likelihood of more students staying on after their first year and a “few” learners who are disappointed with their results wanting to return to improve their grades.

The Association of Colleges has predicted that college places could be needed for an additional 100,000 young people across the country, who would have expected to start an apprenticeship, work-based learning programme, employer-based training or entered the labour market in the coming academic year.

The organisation has also estimated that pressures on available college places will include “a rising population of young people, potential increases in transfers from private to state provision, and the inevitable space constraints created by social distancing”.

However, Cooper cautioned that the upturn “really depends on the situation on the ground when we get to September”.

He predicts that some students may be too scared to travel into the college in the current climate, which could lead to a reduction in the overall number.

As a result, the principal believes other colleges making similar provisions will be dependent on how “tight” their current capacity is and the local dynamics in their area.

He said the new temporary classrooms will cost his college around £200,000.

“We have accrued reserves for a rainy day, and if this isn’t a rainy day, I’m not sure what is,” Cooper told FE Week.

The college was originally set to submit the planning permission application once it received a decision on its Condition Improvement Fund bid for a new building, but brought this forward as the current circumstances made the extra space even more necessary “to ensure that we have some flexibility for room utilisation”.

The principal is confident the planning permission request, which was submitted in March, will be granted.

In preparation for a potential return in June or September, Cooper has committed a budget of at least £50,000 for purchasing personal protective equipment, sanitising materials and heat sensors.

He claims the sixth form has not faced a significant hit on its finances during this period, and is well placed to respond to the “direction of travel” if additional spending or the cutting of costs is needed.

Cooper also praised the college community’s response to the coronavirus pandemic.

He said: “Sometimes in adversity you learn and find ways of doing things, and I’ve been absolutely delighted with the efforts of staff and students to embrace the changes.”

These included the adoption of a move to remote learning platforms, such as Microsoft Teams and Zoom and other online communication methods.

“I think people have risen to the challenge massively, which I think will have benefits stretching well beyond the crisis,” he continued.

“However, I also think that it highlights many of the qualities that sixth-form colleges bring to things because what people miss out on is the peer-to-peer contact, social skills development and the wider learning skillset which you cannot replicate through these same means.”

A long-running adult education charity has been saved from going under after a local council agreed to a £100,000 rescue deal.

The Friends Centre was on the brink of collapse after losing access to direct government skills funding, hitting repeated financial deficits and experiencing a substantial drop in cash reserves.

Brighton and Hove City Council, which subcontracts to the 75-year-old charity, has now stepped in to protect almost 50 jobs and the learning for around 1,000 adults by bringing the training “in-house” from August.

The council insists this is not a takeover, even though Friends Centre staff will transfer to the council, via TUPE, to continue learning delivery.

Decisions for the charity will continue to be made by its trustees, including president and well-known FE figure Alan Tuckett, who was knighted in the Queen’s New Year Honours 2018.

He welcomed the council’s support but told FE Week the reason it is needed “speaks volumes about the impoverishment of public life that a narrow utilitarian approach to education funding has fostered, and points us to the need for other ways of supporting the cultural institutions of a civilised society”.

Helen Osborne, the chief executive of the charity, said that they were “looking at partnerships” with other providers to stay afloat prior to the council’s proposal but “we now feel that this is the best possible option for delivery in the city”.

“There are still a number of areas that we need to work through with the council, and these are ongoing discussions,” she added.

The Friends Centre launched in 1945 when it started teaching demobbed troops, evacuees and refugees from the Second World War. It currently teaches 1,000 people annually, including English, maths and IT skills for the homeless.

Other courses on offer include functional skills, English for speakers of other languages, and mental health awareness.

The charity is classed as an independent training provider and lost access to direct government funding in 2017 after failing in its bid to the controversial adult education budget tender, which was riddled with problems and delays.

It has since had to subcontract from Brighton & Hove City Council, a model which it states is “unsustainable”.

The council’s own adult education budget funding allocation for next year is expected to total £569,988.

A spokesperson said “additional council funding of £101,030 has been agreed” to deliver the Friends Centre’s services for 2020-21.

As well as the TUPE arrangement, the council will lease the Friends Centre’s premises for one year as part of the deal.

The charity’s latest financial accounts, for 2018-19, show a deficit of £14,333. The trustees had planned to “return to running a balanced budget, or one which delivers a surplus and did not deplete our cash reserves below £90,000”, but this was not achieved and reserves fell to £43,150.

A joint statement from the council and charity said the main funding issue “has been around not having a direct government contract to the Friends Centre itself”.

Both Brighton & Hove City Council and the Friends Centre are rated ‘good’ by Ofsted.

Councillor John Allcock said: “We absolutely need this service in our city, as its vital to sustain and develop adult skills.”

Tuckett, who led the National Institute for Adult Continuing Education for 23 years and became known as FE’s “campaigner-in-chief” for lifelong learning, was chief executive of the Friends Centre in the 1970s.

“It had then, and now, the happy knack of combining a commitment to adult education as a second chance, with a belief that for everyone making sense of change and how you can help to shape it, enriches lives,” he told FE Week.

Tuckett added that the charity “celebrates art, culture, ideas, language”, which are “exactly the values this [Covid-19] virus has helped us rediscover as the basis for a society worth living in”.

The Education and Skills Funding Agency is taking legal advice on whether it can intervene at new providers before Ofsted publishes their inspection reports.

The watchdog paused the publication of all further education and skills reports on March 20 owing to the coronavirus pandemic, but later said it would release them sooner if requested by individual providers.

Ofsted previously told FE Week it was sitting on around 50 reports for providers that had been visited before the Covid-19 outbreak. It published 12 of them at the time of going to press this week – all of which showed positive results.

This newspaper understands that a number of the unpublished FE and skills inspection reports were early monitoring visits of new providers that resulted in ‘insufficient progress’ judgments and would normally result in them being suspended from new starts, in line with ESFA rules.

The agency’s policy states: “When Ofsted publish a monitoring visit report that finds that ‘insufficient progress’ has been made under one or more of the themes assessed, then unless an exceptional extenuating circumstance is identified, we will take a range of actions as outlined in contracts and funding agreements.”

When asked about whether it could take action against providers found making ‘insufficient progress’ in monitoring visits if the report has not been published, the ESFA would only say that it is working with Ofsted and its legal team to understand the ramifications of Ofsted’s pause of publications and to decide the best course of action to minimise disruption to apprentices and providers.

It means that there is likely to be a number of new providers that have been judged ‘insufficient’ by Ofsted but can still recruit new learners and apprentices.

An Ofsted spokesperson said the organisation would not comment on unpublished reports, but told FE Week the DfE and the ESFA are “regularly made aware of provisional outcomes of inspections and monitoring visits”.

“Where a report has been finalised it is sent to the DfE/ESFA at the same time as it is sent to the provider, in line with our statutory duties,” he added.

The decision to pause the publication of inspection reports was revealed by Paul Joyce, Ofsted’s deputy director for FE and skills, during an FE Week webcast in March.

He said they had taken the decision because they are “well aware providers have enough to deal with” during the current pandemic.