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.

College set to close with the loss of 117 jobs

A land-based college is set to close next year with the potential loss of 117 jobs following an FE Commissioner review which found the site was no longer financially viable.

Askham Bryan College informed staff at Newton Rigg College in Penrith of the decision this afternoon.

The move to shut in July 2021 has been called a “hammer blow” by union officials, who have pledged to campaign against the decision.

Neil Hudson, the MP for Penrith and The Border, added that this is “hugely disappointing news” and vowed to “do my upmost to secure a viable future for Newton Rigg”.

The proposal is subject to the outcome of a 45-day consultation process with affected staff and trade unions.

The closure would leave the county without any specialist agricultural education.

Askham Bryan College, based 100 miles away in York, took over the running of Newton Rigg from the University of Cumbria in 2011.

The college said the FE Commissioner’s review, which started in March and concluded this month, found that Newton Rigg “lacks a sustainable business model due to declining student numbers and demographics”.

It was also said to have found that the estate would require around £20 million worth of capital investment in order to “keep pace” with land-based sector skills needs.

However, the college added the timing of the proposed closure “gives a window of opportunity for an alternative group or organisation to provide a potential solution” with “high level” of support expressed for Newton Rigg from various Cumbrian organisations and groups – suggesting that they plan to sell the site.

Askham Bryan also stated it would look at the viability of transferring uplands farm at Low Beckside to an “appropriate” body or group on the basis they would continue to preserve it for educational use.

Tim Whitaker, principal of Askham Bryan College, said: “We understand the strength of feeling about Newton Rigg and the fact this will be upsetting news to our staff, students and the local community.

“This has been a very difficult decision. We regret putting staff at risk of redundancy.

“Given the current economic climate, and the fact that no capital or revenue funding is available, we have no other option but to propose closing the facility in July 2021.”

The University and College Union (UCU) has vowed to fight the closure of the Penrith-based college at the end of the next academic year, but did not provide further details of its plans.

UCU regional official Iain Owens said: “This is a hammer blow for the people of Penrith and Cumbria who rely on Newton Rigg to provide education for their young people.

“The closure would leave Cumbria – one of the most agriculturally-dependant counties in the country – without any specialist agricultural education.”

Around 888 learners are currently based at the college including 221 apprentices as well as 667 FE students – the majority of which are enrolled on one-year programmes.

Courses provided include agriculture, animal and equine management, uniformed public services, hairdressing and beauty therapy and health and social care.

Learning and apprenticeships planned for the next academic year will continue as intended. 

Student recruitment and enrolment will also continue and in the event of campus closure, the college said it work in partnership with other FE colleges to map progression routes beyond 2021 and seek to identify an alternative location for ‘off the job’ training provision in Cumbria.

At the start of the month, a cross-party group of local MPs led by Hudson came together in a failed attempt to save the provider.

Among others he was joined by former Liberal Democrat leader Tim Farron and former education select committee member Trudy Harrison.

Hudson said the college, which is over a century old, had a “tremendous” heritage and is “unique” in the county for specialising in land-based sectors.

Newton Rigg is one of a number of colleges that have announced plans to close campuses and been met with MP opposition.

Other cases have include the RNN Group, Cornwall College Group, BMet and Warrington & Vale Royal College.

 

Ofsted praises 100% positive progression rate for students at ‘outstanding’ UTC

A university technical college in Hull has been dubbed a “guiding light in the education sector” after being rated ‘outstanding’ in its first ever Ofsted inspection.

Ron Dearing UTC, which opened in September 2017, received grade ones across the board in a report published today that did not include one line of criticism. It becomes one of only three of the 48 institutions rated ‘outstanding’.

Inspectors said learners received an “exceptional” quality of education and heaped praise on their 100 per cent positive progression that has come about as a result of the college’s “considerable” links to industry.

According to the UTC’s 2018/19 accounts, of their 117 year 11 students in that year, 94 progressed onto its sixth form, 14 onto an FE college, eight onto an apprenticeship, and one onto employment.

And of the 86 year 13 learners on roll last year, 28 started university, 22 went into employment with one of the UTC’s partners, 29 into an apprenticeship, and seven into other employment.

Ron Dearing, which had 506 students at the time of the inspection in March against a capacity for 600, is the first UTC to be given a grade one under Ofsted’s new inspection framework that was rolled out in September 2019.

Principal of the 14 to 19 technical college, Sarah Pashley, said: “Ofsted raised the bar when it introduced its new Education Inspection Framework, which made it even more difficult to achieve an Outstanding rating. This makes the achievement even sweeter.”

Ofsted’s report said Ron Dearing UTC has the “hallmarks of a school that could be viewed as a guiding light in the educational sector”.

Inspectors reported that the curriculum is “superbly” designed with teachers demonstrating passion for their subjects and ensuring they know the strengths and weaknesses of every pupil.

Students’ A-level results in 2019 placed the UTC in the top one per cent of schools nationally.

In addition, rates of attendance were found to be “much” higher than the national average while there have been no students permanently excluded from the college since it opened almost three years ago.

The principal, vice-principals and other senior and curriculum leaders were praised as being “astute, enthusiastic and entirely committed” to the school, staff and pupils. Governance was also called “outstanding”.

Pashley said the provider had been supported by the University of Hull and employers in the region, who were involved in developing a “highly-ambitious vision” for the college.

“We’re also acutely aware that our students and their parents and carers put their faith in us by moving to a brand new school which hadn’t been tried and tested,” she continued. 

The UTC’s patron, former education secretary Alan Johnson, said: “There was never any doubt in my mind that Ron Dearing UTC would be a success. The business community in Hull were totally supportive, as was Hull City Council Chief Executive Matt Jukes and his colleagues.

“However, even I didn’t contemplate success of this magnitude so quickly. Hull now has one of the best schools – and the best UTC – in the country and these results are a magnificent tribute to Sarah Pashley and her team.”

The only two other UTCs currently rated outstanding by Ofsted: Reading and Energy Coast.