Education secretary Gavin Williamson will today pledge that the upcoming White Paper for further education will lead to a reformed “world-class, German-style” system.

In a speech hosted by the Social Market Foundation, Williamson will say that “for decades, we have failed to give FE the investment it deserves” as he “tears up” the symbolic target of sending 50 per cent of young people to university.

He believes there should be fewer people going into higher education as it can “all too often” end with graduates “not having the skills they need to find meaningful work”, and instead the country should see FE and apprenticeships as equally valid routes to “productive” employment.

Williamson will reiterate the government’s ambition to move Britain to a German-style technical education system, after he launched a target at the Conservative Party conference last September to overtake the country in this area over the next 10 years.

His commitment comes ahead of the publication of a White Paper this autumn which will set out plans for “long-term” change in FE.

Williamson will say: “For decades, we have failed to give further education the investment it deserves. Our universities have an important role to play in our economy, society and culture, but there are limits to what we can achieve by sending ever more people into higher education, which is not always what the individual and nation needs. 

“That’s why this autumn I will be publishing a White Paper that will set out our plans to build a world-class, German-style further education system in Britain, and level up skills and opportunities.

“As we emerge from Covid-19, further education will be the key that unlocks this country’s potential and that will help make post-Brexit Britain the triumph we all want. I want everyone to feel the same burning pride for our colleges and the people who study there, in the way we do for our great universities and schools.”

While details of the White Paper are largely unknown, FE Week understands one major change being considered is to bring colleges in England back into public ownership.

Geoff Barton, general secretary of the Association of School and College Leaders, said his membership body is “not sure why the education secretary feels it necessary to denigrate the value of higher education in setting out his ambition for further education”.

“Both sectors are of vital importance to our young people and our economy and already provide a variety of pathways to skills and careers.”

Barton added that he hopes the education secretary’s “warm words” about the importance of FE are “backed up with adequate funding”.

Association of Colleges chief executive David Hughes said today’s speech “isn’t about reducing the power and mission of universities, but recognising and supporting the power and mission of colleges alongside universities to meet the education, skills and training needs of every adult across their lives”.

“Our current system simply does not support the half of adults who don’t get the chance to study at higher levels,” he added.

“In fact it relegates them to second class citizens, without the investment and the opportunities to improve their life chances.”

During his speech today, the education secretary is expected to explain that while “many” of the skills that employers are demanding require intermediate or higher technical qualifications – only 10 per cent of all adults aged 18 to 65 actually hold higher technical qualifications as their highest qualification in the UK.

That’s compared to around 20 per cent of adults in Germany and as much as 34 per cent in Canada. And five years after completion, the average higher technical apprentice will also earn more than the average graduate.

James Kirkup, Social Market Foundation director, who will discuss Williamson’s plans with him during today’s broadcast, said: “Socially, too much of our national conversation is based on the implicit judgement that people who don’t go to university aren’t worth as much as those who do. Economically, decades of underperformance on technical education and training, for young people and adults alike, has held back growth and productivity.   

“More support for further and technical education, and more respect for the people who benefit from it, would make Britain happier and richer.”

Today’s speech comes a day after chancellor Rishi Sunak announced billions of pounds of support for skills and apprenticeships to combat unemployment post-Covid-19 (read what was promised for FE here).

You can watch Williamson’s speech here https://www.youtube.com/watch?v=-eZnr5tqRkI.

Chancellor Rishi Sunak delivered a summer statement today in which he outlined the government’s “plan for jobs” to tackle unemployment post-Covid-19.

The statement included a number of funding boosts and new policies for apprentices and skills, ranging from employer cash incentives to a third year of education to school and college leavers.

FE Week has the key points:

 

1. Cash incentives for employers to hire new apprentices

Sunak announced a “brand new bonus” for employers to hire apprentices over the next six months.

From August 2020 to January 2021, any firm that hires a new young apprentice aged 16 to 24 will receive £2,000, while those that hire new apprentices aged 25 and over will be paid £1,500.

These payments will be in addition to the existing £1,000 incentive the government already provides for new 16 to 18 year-old apprentices, and those aged under 25 with an education, health and care plan where that applies.

It means that employers could receive up to £3,000 for hiring 16 to 18 year old apprentices during the six month incentive scheme.

 

2. £2bn ‘kickstart’ programme

The chancellor said the government will introduce an “initial” new £2 billion “kickstart” fund to create “hundreds of thousands of high quality” six-month work placements aimed at those aged 16 to 24 who are on Universal Credit and are deemed to be at risk of long-term unemployment.

Funding, which will cover 100 per cent of the relevant national minimum wage by age group for a minimum of 25 hours a week, will be conditional on the firm proving these jobs are “new”.

If employers meet these conditions “we will pay young people’s wages for six months plus an amount to cover overheads”, Sunak said. That means for a 24 year old the grant will be around £6,500, he added.

There will be no cap on the number of placements and the scheme will be open to funding applications from August 2020, with the first jobs are expected to begin in the autumn.

However, young people taking part in the programme cannot also be apprentices (click here for full story).

 

3. £111m boost for ‘proven’ traineeships

Sunak confirmed the government will provide an additional £111 million this year for traineeships in England, in a bid to triple participation in the “proven” programme.

Incentives of £1,000 per trainee will be paid, and eligibility for traineeships will be expanded to those with level 3 qualifications and below.

A Treasury spokesperson told FE Week the £1,000 bonus will be limited to 10 trainees per employer and the budget increase will also pay for a 55 percent increase in the training provider payment for 19 to 24-year-olds from £970 to £1,500.

There were just 14,900 starts on traineeships last year.

 

4. £101m for school and college leavers to return for a third year

The chancellor pledged £101 million to give all 18 to 19 year olds who are struggling to find work in England the “opportunity” to study “targeted high value level 2 and 3 courses” throughout 2020-21.

FE Week has asked Treasury for further details but the Department for Education explained it will involve offering school and college leavers that are at risk of becoming NEET an additional optional paid extra year in education.

A full list of qualifications available for the fund will be published in due course but it is expected to apply to A-levels in science, technology, English and maths, as well as qualifications in ICT and construction, for example.

 

5. £32m for the National Careers Service

The government will provide an additional £32 million funding over the next two years for the National Careers Service so that 269,000 more people in England can receive “personalised advice on training and work”.

 

6. Tripling of sector-based work academies

Sunak said £17 million will be made available to “triple the number of sector-based work academy placements in 2020-21”.

The scheme, run by the Department for Work and Pensions, typically lasts for up to six weeks and includes pre-employment training, a work experience placement, and a “guaranteed” job interview.

The Treasury said the funding boost will enable sector-based work academies to provide “vocational training and guaranteed interviews for more people, helping them gain the skills needed for the jobs available in their local area”.

 

7. Early release of college capital funding

In his budget last year, Sunak committed to making £1.5 billion available to for college capital projects from 2021.

As previously announced by prime minister Boris Johnson, the government will bring forward £200 million of this to 2020-21 to support colleges to carry out “urgent and essential maintenance projects”.

Young people who take part in the government’s £2 billion “kickstart” scheme cannot also be apprentices, the Treasury has confirmed.

Chancellor Rishi Sunak confirmed in his summer statement today that the government will pay the wages of “hundreds of thousands” of people aged 16 to 24 who are claiming universal credit to take six-month work placements with employers.

FE Week asked if a person on the programme could also be an apprentice, and a government spokesperson said that while more details will be outlined on this in due course, the “kickstart eligibility is for a young person who otherwise might not have got into work (and therefore an apprenticeship)”.

The news is likely to concern the sector, including Association of Employment and Learning Providers chief executive Mark Dawe who said without this flexibility, the incentives for kickstart “will wipe out new starts for apprenticeships for the 18 month duration of this very attractive offer of wage support – a very unintended consequence”.

The AELP said they have since spoken with Treasury who explained the scheme is designed for the young person to work with Jobcentre work coaches and providers over the first 13 weeks to make them work ready and then place the person on to a work placement for a further 13 weeks with the aim of the employer offering full-time employment and an apprenticeship at the end.

Therefore, a young person on kickstart “can’t start an apprenticeship while on the scheme”.

Dawe added: “To borrow the prime minister’s words, it appears that the government is using both traineeships and kickstart to principally target young people in the NEET group and make them ‘oven-ready’ for the world of work and a full apprenticeship.

“We welcome the clarification which will help providers plan their provision for September.”

Funding for the kickstart scheme, which will cover 100 per cent of the relevant national minimum wage by age group for a minimum of 25 hours a week, will be conditional on the firm proving these jobs are “new”, Sunak said today.

If employers meet these conditions “we will pay young people’s wages for six months plus an amount to cover overheads”, he added, which means for a 24 year old the grant will be around £6,500.

There will be no cap on the number of placements and the scheme will be open to funding applications from August 2020, with the first jobs are expected to begin in the autumn.

Sunak also today announced a “brand new bonus” for employers to hire apprentices over the next six months.

From August 2020 to January 2021, any firm that hires a new young apprentice aged 16 to 24 will receive £2,000, while those that hire new apprentices aged 25 and over will be paid £1,500.

These payments will be in addition to the existing £1,000 incentive the government already provides for new 16 to 18 year-old apprentices, and those aged under 25 with an education, health and care plan where that applies.

It means that employers could receive up to £3,000 for hiring 16 to 18 year old apprentices during the six month incentive scheme.

The chancellor also confirmed the government will provide an additional £111 million this year for traineeships in England, in a bid to triple participation in the “proven” programme.

The funding boost includes £1,000 being paid to the employer per traineeship learner they take on.

Colleges and training providers can welcome back “priority” adult learners from July 13, the Department for Education has announced following pressure from membership bodies.

FE providers have been allowed to reopen to more students since June 15 following country-wide closures in March owing to Covid-19, but only 16 to 19-year-olds.

The Association of Employment and Learning Providers, Association of Colleges and HOLEX joined forces on Monday and urged education secretary Gavin Williamson to allow the safe return of adults, citing concerns that they are not allowed to complete their courses but can go to the pub and shop for non-essentials.

In updated guidance this afternoon, the DfE said providers can now make arrangements for learners aged over 19 to “return to onsite delivery from July 13, where this can be safely accommodated, in addition to those 16 to 19 learners currently attending”.

Providers have been told to “prioritise” adult learners for return onsite as soon as is “practical for the following learners”, in the following order:

• Learners who have had their assessments delayed and were due to complete level 2 or 3 programmes between March and July 2020
• Apprentices
• Learners participating in level 1 and below learning
• Community education provision

The DfE said any additional attendance onsite must be “properly risk assessed” in line with health and safety legislation and summer term guidance on implementing protective measures which “includes information on managing the number of learners in attendance at any one time and how much they mix with other learners and staff”.

Providers have had to keep learner numbers onsite down to a quarter of eligible 16 to 19 year olds since June 15.

DfE’s guidance states that “you should still apply a 25 per cent limit to the number of 16 to 19 learners attending at any one time for the remainder of the academic year and you must be confident that the overall numbers on site at any time can be safely accommodated”.

“You will not be expected to provide onsite provision for vulnerable 16 to 19 learners or dependants of critical workers over the summer holidays,” they added.

“You should assess how many learners can safely attend while observing the summer term protective measures requirements.”

As confirmed by Williamson last week, colleges and training providers are expected to make a full reopening from September with all learners attending on site delivery.

Chancellor Rishi Sunak has announced a “brand new bonus” for employers to hire apprentices over the next six months.

From August to January, any firm that hires a new young apprentice aged 16 to 24 will receive £2,000, while those that hire new apprentices aged 25 and over will be paid £1,500.

Announcing the incentives during his summer statement, Sunak told the House of Commons: “We know apprenticeships work. Ninety one per cent stay in work or go on to further training.

“For the next six months we are going to pay employers to create new apprenticeships.

“We will pay businesses to hire young apprentices with a new payment of £2,000 per apprentice. And we will introduce a brand new bonus for businesses to hire apprentices aged 25 and over with a payment of £1,500.”

The Treasury has since published a “plan for jobs” document, which states these payments will be in addition to the existing £1,000 incentive the government already provides for new 16 to 18 year-old apprentices, and those aged under 25 with an education, health and care plan where that applies.

It means that employers could receive up to £3,000 for hiring 16 to 18 year old apprentices from August to January.

We’ll provide £2,000 to employers for each new apprentice they hire aged under 25, between August 2020 and January 2021. (1/2) #PlanForJobs pic.twitter.com/Ilt6EDkzUx

— HM Treasury (@hmtreasury) July 8, 2020

Sunak used his speech today to confirm plans for a £2 billion “kickstart” scheme, which will pay the wages of hundreds of thousands of people aged 16 to 24 who are claiming universal credit to take six-month work placements.

He also announced a £111 million investment to triple the scale of “proven” traineeships in 2020-21, an extra £32 million for the National Careers Service to provide tailored jobs advice to a quarter of a million more young people, and £17 million of funding from the adult education budget to almost triple the number of “sector-based work academy placements” next year.

And there is an extra £101 million for school and college leavers to return for a third year (full story here).

Lastly, Sunak announced plans for a job retention bonus, meaning employers who bring back workers from furlough and continuously employ them until January on at least £520-a-month would receive £1,000 for each employee kept on.

Association of Employment and Learning Providers chief executive Mark Dawe said the chancellor “clearly understands that apprenticeships work and give real jobs to young people with high quality training”.

“The scale of the challenge means that a financial incentive was an absolute necessity to get more employers on board and we believe that today’s announcements will help achieve that aim. As he said, we can’t lose this generation of young people,” he added.

On the kickstart programme, Dawe said the “big question is will a young person on the scheme be able to start an apprenticeship on day one?

“Without this, the incentives for kickstart will wipe out new starts for apprenticeships for the 18 month duration of this very attractive offer of wage support – a very unintended consequence.”

Association of Colleges chief executive David Hughes said that “we need to see more of the details and vitally how this all fits together, particularly how education and skills provision are part of the package, particularly within the kickstart scheme and for adults”.

“For young people, for adults, for advisers and for employers the range of incentives are potentially bewildering,” he continued.

“We will work with colleges and with DfE and DWP to make this more coherent, so that the incentives work for the widest range of people and employers in the all circumstances.”

Hughes added that it was “disappointing that there was little for adult education today”.

“Despite the chancellor’s bonus to retain furloughed workers, we expect many to be facing redundancy in the autumn.

“For that group and unemployed adults we wanted to see a stronger package of training to help them be successful in a very different post-pandemic labour market.”

 

The government has pledged £101 million to give all 18 to 19 year olds who are struggling to find work in England the “opportunity” to study “targeted high value level 2 and 3 courses”.

Chancellor Rishi Sunak announced the “high value courses for school and college leavers” scheme during his summer statement this afternoon.

An accompanying Treasury document said: “Government will provide £101 million for the 2020-21 academic year to give all 18 to 19 year olds in England the opportunity to study targeted high value level 2 and 3 courses when there are not employment opportunities available to them.”

FE Week has asked Treasury for further details but the Department for Education explained it will be offering school and college leavers that are at risk of becoming NEET an additional optional paid extra year in education.

A full list of qualifications available for the fund will be published in due course but it is expected to apply to A-levels in science, technology, English and maths, as well as qualifications in ICT and construction, for example.

Bill Watkin, chief executive of the Sixth Form Colleges Association, said: “The one year, high value courses for school and college leavers are of particular interest to us – applied general qualifications (AGQs) will be an ideal fit for many young people, so this initiative may provide further evidence of the vital role these qualifications play, and cause the government to reflect on its future plans for AGQs.

“It will be important to address the funding reduction for 18 year old students to ensure colleges and school are not financially penalised for delivering these one year courses.”

Sunak also announced employer incentives for taking on new apprentices today, as well a £2 billion “kickstart” scheme and a £111 million boost to traineeships.

There are 30 to 40 colleges “at risk of running out of cash” following the coronavirus crisis, the FE Commissioner has said.

Richard Atkins, who has been undertaking analysis of college financial health with the Education and Skills Funding Agency throughout the pandemic, revealed the number whilst giving evidence to the education select committee this morning.

However, he said this could change and it would be “foolish” of him to provide a precise figure until he sees full financial returns, which are due on July 31.

It comes two weeks after Association of Colleges chief executive David Hughes warned that total income across colleges in England could fall by £2 billion – from £7 billion to £5 billion – next year as the “enormous impact” of Covid-19 bites.

The FE Commissioner said: “I have been working closely with colleagues in the ESFA to analyse the financial health of colleges and in particular to look at their cash flow forecasts. I have a pretty good idea of what colleges are at risk of running out of cash.

“Those colleges wouldn’t necessarily need intervention. They may require more funding and they need to come forward and ask for that. We may respond to that in a number of ways.

“The first place colleges go for financial support is to their banks. If they are not able to borrow from their bank the bank of last resort would be the government, there is a fund to support colleges.”

He added that the “figure in my head” and he is “working on the assumption” that “at risk there are 30 to 40 colleges going into the next financial year”, but this may change when he sees their financial return on July 31 “where they are going to present their budget and financial outlook for next year”.

Atkins was keen to stress “how difficult for principals it is this year and finance directors”, particularly their job of putting together a costed curriculum plan which is the “engine room of any college”.

“A costed curriculum plan is where colleges need to plan for the number of students, the average class sizes, the number of staff, the costs and contributions to overheads.

“It sounds quite straightforward but in colleges with thousands of learners it is always challenging but this year with the potential of a 50 per cent drop in apprenticeship starts, unpredictable 16 to 18 numbers, with HE numbers being subject to the new 5 per cent cap, plus the commercial income that a lot of colleges have lost already, it is a complex picture for each college.”

The commissioner concluded: “At the moment 30 to 40 colleges would be of concern but until I have seen their detailed financial return it would be foolish of me to give a precise number.”

The rollout of T-levels has taken another slip after the government canned a subject and delayed the start of two others by a year.

Cultural, heritage and visitor attractions (CHVA) has been removed altogether by the Department for Education after the Institute for Apprenticeships and Technical Education reported that there was “insufficient employer demand” for a new technical qualification in that field.

A spokesperson said that as well as “viability and deliverability concerns”, the T-level employer panel for the proposed subject “raised concerns that the level 3 standards in scope did not accurately reflect positions found in industry”. They also shared concerns that most organisations tend to recruit individuals with graduate or post-graduate degrees.

The IfATE added that the employers who were consulted “felt that the management and administration T-level would be well placed to develop the skills that are relevant to many occupations within the sector”.

It means the total number of T-level subjects set to be rolled out has dropped from 25 to 24.

Meanwhile, the legal and human resources T-levels, which were due to start in September 2022, have been pushed back to 2023.

A DfE spokesperson said the IfATE has assessed the bids put forward to develop these subjects but judged that “these did not meet the minimum quality standards”.

They will therefore “not be awarding contracts for these T-levels in the autumn” and the institute has “taken the decision to postpone the legal and HR T-levels until 2023″ pending a renewed procurement process.

The first three T-levels, in digital, construction and education and childcare, are due to be rolled out from September 2020 with more phased in until 2023.

Many of the providers set to deliver the first of the new qualifications, dubbed to be the “world class” technical alternative to A-levels, have either pulled out or deferred their participation in recent months.

Last week, the government unveiled a “package of support” to encourage more employers to take on T-level learners for substantial work placements of at least 315 hours – including cash incentives of up to £750 per student.