A college will pay off almost £250,000 in loans debt for 59 victims of a subcontracting scandal.

FE Week revealed last week that the learners were being forced to repay thousands of pounds each for courses they did not complete.

Hours after the publication of the investigation, which found that many workers did not know they had signed up to an advanced learner loan or had never received any training, West London College agreed to pay the cost of the debts in full.

In 2015 the courses were subcontracted to a private provider called Edudo, which went into voluntary liquidation in 2017.

The victims told FE Week how they had suffered from stress and depression over the past four years and said that all those involved had “washed their hands” of their cases.

Karen Redhead, who took over as principal of West London College in September 2018, said it was an “easy decision to agree to repay the income to the Student Loans Company (SLC)”.

“It is the right thing to do and the only thing to do under the circumstances,” she added.

“The people affected are hardworking construction workers trying to improve their skills and prospects. My mission now is to achieve this as quickly as possible so everyone can get on with their lives.”

FE Week put the learners and college in direct contact and has passed on 16 more names, in addition to the 13 this newspaper reported on last week.

At the time of publication Redhead said: “So far we have managed to make contact with 24 individuals and are in the process of having the loans cancelled.

“The amount being repaid so far is just over £100,000 and the total amount could reach just under £244,000.”

According to the principal, West London College’s records show that there were 59 learners registered on a short construction programme with Edudo, but none of the students had achieved the qualification.

Due to the high turnover of managers at the college, Redhead said “there is nobody remaining that could help me fully understand what happened in 2015”. She was “wholly reliant on the data and on the personal testimonies featured in FE Week”.

Redhead added that she believed the victims, concluded that they did not know what they were signing up for and listened to how the situation had prevented them from enrolling on other education and training programmes. It also caused problems for those wishing to take out other loans with their banks.

Marcin Tryka, 38, who claimed that contact from Edudo was cut off after one site visit, said the confirmation of the loan write-off was still sinking in. “I can’t believe it happened really… [after] four years.

“That was the biggest worry I had. This was the ultimate problem for me. The loan [was] just getting bigger and bigger.”

Tryka plans to start college again as soon as he has received documentation from the SLC confirming the debt has been repaid.

“I can finally get my NVQ somewhere,” he said.

Members of the group planned to meet up and have been trying to reach as many of the other victims as possible.

“I am blessed right now, thanks to [FE Week]. I would like everyone to [be the] same,” Tryka added.

A training provider can ask the loans company to cancel a borrower’s loan, provided it returns the funds it has received under that loan  to the SLC and the learner has provided their consent.

An SLC spokesperson said: “Following communications from the college we can confirm that we have been asked to cancel the customer liability for these loans.

“The precise method of how this is done is being considered and the customers will be contacted in due course.”

Grzegorz Bogdanski, 34, who was being forced to repay a £5,421 loan, was the first to receive a call from Redhead last Friday notifying him that she had told the SLC that the college would repay the loans of the learners.

He said he was “so overjoyed it’s hard to describe its sensational feeling”.

Another victim, Roman Trela, 62, said that “a heavy burden” had been lifted and Radoslaw Michalowski, 42, said: “Everything is sorted now. [FE Week] really helped us.

“All my family is happy. Everyone is happy.”

Many of the victims claimed they had been previously sent “in circles” by authorities.

Juliana Mohamad Noor, NUS vice-president (Further Education), said: “NUS is pleased the fees students have incurred have finally been refunded, however four years is too long to resolve these situations and can hinder other channels of education in the wake.

“It is critical providers have back-up plans when they decide to subcontract courses, to ensure students are protected in this instance, and for regulators and providers to work together so students have clarity on how they are protected in the event of provider failure.”

Redhead said that West London College’s arrangements for the management of subcontracting were “now robust, and have been for the last 16 months or so, following a change of senior leadership and management in that area”.

“We are otherwise making really good progress on financial recovery and I do not anticipate this repayment impacting on this progress,” she added.

“The b***ards” was the reaction of one of many small businesses owed thousands of pounds by the first college to go into education administration.

Albion Fencing and Construction is one of 300 creditors awaiting a total of £40 million by Hadlow College, according to administrators BDO’s statement of proposals.

“It could not come at a worse time for us”

Albion in particular is owed £12,000 for decking and outdoor furniture at Betteshanger Visitor Centre near Deal in Kent, part of the Betteshanger Sustainable Parks project that Hadlow is selling after going into administration in May.

Manager Vicky Harris said she “did not expect in a million years it would go into administration and we would not get paid for the work we have done, especially when the project was almost finished”.

She says she feels “very let down” by the “b***ards” as it is “an awful lot of money to us”.

Albion has only just recovered from when the Kent amusement park Dreamland went into administration in 2016 and Harris predicts that it will take a year for the company to recover if Hadlow does not pay up.

“It could not come at a worse time for us,” she said, as business has slowed down in the county.

The government is another target of business anger.

Adrian Cross, managing director of electrical contracting firm Gilbert and Stamper, said Whitehall ought to be “doing more”.

It seemed strange to him that “the college can continue to run and dump all its debt”, including the £22,000 that he is expecting.

Steve Finch, finance director for Cambridge HOK, which constructed a £1.5 million glasshouse for Hadlow and is owed over £145,000, said he feels let down. “Our frustration comes from the fact legislation [meaning colleges could become insolvent] changed between us signing the contract and completing it,” he said.

Finch believes his prospects of being paid depend on whether whichever college takes over Hadlow wants to use the glasshouse for provision.

“Legislation changed between us signing the contract and completing it”

The Department for Education is the largest creditor. It is owed £10.8 million by the college, which will also have to fork out over £2 million for the costs of the administration process.

BDO has billed the DfE for £627,407 for a total of 3,208 hours’ work. This is an average of £196 per hour, although BDO partners charge £320 per hour.

The accountancy firm estimates that this will rise to £1.1 million by 24 April 2020, plus a further £1 million for four property agents, three law firms and a specialist insurer.

The college even owes Ofsted £1,561 for an annual routine fee for the inspection of the college’s residential provision.

Beforehand though, there is the small matter of a £5 million secured loan from Barclays Bank which the college needs to pay back.

Were this a normal administration, property could be sold to pay back creditors; however, education administration carries a “learner projection objective”. 

This means that BDO believes it is “uncertain” whether creditors will be paid back, as “the majority of the assets of the college are designated to be for educational purposes”.

One debt which is not affected by education administration is the £9 million debt to the pension scheme, the second largest creditor on the books.

BDO has said that it has been “advised that staff accrued pension rights will be unaffected” by the administration process and any subsequent sale.

A spokesperson for BDO declined to comment on the specific claims of creditors but said it was working with the college’s interim principal Graham Morley and his team to “ensure the college continues to operate as normal”.

 

Morley was brought in to run both Hadlow and sister college West Kent and Ashford College, which is also in administration, after principal Paul Hannan and deputy principal Mark Lumsdon-Taylor resigned.

The Insolvency Service confirmed this week that it was investigating the “conduct of relevant personnel in the period leading up to the onset of insolvency”.

This would probably include Hannan, Lumsdon-Taylor and former chair Theresa Bruton, who left around the same time.

The FE Commissioner report published in May said that Hannan and Lumsdon-Taylor “regularly made decisions themselves outside of executive and any open discussion –
and reacted strongly to questioning or challenge”.

Among a number of concerns with data and land transactions, it has also been alleged that Lumsdon-Taylor doctored emails from the Education and Skills Funding Agency to prove that he was entitled to claim extra funding, which he said had been agreed when Hadlow College adopted West Kent and Ashford College from K College.

The first college to receive a grade one rating under Ofsted’s new inspection framework is Newcastle and Stafford Colleges Group.

Inspectors graded the college ‘outstanding’ across the board, in a glowing report published this morning.

Principal Karen Dobson (pictured) said while the inspection was “intense”, getting the top grade was “absolutely brilliant” and a testament to the “hard work, talent and total commitment of our staff team”.

She paid tribute to the students, apprentices, governors and employer partners, without whom “we wouldn’t have been able to achieve this result”.

This is the first full inspection of the group since it was formed from a merger of Newcastle College and Stafford College in 2016. The latter was rated as ‘inadequate’ at its previous inspection in February 2016.

Dobson said that at the point of merger between Newcastle-under-Lyme College and Stafford College, their ambition was to make NSCG “one of the top colleges in the country and ultimately a great place to study and work”.

And she looks to have succeeded after Ofsted found leaders and managers have integrated the two campuses “rapidly” and set high expectations for both staff and learners.

Plaudits have already been coming in for the college, with the Sixth Form Colleges Association chief executive Bill Watkin saying: “To secure this judgement under an exacting new framework, and only three years on from a merger, makes its success even more remarkable.”

The report itself records NSCG’s 6,808 learners “thrive in a positive, stimulating and safe learning environment”, while also noting they enjoy their time at college very much.

And inspectors were particularly impressed by the clear, supportive and challenging direction by senior leaders at NSCG, which meant staff feel highly motivated and able to deliver an outstanding learning experience.

Teachers and trainers design a curriculum so learners and apprentices develop the specific knowledge and skills employers demand.

“For example, during a real-life project, care learners gained a deep empathy and appreciation for their clients’ needs when trying on a body suit to replicate the experience of a pregnant woman and an elderly person,” the report said.

Governors, through close scrutiny of the college’s work and the provision by 11 subcontractors, “have a clear understanding of its strengths and weaknesses and provide very effective support to leaders”.

There is “high-quality” and “unbiased” careers information, advice and guidance on offer to learners and apprentices throughout their time at college, which allows them to make informed choices about their course and future career options.

Ofsted also found there was a strong culture of safeguarding at the college, where vulnerable learners are identified quickly and ensure they are supported from harm and can continue their studies.

Newcastle and Stafford Colleges Group is the first general FE college to receive a grade one in two years – the last was Fareham College in November 2017.

This latest positive result for the college sector comes after FE Week analysis, published last month, revealed 78 per cent of general FE colleges are now rated either ‘good’ or ‘outstanding’ – a record high.

And while this is the first grade one under the new framework, several other colleges such as Tyne Coast and Bedford have already earned a grade two since the inspectorate changed reports in September.

A Manchester sixth form college has become the sector’s latest cyber-attack victim, after criminals hacked a teacher’s email to say it would be attacked by Israel.

This was included in a series of messages to learners at Loreto College received late last night and early this morning, according to the Manchester Evening News.

The hackers wrote the college would be closed today due to a gas leak and later followed that up with an email claiming Adolf Hitler would be visiting.

The email read: “Hi students, in the upcoming week we will be receiving a visit from the man himself, Hitler.

“This is why we emailed as a gas leak, as we are unsure of his mental status, as a precaution. Please bring a gas mask in, just in case he tried anything dodgy, thank you. Sincerely, Blue Power Ranger.”

Another message said because of a visit to the college from Palestinian representatives, Israel had designated the Roman Catholic institution “part of a terrorist premises” and “an attack is imminent”.

The college has since released a statement saying: “The college is aware that overnight, emails have been sent to students from a currently unknown source.

“We are working with the police and college network team to identify the source and address the situation.

“We apologise for any distress or upset this may have caused. Please be reassured that we are taking this situation very seriously. College is open as normal.”

Greater Manchester Police has been contacted for comment.

This is the latest in a string of cyber-crimes committed against colleges: In September, criminals accessed the details of students and staff of Swindon College; which led to the college’s website and phone going offline.

That same month, South Staffordshire College’s IT system was successfully targeted by an “ethical hacker” who sent out internal emails which had allegedly been doctored to include a racist word.

Fraudsters hacked into the email of Lakes College principal Chris Nattress to try and trick people into transferring money, in what is known as a phishing scam.

The problem became so bad the ESFA put out cybercrime advice in August telling providers to employ firewalls, data back-ups and to train staff in verifying email senders to protect themselves against cyber-attacks.

A member of the National Cyber Security Centre wrote in FE Week that “devastating” cybercrimes could be rendered less likely to succeed if providers lead from the top, support technical teams, and test their preparedness for a cyber incident.

The Conservatives have announced plans to put £1.8 billion into capital investment for further education colleges.

In a speech in Coventry, party leader Boris Johnson said the rebuild programme would be part of a “skills revolution” and be introduced over a five-year period.

“Colleges are a vital part of our education system, it’s not just about university, it’s about giving kids across our country the skills they need,” he added.

A spokesperson from the Conservative Party said the “huge investment programme will make sure the entire further education college estate is at least Category B (‘good’) condition”.

They added that colleges will have to match the funding with 21 per cent – so for every £1 invested by the government, “we are expecting an average 21p college contribution”.

“FE colleges will have to work up robust plans to make sure the money is spent wisely,” the spokesperson said.

The commitment comes after Philip Augar recommended in his post-18 education review that colleges should be given a £1 billion capital investment over the coming spending review period.

Johnson, during his campaign for the Conservative leadership, promised to “do more to fund our amazing FE colleges”.

And once he became Prime Minister, he said it was “vital” the government invests “now” in further education and skills, and he promised to make this a “priority”.

Chief executive of the Association of Colleges, David Hughes, said: “He was clear on his first day in office as Prime Minister that colleges are vital to our nation, and today he has backed that with a pledge to offer long overdue investment in their buildings and facilities.”

He added that this will come as “great news” for the 2.2 million people who study and train in colleges every year and “who deserve the best facilities”.

Johnson also pledged today to ensure that a new Shared Prosperity Fund will start in time to replace European Social Funding in 2021.

Hughes said he was “pleased” about this as the “EU funds have been effective in helping adults access the skills training they need to find work, and colleges have been central to delivering that”.

“A simpler, easy to access fund would be good news for colleges and for the adults they serve,” he added.

A principal at the centre of a college expenses scandal has been suspended, FE Week can reveal.

Stella Mbubaegbu is no longer running Highbury College following intervention from the FE Commissioner this week, who has now moved the college into “supervised college status”.

The college’s chair, Tim Mason, is also set to step down and be replaced by a National Leader of Governance.

The commissioner was sent into Highbury by Department for Education minister Lord Agnew after FE Week revealed the principal claimed £150,000 expenses in four years.

The spending included numerous first class flights, five-star hotels, travel in luxury cars, a £350 bill – including a £45 lobster and nearly £100 on cocktails – at a Michelin star restaurant, and a £434 pair of designer headphones.

Mbubaegbu last month announced her intention to retire from Highbury in the summer next year.

A spokesperson was keen to stress that Mbubaegbu officially “remains chief executive and principal of Highbury College” but said it would be “inappropriate to comment on an individual’s status” when asked about her suspension.

In a separate statement, Mason said the commissioner has “indicated” that he will support the college to “strengthen our leadership and governance”.

He will be arranging for a National Governance Leader to chair the board “during this period of supervision”.

“I have agreed to step aside and I welcome this intervention for the good of the college, staff and students,” Mason added.

“I would like to reassure all staff that the FE Commissioner, the board and the college leadership team are committed to providing a stable environment for our students and staff. I would also like to take this opportunity to personally thank you for your continued support.”

A National College due to dissolve in the new year has just 24 classroom students – its first-ever Ofsted report has revealed.

National College for the Creative and Cultural Industries (NCCI) had previously told FE Week it was confident it could attract 450 learners this year, before last year having to take a £600,000 bailout from the Department for Education to stay afloat.

Now inspectors have rated the once vaunted flagship institution as grade three for its provision to the 24 learners and 81 apprentices.

A college spokesperson claimed “many more” apprentices were due to start in the coming weeks; while an intake of level 4 classroom-based learners is planned for later in the year. They did not say how large these intakes would be.

Ofsted’s report criticises NCCI’s leaders for “not ensuring all learning coaches have the skills and knowledge to coach apprentices to develop the skills they need”.

In fact, a significant minority of coaches “do not provide good quality learning”: they do not ensure apprentices know what they have done well and what they need to do to improve, or that employers know how to help their employees link theory with workplace learning.

Leaders have not ensured learners and apprentices can move on up to higher levels to further their career; so, learners on a level 4 professional diploma have no direct route to a relevant level 5 programme.

And while the report commends governors for their relevant expertise and for challenging the leadership well, inspectors wrote: “They do always ensure the actions undertaken improves the quality of apprenticeship provision quickly enough”.

However, Ofsted rated some areas of the college as ‘good’, including the quality of education, where leaders and managers make sure apprentices and learners “significantly improve” their technical skills and develop a good knowledge of health and safety in their workplaces.

Learners came in for particular praise, with inspectors noting they are “keen to learn and have a desire to produce work to their very best ability”.

NCCI interim principal Sue Dare said she was “pleased” Ofsted highlighted those areas NCCI “does really well: the development of good technical skills and knowledge for careers in the creative industries; excellent industry links and networking opportunities; and a strong focus on career progression in to the creative sector”.

But she recognised the inconsistencies identified by inspectors and said the college has established “more robust processes” to ensure these are addressed in the future.

The report is NCCI’s first and is likely its last, as it is planning to move away from teaching by dissolving in January and setting up as a limited company to license apprenticeship provision to Access Creative College and both classroom learning and the running of its production and rehearsal venue to South Essex College.

A final decision on the proposal is due to be taken by the college’s board in December with the decision being made public later than month.

On top of the £600,000 bailout, NCCI has also benefited from a £1.25 million working capital loan from the DfE; £745,000 of which was paid out during 2017-18, with the remaining £505,000 being drawn down in 2018-19.

NCCI had an income of £1.3 million overall in 2017/18.

Only one other National College has had an Ofsted report published: Ada National College for Digital Skills, which scored a grade two.

The National College for Advanced Transport and Infrastructure is listed on the website but has not had a report published.

The college is currently undergoing a rebrand from the National College for High Speed Rail, after it needed a £4.55 million bailout from the DfE to sign off its 2017/18 accounts.

The DfE, which has sunk £80 million into the colleges, launched an evaluation of the scheme late last year.

The well-known leader of a high-profile college has announced his intention to retire after more than 11 years at the helm.

Lowell Williams (pictured), one of the government’s national leaders of further education, will step down from his role as chief executive of Dudley College of Technology in January to “follow new opportunities”.

He will be replaced by the college’s current principal, Neil Thomas.

Dudley College was rated ‘outstanding’ by Ofsted in March 2017 under Williams’ leadership, and secured government backing to create one of the first 12 Institutes of Technology earlier this year.

He will be retained as a strategic advisor to the college’s corporation through to Easter 2020, to help oversee the transition, and said today it has been “such a privilege to work here”.

“I will never forget my time at the college,” he added.

Williams told FE Week he is “not one for the golf course as such” and will continue his roles as chair of trustees of Dudley Academies Trust and chair of the Black Country Living Museum in retirement.

He will also be taking up a position as non-executive director of the Dudley Group NHS Foundation Trust, and may “continue doing collaborative work with the west midland colleges”.

The 57-year-old is an FE veteran having worked in the sector for over 30 years. Prior to joining Dudley, he was curriculum manager at Northampton College before becoming deputy principal of Stephenson College and then principal of South Leicestershire College.

He joined Dudley as its leader in 2008. His only notable hiccup came earlier this year when he apologised after an audit exposed data errors that resulted in more than £500,000 being paid back to the government.

He later called for all colleges to receive greater support in navigating the government’s increasingly complex and high-stake audit system.

Reflecting on his time in college leadership, Williams told FE Week: “When I first became a principal nearly 20 years ago there was the opportunity to learn on the job but you were not in nearly as heightened and pressurised environment that we’re in now.

“You had less complexity in an environment of more support. When things didn’t go right immediately you had a chance to develop into the role. The role for new principals now, particularly if they’re not experienced or don’t have support networks around them, is really quite difficult and dangerous.

“You now answer to so many people on so many fronts that it is becoming increasingly difficult for people to get everything right all the time.”

Asked what advice he would give to new college principals, Williams said: “My one overriding advice is don’t think you’ve got all the answers. Reach out to every single network you can for support.

“Don’t put yourself in isolation – it’s fine to talk to the college down the road, it’s fine to share your anxieties and problems.”

Following Williams’ departure, Dudley College said it will be appointing a chief operating officer to work alongside and deputise for Thomas, as well as a new vice principal.

“I am absolutely delighted the corporation has decided to appoint Neil as my successor,” Williams said.

“He is very definitely the right person for the job. I have every confidence that he will lead the college from strength to strength.”

He added: “The further education sector continues to be an extremely challenging arena in which to work, but Neil has proven over the years that he has the resilience, skills and ability to deliver successful outcomes for our learners.

“It’s great that a local Dudley boy gets the chance to run this amazing college and to serve his local community.”

Thomas said he was “delighted” to be taking up the reins at a college he has worked at for over 10 years and “which I love and feel so passionate about”.