3aaa co-founders still own the company despite resignations

The co-founders of crisis-hit Aspire Achieve Advance have remained as the apprenticeship giant’s majority owners despite resigning as directors, FE Week can reveal.

Peter Marples and Di McEvoy-Robinson, who were the company’s chief executive and main director respectively until last week, had their terminations of directorships confirmed on Companies House this morning.

Since their resignations were announced questions have been asked as to who now actually owns and runs the business, better known as 3aaa.

Despite attempts to distance themselves from the troubled company, which is subject to an ongoing Education and Skills Funding Agency investigation, FE Week can reveal that Mr Marples and Ms McEvoy-Robinson remain major shareholders.

Combined they now own 85 per cent of 3aaa – split evenly between the pair.

The provider’s chair, Derek Mapp, owns 10 per cent and new managing director Richard Irons has 5 per cent. Given their majority control, Mr Marples and Ms McEvoy-Robinson can at any time choose to sell assets or controlling ownership.

A spokesperson for the provider confirmed the ownership details to FE Week today.

The ESFA’s investigation into 3aaa was sparked earlier this year when a whistleblower approached the agency with information about its business.

Owing to this, Ofsted declared its latest inspection of the provider, which was expected to result in another ‘outstanding’ rating, as incomplete in June.

A month later it was revealed that an independent auditor, Alyson Gerner, had been called in by the Department for Education to investigate its own funding agency over their contract management of 3aaa.

The provider was last week suspended from recruiting apprentices but FE Week later revealed that senior employees had been “instructed” to tell its staff to not date any paperwork for “planned enrolments”.

They were also been told not to tell current and prospective employers that the ban has been placed upon it. 3aaa had the largest allocation for non-levy apprenticeships last year at nearly £22 million.

Its overall ESFA allocations totalled more than £31 million. Mr Marples’ wife, Sarah, and Ms McEvoy-Robinson’s husband, Patrick, also resigned as directors at 3aaa today, according to Companies House.

College pension contributions likely to rise by over 40% from 2019

Colleges look set to be hit by an increase of more than 40 per cent in the pension contributions they pay for teaching staff.

The Association of Colleges confirmed that provisional figures suggest employer pension contributions will rise from 16.48 per cent to 23.6 per cent next September.

The increase affects all members of the Teacher Pension Scheme. This includes all FE and sixth form colleges, which are required by law to offer membership of the pension scheme to their teaching staff.

The Department for Education has insisted it is still consulting on the final figure. The Treasury previously said the DfE would provide additional funding “in 2019-20 in view of the unforeseen costs”, but a spokesperson said the government will “cover the extra costs” for colleges and schools for the “rest of the spending review”. 

The spending review runs until the end of the 2019-20 financial year, meaning the funding will run out at the end of March 2020. 

Julian Gravatt, deputy chief executive of the AoC, said the association estimates that the cost increase amounts to about £140 million, or two per cent of college income in 2019-20. As colleges already spend an average of 5 per cent of their income (£350 million) on contributions to the Teacher Pension Scheme, this will take costs up to approximately £500 million, or seven per cent of total income.

“If they did nothing, the increase will completely wipe out any surplus that colleges expected to make in 2019-20,” said Mr Gravatt.

“Colleges will need to find other savings because they’ll want to avoid issues their banks. This will hit colleges very hard at just the point where the government needs the sector to invest more.

“The DfE’s top two priorities are retaining teachers and reforming technical education. These extra costs will make this much harder.

“The offer of extra funding from the DfE is welcome, but the DfE needs to confirm that it will cover all colleges and all lines of funding.”

Bill Watkin, chief executive of the Sixth Form Colleges Association, said the association had “made a strong case” to the DfE that any increase to employer pension contributions next year should be fully funded by the government “throughout the next spending review period”.

“This funding, and much needed funding for an increase in teacher pay, must be in addition to the significant increase in the national funding rate we are seeking in the spending review,” he added.

Geoff Barton, general secretary of the Association of School and College Leaders, said: ““The DfE has indicated that there will be additional funding for colleges as well as schools for 2019-20 in respect of the increase in employer contributions to the teachers’ pension scheme. But we don’t know how much this funding allocation will be at present, and we don’t know what will happen after 2019-20 because this matter will become part of next year’s comprehensive spending review.

“We will be making the case very strongly that this increased cost must be met in full by the government in 2019-20 and beyond, and that the budgets of colleges and schools simply cannot sustain yet another unfunded cost.”

Earlier this month, FE Week reported that the outcome of a valuation of teachers’ pensions, which the Treasury undertakes every four years, suggested the public sector workers will get improved benefits from April 2019. This now looks like it will be delayed until September 2019.

A spokesperson for the DfE said: “These public sector pension changes announced by the Treasury will mean better benefits for teachers and staff working throughout our education system – on top of what is already one of the best pension schemes available in the country.

 “We will be consulting with the education sector on these proposals on the basis that the government will cover the extra costs involved for state-funded schools and colleges for the rest of the spending review.”

 

EuroSkills 2018 Budapest: watch the opening ceremony live

Representatives from 28 European countries will this evening attend the opening ceremony of the 10th EuroSkills finals (live stream here).

Over 500 competitors will join Hungary’s prime minister, technical experts, delegates, and supporters to observe the spectacle.

It will take place from 18:30 (BST) and 19:30 (local time) at the biggest sporting complex in Hungary, Papp László Budapest Sportaréna, where organisers have spent several days converting the space ahead of this evening’s event.

The opening ceremony marks the start of a three-day intensive competition in 35 different skills, ranging from mechanical engineering to floristry, which will see competitors undertake their toughest challenges to date.

A group called “Attraction Shadow Theatre” will kick off the night before speeches by László Parragh, President of the Hungarian Chamber of Commerce and Industry, Dita Traidas, President of WorldSkills Europe, and Viktor Orbán, prime minister of Hungary.

A parade of nations will then take place followed by competitor and expert oaths.

Spectators are then in for a treat as EuroSkills Budapest has booked in a “surprise guest” to finish the show.

The ceremony will last for around an hour and a half.

Competitions will officially commence tomorrow morning at the Hungexpo and finish on Friday evening.

The team bringing the most competitors is next year’s hosts of WorldSkills, Russia. They have 48 competitors followed by Austria with 41 and Sweden with 32.

The closing ceremony will take place on Saturday night where results will be announced and medals presented to the winning competitors.

Follow the FE Week twitter feed (@FEWeek) for live coverage of the ceremony and competition.

Send your message of good luck to the team using the #TeamUK. Also include the event hashtag #euroskillsbudapest .

FE Week is proud to be the official media partners for Team UK and WorldSkills UK.

IfA close to losing external quality assurer as contract expires at end of the week

The organisation that delivers external quality assurance on behalf of the Institute for Apprenticeships has yet to sign a new contract, FE Week understands – just days before its existing contract runs out.

Open Awards, a small awarding organisation with a turnover of just £1.5 million and around 30 members of staff, was first awarded the contract following an open tender process in 2017.

Its initial contract ran from August 1 until March 31 2018, but this was subsequently extended to September 30.

With that deadline fast approaching, FE Week understands the two parties have yet to reach agreement, with the negotiations said to be tense.

A spokesperson for the IfA told FE Week that it will be “in a position to say something later this week”.

This follows repeated requests for more information over a number of months.

In July an IfA spokesperson told us it expected to set out its plans for its EQA provision “in the coming weeks”, after we asked if it had decided on its EQA provider for 2018/19.

When we asked again in early September, we were told the institute was “not in a position to say anything externally on this as yet”.

A sticking point in the negotiations is likely to be the size of the contract.

Open Awards’ initial contract was valued at £160,000 for eight months.

At the time, the IfA’s share of the EQA market stood at just 19 per cent, but since then it has more than doubled.

According to the latest Education and Skills Funding Agency figures, the IfA is named as the EQA provider on 44 per cent fully-approved standards, or 150 out of 342.

These include the popular level three team leader/ supervisor standard, responsible for more than 12,000 starts in the first nine months of 2017/18, which currently has 22 different organisation listed as being able to deliver to the end point assessment.

EQA is the process that ensures apprenticeship assessments are consistent and reliable, and that they deliver the right outcomes.

The IfA is one of four options from which employer groups can choose to provide this service.

According to the Department for Education’s strategic guidance, published in April 2017, the IfA was originally intended to be chosen “only in instances where alternatives are not viable”.

Principal at mega college in debt to the DfE steps down

One of the most highly paid FE college principals in the country has stepped down with immediate effect.

Andrew Cleaves’ departure from Birmingham Metropolitan College, which he has led since 2014, was confirmed by the college today following local news reports.

Cliff Hall has been appointed interim principal until a permanent replacement is found, a college spokesperson said.

Steve Hollis, chair of governors at BMet, said: “In accepting Andrew’s resignation, the corporation respects his decision and acknowledges that he feels the time is right to step down”.

Mr Cleaves, who was a senior executive at National Express before taking up his role at BMet, was the second most highly-paid principal in 2016/17.

According to the Education and Skills Funding Agency accounts, he earned a massive £266,000 in 2016/17, despite the college owing almost £14 million in exceptional financial support cash – more than any other college.

BMet was rated ‘requires improvement’ for the second time in a row at its most recent Ofsted inspection in March last year. It’s understood that Ofsted are due to revisit the college in the coming months.

It’s one of the largest colleges in the country, with an income of £61.3 million and 16,000 learners in 2016/17.

Its total debt for the year was £23.4 million, and it has held a notice of concern for financial health since July 2015, when it also received a visit from the FE commissioner.

According to its own published accounts, the money owing to the ESFA stemmed from a £16 million bailout loan provided by the ESFA to the college in August 2015 as part of a recovery plan.

The funding agency “reinforced its support” to the college by “providing an interest-free £16 million loan to the college in 2015/16”.

“£1.5 million was repaid during 2015/16 and a further £0.7 million in 2016/17, leaving an outstanding amount of £13.8 million to be paid over the next two years,” the accounts said.

Mr Hall, who will take up his post on Monday (October 1), previously stepped in as interim principal at Nescot following the departure of Sunaina Mann in mid-2016, and led the college until early 2017.

EuroSkills 2018: Team UK arrive in Budapest

Team UK are “super excited” to have today landed in Hungary ahead EuroSkills 2018.

The 22 competitors flew nearly 1,000 miles to Budapest from Luton airport at roughly 9am this morning and spent the rest of the day touring the city centre before heading to the capital’s stunning houses of parliament.

FE Week caught up with a couple of Team UK’s competitors a few hours after landing to find out how the camp is feeling.

“The team feeling is great, it really makes you want to go for the competition,” said heavy truck maintenance contender Kieran Leyland.

“We’ve got familiarisation tomorrow to see what equipment we’re going to be using and the specifics on the tasks we’ll be doing before competing Wednesday, Thursday and Friday.”

Asked if he will be going for gold, Kieran added: “Yeah definitely. You’ve got to do your best and see how it comes out in the end.”

Floristry competitor Elizabeth Newcombe said she and her teammates are “super excited” and “can’t wait to get into the competition”.

“I’m ready to go for it and give it everything I’ve got,” she added.

“[In the build to the competiton] I will be going over my notes, sketches, get everything ready to go and get into the right mindset.

“I’m hoping to get gold. Let’s see what happens.”

The team will look to get in an early night tonight ahead of their familiarisation day tomorrow, where they can scout out the competition floor at the HUNGEXPO Budapest exhibition centre.

Later that evening EuroSkills Budapest will host the opening ceremony before competitions start on Wednesday (September 26).

The tournament will conclude on Friday with the closing ceremony held the day after where results will be revealed.

FE Week is media partner and will be covering the competition every step of the way. Follow us on Twitter @feweek using the hashtags #TeamUK and #euroskillsbudapest2018.

Team UK prepare to fly to Budapest at Luton airport

Labour Conference 2018: No closer to revealing FE policy in shadow secretary speech

Labour has done little to shine a light on the party’s plans for FE policy as the shadow education minister stopped short of going into any details on the subject during her speech at the party’s conference.

The hotly awaited address from Angela Rayner did not include any new policy announcements about FE and skills, or any details about existing policies. 

Although Ms Rayner did speak about the formation of a commission for lifelong learning, this was first suggested in the party’s 2017 election manifesto which said the commission would be part of the National Education Service and “tasked with integrating further and higher education”. 

However, no further details were provided today on what this would entail or how it would be funded. 

At the party conference in Liverpool, Ms Rayner said: “I know from my own life that sometimes people need a second chance later in life. So we’ll provide not just free higher education but free further education. 

“And we’ll ask experts from across the field to join our lifelong learning commission, led by our shadow minister Gordon Marsden. Because we’re not afraid to hear from experts. In fact, we welcome it.”

Elsewhere in her speech, she also accused the Conservative government of giving the country “a million fewer adult learners.” 

 

Angela Rayner’s full speech  

(before checking against delivery)

“Conference, we’re at our best when we work together.

“That is what we did when we stopped the Tories in their tracks last year. Just look at their manifesto. If you can find a library they haven’t closed, you’ll find it under ‘political fiction’.

“And if you read now what they claimed they’d do then, you’ll find more self-serving delusion than Donald Trump’s twitter feed.

“Since then, our opposition under Jeremy Corbyn has lit a bonfire of the vanity projects.

“The Tories are in retreat on every issue from free schools to free school meals, which were saved by the campaigning of so many in this room and outside it.

“Just last week, we forced them to give up a plan to spend 20 million pounds on taxis to chauffeur a few hundred individual pupils up to thirty miles a day to get to their nearest grammar school. All while cutting transport for disabled children to get to their local school. And what did they do with the money? Not reinvest it, but return it to the Treasury!

“This when they have broken promise after promise to properly fund our schools. If there was an Ofsted for politics, the Tories would fail their inspection and be forced to convert to a Labour government.

“And I’ll tell you what that Labour government will do.

“Our National Education Service will not only reverse the cuts but tackle the inefficiency of the Tories’ school system and take power from corporations and hand it to communities.

“We’ll start by immediately ending the Tories’ academy and free schools programmes. They neither improve standards nor empower staff or parents. Instead, they’ve been shut out and cut out by Tory ministers in Whitehall.

“Like the schools minister in the Lords, who has his own academy chain but won’t say how he deals with the conflict of interest. An unelected minister, literally refusing to be transparent about his own transparency policy.

“If only he was as accountable to us as he wants teachers to be to him.

“And it’s the same for our councils. The Tories talk about devolution. But they want to hand down the blame, not the budget. Councillors are left responsible for school places but without the power to create them.

“So we will allow them to build schools, create new places and take back control of admissions from academy trusts.

“We’ll also tackle the problem of trusts that fail, leaving schools stranded outside the system. Imagine being in an organisation facing a crisis but with no leadership or direction. You’d think Tory ministers would know the feeling.

“Yet that’s what they’ve inflicted on an ever increasing number of schools. So we’ll allow academies to return to local authority control. We’ll end the scandal of individuals and companies profiting from schools they are involved in, stopping fat cat pay for bosses and restoring fair pay for staff.

“And we will use our time in government to bring all publicly funded schools back into the mainstream public sector, with a common rulebook and under local democratic control.

“On issues like the rising cost of school uniforms, parents have no say, while others profit. The Tories promised to empower people but we know the reality. Not taking back control. But taking it away.

“And where parents and staff want to go further in launching and leading their own schools, our own movement already has an answer: co-operative schools – as part of the local schools family.

“Attacked by the Tories, under Labour they will be part of John McDonnell’s co-operative vision. They will just be one part of the most ambitious school building programme ever, delivered without the waste and inefficiency of free schools and, as we set out in the election, backed by eight billion pounds of investment.

“And let me be clear that if I have anything to do with it, not one brick will be laid by a company that doesn’t pay its taxes or a builder who is falsely self-employed. 

“The cost of free market failure is highest in the most important area of schools’ spending. Their staff. Years of real terms pay cuts, rising workloads, and failure to plan the workforce have created a crisis in teacher recruitment and retention.

“The result is that private recruitment agencies rake in over half a billion pounds of taxpayers’ money every year, in fees alone. Our money, spent on profit not pay.

“The Tories talk about public sector waste. Well I’ll tell you, there’s no bigger waste in our education system than this.

“So led by our shadow schools minister Mike Kane, we’ll set out plans for a state funded teacher supply service, fixing the failure of the free market, cutting out the waste and stopping the exploitation of agency workers.

“Too often those who suffer most from staff shortages are children with special educational needs and disabilities. So our National Education Service Charter, the result of thousands of submissions from our members and others, guarantees it will be truly inclusive.

“That is why our shadow children’s minister Emma Lewell-Buck will lead plans to stop those with special educational needs and disabilities from falling out of the school system. And we would back it up with a record investment in modernising school buildings to make sure they are accessible to all who could learn in them.

“Providing an excellent education to the many and not a privileged few.

2And to achieve that, we must start before school. Nowhere is this Conservative government’s failure starker than in the early years, which make the greatest impact on a child’s life. They promised 30 hours high quality free childcare a week.

“But one in seven families now pay more, and nearly one in ten providers risk going bust. Even worse, the very families who need help the most, are least likely to get it. That’s why shadow early years minister Tracy Brabin has led our plans for a new public service, offering free early education for all two to four-year-olds and reinventing our state nurseries.

“A policy as radical as anything proposed by any Labour government in our history.

“But I know from my own life that sometimes people need a second chance later in life. So we’ll provide not just free higher education but free further education.

“And we’ll ask experts from across the field to join our lifelong learning commission, led by our shadow minister Gordon Marsden. Because we’re not afraid to hear from experts. in fact, we welcome it.

“We’ll do the same when we revise assessment and the curriculum. That includes making sure that people know how to use their rights, including joining a trade union, which changed my life. 

“Conference, after last year’s election, there were even some Tories who wanted socialism on the curriculum too. They thought that if schools taught young people the history of communism, they wouldn’t vote Labour. 

“I have to tell them, young people didn’t turn to us because they don’t know their history but because they do know their future. They don’t need re-education, they need free education. Because a society where education is free, is a society where people are free.

“Conference, we heard earlier today from our shadow chancellor how a Labour government will redistribute wealth, and our National Education Service will play its part.

“But it’s also about redistributing power. Because poverty isn’t just about being penniless. It’s also about being powerless.

“Powerless compared to your employer, your landlord, big business and even the welfare system created to support you but which the Tories have turned against you.

“So our National Education Service isn’t just about educating. It’s about empowering. Allowing people to take control over their own lives.

“And that must be what we do in politics too. To make clear to people, as Jeremy [Corbyn] said: you don’t have to take what you’re given.

“And what have the Tories given us?

“A million fewer adult learners. 

“A thousand Sure Start centres lost.

“A billion pounds cut from children’s services.

“State nurseries fearing for their future.

“Children going hungry.

“Cuts targeted at the very people who need our support the most.

“Conference, in the run up to the next Budget, our task is to lead parents, teachers, trade unions and communities in demanding better. And make clear, we offer better.

“Our National Education Service. In the words of the anthem we’ll sing this week, a banner bright and symbol plain, of human right, and human gain. That is education under a Labour government. A human right, for human gain.

“Conference, we have already changed the political direction of this country. Together we have fought austerity. Now, Conference – let’s end it.”

See our sister paper FE Week for Labour’s planned reforms to the school system announced at the conference.

Lewisham Southwark College to become two separate colleges

Lewisham Southwark College is set to become two separate colleges again, just six years after it was formed through a merger.

The move was announced today by Joe Docherty, chief executive of NCG, which the college joined in 2017.

“This decision will allow the newly-established colleges to develop curriculum programmes that better meet the needs of the communities they serve, and to work more closely with key stakeholders, including crucially the local authorities of Lewisham and Southwark,” he said.

New principals will be appointed to lead Lewisham College and Southwark College, Mr Docherty said, “both charged with the opportunity to make sure the offer better meets the respective local challenges while continuing to collaborate on areas where that makes sense”.

Both colleges will remain part of NCG following the de-coupling, which is set to take place on October 1.

Staff, student and parents will be consulted on the changes, although no redundancies are planned.

Damien Egan, mayor of Lewisham and councillor Peter John, leader of Southwark Council, both welcomed the decision. 

“This move will allow the newly-branded Lewisham College to tailor their curriculum to the needs of our borough,” Mr Egan said.

Mr John said that Southwark residents “deserve a better and more focused further education offer than we have had in recent years”.

Lewisham Southwark College was formed in 2012 through the merger of Lewisham College and Southwark College.

Since then it has had a troubled time, including a failed rebrand and two ‘inadequate’ Ofsted ratings in a row – the first FE and skills provider to do so.

In August 2017 it merged with NCG, despite concerns being raised by Lewisham council over the sense of the college joining a college group based 300 miles away.

Earlier this year staff at the college walked out on strike in a dispute with NCG bosses over pay. 

 

3aaa told staff to leave dates off paperwork and not to tell customers about new starts ban

Crisis-hit Aspire Achieve Advance has been telling its staff to not date any paperwork for “planned enrolments” in the midst of a government suspension on recruiting apprentices.

Employees at the apprenticeship giant, better known as 3aaa, were also instructed not to tell current and prospective employers that the ban has been placed upon it.

The provider has denied any wrongdoing.

Emails sent to staff on Monday morning (September 17), seen by FE Week, have exposed the activity at the training provider which is subject to an ongoing ESFA investigation.

No apprentices have been enrolled since the suspension

3aaa’s new managing director Richard Irons, who took over running the company on Monday after co-founders Peter Marples and Di McEvoy-Robinson resigned, provided staff with a company update.

This informed them of the departures of Mr Marples and Ms McEvoy-Robinson. It then stated that Mr Irons had “taken the decision with the support of the board to pause all enrolments until I am fully comfortable with all elements of our activities”.

This is despite 3aaa confirming to FE Week the following day that it was in fact the ESFA who told the provider to stop taking on new starters.

Mr Irons added: “I expect this process to take approximately one month and we should plan on the basis that enrolments will restart no later than 1st November.”

A subsequent communication made by a different 3aaa boss said they had been “instructed” to tell seniors to inform other staff not to tell clients that the provider has been barred from enrolling new apprenticeship starts, and not to date any paperwork associated with “planned enrolments”.

FE Week has meanwhile been contacted by other businesses this week who claim 3aaa has been calling them to offer new apprenticeships despite the suspension, which is not guaranteed to be lifted.

A spokesperson for 3aaa did not deny the instructions went out to staff, but offered the following statement published here in full: “3aaa has agreed a suspension of apprentice enrolments with the ESFA.

“As a result, when current employers or potential employers of apprentices contact us we explain the situation with regard to the freeze.

“We can confirm that, in accordance with the agreement with the ESFA, no apprentices have been enrolled since the suspension.”

It is understood that the pause in starts will not be lifted at least until Ofsted’s inspection of the provider has been completed.

Mr Irons’ company update revealed that the provider is expecting a visit in the next few weeks, but it won’t be another full inspection.

“As you are aware, we are yet to receive our final Ofsted report and we continue to have positive engagement with both Ofsted and the ESFA,” he said.

This is an exciting time for the business

“We expect that Ofsted will revisit the business in the next few weeks to review the final 2017-18 data before our report is issued. We are not expecting a full re-inspection and this process will be in parallel with filing our critical 2017-18 period 14 submission mid-October.”

He concludes by saying: “This is an exciting time for the business during which the senior management team and I look forward to working with you closely over the coming weeks to help define the future.”

3aaa had the largest allocation for non-levy apprenticeships last year at nearly £22 million. Its overall ESFA allocations totalled more than £31 million.

In June FE Week revealed that 3aaa’s latest Ofsted inspection, which was expected to result in another “outstanding” rating, had been declared incomplete following intervention from the ESFA after claims by a whistleblower.

A month later it was revealed that an independent auditor, Alyson Gerner, had been called in by the Department for Education to investigate its own funding agency over their contract management of 3aaa.

When asked what action the agency would take following this latest revelation, a DfE spokesperson said: “We do not comment on any investigations, ongoing or otherwise.”