Monthly apprenticeships update: June starts down 40 per cent on 2016

Apprenticeship starts for June are down 40 per cent on the same month in 2016 – but up 57 per cent on last year.

There have been 22,300 starts recorded so far in June 2018, compared with 37,000 in June 2016 according to the Education and Skills Funding Agency’s monthly apprenticeship statistics update, published this morning.

The 2016 figures are final, whereas the 2018 figures are provisional. June 2016 is a better comparator than June 2017 given that there was a huge drop in starts following the introduction of the levy the previous month. 

Comparing first recorded starts for June 2018 to final figures for June 2017 gives an increase of 57 per cent.

However, starts for the month in 2017 were down 62 per cent on June 2016, according to final statistics for the year. There were just 14,200 starts in June 2017, compared with 37,000 in 2016.

According to the commentary published alongside this morning’s statistics, “caution should be taken” in interpreting the figures as they are not final and “it is not possible to determine how complete or incomplete the information returned so far is”.

First reported figures for 2016/17 were “as much as 18 per cent” below the final figures, it said. 

“The latest apprenticeship statistics appear to show a new ‘steady state’ of apprenticeship starts of around 20-30,000 per month”, said Stephen Evans, chief executive of the Learning and Work Institute.

“This is much lower than before the introduction of the levy and other reforms and makes the government’s 3 million target look increasingly out of sight.

“The real focus should be on boosting quality and widening access and tackling the barriers to participation that too many groups of people face who would like to take up an apprenticeship.”

 

Apprenticeship provision at two providers hangs in the balance following poor Ofsted monitoring visit reports

The apprenticeship provision at two ‘new’ providers hangs in the balance while the government reviews their early Ofsted monitoring visit reports that accused them of making ‘insufficient progress’ in some areas.

Entrust Support Services Limited, a joint-venture company between Capita and Staffordshire County Council, was deemed to be making poor headway in two of the three fields judged, while Unique Training Solutions Limited, based in Hertfordshire, was ‘insufficient’ in one area.

Under new ESFA rules, any provider with an ‘insufficient’ rating in at least one theme being reviewed will immediately be banned from taking on any new apprentices – either directly or through a subcontracting arrangement – until the grade improves.

We will write to the provider about the next steps shortly

The agency can only overrule this guidance if it “identifies an exceptional extenuating circumstance”.

A spokesperson for the Department for Education told FE Week it was “currently looking at” both report findings, which were published this week, and will “write to the providers about the next steps shortly”.

Entrust, which launched in 2013 and started to offer publicly funded apprenticeships in 2017, was slammed by Ofsted for weak governance.

“Governance and oversight of the apprenticeship programme by Entrust’s operational board is insufficiently thorough,” inspectors said.

“Directors meet monthly and receive regular operational-performance reports from the various heads of service responsible for key business units including apprenticeships. However, the information that is presented to them focuses almost entirely on contractual compliance, and financial and business-development matters.”

Managers also “do not monitor or report on all aspects of apprenticeship performance and quality” while “planning for the standards-based apprenticeships is not good for all programmes”.

But there were also some positives at the provider.

“The joint venture board has established a well-informed multi-year strategic business plan that provides a clear focus for Entrust and for measuring its growth against a shared vision and a set of contracted-service commitments,” inspectors said.

Leaders’ plans for improving the provision are “detailed”, and programme leaders “monitor effectively the progress that individual apprentices make in developing new knowledge, skills and behaviours”.

An Entrust spokesperson welcomed the findings of the report, which “provides a helpful guide to our progress”.

“As the report states, our apprenticeship programme leaders are well qualified and provide good educational and vocational support,” she said.

“It also highlights areas where we need to improve, and we have already taken steps to address the concerns raised, including introducing changes to the way our leadership team evaluates the apprenticeship programme to drive continuous improvement.”

Philip White, Staffordshire County Council’s cabinet member for learning and employability, added: “We understand Entrust are awaiting information from the ESFA regarding the status of any future apprenticeships, but we believe that Entrust are in a good position to deliver on their commitments and provide a high quality apprenticeship service.”

Unique Training Solutions Limited started training publicly funded apprentices in June 2017.

READ MORE:
Ofsted given final say over new apprenticeship provider quality

When Ofsted went knocking to monitor its performance as a ‘new’ provider, the inspectorate found it was making ‘insufficient progress’ in meeting all the requirements of successful apprenticeship provision, and ‘reasonable progress’ in ensuring training is of “high quality” as well as safeguarding.

“Leaders have been slow to implement actions to assess the quality of provision, given the rapid growth in the number of apprenticeships in recent months,” Ofsted said.

“Leaders do not have comprehensive improvement arrangements in place to ensure that the quality of provision is at least good.”

But leaders were praised for collaborating with employers “very effectively to plan apprenticeship programmes that aim to meet the needs of the care services that they provide”.

“Staff have significant expertise to train apprentices in health and care,” inspectors also pointed out.

“The large majority of apprentices make good progress in developing their knowledge, practical skills and behaviours to improve and increase the contributions they make in the workplace.”

Unique Training Solutions Limited was approached for comment.

CITB pauses ‘reverse subcontracting’ negotiations with colleges after AoC steps in

The Construction Industry Training Board has paused discussions with colleges about its proposed “reverse subcontracting” deal following a meeting with the Association of Colleges who fear it would break funding rules.

Colleges were in uproar last month after the CITB tried to force them to enter the arrangements where it charges top-slices of at least 28 per cent even though it won’t be the prime.

The AoC immediately stepped in to say it was “deeply concerned” while colleges told FE Week it was “unfair”.

Good progress has been made in developing a future agreed approach.

A meeting between the association and the CITB took place this week to fix the issue.

“Following discussions between CITB and AoC regarding the subcontract arrangements for non-levy apprenticeships in England, we have this week held a very productive meeting,” a spokesperson for the CITB said.

“Good progress has been made in developing a future agreed approach.

“CITB and AoC will now work together on finalising a way forward which will remain fully compliant with ESFA funding rules. This is currently a priority activity for both organisations and we aim to jointly share the outcomes of our discussions shortly.”

He added: “We have agreed that while finalising the proposals, CITB will pause discussions with colleges regarding the current proposal for subcontracting.”

Teresa Frith, senior policy manager at the AoC, said: “CITB and AoC had a very productive meeting with good progress being made in developing a solution which is mutually beneficial to all parties.

“Whilst we appreciate we need to move quickly at this time, CITB and AoC need to engage with individuals within our organisations to ensure the proposed solutions are agreeable and are fully compliant with ESFA funding rules.

“This is currently priority activity for both CITB and AoC and we aim to share the outcomes of our discussions shortly.”

The bizarre deal was thought up by the CITB after it failed to win a non-levy apprenticeships contract.

Whereas before the levy it would use its apprenticeships contract as a prime and subcontract the training out to colleges, the CITB now wants colleges to agree to a “reversal of our contracts”.

Colleges would be the prime but have to pay a huge management fee believed to range from 28 to 36 per cent, like a subcontractor, for which the CITB will give access to construction employers and provide other services such as inductions and health and safety training, according to a contract seen by FE Week.

It means that for apprenticeships on the carpentry and joinery level two standard, for example, the training provider would receive £12,000 government funding but have to give £3,360 of it to the CITB.

When it was first proposed the CITB deceptively said the AoC and Department for Education had endorsed the deal.

Part of the reason why this “reverse subcontract” will be deemed as uncompliant by the ESFA is that a number of activities the CITB contract proposes they will do are listed in the rules as ineligible for funding, such as recruitment.

College pension contributions set to rise and could cause ‘financial crisis’ in FE

The employer contributions colleges pay towards teacher pensions look set to rise and could cost them an extra £100 million a year, a move which one sector leader has warned could spark a “financial crisis” in FE.

The outcome of a valuation of teachers’ pensions, which the Treasury runs every four years, suggested the public sector workers will get improved benefits from April 2019.

New “draft directions” for the Teachers’ Pension Scheme, published last Thursday, then stated that “early indications are that the amount employers pay towards the schemes will need to increase”.

It is unclear at this time what the employer contribution rate will eventually be.

But in a move which is likely to frustrate college leaders, the Department for Education has committed to “providing additional funding to maintained schools and academies in 2019-20 in view of the unforeseen costs” while it is only “looking at” how it can “support FE colleges with the additional costs involved where necessary”.

The introduction of higher employer pension contributions for college teachers will be welcomed news to them following the DfE’s decision not to fund a salary rise, despite doing so for school teachers.

But on the other hand it is likely to trouble college leaders who continue to struggle with significantly tight budgets and funding cuts.

Colleges currently contribute £350 million annually towards the pension scheme but the Association of Colleges has warned an increase in contributions could force them to stump up an extra £100 million on top.

“This would be 1.4 per cent of total income and would play havoc will financial plans drawn up this summer – unless there is full compensation for the higher costs,” the association said.

Bill Watkin, chief executive of the Sixth Form Colleges Association, warned that a significant increase in employer contributions to the Teachers’ Pension Scheme “has the potential to lead to a financial crisis in our sector”.

“Years of cuts, cost increases and a static funding rate since 2013 have had a negative impact on staff, students and the financial health of institutions,” he said.

“The government must find the funding to cover any increase in employer contributions and this funding must be for the long term.”

He added: “We have made it clear that any financial support offered to schools to cover these costs must also be extended to Sixth Form Colleges, and that this funding is no substitute for a desperately needed increase to the 16-19 funding rate in next year’s spending review.”

Julian Gravatt, deputy chief Executive of the Association of Colleges, said: “We’ve been highlighting to colleges and government since 2016 that the teacher pension valuation ‎is likely to result in cost increases which will be hard to manage given current funding levels.

“It is good news that the Treasury plans to cover the higher cost for the period to March 2020 but it is unclear what happens after that. It’s difficult for colleges to make long-term plans when the information is presented so late.”

The DfE draft direction stated: “Initial indications are that the protections in the new cost cap mechanism mean public sector workers will get improved pension benefits for employment over the period April 2019 to March 2023.

“This test, known as the cost control mechanism, was introduced to offer taxpayers and employees protection from unexpected changes in pension costs.

“In addition, early indications are that the amount employers pay towards the schemes will need to increase.

“This is because of proposed changes to the discount rate, which is used to assess the current cost of future payments from the schemes.

“At this time, we’re unable to provide information on what the employer contribution rate will be, but the Department will be providing additional funding to maintained schools and academies in 2019-20 in view of the unforeseen costs.

“The department is also looking at how it can support FE colleges with the additional costs involved where necessary and will further consider the funding position for HE establishments as the valuation progresses.”

The DfE added that it will now complete the valuation and, following discussions with the Teachers’ Pension Scheme Advisory Board, will provide details of the employer contribution rate and any options for amending member benefits.

“We will of course continue to provide further updates as soon as information becomes available,” it added.

Unions and colleges to march on parliament to lobby for fair FE funding

Unions, college principals and staff will join forces on October 17 in a nationally coordinated lobby of MPs and parliament to call for fair funding for colleges.

The day, which is being run as part of the Association of Colleges upcoming “week of action”, has the backing of the National Union of Students as well as the Universities and Colleges Union.

Emily Chapman, the NUS’ vice president for FE, tweeted yesterday to announce the partnership and encourage all college students’ unions to “have a conversation with your principal about funding your attendance at this crucial day”.

She added that there will be “all sorts of opportunities to get involved besides the lobby”, including local action on campuses, as well as a FEstival on October 16, where the “theme will be around FE funding and campaigning”.

The week of action, taking place between October 15 and 19, follows the Department for Education’s decision to fund a 3.5 per cent pay rise for school teachers while ignoring college lecturers – an announcement which left AoC boss David Hughes “angry” and “frustrated”.

He pledged after this decision to switch from 10 years of “politely” highlighting the impact of funding cuts to making “a lot more noise”.

The AoC is still deciding exactly what action will be taken during that week, but Ms Chapman’s tweets offered an insight into what is planned.

“For eight years, we have seen cut after cut, putting FE staff under increased pressure,” she said.

“FE has always been a special place where students can grow and release their potential, yet we have seen our education becoming more about the qualification expense crucial aspects of FE.

“Throughout my time as VP (Further Education), I have been known for my hashtags #myFEjourney and #FEisheretostay. I’m not one to shy away from the fight. Which is why I am proud to announce that we are partnering with @AoC_info and @ucu on a Week of Action for FE Funding.

“As part of this week, NUS is asking for two key things: fair pay for staff, and fair funding for colleges. Together, as a movement, we can show that a strong learner voice can make the difference when it comes to bringing about positive change in FE.

“Crucially on Wednesday 17 October, we will be heading to Parliament to lobby our MPs in a nationally coordinated lobby of Parliament, alongside college principals and staff.

“But that’s not all. There will be all sorts of opportunities to get involved besides the lobby, including local action on your campuses. Alongside this, on Tuesday 16th October, we will be hosting FEstival, where the theme will be around FE Funding and Campaigning.”

She added: “It’s time for FE to stop surviving and start thriving! It’s time for FE Voices to be heard, and show how our SUs and voices need investment for our futures. @AoC_info @ucu #FEisHeretostay Save the date!”

T-level employer panel members for 2022 and 2023

This morning the Department for Education published the list of T-level employer panel members for the routes that will be taught from September 2022 and 2023.

Click here to view.

The panels are responsible for developing the outline content for new T-levels. They are made up of employers, professional bodies and providers and help in creating technical education programmes.

“I am thrilled these talented industry experts have come on board to help make T-levels a success,” said skills minister Anne Milton.

“They will play a key role in creating a world-class technical education system for our country.

“Introducing T-levels is a once in a generation moment. The direct experience of panel members will help to create gold-standard T-levels that give young people the skills that employers need.”

The employer led panels announced today will shape new T-level programmes in: animal care and management; agriculture, land management and production; human resources; management and administration; catering; craft and design; cultural heritage and visitor attractions; media, broadcast and production; and hair, beauty and aesthetics, and will be first taught from 2022.

The nine new panels will join the 16 existing that are already up and running, designing the outline content for the first tranche of T-levels, in routes including digital; legal, financial and accounting; education and childcare; health and science; engineering and manufacturing; and construction. 

Find out more about T-levels here, and from this presentation.

57 staff already appointed to the London Mayor’s £3m AEB team

The Greater London Authority has so far drafted in 57 new bureaucrats to handle the capital’s adult education budget ahead of devolution next year.

Fifteen posts in various other teams are still to be appointed and will eventually bring the total number of administrators in the department to 72, the majority of which will eventually and controversially be paid for via a top-slice of £3 million from the adult skills budget.

An organogram of the authority’s new AEB structure was published in a briefing document ahead of a GLA meeting about the budget later this month.

The physical image (see below) lays bare the scale of the team being employed, which sector leaders have criticised as mayor Sadiq Khan plans to fund their wages by using less than one per cent of the capital’s £311 million annual AEB cash, diverting it away from frontline learning.

GLA’s 72-strong AEB team organogram. Click to enlarge

 

Employees in the AEB team are currently funded either by the GLA or externally.

On top of these posts, the briefing document outlines the GLA’s vast AEB governance structure (see image below), which will include a corporate investment board, AEB mayor board, skills for Londoners board, and an AEB programme board.

It comes ahead of a big month for AEB planning in London, as the inaugural meetings of the skills for Londoners and mayoral boards are set to take place, as well as appointments to the London occupational skills board.

Members of the AEB mayor board include Mr Khan, the deputy mayor for planning, regeneration and skills Jules Pipe, the mayor’s chief of staff David Bellamy, the mayoral director for policy Nick Bowes, and the GLA’s executive director of resources Martin Clarke.

Appointments to the Skills for Londoners Board are currently being finalised but are expected to be published before their first meeting on September 21.

The team of 72 AEB officials will form six units: a strategy, policy & stakeholder relationships team, a co-financing organisation to handle the European Social Fund, a funding policy and systems team, two programme delivery teams, and a management team.

Principals at a couple of the capital’s largest colleges have blasted the prospect of diverting adult education cash away from the classroom into the hands of administrators – although the GLA insists the blame lies with the government’s unwillingness to pay for what it sees as necessary oversight.

“Shocking and hugely disappointing that this has been allowed to happen and divert £3 million from this underfunded sector to pay for administrative officers @MayorofLondon #accountability #valueformoney #skillsforlife ultimately hurting learners the most,” Sam Parrett, the principal of London South East Colleges, tweeted at the time.

FE Week then revealed in June that the new AEB department will also be used to lobby for control of 16-to-18 funding, which drew further criticism.

“There are some 457,000 Londoners without qualifications and thousands more with health issues and older learners,” said Naina Kent, the equality representative for the University and Colleges Union’s London regional committee.

“That is what the budget is there for, and not on creating policy for those learners who are supported by other funding streams.”

The GLA’s AEB governance structure

Ofsted watch: ‘Good’ news for a UTC and new apprenticeship providers

There was cause for celebration at a university technical college this week as it was rated ‘good’, while four new apprenticeship providers were found to be making ‘reasonable progress’ in all areas.

But one specialist college didn’t fare as well after Ofsted said it ‘requires improvement’, in the only other report published in the last seven days.

West Midlands UTC, which specialises in construction and IT and teaches just over 200 students aged 14 to 19, was given grade twos across the board in its first ever inspection.

The principal, Avtar Gill, who is “ably supported by senior leaders”, was praised for overseeing “rapid improvements in behaviour, attendance, teaching and students’ progress”.

“Leaders demonstrate openness and integrity,” Ofsted found. “They have high expectations of staff and students.”

Inspectors said the school’s curriculum is “distinctive and well planned”, while employers “contribute impressively to many aspects of school life” and “the school’s specialism is evident in all that it does”.

“Most teaching is very effective,” they added. “Teachers use their strong subject knowledge to plan appropriate tasks that help students to make good progress.”

But Ofsted did note that some weaker teaching remains.

“Here, teachers’ questions do not help to deepen students’ understanding, and tasks are sometimes too easy or too hard,” inspectors said.

The report will be welcomed by UTC supporters, following a tough period at the end of the 2017/18 academic year when three separate ‘inadequate’ reports were published by Ofsted in the space of a week.

Estio Training Limited, based in Leeds, was one of the four ‘new’ apprenticeship providers to receive an early monitoring visit from Ofsted, with reports published this week which found all were making ‘reasonable progress’ in all three themes under review.

Inspectors said leaders and managers at the provider have a “strategy that is carefully devised and clear” and they “aspire to become a national market leader of IT-related apprenticeships”.

“Apprentices’ starting points are defined clearly through skills scans and base-line assessments that are detailed and relevant to the specific programme that they are starting,” they added.

The Management Academy Ltd, based in Oxfordshire, came in for similar praise.

“Leaders have a clear strategic direction to provide training for managers within the aviation industry,” Ofsted said.

“They have worked closely with a single employer to design a course that meets its business needs and the needs of apprentices.”

Meanwhile, leaders at Firebrand Training Limited, based in Bedford, “share a clear vision and determination to provide the highest quality of apprenticeship training for the digital industry.

“Since gaining a directly funded contract, senior leaders have ensured that they have a suitable management structure in place, and sufficient assessors to meet the growth in apprenticeship numbers.”

And at the University College Of Estate Management, based in Berkshire, “staff assess all new apprentices carefully to decide if the surveying technician advanced apprenticeship is appropriate for them and their employers”.

“When a potential apprentice has existing knowledge and skills which make an advanced apprenticeship insufficiently developmental, managers work with the employer to help prepare the employee for a higher-level apprenticeship,” inspectors said.

The only negative report was for Brentwood Community College, a specialist college in Greater Manchester which was established in 2014 “as a result of the local area special educational needs review for students aged over 19 who were progressing from the associated special school”.

Ofsted rated it ‘requires improvement’ in all fields apart from personal development, behaviour and welfare, which was rated ‘good’.

“The quality of teaching, learning and assessment is not yet sufficiently good so that all students make the progress of which they are capable,” Ofsted said.

“The curriculum offer requires further development so that it meets all the needs, interests and abilities of students who have high needs and ensures that they achieve their long-term goals and aspirations.”

However, the college was praised for ensuring “students make very good progress in developing strategies to manage their own behaviour”.

 

Independent Specialist College Inspected Published Grade Previous grade
Brentwood Community College 10/07/2018 06/09/2018 3 NA

 

Independent Learning Providers Inspected Published Grade Previous grade
Estio Training Limited 07/08/2018 07/09/2018 M M
The Management Academy Ltd 18/07/2018 06/09/2018 M M
Firebrand Training Limited 01/08/2018 06/09/2018 M M
University College Of Estate Management 08/08/2018 05/09/2018 M M

 

Other (including UTCs) Inspected Published Grade Previous grade
West Midlands UTC 19/06/2018 03/09/2018 2 NA

NCG tackles casual staff contracts

The nation’s largest college group has been praised for tackling “insecure” staff contracts, after it unveiled plans to move workers on zero-hours style contracts to permanent ones within two years.

NCG is said to have “set a benchmark” to colleges across the country by adding security to “vulnerable” staff on casual contracts.

Under the new plans, casual contracts will be restricted to eight weeks and after two years staff will be given a permanent contract. NCG has six colleges across England and will roll out the plan initially at its two Newcastle sites. 

The group has a total of 442 staff on casual contracts, out of a 2,985 workforce (15 per cent), who this move will help.

It follows a call from the University and Colleges Union in 2016 to make casual staff permanent if they’ve been working at an FE provider for at least two years.

A union spokesperson told FE Week it has had commitments in this area from other colleges since the call was made, but “we haven’t had anything on the scale of what should happen at NCG”.

UCU believes the move could “transform people’s lives”, after research from 2015 found that staff on casual contracts have struggled make ends meet. 

Over half of 540 survey respondents working in FE said that they had struggled to pay household bills. Around two-fifths had had problems keeping up with mortgage or rent commitments and three in 10 said they had had difficulties putting food on the table.

The union says staff without permanent contracts are unable to plan their lives as they don’t know how many hours they will work or what they may earn on a monthly basis.

“We are delighted with this new approach from NCG,” said UCU general secretary Sally Hunt.

“This added level of security can be life changing for staff. Some of the most vulnerable staff will go from not knowing what they might be earning each month to being able to better plan their life.”

She added: “This move from NCG sets a benchmark for good practice and it is up to other colleges and universities to follow suit.

“We are keen to work with any institution that wants to eradicate the scourge of insecurity for its staff.”

Joe Docherty, chief executive of NCG, said: “Working constructively with our trade union partners is really important to us and I’m delighted that we have worked closely with the unions to provide a framework which improves the job security of colleagues, and still allows those who wish to work flexibility to do so.

“It’s an important development which I am pleased to support.”