Ofsted is launching research into FE subcontracting – off the back of government plans for a radical overhaul of these rules amid high-profile cases of “deliberate” fraud.

Inspectors will carry out pre-arranged visits this autumn to a variety of subcontractors that have contracts with providers who have been recently inspected.

At the same time, Ofsted will examine its previous inspection reports for references to subcontracting, and hold focus groups with inspectors about the “process of evaluating subcontracted learning”.

The aim is to “learn more about the subcontracting landscape and the impact that a contract between a main provider and subcontractor can have on the learning experience”.

“The research will also inform how we inspect main providers that choose to use subcontracted provision,” an Ofsted spokesperson said.

It is understood this work will mainly look at whether management fees, which have controversially grown to as much as 40 per cent on subcontract values, as revealed by FE Week, are having a detrimental impact on learners’ education.

The research visits are not inspections and will not result in a written report for the subcontractor.

FE Week analysis of Education and Skills Funding Agency data shows that subcontracting accounted for £650 million in government funding for adults last year, and the practice fully or partially funded 25,230 students aged 16 to 19 at 587 subcontractors.

Ofsted claimed that since February 2018, it has “increased our focus on the management and quality of subcontracted provision” but it still places responsibility for learners’ experiences on the main provider and do not directly inspect standalone subcontractors.

Ofsted deputy director for FE and skills, Paul Joyce (pictured), said: “I hope this research will give us more insight into the experience learners get at a provider, which in turn will help us refine this part of our inspection work.

“We will work with subcontractors who take part in the research to make sure we do not place an additional burden on staff. All visits will be carried out purely for research purposes and will not double up as inspections.

“This research is part of our commitment to be a force for improvement in the sectors we inspect, and to make sure that everything we do is supported by evidence.”

It comes after the Education and Skills Funding Agency “shocked” hundreds of providers in July it demanded that all subcontracting contracts include for the first time a “list of individually itemised, specific costs for managing the subcontractor”.

In addition to listing the services, the contract must include “how each cost contributes to delivering high-quality training” and “how each specific cost is reasonable and proportionate to delivery of the subcontracted teaching or learning”.

The contracts were originally meant to be written in time for the start of the 2019/20 academic year, but a week after the announcement the ESFA said it would have a phased implementation following sector outrage.

And last month, Eileen Milner, the chief executive of the ESFA, sent a sector-wide letter warning of rule changes to subcontracting and that she will take strong action against any provider that abuses the system.

She said there are currently 11 live investigations into subcontracting, with issues underpinning them ranging in seriousness from “complacency and mismanagement”, through to matters of “deliberate and systematic fraud”.

She revealed the government will review its current subcontracting rules later this year.

Areas under consideration include “placing limits on the permitted geographical distance between a directly funded institution and the location where subcontracted provision is delivered”.

Other areas being looked at include the “balance of oversight and accountability arrangements, and with which bodies they should rest; reasonable expectations of the external audit process; and reviewing the aggregate funding value of subcontracted provision held by subcontractors”.

There have been a number of high-profile subcontracting scandals in recent years, including the Luis Michael Training case where its owners, which included two former professional footballers, created “ghost learners” and were jailed for over 25 years combined.

The most recent subcontracting scandal, exposed by FE Week, involved Brooklands College and resulted in the ESFA demanding a £20 million clawback.

A sixth form college principal and governing body failed to identify its “now terminal” financial position, the Department for Education has revealed today in an FE Commissioner report dated June 2019.

Richard Atkins’ team was sent into Cheadle and Marple Sixth Form College after leaders asked the government for emergency funding to enable it to meet staff salaries and other operating costs, because its cash was “exhausted”.

His report said the college is “relatively small and lacks the critical mass to be sustainable on a stand-alone basis” and it can only continue operations with exceptional funding from the Education and Skills Funding Agency.

“The principal has not properly discharged her responsibilities as accounting officer”

During the commissioner’s enquiries, the college’s former principal, Jenny Singleton, claimed that she had relied on the previous finance director to “advise her if the college was in financial difficulty and she took comfort from the ESFA financial health grade and satisfactory audit opinions”.

“She claims that the substantial cash balances provided by asset sales masked the underlying true position of the college,” Atkins’ report said.

“In fact, the ongoing deficits and diminishing reserves had been clearly evidenced in the financial statements and management accounts over a period of several years.”

It added that she has “failed to make proper enquiry” and has not “properly discharged her responsibilities as accounting officer”.

Singleton left the college shortly after Atkins’ intervention in June. The previous finance director also left the college earlier this year after “inaccuracies and inadequacies in his reporting came to light”.

Cheadle and Marple Sixth Form College’s former chair, David Lambrick, who left earlier this year after being at the college as a governor since October 2011, came in for similar criticism.

“He advised that he had accepted the principal’s and finance director’s assurances as to the college’s financial strength and had taken comfort with what appeared to be substantial reserves,” today’s report said.

“He noted and gave weight to the ESFA financial health grade and unqualified audit opinions and had not identified the underlying financial position developing over a period of years.

“He accepts full responsibility for his personal failings and the collective failure of the governing body to fulfil its fiduciary duty.”

The report concludes that financial matters, strategic leadership and financial oversight have been “seriously lacking for several years” and forecasts have been “over-optimistic”.

A spokesperson for the college said that since the FE Commissioner visit in June, the deputy principal Sharon Burton has taken on the role of acting principal and Alison Hewitt is the new chair of governors.

“We are working closely with the ESFA and FE Commissioner team to explore solutions for the college, and the staff will continue as always, to focus on the delivery of high quality educational provision for the local communities that we serve,” she added.

In an accompanying letter to today’s report, the FE minister Lord Agnew said: “It is clear that there has been a serious failure of leadership, with wholly inadequate financial management.

“The governing body has also failed in its fiduciary duty to monitor the college’s financial position and to effectively challenge leaders and hold them to account.”

Atkins’ report said governors have “not understood their responsibilities with regard to insolvency” and should receive immediate training to remedy this.

“It is clear that there has been a serious failure of leadership”

As reported by FE Week in July, Cheadle and Marple Sixth Form College’s was handed a financial health notice to improve by the ESFA.

The college generated a £3 million deficit in 2017/18. A £7 million drop in income, which was blamed on a declining student intake and funding reductions, took the college from £15.6 million in 2010/11 to £8.3 million in 2017/18.

In order to make up for this shortfall, the college sold land to the Department for Education in 2017 for £6.3 million, to build two new free schools.

Atkin’s report said there is a “significant deficit” forecast for the current year.

The post-16 area review for the college recommended it convert to an academy and join a multi-academy trust.

However, the college instead proposed it join a federation supported by Liverpool Hope University, a move that was endorsed by the ESFA.

Cheadle and Marple Sixth Form College operates from two campuses in Stockport. It is rated grade three by Ofsted.

Atkins’ report did note that with the exception of apprenticeships, the quality of provision at the college, across both sites, is “good”.

A deal to end a long-running dispute at Bradford College has been reached after it agreed to a series of measures to improve staff security and pay – including an extra five days’ annual leave.

Members of the University and College Union had taken 10 days of strike action between November 2018 and July 2019 in their campaign against the proposed axing of over 130 jobs.

The college has now agreed to rule out compulsory job losses and awarded all staff an extra five days’ holiday per year.

Staff on hourly-paid contracts will also be moved to permanent roles with better pay.

UCU regional official Julie Kelley said the deal “improves the job security, status and pay for staff” at Bradford College.

She called insecure contracts “a blight on the sector and bad for both staff and students.

“Nobody ever wants to take strike action, but these improvements are a testament to members’ determination to fight for a fairer deal.”

According to the UCU in July, staff at the college have only had a single 1 per cent pay rise in the last 11 years, and have seen their pay decline by 25 per cent in real terms over that period.

A spokesperson for Bradford College said: “We are pleased with the outcomes that have been agreed.

“To resolve the long running pay dispute the college has awarded staff additional annual leave through College closures at Christmas and Easter and established a policy and agreement around anti-casualisation through a new Contracts of Employment Policy.

“The executive leadership team recognises the commitment and dedication of all college employees and also the positive progress made with UCU in recent months.”

In June FE Week revealed officials from the Department for Education forced a major bank – Lloyds – to halve a £40 million unsecured loan after threatening to put Bradford College into insolvency earlier this year.

The college said it was “grateful” to both the department and bank for being kept afloat as it tried to find a further £3.5 million in savings.

Ofsted will delay publication of its annual report as it seeks to avoid making any statements that relate to its own performance.

Civil servants and public bodies cannot publish anything that could be considered political in the period before an election, known as purdah.

But the watchdog is particularly hamstrung this year as Labour, the Lib Dems and Greens have all committed to abolishing it.

It’s highly likely that Ofsted’s annual report – normally released in December – will be published after the election.

It reveals how the watchdog has performed over the year.

The key information for FE will, as ever, be last year’s performance in inspection reports by provider types.

FE Week did its own analysis last month ahead of the annual report and found a record high proportion of colleges are now rated ‘good’ or ‘outstanding’ (78 per cent).

It is the highest proportion since comparable records began in 2015 and brings colleges within just three percentage points of the FE and skills sector average of 81 per cent.

There are currently no general FE colleges with Ofsted’s lowest grade of ‘inadequate,’ matching the 0 per cent score of grade four ratings last year.

Education secretary Gavin Williamson said he was “very pleased to see that the standards of our colleges are continuing to rise” after being shown FE Week’s analysis.

Aside from its annual report, Ofsted also won’t be able to publish any commentary or research reports.

However, it anticipates its standard FE and skills inspection reports will not be affected.

The Department for Education will not be able to publish consultation responses and other expected policy decisions will also be delayed until after the election.

It is also unlikely that they’ll be able to release FE Commissioner intervention reports.

Purdah will start next week.

The government has today announced a further funding increase for 16 to 18 year-old students as part of the £400 million extra revealed in August, but only for specific subjects, such as engineering.

In addition to the per student unweighted base rate rising 4.7 per cent from £4,000 to £4,188, the funding for some courses will rise by up to a further 10 per cent through changes to the ‘programme cost weightings’ (PCW) .

The Education and Skills Funding Agency (ESFA) has today also introduced a £400 ‘High Value Courses Premium’ (HVCP), in an attempt to “support the sector to grow the number of students studying selected substantial level 3 study programmes”.

Only substantial provision in the sectors of engineering, manufacturing technologies, transport operations and maintenance, building and construction, ICT for practitioners would be eligible for the HVCP.

The PCW are funding uplifts introduced in 2013 and assigned to student study programmes and based on the main course (known as the ‘core aim).

These uplifts, along with the HVCP, are then used as part of the formula to calculate annual allocations based on historical delivery.

The PCW for students studying courses in the sectors of transportation operations and maintenance, building and construction and hospitality and catering will increase 8.3 per cent (PWC medium 1.2 to high 1.3).

The PcW for students studying courses in the sectors engineering and manufacturing technologies will increase 7.7 per cent (PCW high 1.3 to very high 1.4).

And the PWC when there are at least two science A-levels or for science study programmes will increase 10 per cent from (PCW base 1 to low 1.1).

This latest announcement provides the detail following a Treasury statement in August. At the time the government said:  “Colleges and school sixth forms will also get £120 million to help deliver expensive but crucial subjects such as engineering which lead to higher wages and, ultimately, a more productive economy.”

The ESFA also said “the government is now reviewing PCWs” for T-levels and “we are providing the details now to give providers time to plan”.

“We will update the funding rates and formula guidance for 2020 to 2021 before March 2020,” it added.

James Kewin, deputy chief executive of the Sixth Form Colleges Association, said: “When the £120 million increase for ‘expensive but crucial subjects’ was announced ahead of September’s spending round, we were concerned that only the minority of students that pursue a technical course would be likely to benefit.

“Since then, we have been making the case for A-levels and Applied General Qualifications that meet the high cost/high value criteria to be eligible for this funding, so we are delighted by today’s announcement.

“Although we remain convinced that the optimum way to increase investment in sixth form education is by raising the national funding rate to the required level – at least £4,760 per student – ensuring that targeted interventions like this benefit students pursuing a mainstream sixth form education is the next best policy.”

The government already has an “advanced maths premium”, which was announced in the 2017 autumn budget and is worth £600 for every additional student studying an ‘advanced maths’ qualification, for each year of their course.

Colleges have hit back at the “unfair” English and maths condition of funding rule after FE Week found more than one in 10 had funding recouped for failing to meet its requirements.

This newspaper’s analysis of the latest allocation data for 16 to 19 providers, released last week, revealed that 23 of the 171 (13 per cent) colleges in England have been stripped of £1,468,934 this year.

Four of them had more than £100,000 each withdrawn due to the controversial rule.

A spokesperson for London South East Colleges, which had £142,880 taken away, said the rule was “wrong and unfairly penalises colleges which take on high numbers of learners who arrive without good grades”.

“We carefully operate within the funding rules, and use a variety of methods to encourage English and maths participation,” they added.

“Only when these are exhausted, and there is no evidence of participation, are any learners removed from GCSE programmes.

“When this happens we support the learners to continue in vocational programmes which enable their progression into work or an apprenticeship.”

The Capital City College Group lost £212,386, the second highest amount out of all colleges.

A spokesperson told FE Week that GCSEs were “not appropriate for all young learners, which can be very challenging”.

The college acknowledged that it had “much work to do in this area” but said: “We absolutely stand firm that all of our learners are carefully assessed and placed onto what we believe are appropriate levels and programmes that best suit their individual needs.”

The spokesperson added: “We have recently developed a new maths and English strategy, which is already being  implemented and monitored robustly.”

Under original Education and Skills Funding Agency (ESFA) rules, any student aged 16 to 18 who does not have at least a C (now 4) in their English and maths GCSEs, and who fails to enrol in the subjects, will be removed in full from funding allocations for the next-but-one academic year.

But the condition was relaxed from 2016/17, with the penalty halved, and only applied to providers at which more than five per cent of students did not meet the standard.

So only those providers with more than 5 per cent of students failing to enrol on eligible English and math qualifications saw their funding “adjusted” in the 2019/20 allocation.

New College in Swindon topped the list of general FE colleges with the highest withdrawal in 2019/20 – £213,481 – after exceeding the 5 per cent threshold with 281 eligible students not enrolled in the subjects. The college declined to comment on the figures.

West Herts College, which merged with Barnfield College in February 2019 and lost £93,664 in the 2019/20 adjustment, was the fifth-hardest hit by the condition of funding rule.

A spokesperson said the figures reflected the amalgamation of premerger performance data from both institutions: 193 students at Barnfield College and 141 learners at West Herts College did not meet the condition of funding.

“Since the merger, actions to improve the organisation and delivery of English and maths have been fully implemented,” they said. “This academic year, students enrolled on the subjects are engaging with their learning and attending lessons in line with condition of funding requirements.”

The latest figures for colleges show an increase from last year when 13 were deducted £1,137,091 to 23 colleges and £1,468,934 of funding withdrawn this year.

Elsewhere, 15 university technical colleges (UTCs) lost £180,966 under the rule and 46 independent learning providers had £495,133 deducted.

However, two UTCs that spoke to FE Week claimed that the figures used to calculate their adjustment level were wrong.

Silverstone UTC’s allocation data stated that 18 students did not meet the condition of funding threshold, which resulted in a deduction of £10,406 in this year’s adjustment.

But the principal Neil Patterson said there was an error in the management information system of the UTC which led to those students being incorrectly identified as not meeting the condition of funding.

“All 18 students did in fact meet the condition of funding, so we submitted a business case to the ESFA to seek to recover the amount,” he said.

“However, as the amount is smaller than the ‘5 per cent of revenue’ threshold that the ESFA apply, our business case was, unfairly in our view, rejected by the ESFA.

“We have since introduced a thirdstage check on this to make sure it doesn’t happen again, but feel that with post-16 funding being fairly complex, the threshold rule is an unfair barrier to receiving full funding.”

Another UTC also blamed initial inaccurate internal data and is attempting to restore the funding level. The Leigh UTC lost £19,300 after 12 students were registered on the system as not being enrolled in GCSE English and maths.

Principal Steve Leahey told FE Week: “We believe the information used to calculate the condition of funding adjustment was incorrect and we are in the process of discussing a correction with the ESFA.”

The ESFA said it is aware of the business case and will assess it once it’s been submitted.

In total, 24,943 students (2.2 per cent compared to total allocated) were not enrolled on eligible qualifications to meet the condition of funding rule.

But the biggest losers from the total £5.7 million reduction were academies, where 139 out of 1,479 (9 per cent) lost £1,672,735 from their 2019/20 allocation.

A Department for Education spokesperson said: “The government knows that students who leave school with a good grasp of English and maths increase their chances of securing a job or going on to further education. This is why students who do not achieve a standard GCSE pass at age 16 are given the opportunity to obtain it post-16.

“However, we recognise that for some students with a grade 2 or below, a Functional Skills Level 2 qualification may be more appropriate. These students can decide with their provider which qualification is best for them.”

A learner who works at a major UK bank after spending most of her life in Pakistan and a training provider from the Midlands are among the winners from the fourth annual Asian Apprenticeship Awards.

The awards were presented at a glittering ceremony last night in Birmingham, in front of an audience of nearly 500 people.

Judges including Federation of Awarding Bodies chair Paul Eeles and Angela Middleton, chair of award-winning provider MiddletonMurray, picked the winners from 300 nominations to seven sector categories, two employer categories and the overall learning provider of the year category.

Apprentice of the year was awarded to a British national who spent most of her life in Pakistan, Amani Khaliqa.

After she applied for the HSBC apprenticeship, she completed it in just eight months and has since had two promotions.

The Apprenticeship Ambassador now works at the HSBC UK head office in Birmingham and her progress has enabled her to not only support her siblings and mother, but also buy her first home at the age of 21.

Another winner on the night was PTP Training, which was named the training provider of the year.

One of the largest independent training providers in the Midlands, the company offers short courses, qualifications and apprenticeships in care, engineering, retail, hospitality accountancy and management.

Awards director Isa Mutlib said: “The awards are in the fourth year and the quality of entries gets higher each year.

“The awards celebrate the brightest and best British Asian Apprentices and the commitment of their employers and learning providers.

“We hope we have encouraged more young British Asians to consider apprenticeships, and more employers to provide opportunities to benefit from the skills that apprentices bring.”

The event was hosted by Suzi Mann and comedian Eshaan Akbar and entertainment was provided by Aston Performing Arts Academy.

There were also guest speeches from the likes of Jasmine Kundra, from last year’s series of The Apprentice, and Iasha Masood from this year’s series; alongside the overall Asian Apprentice of the Year 2018 Marjana Uddin and Shakil Butt from the Chartered Institute of Personnel and Development.

The awards were launched in 2016 following a report by the then-business secretary Sajid Javid, which set a target to increase BAME diversity of apprenticeships by 20 per cent by next year.

The full winners list is as follows:

 

Judges’ Choice Award and overall Apprentice of the Year

Khaliqa Amani, HSBC

 

Finance, Legal & Professional Services category

Winning Apprentice    Shamaila Khalid, Ernst & Young LLP

Winning Employer      Arvato CRM Solutions UK

 

Health, Medical & Social Care category

Winning Apprentice    Ahmar Iqbal, Leeds Teaching Hospitals NHS Trust

Winning Employer      PBL Care 

 

Retail, Hospitality & Tourism category

Winning Apprentice    Ahmed Alkhkfaji, Blade Barber Shop

Winning Employer      Travis Perkins 

 

Charity, Voluntary Organisations & Public Services category

Winning Apprentice    Nardesh – Samra Burhm, Babington

Winning Employer      Salesforce.org 

 

Construction Services category

Winning Apprentice    Alyssia Samra, HS2

Winning Employer      NG Bailey

 

Engineering & Manufacturing category

Winning Apprentice    Aamir Adam, Siemens

Winning Employer      Bombardier Transportation

 

Creative & Digital category

Winning Apprentice    Ismail Abdul Ghafoor, HM Revenue & Customs

Winning Employer      Facebook 

 

Learning Provider of The Year – PTP Training

Small, Medium Employer of the Year – BootCamp Media

Large Employer of the Year – Lloyds Banking Group

A college which was controversially closed in the summer is set to be sold to a £12,000 a year state boarding school – raising hopes the site will continue to be used for education purposes.

Old Swinford Hospital, founded in 1667, has agreed terms to purchase the land and buildings of Stourbridge College from Birmingham Metropolitan College, following heightened concern that it could become housing.

BMet sold off Stourbridge College, which dates back over 100 years, in order to pay back debts which had totalled £8.9 million to the banks and £7.5 million to the Education and Skills Funding Agency by May this year.

Stourbridge merged with BMET in 2013 and was given a £5 million makeover two years later.

BMET said it would not disclose the price of the sale until the deal was finalised.

Old Swinford Hospital teaches students from years 7 to 13, where parents pay for boarding at an annual cost of £11,940. The Department for Education pays for the tuition.

BMET principal Cliff Hall said: “We are very pleased to have worked with Old Swinford Hospital to enable the Foundation to purchase the Stourbridge College land and buildings.

“It is important for us that this acquisition has the backing of Dudley Council and many other stakeholders in the local community.

“Continued use for education has been secured and we wish every success to Old Swinford Hospital and their partners in this new chapter of the development of the site.”

Speaking to regional newspaper the Express & Star, the chair of the boarding school said the purchase should ensure the site will continue to be used for education.

“Together with BMet College, we are delighted to announce this agreement after several months of discussions and negotiations,” said Malcolm Wilcox.

“The acquisition by the Feoffees (trustees) will allow the School of the Foundation, Old Swinford Hospital, the opportunity to expand, a development welcomed by the school’s governors and the headmaster Paul Kilbride.

“We shall also be working in partnership with Dudley Council who are supportive of our acquisition and school expansion as well as with other local stakeholders and providers to ensure the continuance of education on the Hagley Road site.”

Councillor Ian Kettle, Dudley’s cabinet member for regeneration and enterprise, added: “We are not able to comment on current negotiations as they are commercially sensitive.

“However, I can assure people that we are working proactively with all organisations involved and we are hopeful that the site will remain an education establishment in the future.”

When Stourbridge College was closed following a review by the FE Commissioner its learners were transferred to Dudley or Halesowen colleges, and some staff were also absorbed by the two colleges.

Local Conservative MP Margot James led a Westminster Hall debate on adult learning and vocational skills in the area last month following the announcement of the sell-off.

She called for the college to continue to be used for educational purposes: “The site has been associated with education for many years, and it is the deep wish of our community that the site be protected in future for educational use, at least for the most part, for the generations to come.”

After learning that Old Swinford Hospital will take over the site, James said: “I am pleased that the facilities at our former college will remain for the purposes of education and I am continuing to work with local colleges to ensure that part of the site is used for adult education and skills training and I am grateful to OSH for their support of this proposal.”

At the time Michelle Donelan, who is one of three ministers helping with the FE brief in the Department for Education, said selling Stourbridge was the “best option” to support BMet’s financial sustainability and, “crucially, to ensure that good-quality provision was available for current and future students”.

Donelan also confirmed that the FE Commissioner’s team, who intervened at BMet earlier this year, was planning to undertake a capacity and capability review to assess the group’s progress since a new leadership team arrived.

In August, the Head of the National Audit Office Gareth Davies told James the UK’s public spending watchdog was preparing to launch a value for money review on the management of colleges’ financial sustainability, after she had asked him to investigate BMet following its decision to sell off and close Stourbridge College.

An unidentified construction firm is propping up the troubled Chartered Institution for Further Education (CIFE), as it pivots from being a membership body to conducting research for the sector.

The revelation came in a blog published this week on the institution’s website, which also disclosed for the first time that it had paid its advocate, former skills minister Sir John Hayes, in an advisory capacity. He has told FE Week that this was worth £5,000 for five months’ work in late 2018.

The institution, which is very much the minister’s brainchild, received around £1.5 million in subsidies from the Department for Education (DfE), before public money was cut off this year.

The blog reads: “We have gained sponsorship from industry, from a major construction company, who like many employers recognises and understands the value of gaining chartered status.”

The institution, which grants chartered status to FE providers, claimed this funding means it is now free-standing and sustainable for the long term. It is, however, yet to file its accounts for 2017/18.

The institution did not respond to FE Week’s request to reveal the identity of this mysterious benefactor; nor did it reply to a request to put a figure on the sponsorship.

While it was being funded by the government, the CIFE had been focusing on attracting members – its chief executive Dan Wright said that it needed 80 to be self-sustaining.

But the blog post said the last 12 months had shown “this isn’t what the CIFE is or should be about,” so the number of members is no longer its “major priority” – instead it is shifting to being more about “quality than quantity”.

The CIFE says it is now a “truly independent voice for our sector”, and can provide “critical challenge and support to key sector stakeholders” and fight for the needs of its members.

Additionally, the blog post shows that the CIFE is trying to recreate itself as a research body for the FE sector: “We have a renewed focus and have partnered with industry to undertake research for the benefit of the FE sector.”

Its construction industry sponsorship means the CIFE will be conducting research into the skills needs and gaps of the future construction sector workforce, which it predicts will be launched at the House of Lords early next year.

But the CIFE says it will remain accountable to its 16 members, who pay an annual subscription fee of £5,000; but for interested parties there is also a £3,000 nonrefundable fee to have an application reviewed in the first place.

Hayes, the MP for South Holland and The Deepings, declined to say whether his advice was funded by membership fees, but told FE Week it was not unusual for an organisation to seek advice and guidance on what it was doing and what it could be doing.

Because of a potential conflict of interest, the former skills minister had to have the financial arrangement cleared by the watchdog for former ministers’ new jobs, the Advisory Committee on Business Appointments.

He had estimated that he would gain £15,000 a year for between 100 and 120 hours’ work with the institution, which would include attending council meetings and advising on future strategy, according to the parliamentary analysis service TheyWorkForYou.

The work took place on a pro-rata basis between July and November last year.

Although the institution was set up by then-skills minister Matt Hancock, the plans for it were drawn up by the Department for Business, Innovation and Skills while Hayes was skills minister.

He said his appointment “went through all the independent scrutiny and vetting process and was approved and registered in the proper way at time”.

FE Week has been reporting on the troubles with the institution since it was founded in 2012.

It did not answer whether this new sponsorship meant it would begin taking on employees again. It had to get rid of them all when its subsidies were cut off.

It has so far failed to publish its 2017/18 accounts, saying that a technical error had held this up, even though not publishing accounts is a breach of the institution’s own bye-laws.

(Pictured: Chartered Institution for FE members at their inaugural admissions ceremony in the House of Lords in 2016; John Hayes pictured front row third from right)