A college’s future is in doubt after officials demanded it pays up to £20 million back to the government following investigations into a major subcontracting scandal, FE Week can reveal.

Brooklands College has been told to pay the funding clawback owing to its dealings with mysterious training firm SCL Security Ltd, owned by Andrew Merritt.

The pair have been involved in multi-million pound subcontracting deals for years whereby SCL Security supposedly trained hundreds of apprentices, mostly aged 16 to 18.

“The college is unable to comment on any confidential details about ongoing ESFA investigations”

Questions began to mount over the arrangement when, in November 2018, FE Week discovered the subcontractor employed fewer than 10 staff and no evidence could be found that the courses were advertised, who the apprentices at SCL Security were, or where it trained them.

Merritt and the college repeatedly refused to share this information despite numerous requests from this newspaper.

Once the Education and Skills Funding Agency’s boss Eileen Milner became aware she launched one of the agency’s biggest ever investigations, hiring three different audit firms to conduct simultaneous inquiries of different organisations involved in the subcontracting arrangement.

Apprenticeship starts were suspended at SCL Security while inquiries were made.

FE Week can now reveal that amongst many findings, the ESFA investigation discovered that the apprenticeship funding was being used to pay the wages for the 16 to 18-year-olds, which is very clearly not permitted in the agency’s funding rules.

It is understood that a recruitment agency called Workforce Staffing Ltd, part of Workforce Solutions Group Limited which is headed up by two brothers – Paul and Joe Alekna – who were at the centre of an FE Week exposé in 2016, were involved in this.

As a result, the auditors view up to £20 million of ESFA funding to be at risk.

Brooklands College said it was unable to comment on “confidential details” about the ongoing ESFA investigations.

“We continue to work closely with the ESFA Territorial team and have an excellent working relationship,” a spokesperson added.

The ESFA declined to comment. Merritt and the Aleknas failed to respond to numerous requests for comment.

Gail Walker, who worked her way up to principal of Brooklands after joining in 2011, resigned from the college in March 2019 following the launch of the ESFA’s investigation.

The college claimed at the time that this was “part of her long term personal plan”.

The chair of Brooklands used to be Jerry Tapp, who stood down as planned in September 2018, two months before FE Week first reported on the subcontracting arrangement with SCL Security.

The new chair is Terry Lazenby, who had been vice chair since 2014 and was a member of three committees including audit.

Brooklands is a relatively small college, with total income during 2017/18 of £18.6 million and a £558,000 deficit.

The college had £3.4 million in cash (down from £4.6 million the year before), a £3.4 million long-term bank loan and £25 million in fixed assets in the buildings and land.

A clawback of £20 million could therefore put the college at risk of insolvency, something the college has declined to comment on.

SCL Security secured its first direct ESFA contract this year, which totalled £1 million and included apprenticeships and adult education budget cash, bringing it in scope for Ofsted inspection.

The education watchdog exposed ‘insufficient’ apprenticeship delivery at the provider in February which excluded employers and lacked scrutiny.

SCL Security has worked with other prime providers in the past.

Catch 22 were one such prime provider. A spokesperson told FE Week they were audited earlier this year following the ESFA’s investigation into SCL Security, but “we’ve have had no further information requests since”.

Ealing, Hammersmith and West London College also subcontracted to SCL Security, with deal worth £1.7 million in 2018/19, which covered basic English, maths and IT skills for learners whose first language is usually not English.

The college terminated this relationship earlier this year following FE Week’s revelations.

At the time, EHWLC’s principal, Karen Redhead, said: “I understand from speaking with the ESFA that the issue was with regard to apprenticeships and contracts of employment. We do not subcontract to SCL Security Ltd on apprenticeships.”

She declined to comment this week on whether her college has since been audited by the ESFA.

Whilst the ESFA has investigated and taken action against Brooklands, it is unclear, at this time, if any action has been taken against SCL Security.

Sector leaders will be holding Gavin Williamson’s feet to the fire after he wrote in FE Week he is “determined to put FE centre stage”.

The new education secretary’s words come after a flurry of sector activity by the government, including a £400 million funding boost and the awarding of FE portfolios to Michelle Donelan and Lord Agnew.

Sixth Form Colleges Association chief executive Bill Watkin said: “We are delighted to have a secretary of state in Gavin Williamson who is so committed to raising the profile of 16 to 19 education.

“His plan to Raise the Rate next year is an important statement of intent and shows that his support for the sector goes beyond warm words.”

Raise the Rate is a campaign spearheaded by the association to increase the funding baseline for learners aged 16 to 18 from £4,000 per year, to £4,760.

However, the £400 million will only raise the baseline to £4,188, from August next year.

Watkin continued: “Both Gavin and Michelle Donelan are former sixth form college students who have firsthand experience of how the sector can transform lives.

“For too long, 16-19 education in all its forms – academic, applied general and technical – has been overshadowed by pre-16 and higher education.”

Watkin has not taken his eyes off securing more funding though, saying: “We now have a secretary of state who is ideally placed to give the pivotal stage of further education the investment, profile and attention that it deserves.”

Since being appointed, Williamson has been conducting multiple visits to colleges, including to Westminster Kingsway to meet Team UK before WorldSkills 2019; and to Leeds City College to open a new £60 million building.

And it has made an impression on the Association of Colleges chief executive David Hughes, who said: “I am delighted the secretary of state is taking personal responsibility for further education and colleges – already we have seen the fruits of that, with the £400 million pledge last week from the chancellor.”

Upon reading Williamson’s promise to give FE “all the support and credit it has so long deserved”, Hughes added: “It is widely accepted colleges have been neglected in funding and policy terms for the last decade or more and our #LoveOurColleges campaign has been an important part in changing that.”

#LoveOurColleges, much like Raise the Rate, is looking to increase the baseline – but up to £5,000.

“Gavin Williamson has shown how much he values colleges and the role they play in the wider education system,” Hughes said.

“We will work closely with him to ensure that next year’s spending review builds on that with a long term and proper funding settlement.”

However, one area of the sector snubbed by the chancellor in the Spending Review and missing from the education secretary’s trip schedule is adult education.

Sue Pember, former director of FE at the Department for Education and now director of policy at adult education network HOLEX, said: “We welcome Gavin Williamson’s enthusiasm for FE as long as he realises that FE is not all about 16 to 19, but also covers adult learning and all levels of educational ability.

“One of his first priorities must be to build a progression ladder from pre-entry through to level 2.

The lack of interest and investment in these fundamental building blocks is inadequate and must be urgently addressed.”

But on the other hand, Association of Employment and Learning Providers chief executive Mark Dawe said it was “wonderful” to see Williamson describe apprenticeships as a “win-win” for the employer and the young person in his op-ed for FE Week.

“In a nutshell, he has identified why the programme is so popular and AELP wants to work with him and his team to ensure that all employers have the opportunity to take advantage of our fantastic flagship skills programme.”

Dawe also praised Williamson’s meeting with Team UK, saying: “The ambition should be to embed the teaching of world-beating standards into all technical and vocational education which takes place in this country.”

A fire and rescue provider received a glowing report from Ofsted this week after receiving ‘significant progress’ ratings across the board, in what was otherwise a mixed week for FE.

Staffordshire Commissioner Fire and Rescue Authority, which has 20 apprentices, was praised in its early monitoring visit for “setting high expectations for their apprenticeship programme”, and for offering training which is “meticulous and exacting”.

For instance, apprentices are taught how to use ‘Jaws of Life’ safely to pry open and free people trapped in their vehicles, and how to search for and rescue a casualty from a building filled with smoke and fire using breathing apparatus.

A good week has also been had by The Education and Skills Partnership, an independent provider to 94 apprentices and 39 adult learners.

It received a grade two this week from the watchdog, after being found to have made ‘insufficient progress’ in two areas during its previous early monitoring visit.

This time around, inspectors found: “Directors and managers have acted swiftly and decisively to deal with the weaknesses identified at the monitoring visit.”

This involved improving the English and maths elements of the apprenticeship programme by developing and implemented a new strategy, and ensuring learning and skills coaches have updated their skills in these areas where necessary.

The Education and Skills Partnership has been suspended from recruiting since its poor early monitoring report, but should have this ban lifted following its successful full inspection.

Fellow independent provider Learning Concepts scored ‘significant progress’ findings in two areas, thanks in part to a highly effective partnership with Jobcentre Plus to provide programmes to ten adult learners.

These learners benefit from access to other courses such as security licence, fork-lift truck licence and licence to work on a construction site, which enables them to gain employment.

Elsewhere, Oxford Energy Academy was found to have made ‘significant progress’ for the progress leaders and managers have made in ensuring apprentices benefit from high-quality training that leads to positive outcomes.

Teachers use a high-level of industry expertise to enthuse the just under 40 enrolled apprentices, who have a detailed knowledge of what skills they need to develop and how to achieve them.

However, several providers have landed themselves in hot water by making ‘insufficient progress’ in areas of their early monitoring visits.

Gower College Swansea, which provides to 57 apprentices in England, made such progress in all three areas.

This was for not ensuring all 57 apprentices receive training in safeguarding and Prevent and for leaders’ self-assessment of the quality of provision being “insufficiently evaluative,” inspectors wrote.

The college told FE Week: “We accept Ofsted’s findings and are confident that we can make the necessary improvements to enhance the service we offer to our apprentices and employers in England.”

Any Driver made ‘insufficient progress’ in two areas of its provision to 67 adult learners, after being handed a grade three at a previous inspection.

Their latest report reads: “Senior leaders have failed to implement external scrutiny of the provision.

“Leaders did not understand fully the value of this recommendation from the previous inspection and have not made any progress to implement relevant actions.”

However, the independent provider made ‘reasonable progress’ in safeguarding and for assessors supporting and challenging each learner to achieve the best of their ability.

Independent provider Azesta made ‘reasonable progress’ in safeguarding, but ‘insufficient progress’ in two other areas.

It provides to 62 apprentices, but inspectors discovered the provider does not monitor the time apprentices are given for off-the-job training closely enough.

The company that employs around half of Azesta’s apprentices does not allow sufficient study time during working hours, so the provider’s director has decided to cease recruitment with them.

CARE-EX Services received the same results this week as Azesta for its provision to 74 apprentices.

Ofsted found leaders check prior qualifications, but not prior skills, so “too many” apprentices are not learning new skills, or gaining accreditation for existing skills.

Nor do leaders not make adequate plans for apprentices to take end-point assessment.

Numerous other providers received ‘reasonable progress’ ratings across the board in early monitoring visits. These were: Activ First Limited, Advance Care Training Limited, Alan Hester Associates Limited, Engage Training and Development Ltd, Further Training Limited, MYF Training Limited, Netcom Training, Sigma UK Group Limited, Stepping Stones Education and Training Limited, WMC Training, The London Ambulance Service NHS Trust, Metro Bank Plc, Northern Powergrid (Yorkshire), South London And Maudsley NHS Foundation Trust.

Independent Learning Providers	Inspected	Published	Grade	Previous grade
Activ First Limited	15/08/2019	11/09/2019	M	N/A
Advance Care Training Limited	21/08/2019	13/09/2019	M	N/A
Alan Hester Associates Limited	08/08/2019	11/09/2019	M	N/A
Any Driver Limited	21/08/2019	13/09/2019	M	3
Azesta Limited	15/08/2019	11/09/2019	M	N/A
CARE-EX Services	01/08/2019	11/09/2019	M	N/A
Engage Training and Development Ltd	22/08/2019	11/09/2019	M	N/A
Further Training Limited	29/08/2019	13/09/2019	M	N/A
Gower College Swansea	08/08/2019	11/09/2019	M	N/A
Learning Concepts Ltd	08/08/2019	13/09/2019	M	N/A
MYF Training Limited	07/08/2019	13/09/2019	M	N/A
Netcom Training	22/08/2019	11/09/2019	M	N/A
Oxford Energy Academy Limited	13/09/2019	09/09/2013	M	N/A
Sigma UK Group Limited	15/08/2019	13/09/2019	M	N/A
Stepping Stones Education and Training Limited	15/09/2019	10/09/2019	M	N/A
The Education and Skills Partnership Ltd	13/08/2019	13/09/2019	2	M
WMC Training	14/08/2019	12/09/2019	M	N/A

 

Employer providers	Inspected	Published	Grade	Previous grade
The London Ambulance Service NHS Trust	15/08/2019	11/09/2019	M	N/A
Metro Bank Plc	13/08/2019	11/09/2019	M	N/A
Northern Powergrid (Yorkshire)	14/08/2019	09/09/2019	M	N/A
South London And Maudsley NHS Foundation Trust	08/08/2019	11/09/2019	M	N/A
Staffordshire Commissioner Fire and Rescue Authority	30/09/2019	13/09/2019	M	N/A

An England-based training provider owned by a college in Wales has closed down amid multiple investigations into allegations that learner certificates were falsely claimed for.

A cache of internal emails passed to FE Week by a whistleblower appears to reveal staff at Element Skills Training had been claiming certificates for learners when they had not completed their programmes.

Owned by Cardiff and Vale College, Element Skills Training was incorporated in 2016 and provided apprenticeships, functional skills, diplomas and NVQs, operating out of Somerset.

It was closed down by the college over the summer, leading to 20 job losses.

Concerns were raised regarding the provider’s assessment processes

The emails reveal an Element employee was sanctioned by City and Guilds, with a quality assurance report sent to Cardiff and Vale College’s principal Kay Martin stating: “One member of staff has been informed by City and Guilds that he will receive a sanction which needs to be addressed as he will no longer be able to assess.”

City and Guilds has confirmed they launched an investigation earlier this year after “concerns were raised regarding the provider’s assessment processes”.

“As we treat any incident that could have an impact on learners very seriously, City and Guilds is undertaking an investigation,” a spokesperson said.

“This remains ongoing and as a result we will not be making any further comment at this time.”

According to the email cache, the awarding organisation told CAVC and Element to review 1,661 qualifications that were certificated through the two bodies.

The college said City and Guilds has not reclaimed any certificates so far.

In addition to the City and Guilds’ investigation, Cardiff and Vale College embarked on its own inquiry into Element on 28 November.

A letter to the ESFA informing them of the investigation, attached to an email from Martin but which had not been signed, said: “We have identified some discrepancies within Element Skills Training that we need to address through a formal investigation.

“We are not sure of the scale of this, but would seek your support and guidance through this investigation.

“What we can confirm is none of these discrepancies relate to direct ESFA contracts.”

The letter also said the college had suspended all new starts and would provide weekly reports of all findings and planned actions.

The ESFA would only say that it does not “routinely comment on investigations ongoing or otherwise”.

The emails also appear to show that earlier this year, Cardiff and Vale College used training provider Safe and Secure to quality assure portfolios from one of Element’s courses.

Safe and Secure, the emails show, found work that was in the portfolio file was not signed or dated by the learner or assessor and the work was not of the standard required for the qualification.

“There is a huge amount of work still to do to meet the standards required,” an email about Safe and Secure’s audit said.

Cardiff and Vale College would not say why it used Safe and Secure to quality assure Element’s work.

The managing director of Element Skills Training until near the end of 2018 was Hannah Lloyd, who since working at Element has been a director of several companies: Red Bear Network; The Leadership Team and Seren Skills Network.

We are disappointed to hear of these allegations and we will be raising this issue with the college directly.

Red Bear Network was dissolved last month, while The Leadership Team’s managing director, David Kitchen, said Lloyd had worked there as a self-employed consultant since early 2019.

Owing to “family reasons”, Lloyd’s agreement with The Leadership Team was terminated by mutual consent in July 2019.

Lloyd has not responded to multiple requests for comment from FE Week.

The allegations against Element have come as a “disappointment” to a company which worked with the provider, Wales and West Utilities.

Wales and West Utilities worked with Cardiff and Vale College on delivering its apprenticeship programme.

As part of this, Element helped the company access apprenticeship levy funding for apprentices based in England and delivered a small amount of functional skills training for apprentices.

Wales and West Utilities’ learning and development manager Theresa Williams insisted that “at no time” were Element Skills Training involved in the certification of apprenticeships or any other gas engineering qualification or accreditation.

“While we have no concerns over the support provided by Cardiff and Vale College, we are disappointed to hear of these allegations and we will be raising this issue with the college directly.”

A spokesperson for the college said: “The college made the strategic decision to close Element Skills Training to focus on other provision.

“This is an ongoing process involving working with staff who may be affected. Our main focus is to ensure the small number of learners who have not yet completed their qualification are able to do so.

“As part of normal internal practices regular audits of all activity are undertaken, including investigating any discrepancies in line with awarding and funding body requirements.”

It is understood that Element’s closure leaves around 20 staff redundant, but Cardiff and Vale College refused to disclose how many learners have been affected.

Anne Milton’s tenure as apprenticeships and skills minister came to an abrupt end on 23 July when she resigned just minutes after giving evidence to the Parliamentary education select committee.

She’s often described the role as “the best job in government”, but it was her “grave concerns” about leaving the EU without a Brexit deal that led to her decision to return to the backbenches.

Milton took on the skills brief at the Department for Education just over two years ago after Robert Halfon was sacked, and is now known as a strong champion of FE.

“It is without doubt the best job in government”

FE Week caught up with to discuss her time in office, and what she makes of prime minister Boris Johnson’s controversial decision to not appoint a skills minister successor.

“It is without doubt the best job in government,” she says.

“You get to meet young and older people who still may have not found what they want to do, never discovered what they were capable of doing at school, and you see people of all ages reborn, if you like, with training from a college or apprenticeship.

“It is very inspiring. It is often quite moving to hear those stories.”

Milton says it was therefore a “very tough decision” to resign from a post that she “really enjoyed”, and one that has “real meaning”.

She adds that she has “no regrets” from her two-year tenure, but very many highlights.

Asked for her top three highlights, she says the first is the development of T-levels, work that she is “really proud of”.

“It is not easy to develop a new qualification, even if it is a new qualification that has a very clear purpose.

“I think the DfE made immense progress and did a fantastic job. I look forward to those coming online.”

Her second highlight is “raising the profile of apprenticeships”.

“In 2017 the levy had just come in and there was a lot of anger from business,” Milton explains.

“As business has taken on board the fact that from now there will be no changes to the levy, the negative noise has decreased so the reputation of apprenticeships has gone up.

“You start to get organisations like Airbus and Google and Microsoft and Deloitte doing apprenticeships, and that has really raised the status of apprenticeships and made it a real option not only for people who can’t get into university but an active choice for those that can.”

Her third highlight was having the chance to visit various FE colleges.

“Much of the public do not know what goes on in colleges and they are all very different, but it is phenomenal what they are doing,” Milton says.

“I’m pleased that by the time I left both the Love Our Colleges and Raise the Rate campaign have really got some traction amongst members of parliament.”

Just weeks after Milton resigned, Johnson announced a £400 million funding boost for further education, which included raising the FE base rate for first time since 2013 to £4,188.

But considering Raise the Rate was asking for an increase to £4,760 per sixth former, is the increase enough?

“I would like to see it be more,” Milton says.

“Government has to balance the books, there isn’t a never-ending pot of money and it is maybe about rebalancing some of the funding. I think if we really believe in FE being a real option then the money has to follow the words.”

Moving onto Johnson’s decision not to appoint a dedicated skills minister as her replacement, and instead having the education secretary lead on the brief with support from other ministers, Milton says she believes it is a good idea.

“There isn’t a never-ending pot of money and it is maybe about rebalancing some of the funding”

“For Gavin Williamson I think FE is a passion, him taking on the brief I am very happy with that.”

However, she warned the role requires “a lot of work” and fears that site visits to colleges and providers could be squeezed as a result.

The DfE appears to have recognised the workload pressures of the role, and now has three ministers splitting the FE brief, led by Williamson.

Milton uses her final words on FE to thank the “hundreds of people I have met in my two years as skills minister”.

“I have never met a more inspiring bunch of teachers, young people and older people. Carry on doing what you do very well.”

Milton was one of 21 Conservatives who voted against Johnson in last week’s key Brexit vote.

Currently sitting as an independent after losing the Tory whip, she says she’s mulling over whether to stand as an MP at the next election.

“My father told me that time spent in reconnaissance is seldom wasted, so that’s what I am doing.”

The Education and Skills Funding Agency is bolstering its compliance and prevention teams amid high-profile cases of provider failure and alleged fraud in the FE sector.

A recruitment drive for almost 30 individuals to work in the agency’s provider market oversight division, led by Matthew Atkinson, got underway at the beginning of this month.

The various roles include multiple enforcement officers, investigators, team leaders, funding assurance managers and a head of counter fraud and investigations for colleges and private providers.

It comes shortly after a move to short-notice audits, and is part of the ESFA’s crackdown on funding compliance in FE – an issue which is top of the agency’s chief executive’s list of priorities.

Eileen Milner used her first speech as head of the ESFA, at the Association of Employment and Learning Providers conference in June 2018, to tell providers that the government’s audit and intervention teams were being strengthened to ensure its cash is used “appropriately”.

She warned providers they will be investigated and removed from the sector if any misuse of government funds is found.

The advert for “apprenticeship compliance officers” states that the agency is looking for candidates to “help develop a strategy to identify and manage delivery risks; detect, challenge and remedy any non-compliance; provide assurance that agreements are being complied with; and protect apprentices and public investment in the programme”.

And the head of counter fraud responsibilities will include “direct reviews into complex cases, analyse and dissect evidence, adding value to the proposed options and make recommendations to resolve cases, including appropriate sanctions and recovery of public funds”.

The ESFA launched its provider market oversight team shortly after Milner joined in November 2017, and it now has around 160 workers.

It came in response, in part, to considerable numbers of untried and untested providers that have hit the market in recent years, for example through the register of apprenticeship training providers.

There have also been a number of high-profile cases of alleged fraud.

3aaa, one of the country’s biggest apprenticeship providers, went bust in October after it was alleged employees had manipulated data to artificially inflate achievement rates by a huge amount, which in turn earned them millions in government funding.

The collapsed provider is currently being investigated by the police.

Hadlow College became the first to fall under the new college insolvency regime in May. Investigations into financial irregularities at the college are ongoing.

Other FE providers have accidently fallen foul of the complex data rules they need to abide by.

In March, the principal of Dudley College, Lowell Williams, apologised after it was found the college had been late in recording the withdrawal of numerous apprentices, which also inflated the achievement rate.

An ESFA investigation also found some learners’ end dates were inaccurate. The college had to give the government back over £500,000 as a result.

In July it was revealed that colleges and training providers will be given as little as two weeks’ notice of a financial assurance audit and only three days to present sample files.

The visits can take place at any time of year. Previously providers were notified in June or July if they were to be visited in September.

And where before, providers had between five and ten days to prepare a selected sample of individual learner files, the ESFA will now give them between three and five days.

FE Week also understands that while the auditing only used to cover last year’s data and clawback from last year, this has been extended to include data from three years previously.

Elements of this new regime chime with the controversial mystery audits the ESFA carried out on a number of providers earlier this year, where hundreds of documents from as far back as 2015/16 had to be handed over within two days.

When asked about the roles in its provider market oversight team, the ESFA said it would provide more information in “due course”.