Ofsted watch: Universities falter while colleges shine

Universities have stumbled this week, with one being rated ‘requires improvement’ and another losing its grade one, while colleges have excelled.

Specialist college Groundwork South and North Tyneside scored a grade two, improving on the grade three from its last inspection.

Inspectors were impressed with how leaders had “accelerated the pace of quality improvement” by restructuring the management team.

“Learners are well prepared for independent adult life. They learn how to work out the cost of recipes, shop for ingredients and prepare their own meals. Those learners who need to learn to travel independently do so,” the report reads.

Carmel College principal Mike Hill told FE Week he was “extremely happy” and “proud” after retaining its grade one, following a 12-year gap between inspections.

Less happy news for the University of West London though, which dropped from a grade one to a grade two.

Regardless of the drop, leaders were found to have a “clear and ambitious vision” for providing high-quality courses, directly aligned with the needs of employers in London.

The university’s leaders worked with strategic partners such as Health Education England and city restaurants to ensure they have a sound understanding of the vocational areas from which it recruits apprentices, 400 of whom were on programme.

Staffordshire University fared worse, scoring a grade three in its first inspection report.

The leaders’ ambition to grow higher apprenticeships provision in the region has not resulted in consistently good performance and learning experiences for all of its 400 apprentices, inspectors wrote.

Employer providers have enjoyed a good week, with My Home Move being found to have made ‘significant progress’ in one area of a monitoring visit, and ‘reasonable progress’ in the other two.

Its 23 apprentices enjoy a “well-organised” programme and develop substantial new knowledge, skills and behaviours rapidly, with the majority gaining promotion.

Inspectors found that Kids Allowed, which has 47 apprentices on frameworks, had made ‘reasonable progress’ in two areas, and ‘significant progress’ in another.

Yet, of the 23 level 2 apprentices who started in 2017, eleven left early without achieving; and of the 24 apprentices who started in 2018, seven left.

Independent learning providers have had a mixed week overall.

Abacus Training Group was graded as ‘requires improvement’ in its first inspection, after inspectors found leaders had been too slow in bringing about the improvements needed within teaching and assessment. The quality of the former varied too much, and is not of high enough quality.

Premier Training International was found to have ‘insufficient progress’ in two areas, and ‘reasonable progress’ in the other, of their first monitoring visit since becoming a prime provider of adult education provision.

A key element of their provision – webinars – was often poorly attended; and leaders had failed to establish an adequate process for monitoring and recording the progress of learners.

Staff were found to have not ensured learners are effectively prepared for external exams and practical assessments, while too many learners did not get sufficient support for their practical assessments.

On the other side of the coin, Mode Training retained its grade two rating from 2009.

Its leaders work well with employers, and it clearly outlines what it expects of them.

Inspectors found that “leaders do not hesitate to stop working with employers who are not committed to, for example, enabling enough off-the-job training for apprenticeships”.

People and Business Development Limited had its first monitoring visit since a grade three inspection last June.

It made ‘reasonable progress’ in all four areas, and leaders’ actions to improve provision was having a “demonstrable impact” on learners, the proportion of whom achieving had improved quickly.

Livability Nash College, a specialist provider, was given priorities for improvement following a grade four inspection last November.

Since that inspection, a new senior management team has improved oversight of the quality of education and leaders have established enhanced governance arrangements, but those leaders and governors do not yet have sufficient oversight of the quality of teaching over time.

And Derby Manufacturing UTC has had its second monitoring visit since a grade four inspection in May 2018.

The inspectors found that leaders and managers have not been taking effective action towards the removal of special measures.

Their action plan is not fit for purpose, as some sections of the post-Ofsted action plan have not been updated with the school’s current priorities.

Independent Learning Providers Inspected Published Grade Previous grade
Abacus Training Group 30/04/2019 11/06/2019 3 N/A
Premier Training International Limited 07/05/2019 13/06/2019 M N/A
Mode Training Ltd 26/02/2019 14/06/2019 2 2
People and Business Development Ltd 01/05/2019 13/06/2019 M 3

 

Sixth Form Colleges (inc 16-19 academies) Inspected Published Grade Previous grade
Carmel College 30/04/2019 10/06/2019 1 1

 

Employer providers Inspected Published Grade Previous grade
My Home Move Ltd 16/05/2019 11/06/2019 M N/A
Kids Allowed Ltd 08/05/2019 11/06/2019 M N/A

 

Other (including UTCs) Inspected Published Grade Previous grade
Staffordshire University 17/05/2019 14/06/2019 3 N/A
University of West London 30/04/2019 11/06/2019 2 1
Derby Manufacturing UTC 08/05/2019 14/09/2019 M 4

 

Specialist colleges Inspected Published Grade Previous grade
Groundwork South and North Tyneside 22/05/2019 11/06/2019 2 3
Livability Nash College 15/05/2019 12/06/2019 M 4

No mega-merger for Cornwall College after securing £30m bailout

Cash-strapped Cornwall College Group has secured a £30 million government bailout to drive forward its “fresh start” business plan, but questions continue to loom about whether campuses will be sold off.

The group, which has eight sites across the South West, was told it was not financially “viable or resilient” and had “weak solvency” in its post-16 area review report from 2017, but that it should remain a standalone college.

A follow-up review of further education in Cornwall was launched last year at the request of Cornwall Council, which put pressure on the group to work more closely with its rival, Truro & Penwith College, and that a merger may be in learners’ best interests.

The prospect of this mega-merger now appears dead in the water after Cornwall College Group secured a significant handout from the Education and Skills Funding Agency. Truro & Penwith also told FE Week that it has “no plans for merger”.

Cornwall College Group had its initial request for the £30 million bailout rejected by the ESFA in May 2018, after receiving £4.5 million emergency funding in 2016-17 and £3.5 million in 2017-18.

One of the “main concerns” for the agency was around the “viability of maintaining eight sites”, according to the FE Commissioner report published three months ago.

The college was “invited to prepare a ‘deep dive’ contribution model, which would include the ability to look at individual courses delivered at each site”, and had a reworked bid accepted at the end of March 2019.

Details of the new financial plan are not known, but Cornwall College Group’s interim chief executive, Dr Elaine McMahon, has said the “elements of the group’s estate would be restructured”.

A spokesperson for the group said it was unable to comment on its future plans any further when asked if it was preparing to sell off any campuses.

Other big college groups in financial difficulty have downsized in recent times.

In April it was announced that Harrogate College was being offloaded by the Hull College Group as part of its recovery plan.

A month later Birmingham Metropolitan College announced it was to sell off its Stourbridge College site, with learners moving to two other nearby colleges in September.

The last member of the Cornwall College Group to join was Bicton College in March 2015. It is nearly 70 miles away from the main cluster of the group’s other campuses. Its Bristol site is the furthest away – sitting nearly 100 miles away from Bicton.

In return for receiving the £30 million emergency funding, the college group has committed to significantly changing its operating model – a process known as “fresh start”.

Former principal Raoul Humphreys resigned back in November.

An FE commissioner assessment summary of the group, published in July 2017, said the new leadership team was “not responsible for the loss of financial control” experienced by the college under the previous principal Amarjit Basi, who resigned in July 2016 with a £200,000 payout.

McMahon said the group has now “reviewed the entire college curriculum in line with Local Enterprise Partnership priorities, market need, employer requirements and skills needs, and have rigorously tested the quality of each course”.

A “modern and secure IT systems infrastructure” will also be implemented and there will be “investment in exceptional training and learning experiences for students and businesses”.

A spokesperson for Truro & Penwith College said: “The aim of Truro & Penwith College is to support and complement those external interventions which enable the creation of a financially viable, standalone Cornwall College.

“It is offering support through sharing best practice in the areas of quality, planning, and leadership and governance.”

St Helens College handed financial health warning

St Helens College has been served a financial health notice to improve by the Education and Skills Funding Agency.

The notice was handed after the college was assessed as having ‘inadequate’ financial health in 2017/18.

St Helens College’s accounts for 2017/18 show it generated a surplus of £8.8 million, with a total income of £43 million, a total expenditure of £34 million, and long-term debts of £10 million.

In December 2017, St Helens College merged with Knowsley College, to form SK College Group and had to shoulder a number of costs, including £3.8 million in loans that needed to be repaid and £1.5 million of staff restructuring costs, according to the accounts.

Before the merger in June 2017, St Helens was rated as ‘requires improvement’ overall by Ofsted, but ‘inadequate’ for apprenticeships.

It was found making ‘reasonable progress’ in a monitoring report published in November 2018.

As a result of the ESFA notice, the college had to prepare a draft financial recovery by 31 May, for review by the agency, and has to submit a final plan to secure the college’s financial position by 30 June.

College leaders will have to attend regular meetings with the ESFA, submit monthly management accounts to the agency, and allow its representatives to sit in on governor meetings.

The notice also means St Helens will come into scope for intervention by the FE Commissioner, and it has already been subject to a diagnostic assessment in January and March.

The terms of the notice to improve could be varied, depending on what the commissioner’s report says.

The ESFA will lift the notice when the college’s financial health grade has improved from ‘inadequate’ in 2017/18 to a sustained position assessed as being ‘requires improvement’.

A spokesperson for SK College Group said: “SK College Group, like many other further education colleges across the country, is facing continued financial challenges.

“This has never been more so than following our recent merger.”

They explained the merger process was “complex and lengthy”, which impacted upon its completion timescale.

This delay had made planned adjustments “more difficult to achieve”, the spokesperson said.

DfE seeks company for £20m contract to supply sanitary products to colleges

The government will spend up to £20 million supplying free sanitary products to schools and colleges across England, it has emerged.

The chancellor Philip Hammond announced in his spring statement that all secondary pupils and college students would get access to free sanitary products from September this year in a bid to fight period poverty. Details of the funding available were not revealed at the time.

Ministers have since admitted the full implementation will be delayed to early next year.

Tender documents published by the Department for Education show the government is prepared to spend between £10 million and £20 million on the scheme between September this year and the end of 2020. The DfE will then decide whether to extend the contract by 12 or 18 months.

If the full £20 million is allocated, it will work out at a spend of £11.76 for each of the 1.7 million pupils and students eligible.

According to the documents, the DfE is looking for a “single national supplier” to source an “appropriate range of period products”, to design and implement “user interfaces and support services” and to plan and executive a national delivery service.

“We have estimated the value of this opportunity to be in the region of £10 million to £20 million based on an anticipated level of take-up across the 1.7 million eligible learners,” the tender states.

“The funding for this opportunity is contingent on user need, alongside the delivery and distribution methods used by any successful bidder.”

It is not yet known how the government arrived at the 1.7 million figure. There were 3.26 million pupils in state-funded secondary schools as of January this year, and 2.2 million students at the country’s further education colleges.

Despite the anticipated delay to the start of the scheme, the contract is due to begin this September and end in December 2020.

The DfE also confirmed today that the successful bidder “will be required to offer environmentally-friendly sanitary pads as a minimum, and are encouraged to provide further environmentally-friendly options (such as menstrual cups or eco-friendly tampons)”.

It follows concerns raised by the environmental charity City to Sea that the government won’t specifically require all the products offered to be plastic-free.

Nadhim Zahawi, the children’s minister, said the government was “determined that no one should be held back from reaching their potential, which is why we are making free period products available to all schools and colleges from early next year.

“In designing this scheme we have carefully considered our impact on the environment – encouraging eco-friendly products to be offered where possible – while making sure the programme remains cost-effective and sustainable.

“I encourage all bidders to think carefully about how they could reduce their environmental impact, while at the same time ensuring their products meet the needs of all who use the scheme, so that no young person misses out on education.”

Banks’ power diminished with insolvency threats – but a short-term gain for long-term pain?

Despite the lack of media attention, the government’s introduction of the college insolvency regime now being tested on Hadlow College is, as I’ve previously described, a watershed moment.

What some well-placed people have since told me is that they agree the government can’t guarantee colleges survive with never-ending bailouts, but they fear the unknowns.

Once the insolvency law kicks-in and the accountants literally take charge, will communities lose assets and access to courses for future generations? 

Another significant unknown is how the banks will respond, or specifically Lloyds and Barclays, who account for the majority of long-term loans.

In the last decade many colleges took out multi-million pound loans with the two banks to help finance ambitious construction schemes.

The lending terms included strict rules known as covenants, such as maintaining sufficient cash reserves, rules which many have since broken.

This has left colleges forced to accept higher interest rates with other unfavourable terms.

Others, like Stoke-on-Trent College, persuaded the government that it would save public money in the long-term by using the Treasury restructuring funds to simply pay the £9 million loan back plus close to £2 million in loan break costs.

But as reported in FE Week, the balance of power seems to have now shifted away from the banks with the introduction of the insolvency regime.

In what appears to be a case of irresponsible lending, Lloyds gave Bradford College a whopping £40 million in several unsecured loans.

Presumably, by the time the loans had all been drawn-down in 2014, both the college principal and bank executive assumed the government would ultimately step in if there was any risk to the repayments.

That all changed with the introduction of the insolvency regime earlier in the year.

When the college broke the loan covenant the DfE did not waste the opportunity to remind the bank they might now lose their entire £40 million in an insolvency scenario, because it was an unsecured loan.

In the event, a complex deal was agreed in the days before the introduction of the insolvency regime.

The bank gifted £10 million by writing it off from the £40 million loan and the DfE used restructuring funds to reduce the debt by a further £10 million.

They also agreed to split the £5.6 million loan break costs.

In the short-term, the threat of insolvency will, as it has already been proven with Bradford College, weaken the banks’ negotiating position.

But longer-term it could cause colleges bigger problems when they are renegotiating loans, mortgages or are in the market for investment funds.

In addition to higher interest rate payments banks will want more security over the college properties for their loans.

And next time the bank might choose not to gift funds and instead take their chances as a creditor of failed college.

So, the next couple of years will prove to be a financial minefield for colleges, not just in terms of government investment, but how banks respond to a shift in the strength of their negotiating position.

AoC president faces challenger for the top job

Never mind the race to become prime minister, the race to elect the next president of the Association of Colleges is where the real drama is happening.

Trafford College Group principal Lesley Davies has challenged incumbent leader Steve Frampton.

Frampton, the former principal of Portsmouth College, is reapplying for the role after having completed one year of his two-year term, under rules introduced after Ian Ashman served the previous maximum one-year term in 2017.

Alison Birkinshaw replaced Ashman, before retiring after one year in office; then Frampton was elected unopposed in May 2018. He is now facing off against Davies in the first test of the new rules.

According to the AoC, the president “acts as ambassador for the organisation and the sector” and helps drive policy formation and maintains the profile of further education with ministers and external partners.

Every college which is an AoC member will get one vote in the election; which will close next Wednesday. The result is expected to be announced on Thursday 20 June.

Both candidates provided a 200 word manifesto on why they should be elected.

In Davies’, she wrote her commitment to the education sector has “never been stronger”, adding: “The challenges we face cannot be underestimated and, although our funding is of major concern, it is not just about our finances.

“I would work on your behalf to ensure that government puts the long-term sustainability of colleges at the heart of its policymaking; offering constructive challenge and representing your views to better inform policy development.”

She concluded: “I hope you will consider me a fitting candidate and it would be a privilege to serve as your president.”

Davies has been principal of Trafford College since 2016, during which time it merged with Stockport College, to form the Trafford College Group (TCG) in April 2018.

She confirmed she would stay on as college principal if elected AoC president.

Before becoming principal, Davies was a lecturer, before serving as the AoC’s deputy chief executive and working at Pearson, in roles such as vice president of quality, standards and research, and senior vice president of BTEC and apprenticeships.

She was awarded an OBE in the Queen’s 2015 Birthday Honours, for her services to education.

She wrote about this “extensive experience” in her manifesto, which also referenced the “productive partnerships” Davies had developed with people in the government.

In his manifesto, Frampton wrote that being the AoC president was a “great privilege” and he was “excited for the task ahead”, working to ensure colleges were in the strongest possible position for the Comprehensive Spending Review this year.

He said that, during his year in the role, the association had helped shape the new Ofsted inspection framework, worked with the DfE on teacher recruitment and retention strategies, and launched the #LoveOurColleges campaign.

“Together we’ve achieved two parliamentary debates, had questions raised to the PM, DfE and Treasury, encouraged 70,000 people to sign a student led petition, achieved 500+ pieces of national and regional press, and had hundreds of MPs writing to ministers,” he added.

“However, until we get that much need financial boost, the fight continues.”

Hampton wrapped up his manifesto by stating: “I am your president and I am passionate about supporting you and the work you do.

“I am proud to represent you, but even prouder to work side-by-side with you, and I hope to continue the work we have started together.”

PM frontrunner pledges greater investment in ‘our amazing FE colleges’

Conservative leadership favourite Boris Johnson has said he would “do more to fund our amazing FE colleges” if he won the race to be the country’s next prime minister.

In a speech launching his bid to be PM on Wednesday, he reiterated his pledge to “end the injustice of the education funding gap in primary and secondary schools”.

Johnson then declared: “Giving young people everywhere the same access, and the same freedoms and the same confidence to succeed, and do more to fund our amazing FE colleges that have been too often overlooked.

“Because it should be our fundamental purpose as a government to bridge not just the wealth gap, not just the productivity gap, but the opportunities gap between one part of the country and another.”

It was the first time the Conservative leadership frontrunner has mentioned plans for greater investment in FE.

His words were welcomed by the chief executive of the Association of Colleges, David Hughes, who tweeted: “I worked with him when he was Mayor of London and chaired the London Skills & Employment Board. After a shaky start he did learn about why colleges are important and genuinely I think he does #LoveOurColleges. We’ll remind him if needs be.”

But not everyone was convinced that Johnson would back up his words with actions.

“Where’s he getting the money from? It isn’t from income tax and we’ll have a big bill to pay if we leave the EU ASAP as he is intent on doing. I’m not sure investment in anything is possible in conjunction with his other “policies”. Nice sentiment, though. Yours, a cynic,” tweeted Zac Aldridge, vice principal at Derwentside College.

Meanwhile, Tim Buchanan, apprenticeship vendor manager at GlaxoSmithKline, said: “It’s Boris, it’s a lie.”

Johnson’s commitment comes after the high-profile post-18 education report by Dr Philip Augar said that poor funding in FE “has to be addressed”.

The report’s recommendations included an increase in the funding base rate for 16-to-19-year-olds and a £1 billion capital investment in colleges.

The base rate funding per 16-to-18-year-old students has been stuck at £4,000 per year for the past five years. Campaigns, including Raise the Rate, which is led by the Sixth Form Colleges Association, are calling for this to be increased to £4,760.

The Association of Colleges has meanwhile said the rate should be upped to £5,000.

Britain’s new prime minister will be elected in the week starting Monday, July 22.

Results from the first ballot of Conservative MPs, released on Thursday, showed Johnson well in the lead with 114 votes, followed by Jeremy Hunt in second place with 43 votes, and Michael Gove in third with 37 votes.

Andrea Leadsom, Mark Harper and Esther McVey were eliminated from the race after scoring fewer than 17 votes.

At the time of going to press, Johnson was favourite to become the next prime minister at odds of 1/5, according to betting company William Hill. Second favourite was Jeremy Hunt at 13/2, while Rory Stewart was third at 14/1.

 

College starved of cash shuts award winning training restaurant

A college has been forced to shut the doors of its prestigious restaurant, blaming years of government cuts to further education funding.

Lancashire-based Runshaw College announced today its award-winning Foxholes Restaurant in Leyland is to close after running for more than 30 years.

The restaurant functioned as a training centre for future chefs and catering students, and its success led Runshaw College to be the first college to be awarded the AA College Restaurant of the Year.

Foxholes was also one of few college restaurants to hold industry awards from the Hospitality Guild, Gold Accreditation, and the AA Rosette for highly commended cuisine.

The college currently holds an ‘outstanding’ rating but has not received a full Ofsted inspection since 2008.

A statement released by the college explained the costs of running a training restaurant were “extremely high, so it is with enormous sadness that we will be closing Foxholes due to nine consecutive years of government cuts to FE funding in England”.

Last year, Runshaw College generated a deficit before tax of £2.3 million, compared to £273,000 in 2016/17. However, its income stood at £27.1 million (£27.8 million in 2016/17).

The sharp increase in its deficit was explained by the one off payment of £1.8 million it made to “buy out its leases commitments” from its campus in Market Street and the sale of its investment property in December 2017.

The college’s board had previously addressed concerns that the buyout could have an adverse impact its accounts.

Minutes from a meeting last year said an email had been received from the ESFA confirming “moderation with regard to the Market Street lease costs should this lead to an inadequate [financial] rating”.

In the same meeting, the college said the income allocation received from the ESFA was less than originally anticipated, and that an initial assessment had indicated that £330,000 of pay cost savings would need to be made.

Following the decision to close the restaurant, a college spokesperson reassured its students by saying it will be continuing to offer a full-time Level 2 chef training course to students aged 16-19 at its Chef School and will also be continuing to train apprentice chefs at “a wide range of restaurants, hotels and other organisations in our local community”.

He added: “We will of course continue to campaign for fairer funding for the FE sector and members of the public can express their support for this campaign by Tweeting, using the #LoveOurColleges hashtag.”

The spokesperson thanked “students and staff for their exceptional skill and dedication, helping Foxholes to be consistently rated as the number one restaurant in Leyland”.

A review posted in the restaurant’s Facebook page a few months ago read: “Local students learning the trade, such quality and talent to be had. I am sure you will see some of them as TV/Celebrity chefs one day.”

The restaurant also had a five-star rating and Certificate of Excellence on Tripadvisor.

Hinds ‘pleased’ with level 6 and 7 inspection approach but OfS can’t say what it is

The Office for Students can’t say how it will assess level 6 and 7 apprenticeships delivered at non-registered HE providers, even though it’s meant to start the work imminently.

As revealed by FE Week on Friday, the government has opted to give the job to the higher education regulator despite the Augar Review recommending it should be Ofsted.

In a letter published on Monday, education secretary Damian Hinds said he was “pleased” the OfS has “developed an approach to the quality assessment of level 6+ apprenticeships delivered by non-registered providers and that this will be implemented during this academic year”.

“This should result in a robust regime that measures high quality on and off-the-job training and tackles poor performance,” he added.

We will review the success of this approach later in the year

“You should work closely with Ofsted on this approach given their responsibilities for assurance of other apprenticeship provision and their experience in this area.”

FE Week asked the OfS for details of the assessment “approach” it has developed, such as whether it would be similar to Ofsted inspections, but it could not provide details.

A spokesperson could only say: “This only affects a small number of providers that offer higher-level apprenticeships that don’t contain either a full bachelor’s or master’s degree.

“We have committed to starting the first reviews over the summer and will focus on the largest providers first, ensuring that the maximum number of apprentices are captured. We will continue to work closely with Ofsted to benefit from their expertise in inspecting apprenticeship provision.”

Hinds’ letter said the outcomes of the OfS’ quality assessment reviews should be “transparent” and enable apprentices, employers and the DfE to identify where providers are not delivering high quality training.

“This will allow the department to take appropriate action where poor quality training is being delivered,” he added.

The DfE and OfS will review the approach later in the year to “make sure it is effective”.

FE Week was first to reveal in November that firms offering higher level apprenticeships without a prescribed HE qualification, such as a degree, had nobody checking their quality of delivery if they weren’t on the OfS’ register of higher education providers. Ofsted’s remit only extends to level 5.

Ofsted chief inspector Amanda Spielman expressed her deep concern at the issue during an interview with FE Week in March, where she said: “I very much hope people will see the logic in us doing it.”

The OfS’ approach to regulating apprenticeship quality at providers on its register is very different to Ofsted’s.

The higher education watchdog employs a “risk-based approach to quality assurance defined by a high-quality threshold for entry and regulates all provision at all providers on the OfS Register,” a spokesperson previously told FE Week.

“Providers who are accepted on to the register will have met a high threshold for quality and standards and will be monitored on an ongoing basis to ensure that quality is maintained.”

The Quality Assurance Agency then conducts external annual provider reviews of HE institutions for the OfS, including those that deliver apprenticeships.

But these are not official inspections of the type Ofsted conducts. They do not result in, for example, inspection reports with grades.