Ofsted watch: 8 out of 10 providers celebrate positive reports

It has been a very successful week for FE providers, with eight out of the 10 reports published by Ofsted showcasing great strides in their provision.

The most glowing report came in for First Intuition Cambridge Limited, a private provider which was found making ‘significant progress’ in all themes judged during an early monitoring visit of its apprenticeship provision.

Inspectors said leaders and managers at the provider, which trains over 130 learners on finance and accounting standards, have developed a “very effective curriculum strategy” that meets the needs for accountancy skills “exceedingly well”.

They lauded directors for having established a “flexible” programme that gives apprentices the opportunity to mix with those studying other accountancy programmes, at the same time as monitoring the quality of the provision “rigorously”.

“Apprentices develop substantial new knowledge, skills and behaviours,” Ofsted added.

Another provider to receive ‘significant progress’ ratings across the board in an early monitoring visit was PGL Travel Limited, which had 23 apprentices at the time of Ofsted’s visit.

Inspectors reported how the employer provider has a “clear strategy and vision” to develop a skilled workforce through “well-designed and high-quality” provision.

The report said the provider is “highly ambitious” for its apprentices and has invested “a substantial amount of time, money, effort and energy to establish an ambitious curriculum plan for the apprenticeship provision”.

Meanwhile, Academy for Project Management, a training provider based in Bristol with 28 apprentices on a level four project manager standard, received two ‘significant progress’ ratings and one ‘reasonable progress’ in its early monitoring visit.

Inspectors found the provider’s leaders and managers focus on establishing an “effective and high-quality programme” with a clearly articulated vision and rationale for the apprenticeship. Its leaders, managers and tutors also have suitable qualifications and experience with “extensive expertise” in their field.

Ofsted added that senior leaders “are highly responsive to the needs of their employers”.

Also this week, University of Central Lancashire, which trains over 250 apprentices, received a ‘good’ rating in its first full inspection due to its “culture of inclusivity” and its “highly effective employer engagement”.

Ofsted said its apprenticeship programmes are “well managed” and “most apprentices remain on their programme and achieve their module assessments”.

It was also good news for Community Training Portal Limited, which was rated grade two in its first inspection. Apprentices were found to make good progress over time thanks to leaders and managers who have “good knowledge of their training needs”.

“As a result of leaders’ shared ambitions for, and high expectations of, learners, their achievement rates are high,” inspectors wrote.

NACRO, an adult and community learning provider, improved its Ofsted rating from grade three to grade two. This was driven by leaders and managers making “significant improvements” to the quality of the provision since the previous inspection, with trustees and leaders ensuring these changes take place quickly.

The watchdog said the provider holds “high ambitions” for learners that help them make good progress, achieve well and take positive next steps in their education and employment.

Elsewhere, Serco Ltd was found making ‘reasonable progress’ in three areas and ‘significant progress’ in another two following its first monitoring visit since its grade three report last year.

Inspectors said leaders and managers responded “swiftly to the findings of the previous inspection and they have introduced a range of measures to improve the quality of teaching, learning and assessment for apprentices”.

The last positive report came in for Choice Training Ltd, a private provider found making ‘reasonable progress’ across the board in its early monitoring visit of its apprenticeship provision.

On a more negative note, Right Track Social Enterprise Limited received two ‘insufficient progress’ ratings in its early monitoring visit because its leaders and managers “do not effectively monitor how well an apprentice’s training meets the requirements for an apprenticeship”.

Ofsted warned apprentices complete a large majority of the programme in their own time, which “does not meet the requirements of apprenticeship programmes”.

But it did say that safeguarding at the provider is making ‘significant progress’.

Lastly, Sheffield Hallam University was rated ‘requires improvement’ in its first ever inspection as two fifths of operations/departmental manager apprentices leave their programmes early without completing the NVQ component of their programme.

Governors were found to not having sufficient awareness of the quality of a few important aspects of provision. However, almost all apprentices who complete their apprenticeships remain in secure employment and many progress to further study at a higher level.

Independent Learning Providers Inspected Published Grade Previous grade  
Community Training Portal Limited 27/02/2019 10/04/2019 2 n/a  
Academy for Project Management Ltd 12/03/2019 09/04/2019 M n/a  
Serco Limited 20/03/2019 10/04/2019 M 3  
Right Track Social Enterprise Limited 13/03/2019 12/04/2019 M n/a  
Choice Training Limited 27/03/2019 12/04/2019 M n/a  
First Intuition Cambridge Limited 13/03/2019 12/04/2019 M n/a  

 

Adult and Community Learning Inspected Published Grade Previous grade
NACRO 04/03/2019 11/04/2019 2 3

 

Employer providers Inspected Published Grade Previous grade  
PGL Travel 20/03/2019 08/04/2019 M 2  

 

Other (including UTCs) Inspected Published Grade Previous grade
University of Central Lancashire 05/03/2019 11/04/2019 2 n/a
Sheffield Hallam University 06/03/2019 12/04/2019 3 n/a

Treasury took back over £300m despite small employers being turned away

The government has for the first time admitted the vast majority of the £400 million underspend from the Department for Education’s apprenticeship budget was taken back by the Treasury.

In an interview with FE Week editor Nick Linford, the skills minister Anne Milton was asked how much cash the Treasury clawed back in the financial year to April 2018.

Milton replied she “can’t give exact figures”, and referred the question to Keith Smith, director of apprenticeship at the Education and Skills Funding Agency, who said it was “just over £300 million”.

Following the interview, the Treasury refused to comment and the DfE refused to say exactly how much over £300 million they had to give back.

The admission comes despite concerns that small employers are struggling to find providers with sufficient non-levy funds and that the overall levy budget is on track to significantly overspend in the coming years.

Lord Agnew of Oulton had revealed in response to a parliamentary question last month that the Department for Education spent £1.6 billion in 2017/18 to fulfil employers’ demand for apprenticeships, but “lower than anticipated demand” led to an underspend of £400 million. However, the Treasury “made available a portion…for programmes in future financial years”.

He said at the time: “A review of the levy is underway in order to consider, amongst other points, how it can be used most effectively.”

We now know the Treasury took back the vast majority of the £400 million from the DfE budget.

The FE sector has been quick to react to the loss of funding from the education budget, saying it’s “not right” and “desperately disappointing” that the unspent money has been taken by the Treasury instead of being spent on funding apprenticeships for small employers.

But the skills minister defended the claw-back coming ahead of employers losing unspent levy from their pot, a limit on the non-levy funds and over-spend warnings.

 “My job is to make sure employers spend it. And we want non-levy payers in the system,” Milton said.

“We put [the money] in the hands of employers. We said ‘this is a ring-fenced fund, spend the money’. Some of them did it, but not all of them.

“The point is that the money was there if they wanted to spend it. I guess if money is left unspent by employers, then Treasury is going to come and take it.”

Meanwhile, Mark Dawe, chief executive at the Association of Employment and Learning Providers, told FE Week: “It’s desperately disappointing to hear the DfE admit that such a significant sum of money went back to the Treasury when we know that all of it could have been spent on funding apprenticeships of SME employers.  Let’s not forget that providers managed to do so the year before.

“The fact is that 200 good quality providers were unable to offer any apprenticeships to non-levy employers after what the minister herself described as an ‘awful’ procurement and those with contracts were not able to get all the growth they wanted to meet employer demand.”

David Hughes, chief executive at the Association of Colleges, said: “It cannot be right that the Treasury is taking back apprenticeship levy funds when colleges and ITPs are having to turn away smaller employers and deny young people apprenticeship opportunities. The non-levy funding cap is unfair but it is also bewildering given that the government is spending millions on marketing apprenticeships to young people and employers. The fact is that many who are persuaded to get involved will not be able to because non-levy funds are too limited.

“This means that bigger employers can take on as many apprentices as they want but smaller ones will struggle. It means young people are ok if they can find an apprenticeship with a large employer but not an SME. That has to change and we need to find ways to persuade government to change it.”

The ESFA director of apprenticeships, Keith Smith responded by saying: “It’s a conversation for the spending review about what resources we need in the programme for the demand that is going to occur in future years. And that is the process we are now talking about.

“It’s absolutely right that funding that was not used in a particular year isn’t just held on to but that of course does not mean that we are not committed to setting out the plans that we actually need to continue to deliver a high quality programme.”

Apprenticeship quango tender for quality assurance won by incumbent

The Institute for Apprenticeships and Technical Education has once again awarded its long-term external quality assurance (EQA) contract to Open Awards.

The decision sees a continuation of service from the awarding body who has been delivering quality assurance for apprenticeships assessment on behalf of the institute since 2017.

Its previous long-term contract came to an end in March 2019 but as FE Week reported earlier this month, Open Awards had agreed to extend this work until June while the institute’s “competitive” procurement was finalised.

They demonstrated how they will combine value-for-money with first-rate quality of service

The institute announced today that Open Awards will hold its new EQA contract, which will run until March 2021 and could earn the organisation at least half a million pounds.

“We are delighted to confirm that Open Awards will provide EQA on behalf of the Institute for the next two years,” Nikki Christie, the IfATE’s deputy director for apprenticeships, assessment and quality said.

“They were re-awarded the contract following a competitive tendering process and demonstrated how they will combine value-for-money with first-rate quality of service, delivering against our new EQA framework to ensure high quality end point assessment.”

Heather Akehurst, chief executive of Open Awards, said: “The re-award was a tribute to the hard work undertaken in the last two and a half years by Open Awards staff and importantly the EPAOS with whom we work.”

The IfATE said this new contract will mark a “step-up” in service provision as it requires delivery against a new EQA framework, due to be published by the institute in the coming months.

The institute is the nominated EQA provider for 295 approved standards.

Under its old contract with Open Awards, the institute did not charge end-point assessment organisations (EPAOs) for the quality assurance service.

But this will change as its new contract comes into play.

Tender documents for the institute’s new contract, seen by FE Week, state that “legislation allows the institute to charge EPAOs a fee per apprentice that undertakes an end-point assessment and it is these fees that will pay for the EQA service”.

The re-award was a tribute to the hard work undertaken in the last two and a half years

They add: “The institute’s budget is limited and we are seeking to work with a supplier who will deliver a high-quality service at a price that offers strong value for money.”

The bidding organisation was asked to “confirm what price they would charge per end-point assessment”, and would receive a minimum payment of £20,000 a month for the duration of the contract.

The ESFA sets a funding band for each apprenticeship standard, which is usually the value given to providers to deliver the training.

Up to 20 per cent of the total funding is available to fund the end-point assessment. The EQA cost is paid by the end-point assessment organisation and is factored into the EPA price.

There are currently 18 approved external quality assurance bodies that monitor end-point assessment organisations, to ensure the process is “fair, consistent and robust”.

FE Week revealed the “ridiculous variability” in approved external quality assurance charges in February, which were criticised by sector leaders for ranging from a free service to £179 per apprentice.

Government to fully-fund college pension cost increase

The Department for Education has today revealed it will provide extra funding to cover the rise in pension contributions for colleges.

The announcement followed a consultation launched in January, where the department asked feedback on its proposals to support certain education institutions with the increase to pension scheme in 2019/20.

The DfE had previously said it expected to publish a response in March 2019, but only today confirmed it will fully-fund the increased costs of the scheme for “state-funded schools and colleges, as well as other publicly-funded training providers”, which will cost a total of £940 million.

However, it is not clear for how long the government will provide the extra funding.

Education Secretary Damian Hinds said the “scheme is, quite rightly, one of the most generous pension schemes in the country”  and is aimed at ensuring “schools and colleges can focus their resources on providing the best education”.

It was announced last year that the amount colleges and other public-funded FE training providers must contribute to staff pensions was set to rise from the current rate of 16.48 per cent to 23.6 per cent – an extra £142 million a year – from September 2019.

But because the increase comes into force half way through the financial year, the DfE estimated that colleges would have to pay £80 million extra in 2019/20. This will rise to the full amount of £142 million in 2020/21.    

The Association of Colleges previously warned this publication that the increase in employer contributions could spark a “financial crisis” in FE.

Today, the DfE said FE institutions will receive funding “based on their actual costs”.

The outcome of a valuation of teachers’ pensions was released in August 2018, which the Treasury undertakes every four years, and said public sector workers would get improved benefits from 2019.

Julian Gravatt, deputy chief executive of the Association of Colleges, said it welcomed the government’s decision to “ensure that the increase does not destabilise the sector”.

He added: “We will be pressing government in the spending review to not only maintain this budget but to ensure that colleges have the resources they need to provide high quality teaching and training to young people, adults and employers.”

Julia Harnden, funding specialist at the Association of School and College Leaders, also said the announcement was welcomed as, without this funding, “the extremely serious financial pressures they are already facing would be made even worse”.

However, she warned the funding announcement is for one year and that “we do not know what will happen over the additional cost of the teachers’ pension scheme in subsequent years”.

“This will be a matter for a spending review planned by the government this year which will set departmental budgets for the next three years.

“However, the chancellor has suggested that this spending review will only take place if an EU exit deal is agreed. Schools and colleges are currently unable to accurately plan their long-term budgets, not only in terms of how the teachers’ pension scheme will be funded, but over their income and costs in general. This uncertainty needs to be settled sooner rather than later.”

Apprenticeship funding band reviews to include updated ‘affordability measures’ in wake of budget warnings

The Institute for Apprenticeships and Technical Education is updating its ‘affordability measures’ when making funding band recommendations.

Minutes published this week for their approval and funding committee, dated 21 March, say the Digital and Data Science Team “gave an update about work to improve the affordability measures, which will be further developed over the next few months”.

When asked about the plans, a spokesperson for the IfATE told FE Week: “The budget for the apprenticeship programme is finite” and affordability was being considered alongside “evidence submitted by Trailblazer groups, guidance from sector experts on our Route Panels, and evidence we have gathered ourselves about comparative training costs”.

And the Department for Education’s Strategic Guidance to the IfATE, published on 27 March, said: “We expect the Institute to consider the wider affordability of the apprenticeships programme when making funding band 12 recommendations.”

The spokesperson would not be drawn on what the specific measures are or would be, beyond saying they were “analysis of the cost of the apprenticeship programme” and that “the measures are being updated to reflect the fact that there is now a larger amount of information related to the cost of apprenticeship standards, and the shape of the programme”.

It was IfATE that first warned of an apprenticeship levy budget over-spend in a presentation to employers at the end of last year.

This was then followed by a National Audit Office report into the programme that found the actual average amount of funding was double the DfE forecast.

And in recent weeks the DfE permanent secretary told the Public Accounts Committee that without additional treasury funding as part of the forthcoming spending review then “tough choices” would need to be made.

IfATE rates reviews have proved controversial so far, with many employer groups opposing reductions that would render the apprenticeships “financially non-viable”.

In the first review launched last May, included 31 of the most popular standards, many of which say a rate reduction.

For example, the level 2 hair professional was cut 22 per cent from £9,000 to £7,000 and the controversial chartered manager degree was cut 19  per cent from £27,000 to £22,000.

The IfATE revealed last December the 30 apprenticeship standards included in its second funding band review, expected to be completed by this summer.

Rate reviews got underway after the institute moved to having 30 funding bands – the maximum rate paid for from the levy – to choose from, up from the previous 15.

According to the IfA’s 2018/19 business plan, the funding band reviews ensure “they support high quality delivery, and maximise value for money for employers and the taxpayer”.

It also said the IfA is “working with DfE to develop the best approach for pricing apprenticeships in the long term.”

When it announced the second review, the institute said “We understand the review might be a concern to employers which is why we are working collaboratively to ensure the review is carried out in an open and fair way, and as quickly as possible.”

Bidders remain in the dark as DfE delays Institutes of Technology tender results

The Institutes of Technology tender has fallen behind schedule, with the final 16 providers left waiting to be told if they have been successful.

The Department for Education released the final stage two of the £170 million competition in October last year, and said it expected to announce the outcome in March 2019.

But FE Week contacted a number of the shortlisted colleges, who told this publication they have not heard anything as of yesterday afternoon.

Uxbridge College, York College and Dudley College confirmed they have not been given any indication to whether their proposals have been the successful.

FE Week has also contacted the DfE to find out the reason of yet another delay.

In May last year, this publication reported the competition was falling behind schedule, with providers who applied to open one IoT not knowing if they had been successful.

IoTs, which were first mooted back in 2015, are intended to bring together FE and HE providers along with employers to deliver technical skills training, with a particular focus on levels four and five.

According to application guidance from the DfE, they will offer “higher-level technical skills on a par with more academic routes” and will “achieve the same level of prestige as universities”.

Between 10 and 15 of the institutes are expected to be created.

In December 2017 the Department for Education said: ” We expect the first IoTs will be open in 2019”.

The 16 IoT proposals currently in the final stage are:

University of Exeter

South Essex College of Further & Higher Education

Queen Mary University London

Weston College of Further and Higher Education

York College

Milton Keynes College

West Suffolk College

Newcastle College Group

University of Lincoln

Barking & Dagenham College

New College, Durham

Harrow & Uxbridge Colleges

North Warwickshire & South Leicestershire College

Solihull College

Dudley College of Technology

Swindon College

Revealed: The 34 colleges with £270m of government loans and bailouts last year

The Education and Skills Funding Agency (ESFA) has revealed the colleges with millions in government loans and bailouts.

According to documents released by the ESFA and analysed by FE Week, a total of 34 colleges across the country received £270 million in Exceptional Financial Support and Restructuring Funding loans and grants by July 2018.

This was the first time the ESFA revealed individual values of grants and loans awarded to colleges. The agency explained it had decided to release this information to allow FE colleges to “compare their financial data with national totals and other colleges and organisations”.

When similar figures were released last year, the Department for Education immediately removed any reference from its monthly expenditure list, and said they would remain secret “to ensure the college’s financial position can be managed effectively during the period of support”.

The documents released last Friday revealed Hull College received the biggest amount in restructuring grands – a total of £34,187,000 – to support its ‘fresh start’ arrangement and to help its “significant financial and operational turnaround”.

FE Week had previously reported that the college received a £54 million government bailout in order to balance the books, which was believed to be the highest ever given to an English college.

The college also said in its 2016/17 accounts, which were published almost 18 months late, that it had overspent £10 million.

Meanwhile, Trafford College was awarded a total of £29.11 million in restructuring grants. The college merged with Stockport College in April last year – just a month after Stockport was rated ‘inadequate’ for the third time in five years.

As a result, the grant was provided to enable the merged college to deliver a “significant financial and quality turnaround”.

The government also awarded Chichester College £3 million in loans (EFS and restructuring grants) and £21.37 million in grants.

The ESFA said the college was given restructuring facility funding to facilitate its merger with Central Sussex College, which had also received exceptional financial support funding and a third successive Ofsted rating of ‘requires improvement’ prior to the merger.

The college was last month named one of the institutions that will receive a total of 1.8 million in grants through a strategic improvement fund, designed to support struggling colleges.

Moreover, the agency has revealed that, of its £470m restructuring facility funding allocation, it has spent £290m as of January this year. It said it has received 78 applications for the restructuring facility during the same period. Of these, 58 have been assessed and approved and five remained in the assessment and approval processes.

A Department for Education spokesperson said: “The department publishes college accounts based on data provided by colleges. It is the responsibility of individual colleges to ensure that the data they submit is accurate and to contact us if they believe the data they submitted is inaccurate.”

See the full list of colleges that received loans and grants as of July last year:

College name
ESFA Loans
(EFS and
restructuring
grant)
ESFA restructuring grant
Total ESFA loans and grants
Hull College
£0
£34,187,000
£34,187,000
Trafford College
£0
£29,112,000
£29,112,000
Chichester College
£3,000,000
£21,373,000
£24,373,000
East Kent College
£0
£16,976,000
£16,976,000
Birmingham Metropolitan College
£15,244,000
£0
£15,244,000
St Helens College
£0
£14,100,000
£14,100,000
Telford College of Arts and Technology
£216,000
£13,373,000
£13,589,000
Lambeth College
£13,586,000
£0
£13,586,000
Nottingham College
£13,000,000
£0
£13,000,000
South and City College, Birmingham
£0
£10,800,000
£10,800,000
City of Wolverhampton College
£6,250,000
£3,424,000
£9,674,000
City of Bristol College
£8,949,000
£0
£8,949,000
Sussex Coast College Hastings
£4,397,000
£3,668,000
£8,065,000
North Shropshire College
£5,874,000
£0
£5,874,000
Stoke-on-Trent College
£5,625,000
£0
£5,625,000
South and West Cheshire College
£5,200,000
£0
£5,200,000
London South East Colleges
£4,401,000
£0
£4,401,000
Lowestoft College
£3,450,000
£742,000
£4,192,000
Cornwall College Group
£3,238,000
£697,000
£3,935,000
South Essex College of Further and Higher Education
£3,500,000
£0
£3,500,000
Accrington and Rossendale College
£3,475,000
£0
£3,475,000
Redcar and Cleveland College
£3,251,000
£0
£3,251,000
North Warwickshire & South Leicestershire College
£2,818,000
£0
£2,818,000
Kirklees College
£2,800,000
£0
£2,800,000
Southport College
£0
£2,737,000
£2,737,000
Berkshire College of Agriculture
£0
£2,575,000
£2,575,000
Ruskin College
£2,280,000
£0
£2,280,000
West Nottinghamshire College
£2,100,000
£0
£2,100,000
Weymouth College
£2,019,000
£0
£2,019,000
Epping Forest College
£900,000
£0
£900,000
South Gloucestershire and Stroud College*
£753,000
£0
£753,000
Cadbury Sixth Form College
£300,000
£0
£300,000
Solihull College
£0
£100,000
£100,000
Cleveland College of Art and Design
£53,000
£0
£53,000
Total 2017/18
£116,679,000
£153,864,000
£270,543,000

 

*South Gloucestershire and Stroud College has said the figure is an “error” either by the ESFA or via data supplied by the college, and claimed that SGSC has not been in receipt of any restructuring loans

Since this article was published a number of colleges have got in touch to say the figures in the government’s data are wrong. If your college has any concerns about the figures please contact the ESFA directly. We’re currently waiting for an explanation from the ESFA.

Revealed: The winners and losers in the £170m Institutes of Technology competition

The Department for Education has today unveiled the colleges and universities in line for a share of £170m in capital funding and a licence to be named an Institute of Technology.

One day after FE Week reported delays in its competition process, due for announcement last month, the department revealed the names of the first successful applicants.

See the list of nine colleges and three universities below.

The government said the institutes will be “unique collaborations” between universities, FE colleges, and employers including Nissan, Siemens and Microsoft.

They will specialise in delivering higher level technical training at level four and five in STEM subjects, including digital, advanced manufacturing and engineering.

According to the DfE, all institutes must hold an Ofsted ‘good’ or ‘outstanding’ rating at the time the licence and capital funding agreements are signed.

However, one of the colleges made it to the final list of 12 despite plummeting two Ofsted grades from its previous ‘outstanding’ in December last year.

When asked about how the grade three college could be a successful applicant, a DfE spokesperson simply said: “Swindon College, like all the other successful applicants, put forward a high-quality proposal and met our requirement to be Ofsted ‘good’ or better when they submitted their application in November 2018.

“We have been clear that all the successful applicants must hold an Ofsted ‘good’ or ‘outstanding’ rating at the time their licence and capital funding agreements are signed. Until that happens they will not formally become an Institute of Technology.”

Pressed again on how Swindon College can qualify as one of the 12 on this the list of Institutes, the spokesperson replied: “We have nothing further to add to this statement.”

And the DfE did not say how much it planned to award each provider from the £170m capital fund, but Dudley College told FE Week it will receive £16.8 million to support its £32.5 million project. Milton Keynes College revealed it expects to receive £28 million and York College will get around £10 million in capital funding.

The four providers that had made it to the second stage but were not included in the final list were North Warwickshire & South Leicestershire College, West Suffolk College, South Essex College of Further & Higher Education and Newcastle College Group.

A NCG spokesperson told FE Week it had decided to withdraw the bid for an IoT to “focus on the development of Newcastle College University Centre”.

But FE Week has previously reported the government had broken its own rules by putting NCG through the final bid despite its three Ofsted rating.

A spokesperson for the department explained at the time that NCG would need to improve its Ofsted rating by November to have a chance of getting approved. Earlier this month, Ofsted published the results of a monitoring visit, which found the college had made ‘reasonable progress’.

Meanwhile, Marion Plant, principal and chief executive of NWSLC said: “We are disappointed that our bid for grant funding to create a dedicated IoT for logistics has not been taken forward by the DfE. In fact, none of the successful projects are focused on the logistics sector, which is a great pity considering the requirements of the industry.”

Angela O’Donoghue, principal and chief executive of South Essex College, also said she was the college was “disappointed not to have been successful” in its IoT bid.

IoTs were first mooted back in 2015 and are intended to bring together FE and HE providers along with employers to deliver technical skills training, with a particular focus on levels four and five.

According to application guidance from the DfE, they will offer “higher-level technical skills on a par with more academic routes” and will “achieve the same level of prestige as universities”.

The DfE said today the pre-award stage will now start, where the details of each Institutes licence agreements and capital funding will be agreed. IoTs will then receive their licence to operate and start to access their capital to develop the buildings and facilities they need.

The first Institutes are expected to open from September 2019.

Education Secretary Damian Hinds said: “These new IoTs will be the pinnacle of technical training – new collaborations between universities, colleges and business to make sure young people have the skills they need to build a well-paid rewarding, career, while the economy gains the skilled workers it needs to be more productive.”

He added they will help employers get “the skilled workforce they need, especially in much sought-after STEM skills and will offer young people a clear path to a great, well paid career”.

But a spokesperson for the Association of Colleges pointed out there are “many more colleges than the successful ones which have suffered from capital spending in colleges being at a 20-year low because of reductions in government grants and commercial lending”.

“The £170m for IoTs is welcome but we probably need another 50 or 60 IoTs in the next decade.”

The 12 providers leading the successful IoT bids are:

University of Exeter

Queen Mary University London

Weston College of Further and Higher Education

York College

Milton Keynes College

University of Lincoln

Barking & Dagenham College

New College, Durham

Harrow & Uxbridge Colleges

Solihull College

Dudley College of Technology

Swindon College

Chartered Institute of FE admits to having no employees

The Chartered Institution for Further Education has been left with no employees after its CEO quietly stood down in December.

FE Week had been attempting without success to contact the CIFE for several weeks concerning their 2017-18 annual report and accounts, which remain unpublished.

Speaking to FE Week this morning, Dan Wright said there are no longer any employees and that he has been acting as an adviser on a voluntary basis since his departure. The CIFE will continue under the stewardship of the council members.

The future of the institution has early this year been left in doubt after the Department for Education said it would no longer financially support it.

The CIFE, which was conceived in 2012 and has so far received £1.5 million in subsidies, received one final payment at the end of January and has since been on its own.

A statement released just before Christmas said that an “increase in membership and remodelling of our infrastructure enables the institution to stand free of government funding”.

“We expect membership to grow as we use our voice independently”, it said at the time.

According to its website, the CIFE currently has 12 members, far fewer than the 80 Wright previously said it would need to be “completely free” of government subsidy.

FE Week reported last September that the CIFE had received £430,000 from the DfE in 2017-18 under their grant funding agreement.

This was on top of the £1 million it had already received since its conception, as revealed by an FE Week freedom of information request last January.

The institution was the brainchild of the former skills minister John Hayes, and was created to get high-achieving FE providers a royal seal of approval. It took three years for it to be finally granted its royal charter, and it began accepting applications in November 2015.

Colleges and training providers must be rated grade one or two by Ofsted to apply, and also meet the institution’s quality standards.

The annual subscription fee for members who have achieved chartered status is £5,000, but for interested parties there is also a £3,000 non-refundable fee to have an application reviewed in the first place.

List of CIFE council members:

Picture: Happier times in 2016 for the Chartered Institute of FE members at their inaugural admissions ceremony in the House of Lords.