Revealed: The 17 winners of the Greater Manchester Combined Authority’s AEB tender

The providers which have won adult education budget contracts from Greater Manchester Combined Authority have been revealed.

The providers will share up to £25 million of the authority’s total devolved AEB, which is worth an annual £92 million from August, after winning contracts under a competitive tender.

Contracts will run from 1 August 2019 to 31 July 2020, with the option to extend them annually until 31 July 2022.

Ten of the 17 winning providers received an Ofsted grade two at their last inspection, and three received a clean sweep of ‘reasonable progress’ ratings in early monitoring visit reports.

However, one provider, the Education and Skills Partnership, received two ‘insufficient progress’ ratings alongside two ‘reasonable progress’ ratings in its monitoring visit report; although one of the latter ratings was for its adult education provision.

Three providers – Groundwork Rochdale and Oldham, Maximus People Services, and The Training Brokers – have yet to be inspected by the watchdog on their educational provision.

Like the last national AEB procurement, colleges and local authorities will have the rest of the budget grant funded to them.

FE Week previously reported in January the 36 providers which had progressed to the final round of procurement in Greater Manchester Combined Authority.

The first stage of procurement, a supplier assessment questionnaire, was completed in December, and 36 bidders met the GMCA’s minimum scoring criteria to make it through to the second stage, where they were invited to tender for part of the authority’s AEB funding.

GMCA has awarded AEB funding to a total of 36 providers, including 19 which did not tender for funding. The amounts for each contract has not yet been revealed.

The Education and Skills Funding Agency will hand over control of the adult education budget for areas to such as Manchester, Wigan, Trafford, and Rochdale to GMCA in August.

Meanwhile, it will also devolve control of the AEB for six other areas to their respective combined authorities: West of England, Cambridgeshire and Peterborough, Greater London, Liverpool City Region, Tees Valley, and West Midlands.

North of Tyne and Sheffield City Region combined authorities are due to take over the AEB for their areas in the 2020/21 academic year.

FE Week revealed in May which providers had won a procured AEB contract from West Midlands Combined Authority, which had set aside £28 million of the £125.6 million total budget for procured provision.

The same month we published the 30 winners of the Greater London Authority AEB tender, which was worth £130 million of the total £306 million budget.

As well as the 19 winners in the Liverpool City Region Combined Authority tender for £15.11 million of its £50.35 million AEB.

The full list of winners from the GMCA tender are:

  • Access to Music
  • Babington Business College
  • Back 2 Work Complete Training
  • Gloucestershire College
  • Groundwork Oldham and Rochdale
  • Mantra Learning
  • Maximus People Services
  • Pathway First
  • PeoplePlus Group
  • SeeTec Business Technology Centre
  • Standguide
  • System Group
  • The Education and Skills Partnership
  • The Growth Company
  • The Training Brokers
  • Total People
  • Workers’ Educational Association

WorldSkills 2019: Team UK given send-off at Parliament

Skills minister Anne Milton told 37 of the UK’s best and brightest young skilled people they are about to face the “biggest challenge” of their lives during a special send-off event ahead of WorldSkills 2019 today.

Delivering a heartfelt speech in the House of Commons, Milton told the Team UK competitors and their families she was “incredibly proud” of them as they embark in their journey to Kazan, Russia, next month.

“Not winning is quite a comfortable position to be in, because if you say it you have to face the prospect that you might not win,” she said. “That step is the step you have to take.”

She added that all the competitors are about to become ambassadors for not just their chosen skill but for all young people across the country.

“Dedication matters, and you’ve got to be at the top of your game, because handling the pressure is a very critical thing,” Milton said.

Shadow skills minister Gordon Marsden, who hosted the event, said this was a good time for the competitors to be going to Russia “with love”.

“When I look through the list of categories that will be taking place in Kazan they are a smörgåsbord of the sort of skills we will need in the future,” he said.

In another passionate speech, Marsden asked the young talents to “not be undersold” and do their best, because that is “all you can always do”.

“Nobody knows what the future will be, but what we know is that the technical, vocational skills and the creative skills that you deploy out there will be crucial to our future and, in this case, for your personal future.”

 

Worldskills UK chief executive Neil Bentley-Gockmann also told the competitors: “We are just one month away from the challenge of a lifetime. So I am delighted that we are here today to celebrate you, your achievements so far, and your potential as you gear up to your Russian adventure.”

He said the goal for Team UK is to retain its top-10 position in the world. But, he added, getting this far “means you are the best in the UK in what you do”, which is a massive achievement in itself.

Landscape gardening competitor Sam Taylor told FE Week that he and teammate Shea McFerran experienced a “bad start” in EuroSkills Budapest last year, after failing to win a medallion of excellence. But since then, the team has been training hard to overcome the issues.

“We have been out in China during Easter and we have done really well in there,” he said.

“It was a good pressure test for us.

“I am pretty confident. I want to smash it and get the gold medal.”

Collete Gorvett, restaurant service competitor, told FE Week it was “really nice seeing all my team mates and catch up with everyone”.

“Having the MPs and the WorldSkills committee here shows that we are having a lot of support.”

Gorvett added: “Obviously everyone here wants to do really well and maintain at least the top 10 position. It’s an amazing achievement to get started off with, and then everything that comes after that is going to be a bonus.”

 

And Callum Knott, training manager of Jack Dakin and Danny Slater, who are competing in mechatronics, said that training two people is about finding people with “complementary skills”.

“They need to have not only technical ability but be able to work together. They have to spend more hours together than with their own partners, so they need to get along quite well.”

He added: “We are hoping to achieve a medal. We would be very disappointed if we didn’t come back with a medallion.”

The team will fly to Kazan on August 18, in preparation for competitions which will run between August 22 and 27, where FE Week will be joining them.

Festival of Learning award winners 2019 honoured

A man who left school without being able to read or write and a woman who went from staying in a care home to studying for the operating theatre are among the 12 winners of the 2019 Festival of Learning awards.

The winners were selected from more than 250 nominations to receive their prize at a ceremony held in London on Tuesday.

They include Marie Smith, the winner of the Learning for Health award: she is a survivor of sexual abuse which caused her to leave school with no qualifications and develop severe depression.

Yet after she was referred to Adult Education Wolverhampton’s Like Minds pottery course by her psychologist, her self-esteem grew and she built up some close friendships.

She is now studying for a degree in glass and ceramics at Wolverhampton University, and aims to become a self-employed artist who works in the community to help others in a similar situation to hers.

Skills minister Anne Milton congratulated the winners, such as Marie, and said she was “thrilled” to see the awards recognise the “achievements of people who are taking the opportunity to change their lives through learning new skills and knowledge”.

“It’s so important we recognise the achievements of those that follow this path and make sure they get the recognition they wholeheartedly deserve,” she added.

Another winner, of the Return to Learning award, is Stuart Ferriss: he struggled with severe dyslexia at school, was sent to the back of the class, and never learned to read or write.

He went on to work as a joiner for many years, but after starting as a caretaker at a local primary school he saw how his lack of literacy was holding him back.

With support from his employer, he enrolled on a dyslexia study skills class run by Oldham Lifelong Learning Service and on a functional skills English course.

Our award winners show just how powerful learning can be

After being made redundant from the school, he was able to secure a job as a caretaker at a local community centre, thanks to his improved literacy skills.

Also gracing the stage will be Diana Omokore, the winner of the Outstanding Individual Award, who was taken into care as a teenager but excelled at school and achieved 10 A*- B grades at GCSE.

Omokore is now studying for a BSc (Hons) in medical science at De Montfort University, alongside working as an NSPCC ambassador, a member of their youth advisory board, and a Childline volunteer.

Stephen Evans, the chief executive of festival organisers Learning and Work Institute, said adult learning “has never been more important”.

The Learning and Work Institute, an organisation dedicated to lifelong learning, has been running the Festival of Learning since 1992.

Evans continued: “Our award winners show just how powerful learning can be and the difference that great tutors and learning providers can make.”

Those great tutors include the winner of the Tutor Award, Fiona Pickett, who did not let losing her hearing get in the way of teaching.

She instead learned to lip-read and has since trained more than 70 tutors in the subject. She is also learning British Sign Language so she can enrol students who were born deaf.

One of the winning providers, President’s Award recipient City Lit, started off in 1919 also teaching lip-reading, but to soldiers whose hearing had been ruined by shelling in the trenches of World War One.

It now has more than 1,000 tutors teaching 5,000 courses every year over a range of different subjects; including languages, visual arts, humanities and music.

The winner of the Project Award is Nurturing Recovery, operated by Bridgwater and Taunton College and North Somerset Council, which has run level 1 practical horticulture courses for people with addictions and mental ill health.

The award summary says the courses “provides a relaxed approach, with micro learning sessions and small team-based tasks complemented with yoga and other relaxation techniques”.

The full list of winners is below:

  • Michael Shakil, Patron’s Award
  • City Lit, President’s Award
  • Seong Chua, English Language Learning Award
  • Marie Smith, Learning for Health Award
  • Vicky Seagars, New Directions Award
  • Emma Searle, Learning for Work Award
  • Stuart Ferriss, Return to Learning Award
  • Diana Omokore, Outstanding Individual Learner Award
  • Peter Shukie, Social Impact Award
  • Fiona Pickett, Tutor Award
  • Nurturing Recovery, Project Award
  • Keoghs, Employer Award

IfA’s second funding band review: Another 17 standards signed off

Funding bands for another 17 apprenticeship standards under review by the Institute for Apprenticeships have now been approved – with the majority experiencing a reduction.

A total of 30 standards have been under review since December. The first 10 had their funding rates approved in May.

For the latest 17, changes for those that have had their funding reduced will come into effect for apprenticeship starts from September 30, 2019, while those that have increased will have their new funding band implemented for starts from today (July 1).

Of the 17, only the level 3 highway electrician / service operative received a funding increase, going up from £9,000 to £12,000.

Six funding bands remained the same, while 10 had their funding reduced.

These included level 3 gas engineering operative (from £27,000 to £22,000), level 4 retail manager (from £6,000 to £5,000) and level 3 heavy vehicle service and maintenance technician (from £18,000 to £15,000).

In May 2018, the apprenticeships minister Anne Milton asked the institute to conduct its first ever review of funding bands, which included 31 existing apprenticeship standards.

This led to several standards having their funding cut, including the popular chartered manager degree apprenticeship by £5,000. This was followed by another review of the funding bands for 30 standards in December 2018.

Commenting on the latest approvals today, a spokesperson for the institute said: “The Secretary of State has approved our funding band recommendations for a further 17 of the 30 standards that have been under review since December 2018.

“The aim of the review is to ensure these standards have the most appropriate funding band to support high quality delivery, and provide value for money for employers and taxpayers. They will also ensure consistency in the way older and newer standards are funded.”

Three funding band recommendations still have to be approved from the December 2018 reviews.

The IfA said it expects the full review to be completed this summer.

See full list below:

 

 

 

College claims three-day strike will have ‘no impact’ on students

A three-day strike over staff cuts and pay will take place at cash-strapped Bradford College this week – but leaders have said it won’t cause any disruption.

Members of the University and College Union are planning to be on the picket line from Wednesday 3 to Friday 5 July in their campaign against the proposed axing of over 130 jobs.

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

The union members have already walked out for seven days this year.

But this latest action isn’t expected to be an issue for the college’s operations, as the academic year has ended for the vast majority of students.

“The college will remain open throughout the three-day period and students will not be impacted,” a Bradford College spokesperson said.

“The academic year has already finished for the vast majority of students but they will still be able to access facilities as normal.” 

She added that any industrial action is “regrettable”, but reducing staffing costs is “essential to help secure the college’s long-term future.

“We are still in the process of consulting on the restructure plans and are committed to keeping the number of compulsory redundancies to a minimum.”

UCU regional official Julie Kelley said the union’s members have made it clear that they “are not prepared to pay the price for previous failings by the college”.

“Strike action is a last resort, but staff at Bradford face attacks on their jobs and real-terms pay cuts and they say enough is enough,” she added.

“Other colleges have shown what can be achieved when they engage seriously with us on pay and jobs and if Bradford wants to avoid serious disruption then it needs to urgently work with us to address the concerns of its staff.”

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

The details of the last-minute deal, struck at the end of March just before the DfE’s “restructuring facility” closed, are secretive and complex but the college said it was “grateful” to both the department and bank for being kept afloat as it tries to find a further £3.5 million in savings.

A financial adviser to the college sector told this newspaper they understand the gift by the bank to be the first such significant debt write-off for a college.

Another 10 new providers suspended from taking on apprentices

Ten more new providers have received temporary bans on recruiting apprentices following early Ofsted inspections that found them making poor progress.

Since October 2018, the watchdog has been carrying out monitoring visits at every directly-funded provider which won its own contract to deliver training after April 2017.

Any that are found to be making ‘insufficient progress’ in at least one area will be suspended from recruiting unless there are “extenuating circumstances”.

The Education and Skills Funding Agency has released an updated version of the register of apprenticeship training providers for July, which shows 41 providers are currently banned from taking on apprentices.

The ten new providers on the list are: Arriva London North; Ashley Community & Housing; EQV (UK); Gloucestershire Enterprise Limited; Manatec; Poole Hospital NHS Foundation Trust; Prospects Training International; The Teaching and Learning Group; Took Us A Long Time; and WDR.

Arriva London North was criticised because its leaders “lack the expertise to provide successful apprenticeship provision”, according to Ofsted, and its managers have not provided any teaching or learning in maths and English for a large majority of apprentices, of whom there are 68 in total, who need functional skills qualifications, since September 2017.

Leaders and managers at Ashley Community & Housing were criticised for implementing improvements that have been identified in formal quality reviews too slowly.

Their board members were aware of the improvements the provider, which has 14 apprentices, needed to make, but did not challenge leaders and managers about the pace of implementation.

Apprenticeship programmes at EQV, which are being delivered to 106 learners, are “poorly planned”, inspectors wrote in their report. Leaders have focused more on getting apprentices management qualifications than their apprenticeship.

Too many learners at Gloucestershire Enterprise Limited, which has 176 apprentices, are not expected to complete their qualification in the planned time frame, because systems to monitor their progress have been implemented too slowly, according to Ofsted.

Most of the approximately 550 apprentices at Manatec are not aware they have an entitlement to off-the-job training, and almost all of them complete their training in their own time.

The watchdog found at Poole Hospital NHS Foundation Trust, which has 70 apprentices, that too many learners have passed their planned end date; and a few were not clear what apprenticeship they were on, or when they were meant to finish, as previously reported by FE Week.

Ofsted found that trainers at Prospects Training International do not collect detailed, and in many cases, accurate, information about the existing knowledge, skills and experience of the provider’s 1,017 apprentices at the start of their programme.

A minority of business administration apprentices at The Teaching and Learning Group, which has 19 apprentices overall, have submitted very little, or no work, inspectors found.

A provider to 58 apprentices, Took Us A Long Time, a subsidiary of restaurant operator Tasty Plc, recruited apprentices from the company’s staff who already have experience of serving or preparing food within a commercial environment and to commercial standards.

This meant too many learners were placed on programmes from which they did not develop substantial new skills and knowledge, Ofsted said.

Lastly, WDR has not made sure potential apprentices and their line managers fully understand the requirements and components of an apprenticeship.

One group of team-leading apprentices were given no choice by their employer about participating in the programme; which meant high numbers of WDR’s 91 apprentices have left the programme early.

Ofsted has started conducting full inspections of new apprenticeship providers that were previously banned from taking on new starts following ‘insufficient’ monitoring reports, and awarded them grades that allow them to start recruiting again.

Mitre Group has been released from its ban after receiving a grade two report from Ofsted.

GTG Training, after been rated as ‘requires improvement’, has also been permitted to recruit new starts.

Develop-U was given a grade three rating by Ofsted in April, but is still on the ESFA’s list of suspended providers.

 

Click on the image below to enlarge the list of 41 providers which have been suspended:

IfA rejects level 2 business admin apprenticeship leaving employers ‘disappointed’ and ‘upset’

A proposal to create a level 2 business support apprenticeship has been rejected outright by the government, with officials claiming the standard is “not viable”, FE Week can reveal.

In a move that has “disappointed” sector leaders, the Institute for Apprenticeships’ deputy director of approvals, Ana Osbourne, has written the trailblazer lead for the wished-for standard to state it “does not meet the minimum criteria for an apprenticeship”. 

The letter, seen by this newspaper, was received by Caroline Bragg, the employability and skills strategy manager at East Sussex County Council yesterday. 

The council, supported by SkillsFirst and employers including the NHS, has been campaigning for a business administration apprenticeship standard at level 2. However, the IfA has repeatedly refused the proposals because of its concerns about overlap with the same standard that is approved at level 3. 

The level 2 business support standard was designed as an alternative. 

“I am sure this will come as a disappointment, particularly due to the time and effort you have taken to develop and submit your proposal,” Osbourne’s letter said. 

“I therefore hope the feedback provided below is useful and demonstrates that we have given the matter careful consideration.” 

She explained that the duties set out in the proposal are “not stretching enough to require 12 months employment and training”, including the 20 per cent off-the-job training requirement. 

Continued delays to the approval of this much needed apprenticeship standard are very damaging

It also said the occupation proposal was “not sufficiently distinct from other similar occupations such as the level 3 business administrator, where they were ‘several areas of overlap’, and the level 2 customer service practitioner, where there found some similarities with the knowledge, skills and behaviours. 

“Although you have demonstrated demand for people trained in these duties, it does not appear that an apprenticeship is a suitable programme to deliver this training.” 

The letter concluded that amending the proposal to remove the provisions that duplicate those also found in the level 3 business administrator standard would result in a proposal that was “even less stretching and therefore further away from being able to meet our threshold for apprenticeships”, meaning the level 2 apprenticeships is “not viable”. 

Lucy Hunte, the national programme manager for apprenticeships at the NHS, was not impressed.

“The NHS are very disappointed at this outcome,” she told FE Week.

“We have worked hard with the trailblazer group to make all the required changes. Currently level 2 business administration apprenticeships are a vital entry point into the NHS and these numbers have fallen as the vast majority of candidates are not suitable for the level 3 due to the functional skills requirements.”

Lucy Hunte

Hunte added: “Continued delays to the approval of this much needed apprenticeship standard are very damaging in terms of social mobility and for developing our future workforce.”

Last year, the AELP threw its weight behind calls for this standard after “disbelief” that the trailblazer group’s proposals were being rejected. 

Reacting to this definitive rejection, the association’s chief executive Mark Dawe said: “We’re naturally disappointed to hear about this decision and we really need to understand the reasons behind it.  

“Large numbers of employers and learners are dependent on the standard being taken forward and we would really like to get to the bottom of what the government expects for an alternative that includes employed status if it isn’t an apprenticeship.” 

Osbourne’s letter stated that the institute “recognised that the consultation responses to the proposal demonstrate that there is concern that once the outgoing framework level 2 apprenticeship is removed, there will cease to be a stepping-stone to the level 3 business administrator standard for those with the lowest levels of prior attainment or workplace readiness”.  

“Therefore, although the proposal does not meet the requirements for a high-quality apprenticeship, we recognise that there is a need for a high-quality training and support offer for those individuals who may not be ready to start on the level 3 standard,” it said. 

Other “potential options” that will be looked at include: “Exploring the type of pre-employment programme that is needed and the potential future role that programmes such as traineeships could play in supporting young people to access the level 3 standard; and considering which level 2 and level 3 standards available for use could be relevant to those who might previously have been recruited onto the level 2 business administration framework”.

Ofsted watch: Dismal week for general FE and specialist colleges

It’s been a dire week for general FE and specialist colleges, after Ofsted handed two of the former grade three ratings, and two ‘inadequate’ ratings to the latter.

Private providers fared better, after nine scored well in their monitoring visits. But there was one bad apple which was hit with a grade four.

Peterborough Regional College scored its second consecutive grade three this week, with inspectors reporting: “Too few learners and apprentices achieve their qualifications because leaders and managers have not focused sufficiently on supporting learners who are at risk of failing.”

Lambeth College trumped Peterborough’s record though, by achieving its fourth consecutive ‘requires improvement’ grade.

Priory College Swindon, a specialist college which is run by the Priory Group – a famous private hospital that has treated the likes of Kate Moss and Robbie Williams – was given a double-whammy grade four, for both its educational and residential provision.

Independent training providers received better judgements: Merit Skills Ltd, with its 110 apprentices, made ‘significant progress’ in one area, and ‘reasonable’ in two others.

Leaders were praised for effectively using their industry knowledge to provide apprentices for skills shortages.

BPP University has had a tremendous turnaround, achieving a grade two mere months after it was suspended from new starts.

The report says the provider’s leaders, managers and governors have made “rapid improvements” and rectified the majority of weaknesses from the last monitoring visit, which found it had made ‘insufficient progress’ in two areas.

Leaders were praised for designing a “highly appropriate curriculum”, where the apprenticeship programmes on offer “meet the specialist needs of their employers”.

Think Employment Ltd made ‘reasonable progress’ in four areas, having introduced “high expectations” for its eight apprentices’ attendance and behaviour.

Antrec Limited, which trains 33 adult learners, have used their funding proactively to recruit hard-to-reach and low-skilled learners, scoring three ‘reasonable progress’ ratings.

Liral Veget Training and Recruitment Limited, which has 70 adult learners, was found to have made the same progress in all areas, due to “positive, emerging” partnerships with agencies like JobCentre Plus and a local authority.

CERT Ltd, which has nine apprentices, had the same results because its apprentices follow personalised programmes and value both small class sizes and the effectiveness of the teaching.

All Inclusive Advice and Training also received three ‘reasonable progress’ ratings for its provision to one apprentice on a level 2 framework.

“The current apprentice,” inspectors wrote, “developed a better understanding of creating journals by receiving training at the provider and at work in the same week.”

AWC Training has become much more involved in determining the type and level of programme apprentices should follow over the past year; and has been awarded three ‘reasonable progress’ ratings.

Standguide Limited received the same, as its 23 adult learners develop a deeper understanding of behaviours and expectations from their tutors linking discussions with employment and job opportunities.

Letting down the sidewas Can Training, which has 150 apprentices and 27 adult learners and received an ‘inadequate’ in its very first inspection.

This means it will likely face a three-month termination of its funding contract.

“Leaders and managers do not ensure that the principles and requirements of an apprenticeship are met,” Ofsted put bluntly.

The University of Salford, which has 249 higher-level apprentices, was graded as ‘good’ in its first Ofsted inspection.

The inspectorate said leaders evaluate provision “stringently”, and their self-assessment report is accurate and evidence-based.

The University of Gloucestershire made ‘reasonable progress’ in all three areas of a monitoring visit. Its 61 apprentices develop “substantial” new knowledge and skills early on.

Employer provider Medivet, with 153 apprentices, is likely to be suspended from new starts, after it made ‘insufficient progress’ in ensuring there are effective safeguarding measures in place.

“Leaders and managers do not ensure teachers and training staff maintain high professional standards and follow routine health and safety procedures,” according to the report.

The Chief Constable of Thames Valley fared better, scoring three ‘reasonable progress’ grades for its “strong” governance arrangements and for checking its 156 apprentices’ progress against their starting points.

Kingston Upon Hull City Council scored four ‘reasonable progress’ grades, following a grade three report in October.

Specialist college Chatsworth Futures Limited, which provides to 12 learners with education, health and care plans, was the subject of a monitoring visit to set priorities for improvement.

These included ensuring health and safety remain a high priority. Ofsted said it was making good progress.

Independent Learning Providers Inspected Published Grade Previous grade
Can Training 20/05/2019 25/06/2019 4 N/A
Think Employment Limited 29/05/2019 26/06/2019 M N/A
Antrec Limited 29/05/2019 26/06/2019 M N/A
Liral Veget Training and Recruitment Limited 30/05/2019 25/06/2019 M N/A
BPP University Ltd 20/05/2019 26/06/2019 2 M
Merit Skills Ltd 21/05/2019 25/06/2019 M N/A
CERT Ltd 14/05/2019 25/06/2019 M N/A
All Inclusive Advice and Training 31/05/2019 27/06/2019 M N/A
AWC Training 06/06/2019 24/06/2019 M N/A
Standguide Limited 29/09/2019 25/06/2019 M N/A

 

Adult and Community Learning Inspected Published Grade Previous grade
Kingston Upon Hull City Council 12/05/2019 27/06/2019 M 3

 

Employer providers Inspected Published Grade Previous grade
The Chief Constable of Thames Valley 12/06/2019 26/06/2019 M N/A
Medivet 22/05/2019 24/06/2019 M 3

 

Other (including UTCs) Inspected Published Grade Previous grade
University of Salford 14/05/2019 26/06/2019 2 N/A
University of Gloucestershire 31/05/2019 28/06/2019 M N/A

 

Specialist colleges Inspected Published Grade Previous grade
Chatsworth Futures Limited 13/05/2019 24/05/2019 M 3
Priory College Swindon 22/05/2019 27/06/2019 4 2

Why a salary cap to limit apprenticeship demand isn’t the answer to an overspend

What is the answer to the inevitable overspend of the apprenticeship levy pot? Adrian Anderson has some constructive suggestions

This week, ministers floated the idea of using an eligibility starting salary cap as a way of limiting demand for apprenticeships and thereby preventing an overspend of the apprenticeship levy pot.

The precise impact of such a salary cap on apprenticeship provision would be determined by the level of the salary cap introduced – would it be £25,000, £30,000 or £40,000?

I would suggest that to make a real dent in the predicted overspend of the apprenticeship budget, any cap introduced would have a massive and detrimental impact on the ability of employers to raise productivity and enhance the delivery of public sector services.

Superficially, the idea of stopping employers using the apprenticeship levy to fund a manager on £40,000-£50,000 per annum to undertake an MBA Senior Leaders’ Degree Apprenticeship may seem attractive, but let’s look at the facts.

What is the answer to the inevitable overspend of the apprenticeship levy pot?

Firstly, the government’s own industrial strategy makes it clear that poor management skills is a key factor that explains the UK’s productivity gap. Surely the government should welcome employers using apprenticeship to raise management skills in line with its own policy? Or is apprenticeship no longer a training programme focused on productivity, but instead a tax on employers (disproportionately paid by the public sector) to fund level 2 training provision for young people let down by the schools system?

We have then the issue of who pays the apprenticeship levy. The biggest levy-payers are predominantly in the public sector. Working with their sponsor departments, the NHS and police forces have developed strategies to use their levy payments to develop the skills of new and existing employees to enhance the delivery and efficiency of public sector services.

An arbitrarily set apprenticeship salary cap could fundamentally undermine such plans and in my view should not be the first funding lever to be pulled. Would the government really tell the NHS that it couldn’t use its levy payments to train and develop key nursing, healthcare, clinical and managerial staff if their salaries are above some arbitrary determined pay scale? Don’t we want police forces to use their levy payments to develop the management skills of senior officers to tackle the multitude of challenges they face?

A salary cap would impose a significant constraint on the ability of the NHS, police forces and others to use the payments made by levy payers and paid into their apprenticeship accounts (originally referred to by the government as “their” levy payment) to raise the skills of their employees and the efficiency of public sector services. Any cap would undermine the principle that apprenticeship was an employer-led programme in which employers spent levy payments where they felt they were most needed.

There is a danger that big levy payers could be forced to use their levy payments on apprenticeships that weren’t a priority, or lose them. Let me be a little controversial: should NHS hospitals, police forces and local authorities be enabled to use their levy payments in the way they need to develop their staff to deliver better public services, or is the priority to restrict the ability of these employers so that the levy they pay can be used to fund apprenticeships for employees under the salary cap in, say, business administration or customer service in small private businesses? 

So, what is the answer to the inevitable overspend of the apprenticeship levy pot? I’d suggest the answer is straightforward: in line with any concept of joined-up government, prioritisation should be based on the government’s own industrial strategy and the need to enhance the delivery of public sector services, as determined by the Department of Health, Home Office and other government departments.

If this means more STEM, management, nursing, healthcare, police and social worker apprenticeships and fewer business administration, customer service and retail apprenticeships, wouldn’t this boost the economy and be acceptable to the public?