Demands grow for more transparency from government on apprenticeship levy spending

The City and Guilds Group has added its voice to the growing clamour demanding more transparency from the government on apprenticeship levy spending.

The education giant called for more openness about the amount that has already been spent and how much will be taken out in April in a new report looking at the response of employers to the levy, published today.

City and Guilds’ demand for transparency follows months of wrangling with the Department for Education over how much information it is prepared to release about the levy pot.

In December, the Institute for Apprenticeships warned the apprenticeships budget was set to be overspent by £500 million this year, rising to £1.5 billion during 2021/22.

The government has strongly refuted this claim, made by the IFA’s chief operating officer Robert Nitsch during a presentation to employers at Exeter College. Skills minister Anne Milton insisted to FE Week on Wednesday the budget would be “alright” for the rest of the year.

Shadow skills minister Gordon Marsden wrote to IFA boss Sir Gerry Berragan at the end of last year asking to see Mr Nitsch’s presentation and was told the institute was “considering” releasing it. However, Mr Marsden told FE Week he is yet to receive the IFA’s final decision.

The top recommendation of the City and Guilds’ ‘Flex for success’ report is for the government to “provide more clarity about the amount of levy that has been spent and the amount that will be taken out in April 2019 so that everyone involved in delivering apprenticeships and benefiting from them is able to plan effectively”.

Kirstie Donnelly (pictured), managing director of the City and Guilds Group, said businesses need “more flexibility” in how they use the apprenticeship levy but warned “flexibility alone isn’t enough.

“The government must provide greater clarity on apprenticeship data in order to equip the industry with the holistic view it needs and enable employers to understand its wider impact.”

In the foreword to the report, Ms Donnelly warned that without “transparent reporting” of apprenticeship spend, “training providers and employers are left in the dark about the true extent to which employers have taken up apprenticeships, and where any leftover money will end up”.

Her warning follows concerns raised by the Association of Colleges at the start of last month that “we don’t know the full story about apprenticeship spending because the whole area is shrouded in secrecy”.

City and Guilds surveyed 765 businesses who pay into the apprenticeship levy to understand how it is used and what barriers they face.

The research found that 93 per cent of levy-paying firms cited some kind of block to investing in apprenticeships, including a lack of suitable apprentices in the area, not being able to find appropriate providers or concerns over 20 per cent off the job training. 

Although the government announced last year that the level of levy funds which can be transferred to other businesses in a supply chain would rise from 10 per cent to 25 per cent in April, the survey found levy-employers would be more comfortable with an average of 35 per cent.

The report makes 12 recommendations to the government in all, including calling for organisations who invest in apprenticeships to be rewarded with the option to spend levy funds on other qualifications, a commitment that a proportion of any surplus levy is invested centrally to support recruitment and promote opportunities, and for the IFA to introduce or approve end point assessments for all live apprenticeships “as a matter of urgency”.

A spokesperson for the DfE said the government was working with employers to “build awareness of how businesses can use their apprenticeship levy fund” and working with businesses to “make sure they make the best use of the levy transfer and their own levy funds.”

 

Lifelong learning campaigners join forces to launch ‘centenary commission’ on adult education

Leading universities and educational charities have joined forces to create a new commission into the adult education challenges faced by the country.

The Centenary Commission will consider what education is required in the face of longer lives, changing work needs and global challenges including the growth of technology, and address the role of adult education in globalisation, civic engagement and democracy, social mobility and communities.

The commission has been formed as part of the ‘Adult Education 100’ campaign, to mark 100 years since the Ministry of Reconstruction – created towards the end of the First World War – published its ‘Report on Adult Education’ and argued lifelong education was vital for the future of the country.

The Centenary Commission, formed by the Universities of Nottingham and Oxford as well as the Workers Educational Association, the Co-operative College and the Raymond Williams Foundation, will publish its report in November.

Dame Helen Ghosh, chair of the commission and master of Balliol College, Oxford, said: “There are eerie parallels between the problems of 1919 and those of 2019, making a powerful case for new commission to look at the challenges.”

Sir Alan Tuckett, who was honoured with a knighthood last year after leading the National Institute for Adult Continuing Education for 23 years and became known as FE’s “campaigner-in-chief” for lifelong learning, is the commission’s vice chair.

“There seems to be a complete absence of coherent thinking nationally about lifelong learning. I’m hoping the commission will find a fresh way to help decision makers see that this isn’t an extra, it isn’t an option and it can’t simply be left to the market,” Mr Tuckett, who is now a Professor of Education at the University of Wolverhampton, told FE Week.

“I hope it brings back into the public domain the kind of confidence we had as a country 100 years ago to think we could imagine a better way to do things. We can’t, as a country, only talk about Brexit forever.”

Andy Haldane, chief economist at the Bank of England and a patron of the Adult Education 100 campaign, said universities are not meeting the needs of life-long learning or doing enough to offer a “broad-based”, multi-disciplined education.

“The future university may need to be a very different creature than in the past. It may need to cater for multiple entry points along the age distribution, rather than focusing on the young.”

The commission will meet for the first time today (Thursday) at Balliol College, pictured.

Several commissions into adult education have been launched in recent years.

In March, Vince Cable announced the creation of an independent lifelong learning commission to investigate the best ways to ensure adults can access learning and retraining, as part of plans for the National Retraining Scheme.

The Labour party’s 2017 election manifesto also promised the formation of a commission for lifelong learning as part of the National Education Service, and said it would be “tasked with integrating further and higher education”.

It was announced in June that education company Pearson would launch an independent commission on sustainable learning for life, work and a changing economy, chaired by former education select committee chair Neil Carmichael.

Other members of the Centenary Commission include campaigner Melissa Benn, Lord Karan Bilimoria, chancellor of the University of Birmingham and co-founder of Cobra Beer, and Holex director Sue Pember.

As well as launching the commission, the Adult Education 100 campaign will work to bid for funding for research on the history and contribution of adult education, hold exhibitions on the story of adult education, work to protect and digitalise archives about the early days of adult education and engage with communities about the impact of lifelong learning. 

DfE publishes 20% off-the-job training ‘mythbusters’

The Department for Education has published new guidance on the controversial 20 per cent off-the-job training rule for apprentices, which attempts to bust certain “myths”.

The policy, which requires apprentices to spend a fifth of their week on activities related to their course that are different to their normal working duties, has split the FE sector since its introduction in 2015.

Many have complained that the rule is the single biggest barrier to apprenticeship recruitment, but others view it as a vital part of the apprentices’ development.

A lot of opposition to the policy has come as a result of confusion about exactly what the rule entails.

One area of potential confusion is likely have come from a recent calculation change to the policy, for example.

Under original rules, the 20 per cent off-the-job was based on a 52 week year and included annual leave. But the Education and Skills Funding Agency changed this in August and stated that statutory leave should be “deducted when calculating the requirement for all apprentices who begin their programme from 1 August 2018”.

It means that the calculation to determine off-the-job hours is different for apprentices who started before August 1, 2018, compared to those who started after.

To combat confusion, the DfE has today published an off-the-job training mythbusters document. It doesn’t, however, include clarification about the calculation.

One “myth”, according to the guidance, is that off-the-job training “must be delivered by a provider in a classroom, at an external location”.

“This is not true,” the document states.

“Off-the-job training can be delivered in a flexible way. This can be at the apprentice’s usual place of work, or at an external location. It can include for example, the teaching of theory, practical training and writing assignments.”

English and maths counts towards the 20 per cent requirement for off-the-job training is another “myth”.

“Apprenticeships are about developing occupational competency and they are designed on the basis that the apprentice already has the required level (level 2) of English and maths,” the document states.

“Training for English and maths must be on top of the 20 per cent off-the-job training requirement.”

Some in the sector also believe that off-the-job training can be done in the apprentice’s own time, which again is untrue, according to the guidance.

“An apprenticeship is a work-based programme so all off-the-job training must take place within the apprentice’s paid contracted hours,” it says.

“If planned off-the-job training is unable to take place, it must be rearranged. Apprentices may choose to spend additional time training outside paid hours, but this must not be required to complete the apprenticeship.”

The government has continually reiterated that the 20 per cent off-the-job training rule is here to stay, despite protests.

But it has promised to “listen to what’s working, what the challenges are and continue to review how the reforms are working”.

You can read the full mythbuster document here.

ESFA seeking views on ‘long-term operation’ of apprenticeship levy

The Education and Skills Funding Agency is seeking employers’ and providers’ views on the long-term operation of the apprenticeship levy, almost two years after it was introduced.

Employers can now email their “thoughts and feedback” to the agency, and it will launch a short survey in the “coming weeks”, according to today’s business update.

The survey will “offer an opportunity to comment on how employers have responded to the introduction of the levy, and how we can help develop demand for, and provision of, apprenticeships”.

“In the meantime, we have set up an additional mailbox where we encourage employers to share their thoughts and feedback. Please email apprenticeships.feedback@education.gov.uk.”

The apprenticeship levy came into effect in May 2017, and is set at 0.5 per cent of an employer’s payroll over £3 million.

Money raised through the levy is used to fund all apprenticeship training in England– with the exception of the 10 per cent co-investment paid by smaller employers that aren’t subject to the levy.

Since the levy was introduced apprenticeship starts have fallen, with numbers down nearly a quarter in 2017/18 compared with the year before.

FE Week reported in November that employers had used just under 14 per cent of their levy funds to date, with £370 million out of a total £2.7 billion drawn down – although this is just one cost that the levy is expected to cover.

But the Institute for Apprenticeships has warned that the budget is set to be overspent by £500 million this year, which is understood to be the result of higher per-start funding than first predicted, largely driven by the sharp rise in management apprenticeships with high prices.

Skills minister Anne Milton said in December that she will “look at whether it is right” for the government to “continue to fund all apprenticeships”.

“We will need to look ahead, when the system is really running well – and I think we’re nearly at that stage – when we need to look at do we continue to fund apprenticeships for people who are already in work, people doing second degrees,” she told Association of Colleges’ boss David Hughes, as part of a wide-ranging interview.

DfE plans first ever FE workforce survey exclusively for non-colleges

The government has revealed plans for its first ever FE workforce survey exclusively for non-colleges to better understand the challenges they face, including new policy areas such as T-levels.

A tender was launched by the Department for Education on Monday, which seeks a contractor to design, test and deliver a “nationally representative” survey of teaching staff and leaders in independent training providers, sixth form colleges, local authorities, and adult learning providers.

It follows the department’s inaugural college staff survey that was published in November.

It may prove challenging to draw many meaningful conclusions from the data

Mark Dawe, chief executive of the Association of Employment and Learning Providers, had mixed views on the proposal.

“Anything that gives us more information about the workforce is a good thing,” he told FE Week.

“However, it is an incredibly diverse workforce, responding to multiple sectors, areas and need. It may therefore prove challenging to draw many meaningful conclusions from the data.

“Having read the tender, the DfE should also be careful to use the language of the work based FE sector, such as assessors and trainers as opposed to ‘teachers’.”

The Education and Training Foundation already conducts an annual FE workforce survey, so it appears the DfE will duplicate this work with its own research.

The ETF’s, however, does not usually attract a high number of responses – in the most recent survey, for 2016/17, just 198 providers across the whole FE sector participated, and 175 took part the year before.

The DfE’s tender document states that “all approximately 1,000 FE providers (787 ITPs, 91 SFCs and 141 LAs) are in scope” for their new non-college staff survey.

This number, however, excludes subcontractors – including those on the Register of Training Organisations without a direct Education and Skills Funding Agency contract.

Explaining why this new workforce survey is needed, the DfE’s tender document says: “More than 1,000 ITPs, SFCs and LAs receive ESFA funding, but are under-represented in the Staff Individualised Record managed by the Education and Training Foundation.

“Whilst the SIR is the best available source of workforce data available to the sector, less than 10 per cent of ITPs responded, along with 11 per cent of Sixth Form Colleges.

“Similarly, the department’s call for evidence attracted relatively few responses from these parts of the sector. As a result we know relatively little about their workforces and the challenges they face.

Anything that gives us more information about the workforce is a good thing

“Their representative bodies are important here but many do not have the resources to provide representative, robust data on their members.”

The DfE said that with the upcoming introduction of T-levels, it is “even more important to understand the composition and characteristics of the FE workforce, and the challenges staff and providers face”.

The survey will “complement” the college staff survey, and will inform areas including the “pressures and challenges that the teachers and leaders may face which affect their abilities to teach/lead”, the “background, skills and experiences of teachers and leaders”, as well as the “working patterns” of staff.

Potential contractors are asked to “consider and propose methodologies they believe would be suitable for this project that would yield high response rates and deliver robust data within the timescales and budget”.

The mainstage survey is expected to take place this year with results available by December.

Two thirds of schools still flouting Baker clause a year after introduction

Two-thirds of schools are still flouting the controversial Baker clause a year after it was introduced – leading to calls for Ofsted to police the rule.

A report published today and shared exclusively with FE Week and The Times by the Institute for Public Policy Research has warned the Baker clause has “failed to achieve its aims”.

It found that 70 per cent of the 68 FE providers approached as part of the research continue to find it difficult to access schools, while most of them who were granted access raised concerns they were only allowed to speak to less academic pupils.

Only 31 per cent of the post-16 providers believe the situation around accessing school students and promoting technical education had improved over the last year.

Meanwhile, 63 per cent of 101 secondary schools surveyed had failed to issue a policy statement, as required by the Baker clause since January last year, to show how they ensure education and training providers can access pupils to talk about technical education and apprenticeships.

Lord Baker has accused schools of “deliberately flouting and flagrantly disregarding the law of the land”, but the Association of School and College Leaders has warned the Baker clause is “only one of a large number requirements that schools have to juggle”.

The Baker clause, introduced in January 2018, stipulates schools must ensure a range of FE providers have access to pupils from year 8 to year 13 to provide information on technical education and apprenticeships. 

Skills minister Anne Milton warned in August the government would directly intervene in schools which failed to comply, but the IPPR said no intervention has taken place and providers are concerned about the “lack of any real consequences”.

The think tank randomly selected 10 schools within each region of England for its study. The other schools were from the constituencies of education secretary Damian Hinds and skills minister Anne Milton – where just three of 11 were found to be compliant.

The report said there is a focus on “pupil retention, rather than supporting students and their families to understand the options available” because schools are largely funded on a per-pupil basis.

It recommends Ofsted assesses compliance with the Baker clause as part of a wider judgement on a school’s careers guidance, including speaking to local providers to understand how effectively the school works with them.

Careers guidance would be ranked between ‘inadequate’ and ‘outstanding’, and any school which receives the lowest grade or does not comply with the Baker clause should be prevented from receiving the top grade in the ‘personal development, behaviour and welfare’ section of the Ofsted report.

But Geoff Barton, general secretary of ASCL, said another measure for Ofsted inspections is “the last thing that schools need”.

“We need to work together across the sector and with government over this issue, rather than attempting to produce results by coercion.”

A spokesperson for Ofsted said it already assessed careers guidance and the effectiveness of 16-to-19 study programmes.

But Lord Baker backed IPPR’s calls, adding: “The Baker clause was a major step to improve career guidance and by ignoring it schools are denying the right of their students to know more about technical education. This is totally unacceptable.”

Catherine Sezen, senior policy manager at the Association of Colleges, pointed out that allowing FE providers to speak to all students “doesn’t have any cost implications for schools” and will “help them to achieve the Gatsby benchmarks”.

Mark Dawe, chief executive of the Association of Employment and Learning Providers, said gender stereotyping and stopping providers talking to pupils of all abilities was a “major concern”.

Robert Halfon, chair of the education select committee said it’s time for the government and Ofsted to “get tough and penalise schools which evade their duties under the Baker clause”.

A spokesperson for the Department for Education said schools who are not supplying pupils with the necessary information will be asked for evidence of compliance with the Baker clause.

He added the DfE will “take appropriate action” against schools who do not supply this evidence.

The IPPR report also recommends the creation of a single online UCAS-inspired resource for more information on local FE pathways, as well as more responsibility on local authorities to engage parents with careers advice, help Ofsted tackle non-compliance and support partnership working across schools and education providers.

 

Skills minister responds to concern apprenticeship budget will be overspent

The apprenticeship budget will be “alright” for the rest of the year, the skills minister has said.

Anne Milton (pictured above) was speaking exclusively to FE Week following a parliamentary debate on apprenticeships and skills this afternoon.

She was asked if she had any concerns about the size of the apprenticeships budget, following reports late last year that it was heading for a £500 million overspend in 2018/19.

“I always want more money – the more we’ve got, the more we can do with apprenticeships,” she said in response.

But she had no fears about the budget running out – either right now or for the rest of the year.

“I think we’re alright until July,” she said.

Ms Milton’s remarks echo those of Keith Smith, the director of apprenticeships at the Education and Skills Funding Agency.

He told FE Week in December that he was “not expecting any pressure” on the £2 billion budget this year, despite the Institute for Apprenticeships warning of a potential overspend.

The figures, included in a presentation by the institute’s chief operating officer in November, showed the apprenticeships budget could be overspent by £500 million in 2018/19, rising to a £1.5 billion overspend in 2021/22.

They were exclusively reported by FE Week earlier in the month and prompted demands for an open debate on how the levy operates, and for the IfA to share the full presentation.

Mr Smith suggested the presentation was “trying to set out one scenario or a potential, particular illustration of what the budget might do and might happen” depending on take-up.

Shadow skills minister Gordon Marsden wrote to Sir Gerry Berragan, boss of the IfA, asking for the presentation to be made public, after the institute refused to share it. 

He was told in late December that the institute was “considering” releasing it.

And Robert Halfon, chair of the influential education select committee, urged the government to be “open and transparent” about any potential overspend.

He made the remarks after the education secretary Damian Hinds dodged a question about it in parliament in December.

For more on today’s Westminster Hall debate and the interview with Anne Milton, see this week’s edition of FE Week.

 

First ever loans-only provider to get Ofsted ‘outstanding’

A loans-only provider has been rated ‘outstanding’ – the first such provider to receive the highest possible rating from Ofsted.

Civil Ceremonies Limited, which offers level three courses in funeral, naming and couples’ celebrancy entirely funded by advanced learner loans, was rated grade one across the board in a report published this morning.

It follows an investigation by FE Week in November which found that 80 per cent of the loans-only providers inspected by Ofsted to date were less than ‘good’, while none had been rated ‘outstanding’ at the time.

Today’s report said that leaders and managers at Kettering-based Civil Ceremonies Ltd were “highly successful in implementing their vision and mission for the business”.

The provider was founded in 2002 and began directly delivering loans-funded provision in 2016 after a period subcontracting for a local college. According to Education and Skills Funding Agency figures it has a 2018/19 allocation of £331,444.

In addition to its loans-funded provision, delivered through a combination of distance learning and residential courses, Civil Ceremonies has also developed its own qualifications “which allow their courses to be delivered to a wider audience by other providers to meet local and national need”, the report said.

Its training programmes are “very well designed and demanding” and “provide learners with excellent training to become celebrants”, while training staff have “very good sector knowledge and experience” and “exceptionally high expectations of their learners”.

Current learners, of whom there were 75 at the time of inspection, “are all on track to achieve and make excellent progress”, and a “high proportion” go on to “become self-employed and practise as celebrants”.

Anne Barber, Civil Ceremonies Limited’s managing director, said she was “thrilled” by today’s report.

“We may only be a small team but this ‘outstanding’ mark demonstrates how we can compete at the highest level on the quality of our training,” she said.

Loans-only providers only came into scope for inspection by Ofsted from September 2016 – even though some providers had been delivering since late 2013.

ESFA figures show there are 49 providers whose only form of adult skills funding is loans allocations, worth a combined total of almost £18 million, in 2018/19.

FE Week’s investigation at the end of November found just 20 of these loans-only providers had been inspected, eight of which had received an ‘inadequate’ grade and a further eight were rated ‘requires improvement’.

But despite these statistics, the education watchdog would not say whether it was planning to up its monitoring of this kind of provider, prompting demands for urgent action.

Advanced learner loans, originally known as 24+ loans, were introduced in 2013/14 for learners studying courses at levels three or four and aged 24 and older.

Eligibility was expanded in 2016/17 to include 19- to 23-year-olds and courses at levels five and six.

Following a series of scandals in 2017, reported by FE Week, involving loans-funded providers that went bust leaving learners in the lurch, the ESFA introduced tighter controls on providers wanting to access loans funding.

 

Government ‘pushed’ to reveal more about national retraining scheme

The government is being “pushed” by its partners on the national retraining scheme to share more information about the new programme – which could cost “billions” to run, the education select committee heard this morning.

The scheme was first promised 18 months ago, but the government has yet to say how it will operate, who will be eligible and how much it will cost.

Iain Murray, senior policy offer at the Trades Union Congress, told MPs this morning that they and fellow partner the CBI were “aware that the government has not made detailed announcements”.

“There has been lots of detailed discussions, detailed papers around eligibility, sectors, how the service will operate, around access to online learning, subsidised courses,” he said.

“We have been pushing the government that they should be articulating a bit more to the wider public about where we’re at,” he said.

So far £100 million has been committed to the scheme, but Mr Murray said the cash was “largely to test out and to build the actual service” – and that the actual cost for delivering it could be significantly higher.

“I can’t put an actual figure on it, but you’re talking billions. It’s major,” he said.

The cost would depend on “how tightly it’s targeted and a lot of that will depend on eligibility”.

“If it’s going to be a large programme that a large number of adults will be able to access that’s going to be a different kind of programme to one that’s focused on certain adults depending on their education qualifications and the sectors they’re employed in,” he said.

Matthew Fell, chief UK policy director at the CBI, said the next 12 to 18 months would be a “discovery piece” to find out more about how the scheme will run in practice – including where it can access “good parts of existing skills provision” and “what are the parts that don’t currently exist right now”.

Among the issues “on my mind” was how to “inject some pace into this”, he said.

“We’re all acutely aware that this change is happening right now so how do we get this scheme and system up and running as quickly as possible to ease that disruption,” Mr Fell said.

A spokesperson for the Department for Education said that more details about the scheme would be available “in due course”.

Mark Dawe, chief executive of the Association of Employment and Learning Providers, said the scheme was “welcome” but urged the government to avoid “complex procurement, narrow targeting, obsessive monitoring and programme duplication”.

“What is most important is that it gets going and training happens now – no more talking, more action instead. The TUC are right about funding if it’s to make a real impact; we may well need billions.”

The introduction of a national retraining scheme, to help adult learners to upskill and retrain, was a Conservative party manifesto commitment in June 2017, and was later reiterated in the Industrial Strategy published in November of the same year.

The scheme “will give individuals – particularly those hardest to reach – the skills they need to thrive and support employers to adapt as the economy changes”, the strategy promised.

A National Retraining Partnership, which included the chancellor Philip Hammond, the education secretary Damian Hinds as well as representatives from the TUC and the CBI, met for the first time in March last year to begin developing the scheme.

In October Mr Hammond announced in his Budget speech that £100 million had so far been committed to the programme – which included £64 million from the previous year’s budget to get the ball rolling with pilots in digital and construction skills.