Trailblazer group alarm over funding band reviews

A trailblazer group chair has warned that its “years of hard work” in developing two apprenticeships standards could be undone, after they were included in the Institute for Apprenticeships’ second funding band review.

The level two supply chain warehouse operative and large goods vehicle driver standards were among 30 standards named on the list announced by the IfA on Tuesday.

Both were approved for delivery in 2016 and have had just over 3,000 starts between them.

“It has taken years of hard work to get employers to see the benefits of these standards and just as we start to get decent numbers they review the funding,” said Colin Snape, deputy director of policy at the Road Haulage Association.

He told FE Week the group had already been through a review for the LGV standard as they had requested the funding band – currently set at £5,000 – to be increased, but this was rejected.

“So why it is up for review is beyond me,” he said.

“With my experiences of the IfA and Education and Skills Funding Agency I do not believe we will come out of this review in a good way,” he added.

Between them the 30 standards in the second funding band review were responsible for 42,675 starts in 2017/18 – or 26 per cent of the overall number of starts on standards for the year, according to provisional statistics published by the Department for Education.

They include the level two adult care worker standard, which had almost 11,000 starts in 2017/18, and the level three adult care worker standard, which had more than 8,700 starts.

Both are currently set at £3,000. FE Week asked the trailblazer group if it expected this rate to be reduced, and if it was concerned this would hit take-up as a result, but did not get a response.

A spokesperson for the IfA said the reviews will “ensure value for money for employers and taxpayers, and consistency in the way older and newer standards are funded”.

“Our aim is to make sufficient funding for apprenticeships available to as many companies as possible,” he added.

“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.”

It comes as the outcomes for all 31 standards in the first wave of funding band reviews, announced in May, were revealed by the IfA.

The second batch of standards includes two currently set at £27,000, meaning there is a high chance the rate will be cut as this is the highest possible rate.

Of the seven standards with the same funding band in the first review, five had their rates reduced, one is still to be confirmed and only one stayed the same.

FE Week has approached the trailblazer leads for both the level three gas engineering standard and the level three engineering design and draughtsperson standard to ask if they were concerned that their funding will be slashed, but neither responded ahead of publication.

Terry Fennell, chief executive of FDQ and chair of the butchery trailblazer group, said he “wasn’t surprised” the level two standard had been included, given its £9,000 price tag and more than 500 starts so far.

The apprenticeship has “thus far attracted an even balance of non-levy and levy employers and we think there will be good evidence to back up costs of delivery, EPA and apprentice durations,” he said.

“I am confident the funding panels will take on board the evidence available in order to reach the right decision,” he said.

The latest funding band review comes at a time when the IfA is warning of imminent apprenticeship overspend (see page 5).

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

The new structure gives the institute more choice regarding the rate it applies to each standard.

AELP appoints a devolution director to represent independent training providers

The “real fear” that independent training providers wouldn’t get “representation around the table” in adult education budget devolution has prompted the Association of Employment and Learning Providers to appoint its first devolution director.

Harminder Matharu takes up her post on December 19, just two days before bids are due in the Greater London Authority’s tender process – the first of eight areas with devolution deals to launch its AEB tender.

AELP boss Mark Dawe said the organisation wanted someone who could “represent ITPs at the highest level” in talks with the different authorities.

As discussions around devolution developed there was a “real fear” that private providers wouldn’t get “representation around the table” and that a “strategy would be developed without thinking about what such an important group of providers can bring to the table”.

“It’s always automatic to turn to universities and colleges in the area, they’re physical buildings in the areas, whereas ITPs are very much more about working in the employers’ premises or in the community so they’re not so obvious as an entity,” Mr Dawe said.

From August 2019, more than £600 million of the £1.5 billion adult education budget will be devolved to six mayoral combined authorities and the GLA.

One of the challenges is that each of the different areas is taking a different approach to improving the skills of its local workforce and providing skills to unemployed people to help them secure sustainable employment.

Ms Matharu, who has previously worked for the Skills Funding Agency and the Open University, will initially focus on building relationships with the seven mayoral combined authorities and the GLA.

She will also work closely with AELP’s restructured four regional member networks covering over 40 local provider networks.

“With her sector experience and policy expertise, Harminder Matharu will spearhead our drive to build and develop relationships with the combined authorities so that high-quality skills providers of all types are given the opportunity to deliver on each mayor’s priorities,” Mr Dawe said.

Ms Matharu said was it was “really exciting to be the first to take senior responsibility within AELP for the devolution agenda”. 

“I have a real appreciation and understanding of the challenges that both the combined authority officials and providers face, so I look forward to finding much common ground in taking forward the mayoral priorities.”

Damian Hinds reacts to concerns that spend on apprenticeships is soaring

The education secretary didn’t deny that the apprenticeships budget is heading for a £500 million overspend this year, when he was quizzed about it by FE Week.

Damian Hinds was asked whether he acknowledged the Institute for Apprenticeships’ concern, revealed in a presentation by its chief operating officer Robert Nitsch last week, that “we are heading into an overspend” on the budget.

“In my line of work it is a daily discipline looking at budgets and how you are managing them and how you make sure they are working,” Mr Hinds said in response.

“The sorts of things you’re talking about can only be projections,” he added.

“I didn’t write the presentation that you’re referring to so I can’t really comment on it further, but we will obviously be continuing to manage our budget across all areas while continuing to make sure that we are supporting the growth of the apprenticeship scheme.”

According to the figures, which were presented during an employer engagement event at Exeter College on Friday, the cost of starts in 2018/19 is projected to be £500 million higher than the £2.2 billion budget for the year.

By 2020/21 the shortfall is set to rise to £1.5 billion, with costs rising to £4.1 billion against a budget of £2.6 billion.

The Department for Education has so far not commented on the figures, beyond calling them “inaccurate”.

But on Tuesday, skills minister Anne Milton said she will “look at whether it is right to continue to fund all apprenticeships” – particularly “for people who are already in work, people doing second degrees”.

The rise in these high-level, high-cost apprenticeships, including management degree apprenticeships, is understood to be behind the budgetary pressure.

The IfA itself told FE Week the slide at the presentation was intended to show that levy contributions may not be enough to cover the full cost of apprenticeships if numbers continue to rise.

It said that both its chief executive, Sir Gerry Berragan, and Ms Milton had both referred to this overspend before, although it is not clear when.

Asian Apprenticeship Awards: the winners

A project management apprentice and student mentor who defied his family’s wish for him to go to university has been crowned apprentice of the year at the Asian Apprenticeship Awards.

Ahmed Munshi of BAE Systems, who has mentored nine school and college students alongside his work and studies, took home the top accolade at the award ceremony in Birmingham last Thursday.

Electrical and plumbing experts JTL won overall learning provider of the year. JTL has focused on attracting more women and people from black, Asian and minority ethnic communities into the industry, and an impressive 80 per cent of their learners get their qualifications every year.

Mr Munshi, from Preston, is in the penultimate year of a five-year higher apprenticeship in project management which will lead to a degree and an associate management qualification.

Although his family hoped he would follow the traditional route to university, Mr Munshi was convinced a higher apprenticeship would be the perfect combination of academia and work.

In his entry, he wrote: “The apprenticeship has enabled me to improve my personal qualities, to be a more well-rounded individual, not simply from an occupation perspective. BAE Systems has helped me to become socially conscious, participating in activities that go beyond my day-to-day work life.

“I strongly believe a person should wake up in the morning with two feet on the ground and feel that they are making a difference to someone’s life.”

Olga Bottomley, head judge, said Mr Munshi was chosen as the winner because he had “embraced working life and his studies” and had an “incredibly strong social-responsibility ethic”.

“He had to persuade his family of the wisdom of applying for an apprenticeship, and since that point he has become a fantastic ambassador for his company and apprenticeships more widely.

“He works closely with his local mosque and he mentors other young people. He is truly someone to watch as his career develops.”

JTL has around 3,000 businesses in the building services engineering sector, and supports approximately 7,700 learners in four apprenticeships: electrical installation/maintenance, plumbing and domestic heating, heating and ventilating and engineering maintenance.

Isa Mutlib, the awards’ project director, said the awards were pleased to recognise JTL for the quality of their training and retention rate for black and minority ethnic apprentices.

“We hope we have encouraged more young British Asians to consider apprenticeships, and more employers to provide opportunities to benefit from the skills that apprentices bring.”

 The judges’ choice award went to Sage UK apprentice Rumana Chaudhury. The Perinatal Institute was crowned small/medium employer of the year, and the BBC won large employer of the year. The finance, legal and professional services category was won by BBC apprentice Marjana Uddin and Admiral Recruitment.

Aspects Care topped the health, medical and social care category, alongside apprentice Muryim Bi from Well Springs Nursing Home, while Morrisons apprentice Maitam Rashid and Midcounties Cooperative won for retail, hospitality and tourism. Walsall Council and Sonia Cardozo, from Guy’s and St Thomas’ NHS Foundation Trust, topped the charity, voluntary and public services category, while NG Bailey and Shaheeb Mohammed from Fortem won for construction services.

 Mr Munshi took the prize for the engineering and manufacturing category, alongside Bombardier Transportation, while the Royal Air Force’s Niraj Gurung and employer Liquid Print won the creative and digital category.

The event was sponsored by the Royal Air Force and featured Jasmine Kundra, a contestant on this year’s The Apprentice.

 The Asian Apprenticeship Awards was launched in early 2016, following a report by the former Business Secretary Sajid Javid MP which set a target to increase the diversity of apprenticeships by 20 per cent by 2020.

FE colleges are the ‘national infrastructure’ for technical education

Education secretary Damian Hinds delivered a speech about ending “snobbery” over technical education to businesses this morning. He’s written exclusively for FE Week about his plan to tackle the issue, which includes creating a “new generation” of higher technical qualifications

One year ago this government launched the first modern industrial strategy for boosting this country’s productivity; setting out how Britain would lead the AI revolution, invest in research and development and upgrade our key infrastructure.

As education secretary, I believe one of the most critical elements for delivering this strategy is a major upgrade to our nation’s skills. It’s right that we invest in machinery and cutting edge technology; but you still need people who are trained to use it and get the most from it. More importantly, everyone deserves a chance to develop the skills that can lead to higher paid and more satisfying work.

That’s why today I set out the next stage of our technical education revolution, which will see us offer all our young people a clear path to a skilled job.

Let me say first that for any of these reforms to succeed, further education colleges are a vital partner. I’m clear that colleges, as well as universities, will play a key part in delivering this government’s industrial strategy; colleges are our national infrastructure for technical education.

Frankly, as a nation, we’ve been technical education snobs

Young people doing A-levels and degrees have always had clear routes to a job. In contrast we’ve let down some on a technical or vocational route. Frankly, as a nation, we’ve been technical education snobs. The result is that around a quarter of all 16-year-olds are essentially churning around our education system; switching between course types, dropping back to lower-level learning, or repeating study at the same level.

Of course, there is a multitude of training courses available if you leave school at 16, but so much choice isn’t always beneficial if quality is variable – and there is limited guidance on the best one to take. That is why we are introducing 25 high-quality T-level courses. Through classroom learning and intensive industry placements, T-level students will develop the skills they need to step straight into a skilled job.

As part of the T-level action plan we have published, we are setting out further details on these courses; including a grading scheme that will see students who pass receive a grade of pass, merit or distinction.

We also announced the next wave of T-levels that will be offered in 2021. This will include a new health T-level; young people completing this qualification would be able to step into various roles including as a dental nurse. We’re also bringing in a new onsite construction T-level, which will train people for jobs including bricklayer, plasterer and site carpenter.

The industry placement will be a critical part of every T-level; with students able to put into practice what they’ve learnt. We have been piloting these placements with students and businesses over the last year with great results. In an evaluation report we are publishing today, nearly 90 per cent of students said they had developed technical skills relevant to their course during their placement.

All T-level students who complete their course will be ready to step straight into a skilled job but we recognise that some will also want to progress to further training that can take them to a higher skilled job. For example, the type of training that could help you step up from bricklayer to construction site supervisor or from dental nurse to dental hygiene therapist.

At the moment our colleges and universities don’t offer much training at this level, very few students do it and, unsurprisingly, employers are also less aware of it. The education sector would call this type of training ‘Level 4 and 5’ and I think that’s part of the problem; unless you’re in the know you won’t be familiar with it.

I’m determined to properly establish higher technical training in this country, so that it’s recognised and sought after by employers, young people and those looking to progress in their career alike.

We will therefore establish a system of employer-led national standards for higher technical education. This will help identify and recognise existing and new qualifications that meet the knowledge and skills needed by employers. These qualifications should be clearly badged and easy to recognise so employers will start looking for them on CVs and advertising for them when recruiting to jobs at this level.

I’m keen to break down false barriers between academic and technical routes

We also need to start making it clear to young people that university is not the only path to a great job. That is why we are changing our school and college performance tables by introducing a new measure that will recognise schools and colleges for getting young people on to great higher training courses and apprenticeships as well as university. No longer should schools and colleges feel that they must push students down one route only in order to be judged a success.

I’m also keen to see us break down some of the false barriers we’ve erected between academic and technical routes. If T-level students want to go to university to do relevant technical degrees they should be able to. That is why I’m pleased to announce that UCAS has agreed to give a T-level UCAS tariff points in line with 3 A-levels. This reflects the size and complexity of the qualification.

By working closely with colleges and employers, we can make sure that all our young people are ready for the jobs of today and tomorrow.

Flagship National Citizen Service under fire for £1m-a-year offices

The government’s flagship National Citizen Service trust has been slammed after its rent ballooned by more than ten-fold to over £1 million last year, following a move to new offices in west Kensington.

The trust, set up by former prime minister David Cameron (pictured) as part of his “Big Society” agenda in 2011, also missed more than half of its key performance indicators last year – despite receiving £181 million from the government, annual accounts reveal.

Last year the NCS, whose providers promote four-week activity programmes to schools and colleges, was criticised by MPs for lax spending controls and poor management.

That’s unbelievable. They could be based anywhere

Now Meg Hillier, chair of the public accounts committee, has slammed the trust, stating it “didn’t need to be based in such an expensive part of London”.

West Kensington is one of the most exclusive postcodes in London, where the average house price is £1.5 million. This is nearly 150 per cent above the £600,000 average house price in London, according to the Foxton’s estate agency.

The NCS was renting school premises in north Kensington for £103,000 in 2016-17, until the school needed them back, said a spokesperson.

Its rental costs shot up to £1.1 million, according to the accounts published last month, which the trust said was down to moving to “larger premises in west Kensington”. It also now leases an office in Exeter to directly manage the NCS south west programme. But the spokesperson didn’t reveal how much was spent on each site.

The trust needed to minimise attrition of staff “by choosing a location as close as possible to our previous office,” said the spokesperson. The premises were negotiated below market value and were bigger because more staff were employed, they added.

But Hillier said: “That’s unbelievable. They could be based anywhere.”

Meg Hillier

 

The programme was founded on a blueprint partly designed by Jon Yates, who is now special advisor to education secretary Damian Hinds. He headed The Challenge Network, one of NCS’s major providers, before joining the Department for Education this year.

Annual accounts for the year ending March 31 showed the trust missed five of the six targets under its first objective – to increase demand to fill places and improve retention of participants.

The target for filled places was missed by 1,821, with 98,808 places filled. Only 92 per cent of participants completed the programme – a percentage point below target – and 19 per cent of signed-up pupils didn’t participate in the programme – three percentage points below.

Overall, 12 out of 22 key performance indicators were missed, albeit by slim margins.

However, the NCS met its unit cost for the programme. Set at £1,773, it came in at £1,692.

Accounts showed the number of staff rose from 104 in 2017 to 183 in 2018. The number paid more than £60,000 also rose from 18 to 48.

Kate Wood, the chief people officer, was the top-earner, being paid in the £140-145,000 bracket.

MP James Frith, who sits on the education select committee, called for greater scrutiny of its spending on staff and premises given the failure to meet participation KPIs, and in light of the fact other youth provision is being “gutted”.

An NCS spokesperson added that while they “were disappointed to narrowly miss certain targets, we were pleased to have met many including ethnic mix and special educational needs and the impact NCS has on social mobility”.

DfE pauses publication of monthly apprenticeship starts

The Department for Education has yet to reveal how many people have started apprenticeships in 2018/19 – even though it had been publishing monthly updates until now.

Provisional figures for the final month of 2017/18 were published in October, and numbers for August – the first month of 2018/19 – were expected alongside today’s final year figures.

However, today’s release only included the number of commitments made through the apprenticeship service, which only covers levy-paying employers.

“The first apprenticeship starts figures covering the 2018/19 academic year will be reported in January 2019,” the commentary alongside today’s figures said.

The next release, expected later this month, will also only cover apprenticeship service commitments – meaning that two months’ worth of figures will delayed by the time they’re published in January.

The DfE has said this is to ensure the robustness of the data, and that it would not normally publish data for the current academic year until the January of that year.

It began publishing monthly figures, covering all apprenticeship starts recorded to date, in January this year.

The figures are provisional, and always increase before the final numbers are published.

The January release said it was produced “in order to provide transparency with regards to this new system, its usage, and apprenticeship programme as a whole”.

Prior to that release the department had published figures showing the number of apprenticeship service registrations and commitments made through the apprenticeship service.

This data doesn’t give an overall picture of the number of starts as it doesn’t include apprenticeships with small, non-levy paying employers.

The most recent monthly figures showed that starts in July were up 21 per cent compared with the same month in 2017, but down 43 per cent on 2016.

There were 375,800 starts in 2017/18, according to final figures published today. That’s a drop of 24.1 per cent on 2016/17’s final figure of 494,400, and down 26.1 per cent on the 2015/16 total of 2015/16.

Union warns AoC risks ‘becoming an irrelevant voice’ after another ‘insulting’ 1% pay offer

The Association of Colleges has been warned that it risks “becoming an irrelevant voice” in the FE sector after it offered staff an “insulting” one per cent pay rise again.

The University and College Union said the deal, which was presented to AoC members yesterday, was a “wholly inadequate” response to the pay crisis in FE which has left teaching staff being paid £7,000 less than school teachers.

Last year the AoC said it regretted only making a one per cent offer and has conceded that staff need a rise. But without additional funding from the government a larger pay rise appears to not be possible.

David Hughes, the association’s boss, said he is “deeply disappointed” that a better offer cannot be made but he “cannot recommend a completely unaffordable pay award”.

He added that his members need to “continue to focus our collective energies on pushing the government for better investment”.

The UCU said warm words were “not a substitute for fair pay” and warned this year’s repeated offer sent a “worrying signal to staff that they were not valued and that their employers were not prepared to fight their corner”. 

The union pointed out that Capital City College Group has agreed a 5 per cent pay deal for over 1,700 staff, despite a large deficit, and claimed that less than half of colleges followed the AoC’s previous pay recommendation. 

A walkout over pay by more than 700 UCU members caused disruption across six colleges last week – and even forced one to close for two days.

Further disruption is likely to occur in the New Year, as strike ballots opened at another 26 colleges, with a closing date of December 19.

“The offer will annoy staff who need their employers to be fighting their corner as the pay gap between them and school teachers widens further,” said UCU head of policy and campaigns Matt Waddup.

“It is not right that staff at one college can receive a five per cent increase while their colleagues down the road get nothing for doing the same work.

“The AoC cannot continue to believe that warm words are a substitute for fair pay and they risk becoming an irrelevance. This offer increases the likelihood of more waves of strikes after Christmas and puts the ball firmly in the court of colleges who are prepared to follow CCCG’s lead and actually do something to tackle the pay crisis in further education.”

An AoC email to members, seen by FE Week, said the association “firmly believes” that college staff should be awarded a 3.5 per cent pay increase to at least match the school teacher pay award.

“However, due to the continued chronic under investment in the sector this is currently not an option,” it added.

Mr Hughes said: “Every college leader wants to pay a fair salary to be able to recruit, reward and retain the best people.

“College staff have had to work harder than ever as the funding cuts have bitten but we cannot recommend a completely unaffordable pay award.”

IfA confirms funding cut of £5k to chartered manager degree apprenticeship standard

The popular chartered manager degree apprenticeship standard will have its funding slashed by £5,000, the Institute for Apprenticeships has confirmed.

The results of the IfA’s controversial review of another 17 standards (see table below) have been released, and it spells bad news for the popular management apprenticeships and the employer groups who had joined forces to appeal any funding cuts.

The chartered manager degree apprenticeship standard will see its funding fall 18 per cent from £27,000 to £22,000 on March 4.

The operations/departmental manager will lose £2,000 in funding, falling 22 per cent from £9,000 to £7,000, while the ever popular team leader/supervisor standard will drop 10 per cent, from £5,000 to £4,500.

The employer group behind all three management apprenticeship standards, led by the Chartered Management Institute, launched an appeal to overturn plans to slash the funding bands. However, today’s announcement shows this did not succeed.

Rob Wall, head of policy at the CMI, said the cuts “will damage the market for a management apprenticeships, stall critical investment in management development and undermine efforts to boost UK productivity. The more intensive programmes that support young people and drive social mobility will be the hardest hit.”

He added: “Over 100 employers wrote to highlight the impact that cuts will have, and indeed have already had with some apprentice recruitment programmes put on hold. Today’s announcement shows that ministers are not in listening mode, and is another nail in the coffin of an employer-led skills system.”

Another popular management apprenticeship, the level four associate project management standard, will have its funding cut by a third from £9,000 to £6,000 despite a campaign from the Association for Project Management against the cut.

Debbie Dore, chief executive of the Association for Project Management, warned the cut to the associate project management standard would lead to “the end of this high-quality offering” and described it as a “profoundly disappointing development”.

“The employers group for this apprenticeship standard has been clear that a quality offering could not be delivered at this reduced price and we expect that most employers and providers will now withdraw.

“What makes this decision more perplexing is that this apprenticeship has been increasingly popular and successful with employers in the public and private sectors alike. Apprenticeships are supposed to be employer-led, yet in this case the views of employers have been completely disregarded.”

A spokesperson for the IfA said the priority had been to ensure standards “have the appropriate funding band to support high quality delivery and provide value for money for employers and the taxpayer, whilst ensuring consistency in the way older and newer standards are funded.

“Throughout the process, we have worked collaboratively with trailblazers to ensure the review was carried out in an open way and have worked hard to resolve any concerns about changes to funding levels.”

Today’s announcement follows the 12 changes announced in October. Of the standards announced so far, 21 are set to receive reduced funding. Two standards – aviation ground specialist and senior healthcare support worker – will receive big increases. The aviation ground specialist standard will have its funding doubled, from £3,000 to £6,000, while the senior healthcare support worker standard will rise from £3,000 to £5,000.

Six standards will not see any change to their funding, and two – digital technology solutions professional and motor vehicle service and maintenance technician – have not yet had a decision made on their fate.

The IfA announced in May it would look at the funding given to 31 standards, at the request of the Department for Education.

At the time, FE Week analysis showed that 21 of the 30 standards with the most starts in 2017/18 were among those being reviewed.

Earlier this month, it was announced that a further 30 funding bands would face review. All changes are finally signed off by the education secretary, Damian Hinds.