Gavin Williamson becomes new education secretary

Gavin Williamson has been appointed the new education secretary, replacing Damian Hinds who was sacked earlier this evening.

A former defence secretary in Theresa May’s government, Williamson has been the MP for South Staffordshire since 2010.

He was educated at a comprehensive, before taking his A-levels at Scarborough Sixth Form College.

He has previously spoken in the House of Commons on the topic of apprenticeships.

In a debate in March 2013, he said: “Apprenticeships have a vital role to play in driving down unemployment and getting young people into work.”

He also told the Commons: “We have to ensure people understand apprenticeships are as good, if not better than going to university.”

Williamson was sacked as defence secretary in May this year following allegations he leaked confidential information. He strongly denies the allegations.

He is the fifth education secretary in the space of just over five years.

Association of Employment and Learning Providers chief executive Mark Dawe said AELP is “greatly encouraged” that Williamson was championing apprenticeships in the House of Commons “only six months after the Richard blueprint for the apprenticeship reforms was published”.

“We therefore welcome him to his new post and hope that he will translate the prime minister’s recent promise into action that apprenticeships should be ‘funded properly’,” he added.

Steve Frampton, president of the Association of Colleges said Williamson has stepped into the education secretary role at “one of the most crucial times in modern history”.

“The House of Common’s own education select committee this week released a report that warns that the education system risks ‘reaching breaking point’ unless government acts. And so we urge him to act and act quickly,” he added.

Monthly apprenticeships update: April starts up 3% on last year but May stays static

Apprenticeship starts for the period August 2018 to May 2019 are up 7 per cent on the previous year, but 26 per cent down for the same period in 2016/17 – the year before the levy reforms were introduced.

Monthly provisional figures for both April and May 2019 were published by the Department for Education this morning.

They show 24,800 starts for April 2019, which is 3 per cent up on the 24,100 provisional starts published this time last year, but 65 per cent down on the 71,000 starts in April 2017.

For May 2019 the data shows 22,300 starts, the same number published at the same time last year. The 22,300 starts are 73 per cent up on the 12,900 in May 2017, but they’re down by 39 per cent on the 36,700 achieved for the same month in 2016.

May 2016 is a better comparator than May 2017 given that there was a huge drop in starts following the introduction of the levy.

There have been 336,900 apprenticeship starts reported to date between August 2018 and May 2019, compared to 315,900 reported in the equivalent period in 2017/18, 457,200 in 2016/17 and 420,800 in 2015/16.

A spokesperson for the Association of Employment and Learning Providers said today’s figures “confirm what a big job” new education secretary Gavin Williamson has “to get the levy reforms back on the right track”.

“The fact is that the situation is not going to get any better unless he acts quickly because apprenticeship training providers are running out of funding to allow non-levy SME employers to offer new opportunities on the programme,” he added.

“AELP is writing to the minister today to underline the urgency of the issue.”

A Department for Education spokesperson said: “We are pleased that the number of people starting an apprenticeship has increased by 6.6 per cent compared to this time last year.

“It’s also good news that over 62 per cent of people this academic year started their apprenticeship journey on one of our new higher-quality apprenticeships, which were designed in partnership with employers.”

She added: “Thanks to our reforms, apprenticeships are now longer with more off-the-job training and have a proper assessment at the end. There are also more apprenticeship opportunities available in a range of exciting industries like law, fashion, architecture and aviation.”

Cabinet reshuffle: Education secretary Damian Hinds out

Damian Hinds has lost his job as education secretary, following skills minister Anne Milton out the door, as new prime minister Boris Johnson puts his cabinet together.

He announced the news on Twitter: “It has been the greatest privilege to serve as education secretary.

“Thank you to the brilliant team at . And thank you to everyone working in education and children’s care, for all you do. I look forward to supporting the government from the backbenches.”

Appointed in January 2018, the MP for East Hampshire replaced Justine Greening and oversaw the preparations for T-levels, which proved controversial during his first few months in post.

In May 2018 he was asked by the Department for Education’s permanent secretary Jonathan Slater to delay the launch of the new technical qualifications after raising concerns over timescales. Hinds refused this request in the first ever ministerial direction issued by an education secretary.

During his tenure he’s also pledged to build a “new generation” of higher technical qualifications at levels 4 and 5, and announced 12 new Institutes of Technology.

He’s also launched a controversial review of qualifications at level 3 and below to crack down on “poor quality post-16 qualifications” – which could see the chop of many popular applied generals including BTECs.

In terms of apprenticeships, Hinds has failed to reverse the drop in starts since the year before the levy reforms were introduced in 2016/17.

He was forced to concede to the Commons education committee last month that the government will miss its much-vaunted 3 million apprenticeship starts target.

On top of this, the apprenticeship budget could soon go bust, due to more expensive higher level apprenticeships being taken than was expected.

While Hinds has been helming the Department for Education, the college insolvency regime has been rolled out and claimed its first college, Hadlow, which went into administration in May.

Another big issue in the sector that came into effect the same month Hinds took up his post is the Baker Clause.

A year on, in January 2019, the Institute for Public Policy Research found two-thirds of schools were flouting the clause; so, later that month, Hinds said he would write to schools who prevent FE providers from talking to students about technical education, but this wouldn’t be “done lightly”.

Like Milton, who resigned yesterday, Hinds had supported Jeremy Hunt for the leadership only to see him lose to Johnson.

Before his role at the DfE, Hinds was elected to the education select committee and served until October 2012.

He also chaired the All-Party Parliamentary Group on social mobility, served as assistant government whip from July 2014 until March 2015, exchequer secretary to the Treasury from May 2015 until July 2016, and as a minister for the Department of Work and Pensions from July 2016 to January 2018.

Hinds’ replacement is likely to be picked in the coming days.

Government turns to European Union funding to support T-levels

The government is looking to the European Social Fund to help tackle the barriers that rural areas face with T-levels.

A tender worth £500,000 was launched by the Department for Work and Pensions on Monday for an organisation to “broker opportunities” with small employers in the York, North Yorkshire and East Riding region for young people to “engage” in industry placements.

Its ‘call specification’ explains the area is a rural economy where small and micro businesses account for over 97 per cent of all businesses, higher than the UK average.

There is a danger that placements may not be accessible to all T-level students without intervention

“Young people living in rural communities often find it hard to access learning and training opportunities due to lack of rural public transport infrastructure and there is a danger that high quality, relevant industry placements may not be accessible to all T-level students without intervention,” it adds.

Extended structured placements lasting a minimum of 315 hours, or 45 to 60 working days, have proved controversial since they were announced for T-levels in 2016. Many sector leaders still fear that students in rural areas will not have enough opportunities due to a lack of availability.

But the use of the European Social Fund to help high achieving 16 and 17 year olds onto already highly funded courses will raise eyebrows, especially as the Department for Education often boasts that £500 million a year will be provided to help T-level providers “meet the costs of additional teaching hours and organising industry placements”.

The ESF is funding that the UK received, as a member state of the EU, to increase job opportunities and help people to improve their skill levels in “priority areas”, particularly those who find it difficult to get work.

The current funding round is worth about €3 billion (£2.3 billion) across England over the period from 2014 to 2020. Once the UK leaves the EU, it will lose access to the ESF, and all contracted projects agreed before 2020 must be completed by 2023.

The DWP tender document states the priority area that this procurement falls under is “Skills for Growth: Improving the labour market relevance of education and training systems”.

It adds that the European Structural and Investment Funds strategy “seeks to address the barriers relating to rural isolation which prevents access to initiatives and opportunities that are more easily available in urban environments” – such as T-level industry placements.

A DWP spokesperson insisted that ESF funding is “not being used to develop or provide provision of T-levels, as that is already covered by central government funding from the DfE”.

In this project the ESF funding will be used to “support local SME’s to promote T-levels, helping boost take-up, develop a more skilled local workforce and tackle youth unemployment”.

“Any organisations applying for ESF funding where there is central government funding in place, would need to evidence how any ESF funded support will complement that central government funded provision, rather than replace it,” he added.

Asked if the DWP expects to offer up more ESF funding to support T-levels, the spokesperson said: “While DWP administers the ESF across England, specific ESF funding decisions are made on a case by case basis at a local level in line with local growth priorities.”

The tender explains that the DWP is “seeking a programme of support to SME employers to provide appropriate industry placements”.

“Due to the length and robustness of industry placements, high levels of employer engagement will be required, so that demands for sufficient high quality relevant placements can be met,” it said.

“This programme of activity will establish a robust industry placement programme for T-level learners that will enable those young people to put into practice and further develop the knowledge, practical skills and behaviours that they have learnt in the classroom and will work to support learners in identified secondary schools/learning providers in the York, North Yorkshire and East Riding region.”

The first three T-levels for digital, education and construction will be taught from September 2020 by 50 providers.

Digital is likely to be the hardest pathway to find employers to offer industry placements. Seven of of the first 50 providers will be based in Yorkshire and the Humber, and five of them will offer the digital T-level: Barnsley College, Notre Dame Catholic Sixth Form College, Scarborough Sixth Form College, Shipley College of Further Education and York College.

The deadline for applications to the DWP tender is 14 October 2019.

Theresa May uses last PMQs to plead with Boris Johnson to invest more in FE

Outgoing prime minister Theresa May used her last speech at the dispatch box to plead with her successor to make increasing further education funding his “priority”.

“I want to see that happening” was the message from May in front of a packed House of Commons during her last ever prime minister’s questions session this afternoon.

She will pass the mantle to new Conservative leader Boris Johnson today, who himself pledged greater investment in “our amazing FE colleges” during his campaign.

Yasmin Qureshi, the MP for Bolton South East, questioned May on FE funding by pointing out last week’s education select committee report which said the government must “urgently” raise the 16 to 18 base rate from £4,000 to £4,760.

“Will the prime minister agree that raising the rate will benefit the excellent Bolton Sixth Form College in my constituency as well as many other colleges which are also under severe financial pressure, some of which are actually going under?” she then asked.

May, who said FE has been “overlooked, undervalued and underfunded” two months ago following the release of the post-18 education Augar review, responded by saying: “I always look at select committee reports with care but actually I commissioned the Augar review about post-18 funding in education.

“That review has been very clear that more money needs to go into further education and more money into sixth forms, I want to see that happening.”

She continued: “I think just as my government has given a priority to the NHS in looking at funding in the future, the next government should give a priority to education so that we can see that money going into FE and sixth forms and ensuring that for every young person there is an avenue through education and training that suits them, suits their talents and gives them the best opportunities for their future.”

Her comments were warmly received on Twitter:

FE sector leaders are eagerly waiting to see if Johnson, who was elected as the new prime minister yesterday, will back up his words during his leadership campaign and increase funding for FE.

Bill Watkin, the chief executive of the Sixth Form Colleges Association, which is leading on the Raise the Rate campaign, said: “The Sixth Form Colleges Association has been heartened by the broad consensus across the political and education spectrum that sixth form education is a top priority, that funding has not kept pace with costs, and that there is an urgent need to raise the rate of funding for 16 to 19 year olds.

“We welcome the appointment of Boris Johnson as the new Prime Minister and look forward to working with him to implement the recommendations of, among others, the education select committee and the social mobility commission to increase spending on sixth formers.”

Steve Frampton, President of the Association of Colleges, said: “Johnson faces many challenges during an uncertain time, however it is difficult to see how these other issues can begin to be grappled with if the new Prime Minister does not make creating a robust technical, vocational and academic education system his priority.”

He added that in light of the ongoing “disorderly exit” from the European Union the new prime minister must “commit to urgently addressing the issues facing the sector regardless of the outcomes of the negotiations and final deal”.

DfE officially reopens academisation option for sixth-form colleges

The government has confirmed it will continue to allow sixth-form colleges to academise, two months after FE Week revealed the move was on the cards.

Converting to academy status, and in doing so enjoying the luxury of not paying VAT, has been a possibility for nearly all SFCs since November 2015.

Many took the opportunity during the post-16 area reviews, when the Department for Education’s £726 million restructuring facility was available.

We are delighted that sixth-form colleges will once again have the option to academise

But the option closed in March, and SFCs and their representative body the Sixth Form Colleges Association (SFCA) have been campaigning for this “arbitrary” deadline to be extended indefinitely.

In new guidance published today, the DfE confirmed they will extend this opportunity, and that they will offer a “support grant” of £25,000 to each conversion.

“We are now extending this opportunity to enable other sixth form colleges to continue to apply to convert to academy status where the conversion will make a contribution to academy programme,” the document said.

“A sixth-form college can become a 16 to 19 academy using the provisions of the Further and Higher Education Act 1992, which enable a sixth-form college corporation to dissolve and transfer its property, rights and liabilities to a new or existing academy trust.”

SFCA deputy chief executive James Kewin told FE Week his association was “pleased” with the move.

“We had asked the government to keep the door to academy status open beyond the area review process, and are delighted that from today, sixth form colleges will once again have the option to academise,” he added.

“To date, 23 sixth form colleges have become 16-19 academies and it is likely that more will join them in this post-area review wave.

“Conversion will not be right for every sixth form college, but it is important that institutions have the option to change their status when it is right for them, their students, and their local community.”

The DfE’s guidance explains that for some sixth-form colleges, with their “particular focus on high-quality academic courses”, becoming an academy and working more closely with schools within a multi-academy trust will be a “natural development, which can improve value for money through efficiencies and economies of scale, whilst preserving the distinctive character of their offer”.

Under the conversion rules during the area reviews, sixth form colleges were allowed to convert as a stand-alone academy.

But the new guidance states that from 2019, “we expect sixth-form colleges wishing to become academies to form a multi-academy trust with other schools, academies, free schools or colleges, or to join an existing MAT in order to add capacity to the system”.

“Effective MATs will need to have the capacity and ability to self-improve and to provide specific support to improve underperforming schools within their trust,” it added.

“You should discuss your proposals from an early stage with your ESFA case manager, and with your main contact for the process – a DfE academy project lead from the relevant Regional Schools Commissioner’s region.”

In terms of financial support, the document states: “Once the relevant Regional Schools Commissioner has given your application their approval in principle to proceed, you will receive a conversion support grant of £25,000 towards the cost of legal fees and other costs associated with becoming an academy.”

A group of 14 which are Catholic-run have, however, been completely prevented from converting due to their religious character, which would not be maintained under current government rules.

If they converted, they would lose protections in areas of curriculum, acts of worship and governance. The SFCA and Catholic Education Service have been trying to get the government to add a clause to the education bill to rectify this, but the DfE has not obliged.

Skills minister Anne Milton resigns

Apprenticeships and skills minister Anne Milton has resigned from government.

She announced the move on Twitter ahead of the appointment of a new prime minister today, and cited her “grave concerns about leaving the EU without a deal” in her letter of resignation.

“Having abstained in the vote last week, today I have resigned from the government,” she tweeted just minutes after finishing up an appearance in front of the education select committee this morning.

“It has been an honour to serve on the Conservative frontbenches, my thanks to everyone I have had the pleasure of working alongside.”

Milton, the MP for Guildford, was appointed skills minister in June 2017 and has overseen the development of the apprenticeship reforms including the levy, T-levels, devolution of the adult education budget, and has been an avid champion for more funding in the FE sector.

She used her resignation letter to tell the outgoing prime minister Theresa May how those working in FE “transform people’s lives, often giving those they teach a second or third chance, and releasing the potential of so many including those with special needs”.

“Sadly, FE rarely gets the attention it deserves and I have hugely appreciated your attempts to shift this balance,” she said.

“My current role, and the work I have done on apprenticeships, has been equally rewarding.”

Milton continued: “Our reformed apprenticeships are the very best enabler of social mobility I have seen. Alongside this the first T-levels will be taught from 2020 and when fully ruolled out they will transform technical and vocational education for young people.

“I pay tribute to, and thank, the incredible and dedicated civil servants in the Department for Education and my private office staff whom I have worked alongside.”

Her replacement is expected to be revealed later this week. They will become the sixth different skills minister since 2010.

Before the skills minister brief, Milton served as public health minister, and was the first woman to serve as deputy chief whip.

Various tributes from the FE sector and even the opposition have been paid following her resignation:

 

WorldSkills 2019: Meet Team UK

With the WorldSkills 2019 competition only a month away, we introduce the 37 members of Team UK that’ll be flying the flag for our country.

They are drawn from all four corners of the United Kingdom, and various disciplines: from landscape gardening to cyber security; from cabinet making to hairdressing.

Each will be competing in the first WorldSkills since the Abu Dhabi competition in 2017, where the UK came in tenth for medal points.

Sixty three countries will be competing in 56 skills competitions at this year’s contest, which is being held in the city of Kazan in Russia between 22 and 27 August.

While this year’s Russian hosts are making the final preparations for the tournament, the WorldSkills flag is making its way to the Kazan venue from Abu Dhabi – much like the Olympic flame does when it is transported from Greece to the latest host city.

The full list of Team UK members:

3D digital game art – Patrick Buckley

Provider: West Cheshire College

Training manager: Mike Spence, Arcademic

 

 

 

Aircraft maintenance – Haydn Jakes

Provider: Nottingham University

Employer: Marshall Aerospace and Defence Group

Training manager: Martin Yates

 

 

 

Architectural stonemasonry – Ethan Conlon

Provider: Bath College

Employer: APS Masonry

Training manager: Marc Pate, Man of Stone

 

 

Automobile technology – Declan Porter

Provider: North West Regional College

Employer: Donagheys Garage

Training manager: Barry McDaid, North West Regional College

 

Beauty therapy – Rebecca West

Provider: East Sussex College

Employer: Bespoke You

Training manager: Jenna Wrathall Bailey MBE, Jenna Wrathall Bailey Training

 

 

Bricklaying – Lewis Greenwood

Provider: York College

Employer: PDS Construction

Training manager: Michael Burdett, York College

 

 

 

Cabinet making – Owen Aldous

Provider: Chichester College

Employer: Callow & Co

Training manager: Christian Notley MBE, Chichester College

 

 

Car painting – Conor McKevitt

Provider: Riverpark Training

Employer: Wrights Accident Repair Centre

Training manager: Richard Wheeler, Coleg Gwent

 

 

Carpentry – Jack Goodrum

Provider: The College of West Anglia

Employer: Peter Goodrum Ltd

Training manager: Gareth Evans, University of Wales Trinity St David – Construction Wales Innovation Centre

 

 

Chemical laboratory technician – Tonicha Roberts

Employer: Eurofins Forensic Services

Training manager: Dr Dirk Wildeboer, Middlesex University

 

 

Cloud computing – Eduard Adam

Provider: Bradford College

Training manager: Wei Jie, University of West London

 

 

 

CNC milling – Elliott Dawson

Provider: Training 2000

Employer: Fort Vale

Training manager: Mike Watson, GKN Aerospace

 

 

CNC turning – Jack McCarthy

Provider: DMG Mori

Training manager: Adam Youens, Coleg Cambria

 

 

 

Construction metal work – Tyler Atkinson

Provider: Burnley College

Employer: WEC Group

Training manager: Andy Whitehouse, Dudley College of Technology

 

 

Cooking – Sam Everton

Provider: Pembrokeshire College

Employer: Crwst Council

Training manager: Sean Owens, SO Consultancy

 

 

Cyber security – Kyle Woodward

Provider: Cardiff and Vale College

Training manager: Kamadchisundaram Sureshkumar, NESCOT

 

 

 

Cyber security – Adrian Cybulski

Provider: Glasgow Clyde College

Training manager: Kamadchisundaram Sureshkumar, NESCOT

 

 

 

Electrical installation – Thomas Lewis

Provider: Cardiff and Vale College

Employer: Blue Electrical

Training manager: Gareth Jones, Coleg Gwent

 

 

Electronics – Thomas Andrews

Provider: Alton College

Employer: Sonardyne International

Training manager: Steven Williams, Gower College Swansea

 

 

Floristry – Elizabeth Newcombe

Provider: Guildford College

Employer: Self-employed

Training manager: Laura Leong

 

 

 

Hairdressing – Phoebe McLavy

Provider: Coleg Sir Gar

Employer: Morgan Edward Salon

Training manager: Linzi Weare, Reds Hair Company

 

 

 

Joinery – Christopher Caine

Provider: Pembrokeshire College

Employer: DH Carpentry and Joinery

Training manager: Andrew Penegelly

 

 

Landscape gardening – Samuel Taylor

Provider: Myerscough College

Employer: Garden TLC

Training manager: Simon Abbott

 

 

Landscape gardening – Shea McFerran

Provider: CAFRE

Employer: Logan Landscape

Training manager: Simon Abbott

 

 

Manufacturing team challenge – Andrew Joyce

Provider: Stegta

Employer: CarnaudMetalBox Engineering

Training manager: Daytun Unitt, Coleg Cambria

 

 

Manufacturing team challenge – Isaac Khan

Provider: Stegta

Employer: CarnaudMetalBox Engineering

Training manager: Daytun Unitt, Coleg Cambria

 

 

Manufacturing team challenge – James Thomason

Provider: Stegta

Employer: CarnaudMetalBox Engineering

Training manager: Daytun Unitt, Coleg Cambria

 

 

Mechanical Engineering CAD – Ross Megahy

Provider: New College Lanarkshire and the University of Strathclyde

Employer: University of Strathclyde

 

 

 

Mechatronics – Jack Dakin

Employer: Toyota Manufacturing UK

Training manager: Calum Knott, Festo Didactic

 

 

 

 

Mechatronics – Danny Slater

Employer: Toyota Manufacturing UK

Training manager: Calum Knott, Festo Didactic

 

 

 

Painting and decorating – Callum Bonner

Provider: Forth Valley College

Employer: Clackmannanshire Council

Training manager: Michael Swan, Dundee and Angus College

 

 

Plastering and drywall systems – Curtis Johnson

Provider: SERC

Employer: Self-employed

Training manager: David Kehoe, British Gypsum

 

 

Plumbing and heating – Thomas Thomas

Provider: Coleg Meirion-Dwyfor

Employer: Aer Cymru

Training manager: Ronald Ferris

 

 

Restaurant service – Collette Gorvett

Provider: Gower College Swansea

Training manager: Dr Shyam Patiar MBE

 

 

 

Visual merchandising – Konnar Doyle

Provider: City of Glasgow College

Training manager: Julianne Lavery, University of Westminster

 

 

 

Wall and floor tiling – Mark Scott

Provider: City of Glasgow College

Employer: J McGoldrick and Sons Council

Training manager: Paul Doran, Southern Regional College

 

 

Refrigeration and air conditioning – Orlando Rawlings

Provider: Grimsby Institute

Employer: Daikin UK

Training manager: Mark Forsyth, Coriolis International

 

 

 

The 11 things we learned from the DfE’s and ESFA’s 2018-19 accounts

Both the Department for Education and Education and Skills Funding Agency have today published their annual accounts for 2018-19, revealing huge college write-offs, rising fraud allegations and an increase in civil servant bonuses.

FE Week has trawled through both documents and pulled out the main findings:

 

1. Nearly £60m in loan write-offs for colleges

Eleven colleges have had a total of £57.8 million written-off, the majority of which related to waiving exceptional financial support loans. Much of it was to support 55 mergers throughout the year.

The biggest was for Lambeth College, a grade three institution which had £10.6 million waived and has been dependent on taxpayer bailouts since 2017/18.

The full list of colleges and how much they had written-off is:

Redcar and Cleveland College – £3,251,000

North Shropshire College £6,079,000

Accrington and Rossendale College £3,475,000

Cornwall College £6,934,000

Prospect College of Advanced Technology £1,762,000

Lambeth College £10,610,000

Bradford College £9,274,000

Kirklees College £2,800,000

Stoke on Trent College £4,475,000

Stockport College £8,350,000

Coulsdon College £850,000

 

2. …while UTCs had almost a million in re-brokerage debts forgiven

Two university technical colleges, Heathrow Aviation Engineering and UTC Plymouth, had £994,000 in re-brokerage debts forgiven by the DfE between them.

This was to facilitate the two being transferred to an academy trust, the practice known as ‘re-brokering’.

UTC Plymouth received £451,000; while Heathrow Aviation Engineering UTC received £543,000.

 

3. A national college had £455,000 in costs written off

National College Creative Industries had £455,000 of sunk costs expended on a building project written off because, a spokesperson said, it had to pause the project until student numbers increased.

FE Week reported in June the college was seeking partner organisations after it only recruited 167 learners over the previous 12 months, despite setting itself a target of 1,000 learners by 2021.

 

4. DfE chief operating officer and 5 ESFA bosses received up to £15,000 in bonuses

Mike Green, who is also director-general of the department’s operations directorate, was one of two DfE civil servants to get a bonus this year – receiving between £10,000 and £15,000.

More exact figures are unavailable because the bonuses are only published in £5,000 brackets.

His was the largest bonus of the two, the other being a payment of between £5,000 and £10,000 given to deputy permanent secretary Indra Morris.

Meanwhile, five ESFA bosses also received bonuses of between £10,000 and £15,000 this year.

They included director of intervention Peter Mucklow, acting director of academies Mike Pettifer, director of apprenticeships Keith Smith, director of the Transactions Unit Matthew Atkinson and director of technical education Jennifer Coupland – who will be leaving the ESFA to head up the Institute for Apprenticeships and Technical Education in November.

ESFA chief executive Eileen Milner’s bonus was for up to £5,000.

Total bonuses received this year for the ESFA could reach £85,000 – a big increase on the maximum of £50,000 received in 2017-18.

No DfE officials received a bonus in 2017-18.

 

5. Increasing risk over apprenticeship funding and college financial resilience

There is a risk, according to the DfE, “a number” of FE colleges are not financially resilient enough to make long-term investments required to support their local economy and offer government priority programmes.

The ESFA’s accounts said an increased demand for apprenticeship funding in future years has the “potential to place pressures on funding provided by the apprenticeship levy” and budget pressures will be “explored through the Spending Review process”.

It comes after the Institute for Apprenticeships warned of a potential overspend in December.

 

6. 27 colleges subject to formal intervention due to poor financial health

This comes after the insolvency regime came into force at the end of January, which has already caused Hadlow College to fall into administration.

 

7. Fraud allegations almost double for FE providers

During the year there were 101 allegations of fraud against colleges and training providers, up from 55 in 2017/18.

Of this year’s allegations, 62 were closed but 53 were carried forward.

The ESFA said significant growth in concerns relating to FE providers is reflective of the number of new entrants to the register of apprenticeship training providers.

It notes that “funds at risk” total £2,773,208, while “value of recoveries” amounted to £4,614,155.

 

8. ESFA underspent by £500m largely due to apprenticeships and adult education

The agency’s total outturn was £57 billion against a budget of £57.5 billion, a 1 per cent underspend.

“This included £56.7 billion expenditure on resource funding against a budget of £57.4 billion; and £249 million on capital funding, including loans, against a budget of £184 million,” the accounts state.

The underspend of £661 million on resource grants included: £489 million underspend on apprenticeships.

“This is only the second year since the introduction of the new funding mechanism and there has been a lower level of starts than originally anticipated,” the ESFA said.

“The budget itself was set in 2015 and given the scale of the change to the programme, variances to the budget were expected.”

The underspend can also be attributed to a £56 million underspend on “adult related education and a £47 million underspend on post-16 core funding education, which are demand led programmes”.

 

9. The DfE made a mysterious out of court settlement

During the year, the DfE settled a dispute out of court with a third party, costing £3 million. The accounts give no information about who the third party was, or the nature of the dispute.

 

10. The ESFA expects to lose staff in a ‘no deal’ Brexit

The ESFA is preparing to “deal with a reduction in workforce” if the UK leaves the European Union with a deal and “staff are seconded to other government departments”. The accounts say the agency has agreed “where work could be slowed down or paused” in this case.

 

11. Research spending has grown dramatically

The DfE spent £29 million on research this year, up from £19.6 million last year and £16.7 million in 2016-17. The majority of the money – £23.7 million – was spent on researching and evaluating policy.