Scrapping employer fees would be a mistake

We revealed this week that the government is considering a U-turn on apprenticeship employer fees.

Since May last year, and for the first time in the history of apprenticeships, providers could only access government funding for small, non-levy paying firms after they received a 10-per-cent payment from the employer.

This employer charge is central to the apprenticeship reforms, forcing employers that do not pay the levy or had exhausted their levy credit to put their hands in their pocket and invest.

The Skills Minister, Anne Milton, rightly acknowledges the benefit of requiring employers to pay, saying “a contribution from somebody is important, because it requires their buy-in to what they’re getting into”.

Yet in my wide-ranging interview the minister also confirmed that a rethink on employer fees is in the mix.

Scrapping employer fees would be popular with many providers, particularly those working with SMEs, so it is no surprise that the AELP has been pushing for it for some time.

But a volte-face on employer fees, even a temporary one for a low level apprentices, would be a detrimental and unnecessary knee-jerk reaction to a temporary decline in starts.

Pitching “free” may well stimulate additional demand in the short term, but only from those employers unwilling buy a product with a 90-per-cent subsidy.

Are these freeloaders really going to invest in genuine job creation, mentoring and releasing employees for off-the-job training?

Such a move is also unnecessary, as other factors are more likely hampering employer demand and supply, including: willingness to release the employee for off-the-job training, limits on subcontracting, waiting for standards to become approved for delivery, and a botched attempt by the ESFA at limited non-levy allocations.

Free damages the value of the product, a product that providers should not be so quick to give away.

So the government should certainly fully fund 16- to 18-year-olds again, but for adults, especially those already in work, employers must have financial skin in the game.

Digital and science engineering UTC to open in Doncaster in 2020

A new university technical college is being created in South Yorkshire despite mounting problems with the programme, the Department for Education has confirmed.

Doncaster UTC will train up to 750 learners in the “latest rail engineering techniques, as well as coding and 3D design skills”.

It is scheduled to open in September 2020, and the official announcement explained that it aims to complement the government’s wider industrial strategy with “investments made in digital and technical education” helping to “generate well paid, highly skilled jobs across the country”.

The nationwide roll-out of UTCs, which specialise in technical education for 14- to 19-year-olds, has been anything but smooth.

The conservatives pledged in their 2015 manifesto to “ensure there is a UTC within reach of every city”.

Eight, however, have so far closed, largely due to issues with recruiting learners at 14. Doncaster UTC will however recruit at 13.

There is a clear demand from local businesses for these specialist skills and Doncaster UTC will provide a strong mix of academic and technical-based study that nurtures the talents of all its students

“Technology and the world economy are fast changing, and we need to make sure our young people have the skills they need to get the jobs of tomorrow,” said Lord Agnew, the academies minister.

“There is a clear demand from local businesses for these specialist skills and Doncaster UTC will provide a strong mix of academic and technical-based study that nurtures the talents of all its students.

“I am greatly impressed by the commitment of those who have driven the proposals forward, and work now begins to design an exciting curriculum that will arm pupils with skills that employers need to build a Britain that’s fit for the future.”

It will join the 49 existing UTCs – which specialise in technical education subjects that “meet the needs of employers and the economy by integrating academic study with practical”.

Plans have been led by the Doncaster Chamber of Commerce and Doncaster metropolitan borough council, working the University of Sheffield and Sheffield Hallam University and leading businesses from across South Yorkshire, including Volker Rail and Keepmoat.

Lord Baker told FE Week last month that two new UTCs were in the pipeline, in Doncaster and Newcastle.

Lord Baker

The latter is called North-East Futures UTC, and no opening date is set.

The peer jumped to the defence of the programme after George Osborne, who as chancellor was one of the driving forces behind UTCs, told the Commons education committee that he would consider scrapping the starting age of 14, were he still in charge at the Treasury.

The former chancellor said claimed to have been examining early issues with the project just before he left office in 2016, and had come to the conclusion that UTCs were in need of radical reform.

One fifth of the UTCs inspected by Ofsted were at that time rated ‘inadequate’.

Michael Gove, who launched UTCs as education secretary, also acknowledged in February last year that “the evidence has accumulated and the verdict is clear” that UTCs were in trouble.

The idea emerged at the end of the Gordon Brown’s Labour government with the backing of Lord Baker, a former Tory education secretary.

The subsequent coalition government expanded the project.

UTCs are seen by many as unwelcome competition to more established general FE and sixth-form colleges, which consistently return a much higher proportion of higher Ofsted grades.

 

Main image: Lord Agnew

Anne Milton launches £22m construction skills fund

The skills minister has launched a new £22 million fund to help tackle construction skills shortages.

The 18-month scheme will be overseen by the Construction Industry Training Board and funded by the Department for Education.

For our economy to thrive we need everyone, regardless of their age or background, to be able to get the training and the skills they need to make the most of the opportunities that lie ahead

“For our economy to thrive we need everyone, regardless of their age or background, to be able to get the training and the skills they need to make the most of the opportunities that lie ahead,” said Anne Milton at today’s launch.

“The government has committed to building 300,000 new homes a year by the mid-2020s and we want to make sure that we are investing in the UK skills base to deliver this.”

The Treasury announced in November that it would establish a “formal partnership” with the Confederation of British Industry and the Trades Union Congress to oversee a new national retraining scheme focusing on improving construction and digital skills.

£34 million was pledged for “innovative” construction training programmes, for jobs such as groundworkers, bricklayers, roofers and plasterers.

Chancellor Phillip Hammond then promised £29 million for a new national retraining partnership.

“Next month our £29 million construction skills fund will open for bids to fund up to 20 construction skills villages around the country,” he said.

“As our economy changes we must ensure people have the skills they need to seize the opportunities ahead.”

The CITB also told FE Week in March that it had been working with the DfE “to help shape what the fund should be trying to achieve” and would be “likely to be managing the bidding process” for a £29 million share of the cash.

A spokesperson for the DfE said the remaining £7 million from the first announcement would be split between an “additional fund” to pay for retraining of adults in the construction sector, and administration costs for both funds.

The housing minister also welcomed the launch of the fund today.

We have already invested £1 billion to develop modern approaches in the industry and the Construction Skills Fund will teach builders the skills they need to deliver 300,000 new homes a year by the mid-2020s

“A construction workforce with new and innovative skills is essential to building a housing market fit for the future,” said Dominic Raab.

“We have already invested £1 billion to develop modern approaches in the industry and the Construction Skills Fund will teach builders the skills they need to deliver 300,000 new homes a year by the mid-2020s.”

The £22 million fund will aim to support 20 on-site training hubs, work experience and placements for people wanting to join the industry, entry pathways for those currently unemployed, and pathways for “career switchers”.

CITB now wants employers, housing associations and other interested bodies such as local enterprise partnerships and councils to submit expressions of interest.

These can be from both existing and prospective on-site learning hubs.

The funding will only support “on-site training provision”, and access to live construction projects is essential to qualify.

“The Construction Skills Fund is a milestone scheme for the sector and provides a significant investment in skills and training. It will help attract new talent and bridge the gap between training and working in the industry,” said Steve Radley, CITB’s policy director. “Having training on or near to major projects will reveal what an exciting sector this can be, while also putting new talent in the shop window.

“We want all interested organisations to submit expressions of interest that are innovative, collaborative and with training at their heart. We will support applicants through the process and provide expert guidance to apply to the fund.

“We are pleased to help deliver this major new project and we are confident that, with industry support, it can help meet construction’s skills needs now and in the future.”

NHS starts fall despite apprenticeships push

The number of National Health Service apprenticeship starts fell by more than a fifth last year despite a plan for rapid expansion.

Increasing the amount of NHS apprentices has been an important government goal since 2016, when health secretary Jeremy Hunt pledged to create a further 100,000 starts in the sector by 2020.

At that point, in the academic year 2015/16, the health service had a total of 19,820 starts.

However, the Department of Health and Social Care has now revealed that the number of people embarking on apprenticeships in the NHS fell by 22 per cent to 15,532 in 2016/17.

Health minister Stephen Barclay divulged the figure in his answer to a parliamentary question tabled by Tottenham MP David Lammy.

Numbers for 2017/18 are not available yet, but it is known that there has been an extremely slow take-up of nursing degree apprenticeships so far, with only 20 starts up to the end of January this year.

The government hopes that degree apprenticeships will help solve nursing shortages across the country. It is hoped that more trainees will be encouraged into nursing, as they receive wages while they train rather than having to pay towards the traditional degree route.

But NHS leaders have warned that its starts target will be missed without urgent reform the apprenticeship levy.

“Without the flexibility in the levy, to be blunt, we are not going to get there,” Danny Mortimer, the chief executive of NHS Employers, told the Commons education committee in a specially convened hearing earlier this month.

He was referring to Public Health England’s desire to get 2,400 people enrolled on the degree programme.

Overall, PHE wants “17,000 nursing associates having completed additional training” via degree apprenticeships “to become registered nurses”.

NHS Employers represents employers in the health service, and told the education committee through written submission in March that the NHS needs longer than the standard two years to use up the £200 million apprenticeship levy payments it is shelling out annually.

Mr Mortimer explained that apprenticeships are a “very expensive way of training a nurse” and current Department for Education policy does not “accept the difference between a nursing degree apprenticeship and other degree apprenticeships”.

“They will not allow us to fund the time to put in place the additional on-the-job supervision, mentoring and practice development that students need, and they will not extend the timescale for us to be able to access the levy to spend it on nursing degree apprenticeships,” he continued.

He added that nursing degree apprenticeships cost an additional £35,000 or £40,000 per student every year over their four-year duration.

Nursing degree apprenticeships were announced by Mr Hunt in November 2016, involving new nursing associate and full, registered nurse apprenticeships, lasting two and four years respectively.

A nursing associate role was also introduced, with people who complete nursing associate apprenticeships able to count it as training towards a nursing degree.

However, there had been only 20 starts on the registered nursing standard and 10 for nursing associates by the end of January.

Mr Barclay said Health Education England is leading the development of a number of new health-related apprenticeship standards which will open up pathways for several careers across the NHS. As of May, 21 new standards are ready for delivery and a further 29 are in development.

Movers and Shakers: Edition 248

Your weekly guide to who’s new and who’s leaving

 

Danielle Fallon, Sales and marketing manager, Training Qualifications UK

Start date: May 2018

Previous job: National PTP Manager, NCFE

Interesting fact: Danielle once got bass guitar lessons from a member of the Stone Roses.

——

Charlotte Andrews, Head of education, Skills Edge Training

Start date: April 2018

Previous job: Operations manager, Skills Edge Training

Interesting fact: Charlotte has three girls, each one at a different stage of education – primary, secondary and university.

——

Colin Peaks, Principal, Wilberforce Sixth Form College

Start date: September 2018

Previous job: Deputy principal, Wilberforce SFC

Interesting fact: Colin is a former student at Wilberforce, where he studied A-levels in art, graphical communication, and design and technology from 1991 to 1993.

——

Roy O’Shaughnessy, Chief executive, Capital City College Group

Start date: Autumn 2018

Previous job: Chief executive, the Shaw Trust

Interesting fact: Roy studied theology at a seminary, and business and religion at university.

 

If you want to let us know of any new faces at the top of your college, training provider or awarding organisation please let us know by emailing news@feweek.co.uk

Trouble ahead for NCG with anticipated grade three from Ofsted

The largest college group in the country is to be dropped from the government’s final bidding round for Institutes of Technology after Ofsted hit it with a grade three rating, FE Week understands.

Two teams of inspectors were deployed to NCG last month, in a visit prompted by achievement rate concerns.

FE Week understands that they are expected to deliver an overall ‘requires improvement’ rating for the group, down from ‘good’, raising particular concerns with its leadership and
management.

Its training provider, Intraining, was subject to a separate report and is also expected to be awarded a grade three.

The ramifications of a ‘requires improvement’ are likely to be severe. For instance, FE Week also understands that NCG will now be thrown out of the final stage of the government’s competition to open an IoT.

It was one of 16 providers to make the cut in bids for a share of £170 million put aside for the institutes.

In a wide-ranging interview below, NCG’s chair Peter Lauener (pictured above left) explains that NCG’s bid was a “good model” which included a “hub and spoke involving a lot of other providers”.

However, he would not be drawn on Ofsted’s findings, nor his thoughts about the bid being dropped by the DfE, other than to say “that is not a decision for us”.

DfE guidance for opening an IoT states that a provider’s Ofsted grade must be at least ‘good’.

As revealed by FE Week last month, alarm bells started ringing at NCG after Ofsted took a highly unusual decision to extend its inspection.

Generally the watchdog would expect only to carry out a short inspection had there been no concerns. NCG was rated ‘good’ in September 2016 following a five-month standoff during which it successfully overturned a lower grade.

Intraining was also given a grade two that June.

However, overall achievement rates at NCG are well below the national average. In 2016/17, the combined overall apprenticeship achievement rate for NCG’s colleges was just 55.6 per cent, while Intraining’s was 58 per cent.

Both are around 10 points lower than the national average of 67.7 per cent, and lower than the minimum threshold of 62 per cent, according to the latest government data.

And for the all-important 16-to-18 study programmes, NCG was 4.4 points below the national average of 81.5 per cent.

It is understood that Ofsted wanted to reinspect NCG last year, but had been unable to analyse the group’s achievement rates because “data glitches” absented it from the 2015/16 tables.

Mr Lauener, who joined the group in March after retiring as chief executive of the ESFA, admitted that NCG’s achievement rates are “not where we want them to be and are not high enough”.

“We are absolutely committed to improving standards and we actually expect to see some quite rapid improvement in achievement rates in 2017/18,” he insisted.

He has “full confidence” in the group’s chief executive Joe Docherty (pictured above right), despite anticipated criticism of leadership and management from Ofsted.

“I think Joe is a first-rate chief executive,” he told FE Week. “I am absolutely confident he is the right person to realise the potential of the organisation.”

At the same time as dealing with these inspections, NCG is cutting staff numbers by up to a fifth at Intraining and its other private provider Rathbone Training in an effort to save £3 million.

The group was further shaken in April when staff at Lewisham Southwark College, a long-distance merger partner, voted to strike over pay and last week announced the free school they sponsor, the Discovery School, is to close.

Ofsted watch: Private provider straight in at grade four

A private provider has earned the ignominious honour this week of being rated ‘inadequate’ at its first ever inspection.

And two “new” apprenticeships providers have fared little better, with both found to be making “insufficient progress” in at least one area, according in monitoring visit reports published this week.

The Terri Brooke School of Nails and Beauty was given grade four across the board in a report published June 15 and based on an inspection carried out in mid-May.

The school offers loan-funded courses in hairdressing and beauty therapy at levels three and four, which inspectors found “do not meet hairdressing and beauty therapy employers’ needs and are at too high a level for most learners”.

“Too few” learners achieve their qualifications and leaders “do not accurately identify” this fact, nor that “teaching, learning and assessment are poor”.

Safeguarding processes were found to be “weak” and to “place learners at risk of harm”.

“Staff have not had adequate training in safeguarding and do not fully understand their responsibilities,” the report said.

Employer-provider Peacocks Stores Limited was found to be making ‘insufficient progress’ in two of the three areas under review, in a monitoring visit report published June 15 and based on a visit in early May.

Leaders at the provider, which trains its own apprentices in retail standards from level two to four, were found to be “too slow to respond to significant weaknesses” in both planning and delivery of apprentice’ training.

Managers were “too slow” to put in place end point assessment arrangements for some apprentices.

“Arrangements to monitor the quality of the teaching, learning and assessment provided” by “subcontractor partners” were also lacking.

Furthermore, “too many store managers and apprentices do not fully understand the requirements of the apprenticeship programmes,” the report said.

Watertrain, a private provider in Warrington, has been making “insufficient progress” in two of the three headline fields in a report published June 13 and based on an inspection in mid-April.

As previously reported by FE Week, the provider, which has delivered apprenticeships as a subcontractor for 10 years, is disputing the findings of the report.

It’s been ‘good’ news for other independent training providers this week, with all other published reports returning grade twos.

The Skills Network Limited was rated ‘good’ across the board in a report published June 11 and based on an inspection in early May.

“Most learners” at the provider, which offers loan-funded distance-learning courses for adults, “develop new skills and knowledge that enhance their current work roles and future employability”, thanks to “highly experienced” tutors.

“Directors, leaders and managers have very high expectations of staff, who as a result deliver effective teaching, learning and assessment,” the report said.

Hill Holt Wood boosted its grade from ‘requires improvement’ to ‘good’ in a report published June 14 and based on an inspection in early May.

Trustees at the provider, which offers a range of courses for people with disabilities, or social or learning needs, are “passionate about the value of education in combating disadvantage and raising the aspirations of young people at risk from social exclusion”.

Staff create a “safe, nurturing environment” for learners that enables them to “make significant gains in their personal development, work-readiness and capacity to improve their life chances”, the report said.

As previously reported by FE Week, Redbridge Institute of Adult Education became the first local authority provider to be rated ‘outstanding’ since 2015 this week.

Its report, published June 12 and based on an inspection in early May, returned grade ones across the board.

Colleges fared less well this week, with two published reports delivering grade three verdicts.

Leaders and staff at Oaklands College “do not have high enough expectations of their learners”, according to a report published June 11 and based on an inspection in late April.

Governors at the college, which was previously rated ‘good’, lacked a “robust enough understanding of the quality of provision” which meant they “provide too little challenge of leaders”.

Furthermore, “leaders do not use their performance management processes well enough to identify underperformance swiftly and tackle it”.

Senior leaders at South Staffordshire College were criticised for failing to rectify the “weaknesses identified at the previous inspection”, in a report published June 13 and based on an inspection in mid-May.

The quality of teaching, learning and assessment “have not improved” since the last inspection, which also resulted in a ‘requires improvement’ rating.

Attendance at the college remains “too low”, particularly in English and maths, while the proportion of learners completing a work placement is “too low”.

Three further providers held onto their grade two ratings following short inspections this week: Bedfordshire and Luton Education Business Partnership, John Leggott Sixth Form College, and Yorkshire Training Partnership Ltd.

GFE Colleges Inspected Published Grade Previous grade
Oaklands College 24/04/2018 11/06/2018 3 2
South Staffordshire College 15/05/2018 13/06/2018 3 3

 

Independent Learning Providers Inspected Published Grade Previous grade
Hill Holt Wood 15/05/2018 14/06/2018 2 3
The Terri Brooke School of Nails and Beauty 15/05/2018 15/06/2018 4
The Skills Network Limited 01/05/2018 11/06/2018 2
Watertrain Ltd 18/04/2018 13/06/2018 M M

 

Adult and Community Learning Inspected Published Grade Previous grade
Redbridge Institute of Adult Education 01/05/2018 12/06/2018 1 2

 

Employer providers Inspected Published Grade Previous grade
Peacocks Stores Ltd 09/05/2018 15/06/2018 M M

 

Short inspections (remains grade 2) Inspected Published
Bedfordshire and Luton Education Business Partnership 01/05/2018 15/06/2018
John Leggott Sixth Form College 08/05/2018 14/06/2018
Yorkshire Training Partnership Ltd 15/05/2018 14/06/2018

Essex council protests college merger with London group

A council in Essex has come out firmly against merger plans for its financially stricken local college, fearing it will lose its community focus if it joins a giant college group.

London-based New City College is preparing to merge with the financially stricken Epping Forest College from August 1, after the latter was placed in administered status in March last year. 

Derek Macnab, the acting-chief executive of Epping Forest district council, fears that local focus and Essex identity will be lost if the merger goes through.

“The council understands the national policy drive to move to larger institutions which are more financially resilient but believes that fiscal opportunism must be balanced against the need to retain a college for Epping Forest, rather than a campus in Epping Forest,” he wrote in a letter.

Should the plans be finalised during a consultation launched last month, the college, rated at grade three by Ofsted-College, will become the fourth member of the rapidly expanding college group, alongside Hackney Community College, Tower Hamlets College and Redbridge College.

The group is also in discussions with Havering College and Havering Sixth-Form College about further link-ups early next year.

The district, “while closely connected to the Capital, is not in London” and “residents generally identify themselves with Essex”, Mr Macnab believes.

“The council’s key priority has always been a local college that is focused on meeting the needs of local learners, local businesses and its local community through the provision of outstanding skills and education and lifelong learning opportunities for the local people.”

The college has improved on a former ‘inadequate’ across-the-board rating in November 2016, after which  theFE commissioner Richard Atkins and his team visited in January last year.

It was shortly placed into ‘administered’ status as a result of “emerging financial challenges” and “serious governance problems”.

This was followed by a structure and prospects appraisal “owing to the significant instability still facing the college”.

According to the college’s 2016/17 accounts, the process concluded with a firm recommendation for the college to merge as “its prospect as an independent corporation was not sustainable”.

“The council is concerned that the significant land assets of Epping Forest College are not liquidated in a way that disadvantages local communities and learners, in order to finance and underpin the expansion plans of New City College in London,” Mr Macnab continued.

He lamented that the proposal document “presents a merger with New City College as the single option for the way forward”.

He believes that a college “serving a similar community and business base” such as Herts Regional College would be “preferable”.

The speed at which the merger is progressing had “caused grave concern and consternation”, he added.

“For many interested parties, one month is too short a period to become aware of the consultation proposal document, obtain information, share and discuss it with members, committees, managers etc and then construct and agree a response.”

A spokesperson for New City College and Epping Forest College said they “will be responding to Derek Macnab; a meeting is arranged for next week to discuss his concerns.”

Seven-day strike at Hull College called off

Seven days of strikes at Hull College, due to start on Monday, have been called off after the threat of compulsory redundancies was lifted.

Staff had been set to walk out again for five days starting June 18, and again on June 26 and 27 in a bitter row over plans to cut hundreds of jobs.

A joint statement from college management and the University and College Union however confirms that “through best endeavours and joint working” the planned restructure of the college is set to go ahead “without the need for compulsory redundancy”.

“We mutually recognise that the past few years have been very challenging for staff and students at Hull College Group and we share the joint ambition to bring about positive changes to ensure we continue to be vibrant and exciting places to learn and a good place to work,” it said.

“Hull College Group is very sad that we cannot take all our staff with us as we rebuild and refresh and we remain focused on delivering the vital role our colleges play in providing skills and education to our local communities.”

Julie Kelley, UCU regional official, said: “I am pleased that, following positive talks, we have been able to secure an agreement with the college management to work together to avoid compulsory redundancies.

“We will continue to engage constructively with the college with the aim of minimising the impact of the restructure on staff and students.”

Earlier this year Hull College announced plans to slash the equivalent of 231 full-time positions – a move that would cut the workforce by a third, according the union.

The restructure is needed for the college to balance the books.

FE Week reported last month that the college received a £54 million bailout from the government, while the college’s long-delayed 2015/16 accounts, published last week, revealed it generated a deficit of £12.8 million that year.

Union members have already been out on the pickets.

They were joined on May 18 by local MP Emma Hardy, who is also a member of the influential commons education committee.

The bitter dispute began in early March when plans for the job cuts were first announced.

In a statement posted on the college’s website, its chief executive Michelle Swithenbank said the redundancies were part of a restructure being put forward in an effort to balance the books.

The college has held a notice of concern for financial health since November 2016.

A report from the FE commissioner in early 2017 warned that the college’s finances remained “precarious”.

In April, 170 out of 214 – or 70 per cent – of UCU members at the college voted for strike action, before unanimously backing a vote of no-confidence in their boss the following day.