Anne Milton’s inspirational words for learners on National Apprenticeship Week

Doing an apprenticeship rather than going to university can take “guts”, the skills minister has told a group of apprentices.

Anne Milton was speaking at an apprentice round table hosted by apprenticeship agency WhiteHat, founded by Euan Blair [pictured above with Ms Milton], at the start of National Apprenticeship Week 2018.

“I think anybody who walks away from what everybody else is doing deserves a medal, because it’s quite hard to do,” she said. “It takes quite a lot of guts. So you’re exceptional, just by deciding not to do what everybody else wants you to do.

“I didn’t do what everybody wanted me to do at school, and look where I ended up.”

Ms Milton was speaking to six young people who had all found apprenticeships through WhiteHat.

Anne Milton with apprentices Caitlyn Hardy, Mari Berry and Robert Ukandu

All six shared their experiences of choosing an apprenticeship – including some who had started degrees but then dropped out as university wasn’t for them.

The skills minister said they should not feel like imposters because they hadn’t gone to university.

“So when you stand alongside a graduate you have to remember that you’re not a imposter – you’re there as result of your own efforts,” she said.

“I think I suffered a bit from that when I went into politics. In time that leaves you, and you think I deserve my place here.”

WhiteHat is a tech start-up cofounded by Euan Blair, the son of former prime minister Tony Blair, and Sophie Adelman.

It’s designed to match non-graduates aged 16 to 23 with apprenticeship opportunities at companies including Google and Just Eat.

“Apprenticeships cannot be seen as just being for a certain segment of society. They’ve got to be all-encompassing,” Mr Blair said.

Jason Holt named Apprenticeship Ambassador Network chair

Jason Holt CBE, the chief executive of HoltsGroup, has been named chair of the Apprenticeship Ambassador Network, replacing its disgraced former chair David Meller.

This is a promotion for Mr Holt, who had previously been the apprenticeships ambassador for small businesses.

The Association of Employment and Learning Providers was quick to tweet its congratulations.

The Apprenticeships Ambassador Network is an employer-led body which aims to encourage more companies to get involved in apprenticeships.

Mr Meller was forced to resign from his government roles earlier this year, following allegations that sexual harassment took place at a charity dinner  he co-chaired.

Skills minister Anne Milton announced in parliament on January 24 that Mr Meller was stepping down as a non-executive board member for the Department for Education and from chairing the Apprenticeship Delivery Board.

“The government expects board members to adhere to the code of conduct for board members of public bodies. This quite clearly states that they should adhere to the seven principles of public life,” she said.

Although it wasn’t publically stated at the time, it’s clear from Mr Holt’s appointment that Mr Meller also stepped down from chairing the AAN.

Mr Holt has championed apprenticeships for small- and medium-sized businesses for many years, having authored a 2012 independent review for the government on the issue.

And in May last year he vowed to “continue to beat the drum” on apprenticeship funding for SMEs.

Sue Husband, director of the National Apprenticeship Service, said: “With his influence, his standing in the business community and his insights into how employers think, I can think of no better individual to lead the Apprenticeship Ambassador Network. Jason’s intense commitment to apprenticeships with SMEs over many, many years will unlock so many new opportunities with apprenticeships.”

Today’s announcement was made at the start of this year’s National Apprenticeship Week, during a launch event at the BBC featuring the education secretary Damian Hinds.

“Apprenticeships play a crucial role in helping people realise their potential as they learn and earn, and are providing employers with the skilled workforce our country needs,” he said.

“This National Apprenticeship Week we want to show that apprenticeships offer a great route into skilled employment for people of all ages and backgrounds, so that everyone can access the excellent career opportunities apprenticeships offer.”

 

College bankrolls failing schools in new academy trust

An ‘outstanding’ FE college is having to bankroll improvements to struggling schools in its new academy trust.

Two of its schools are rated ‘inadequate’, one just five months after the chain launched.

The Dudley Academies Trust, sponsored by Dudley College of Technology, was handed four schools by the Department for Education last September.

One of these, Holly Hall Academy, received the lowest-possible Ofsted rating last month amid criticism of teaching, leadership and behaviour, causing the resignation of its headteacher.

Another of the trust’s schools, Hillcrest School and Community College, had was rated ‘inadequate’ by inspectors in January last year, before the trust took it over.

The other two schools, the High Arcal School and Castle High School, were rated ‘good’ and ‘requires improvement’ when they were still standalone academies.

Lowell Williams (pictured), the chief executive of Dudley College, who also chairs the MAT, said that the college was funding extra remedial maths and English lessons for all four schools, as well as a “big injection” of ICT equipment, and had even planned a restructure of central support services.

He would not reveal the total spent on school improvements so far.

Government guidance says any potential sponsor for a multi-academy trust must demonstrate “a strong track record of school improvement”.

And although Dudley College is an ‘outstanding’ college, it does not have school improvement experience.

A spokesperson for the DfE would not comment on the rationale behind the decision, but said officials are working to ensure the academies are “fully supported and their pupils have access to the education they deserve”.

In its report on Holly Hall, Ofsted did acknowledge that the “newly formed trust has swiftly gained an accurate view of the quality of education in the school” and said there were “early signs” of improvement.

“This was a routine inspection of an academy that had been judged to require improvement in May 2015,” an Ofsted spokesperson said.

“It did not become a new school when it joined the Dudley Academies Trust in September 2017 because it was already an academy. In our inspection report we recognised the impact that the trust was beginning to make.”

Dudley became the first general FE college to receive a grade one Ofsted rating in 14 months last June.

But Mr Williams admitted that the college’s “biggest fear” when taking on the schools had been whether it had the skillset to work with school pupils.

He said he had been “shocked” by how much translated across between the two sectors, which are “not dissimilar at all”.

The college had been approached by the schools for “support”, and he hopes the initiatives will improve pupil outcomes.

The trust is still hoping to grow to include primary schools and wants to open an alternative provision free school, and aims to have all its schools achieving the national average progress score within three years.

“It’s not going to be easy, but I think there’s every opportunity to make this work,” said Williams.

Colleges have had mixed success with forming multi-academy trusts in the past.

Three of the four schools run by Midland Academies Trust, which is sponsored by North Warwickshire and South Leicestershire College, are rated ‘requires improvement’; two have fallen from ‘good’ since the trust took over and another only recently rose from ‘inadequate’.

In 2015, the trust also shut down two studio schools, the Midland Studio Colleges in Hinckley and Nuneaton, due to low pupil numbers.

However, the Bridgwater College Trust, sponsored by Bridgwater and Taunton College, now has four ‘good’ schools on its books after two improved from their previous ‘requires improvement’ and ‘inadequate’ ratings.

National Apprenticeship Week 2018 celebrates best of earning and learning

The very best of what earning and learning means for learners and employers will be celebrated during the eleventh National Apprenticeship Week.

The theme for 2018’s event, running from March 5 until March 9, is ‘Apprenticeships work’.

Events will showcase the ways apprenticeships produce huge benefits for individuals, businesses, communities and the wider economy.

Sue Husband, director of the National Apprenticeships Service, has asked apprentices and employers to join together and “help celebrate the brilliance of apprenticeships”.

“Apprenticeships offer real career opportunities and National Apprenticeship Week 2018 will showcase how apprenticeships work across all industries, sectors and job roles, from school leaving age to older apprentices, “ she said.

Sue Husband

“There’s no better way to mark apprenticeship achievement than by the apprenticeship community coming together and shouting loudly about the difference apprenticeships are making.”

National Apprenticeship Week will be marked by events around the country.

There will be a special launch event at BBC Broadcasting House, hosted by the BBC’s home affairs editor Mark Easton and its director of leadership development and new talent Claire Paul.

They will celebrate the positive impact apprenticeships have had on improving social mobility.

A parliamentary reception for FE Week’s inaugural AAC Apprenticeship Awards, in conjunction with the Association of Employment and Learning Providers and the Chartered Management Institute, will also be held on the same day.

Hosted by Robert Halfon MP, the event announce the regional winners, and which nominees will go forward to the national awards.

The national award winners will be announced during a dinner at FE Week’s Annual Apprenticeship Conference in Birmingham on March 22.

Robert Halfon

Other highlights include an event at the National Gallery in London, coinciding with International Women’s Day on Thursday.

This will acknowledge the positive impact of female apprentices and discuss how to encourage women into well-paid apprenticeships.

The ‘10,000 Talks’ movement is aiming to have former and current apprentices share their experiences with ten thousand young people around the country, through talks at over 150 schools.

Graduation ceremonies will also be held throughout the week to praise apprentices who have completed their training in the past 12 months.

The skills minister Anne Milton said the week is “a chance for everyone to show their passion and commitment to apprenticeships”.

FE Week will publish a supplement alongside next week’s edition with a round-up of the highlights of National Apprenticeship Week, which will feature editorial contributions from Ms Milton.

The first National Apprenticeships Week was held in 2007 in an effort to draw more attention to the benefits of apprenticeship training around the country.

It was followed in 2009 by the launch of the National Apprenticeship Service to oversee delivery of apprenticeships.

For more information about what is on during National Apprenticeship Week, click here.

HMRC VAT crackdown spreads to subcontracting

HMRC has launched a major investigation into subcontracting that could result in tens of millions in fees and fines after it discovered many colleges and training providers are ignoring VAT rules on management fees.

FE Week understands that the tax office has put together a team of around 20 special investigators, who will find out why primes have not been applying the 20-per-cent charge to their top-slices, per the rules.

HMRC plans to investigate up to six years of unpaid VAT and will attempt to claim it back.

This could rise to 12 years if evidence is found that prime providers knew about the charge and failed to apply it anyway.

Substantial fines are also likely, according to one VAT expert who spoke to FE Week.

The news will send shockwaves through the sector, and providers fear the business and ramifications of any fresh charges.

Government rules – VAT Notice 701/30 (pictured) – state that while vocational training is exempt from the tax, management services in subcontracting relationships are not. This comes alongside the top-slice primes generally charge subcontractors, which is usually around 20 per cent of the government’s funding.

However, evidence seen by FE Week suggests the VAT rule is unknown to most providers, and has not been applied for years, meaning that hardly any has been claimed.

Around a £1 billion of funding per year is subcontracted across the ESFA post-16 funding streams, which FE Week estimates would generate around £40 million per year in VAT for HMRC.

For its own part, HMRC claimed the guidance has always been in place and in force.

“Vocational training management fees charged by a prime provider to a subcontractor are chargeable with VAT at the standard rate of 20 per cent,” said a representative.

“This applies regardless of whether the charge is netted off against government funding or whether the prime provider is a college of further education or a private provider.”

The spokesperson added that any under-declarations of VAT will be dealt with under the tax office’s usual compliance procedures.

Management fees charged by a prime provider to a subcontractor are chargeable with VAT

The sector will be worried that any fines or attempts to retrieve years of unpaid tax would plunge many small training providers into financial trouble.

Shane Mosley, a partner at accountancy specialist Malcolm H Preece, has offered advice to providers who have not complied with the rule and what the next steps are to take (see below).

“Prime providers should look back over their records and ascertain both how much VAT is involved and crucially who this VAT should have been charged to,” he told FE Week.

“They should also consider making initial contact with HMRC to put on record that they are aware of the potential problem and are currently looking into their own compliance – this will potentially mitigate penalties due to the cooperation of the taxpayer.”

If HMRC does come knocking, as well as any VAT that should have been charged, inspectors may be looking for penalties and interest.

“For a situation like this which appears to be an industry-wide error, rather than any individual concealment, I would envisage the initial fine to be at the lower end, perhaps 10 to 15 per cent.”

This is the second VAT crackdown HMRC has made against FE providers in the past two weeks.

On February 13, FE Week revealed that private providers were being let off millions of pounds in unpaid tax because HMRC had given them incorrect advice.

ITPs believe the crackdown will mean learner volumes will drop significantly.

Advice from a VAT expert: Expect 10- to 15-per-cent fines

Shane Mosley, a partner at accountancy specialist Malcolm H Preece, spoke to FE Week about what actions HMRC is now likely to take, and offered advice for affected providers.

“Prime providers should look back over their records and ascertain both how much VAT is involved and crucially who this should have been charged to,” he said.

“Are these subcontractors VAT registered themselves enabling to (potentially) claim back some or all the VAT from HMRC? Do they still exist?

“They should also consider making initial contact with HMRC to put on record that they are aware of the potential problem and are currently looking into their own compliance – this will potentially mitigate penalties due to the cooperation of the taxpayer.

If HMRC comes knocking it will be looking for penalties and interest

“If HMRC comes knocking, as well as any VAT that should have been charged, it will be looking for penalties and interest.

“Penalties are anything from zero per cent to 100 per cent, on the following bands: zero to 30 for a lack of reasonable care; 20 to 70 for a deliberate mistake; or 30 to 100 for something deliberate and concealed.

“For something like this which appears to be an industry-wide error, rather than any individual concealment, I would envisage the initial fine to be at the lower end, perhaps 10 to 15 per cent.

“It would then be down to the individual provider to prevent this going any further by conversing with HMRC in a timely and honest manner.

“In some cases, where an industry-wide problem has been identified, HMRC has levied at zero per cent as long as the other party acts in a transparent way, but management charges will be looked at by HMRC as an ‘error’ as opposed to a ‘lack of understanding’, and therefore it is my belief that at least 10 to 15 per cent will be levied as mentioned above, should HMRC pursue this.

“Finally in terms of time, HMRC actually has the power to go back 20 years in some cases. Standard procedure, which I believe will prevail here, is the normal four-year window open to HMRC without opening a specific enquiry.”

Read editor Nick Linford’s thoughts on this incoming bombshell here

Ofsted Watch: Tough week for UTCs as two get ‘requires improvement’

University technical colleges have continued to struggle as two more received grade threes this week, while one FE college got its third ‘inadequate’ rating in five years.

South Devon and Buckinghamshire UTCs both had unfavourable reports published on February 26.

It was the second ‘requires improvement’ rating in a row for Buckinghamshire which had just 147 students on roll, with a capacity of 600, in the last academic year.

Inspectors said students are not doing “well enough” in English, maths and science at key stage 4.

“Their overall progress has been well below the national average for the last three years,” the report states.

“The quality of teaching is inconsistent. Expectations of what students can achieve are too low in some subjects, and so students do not make the progress of which they are capable.”

Ofsted added that rates of attendance are “too low”, in particular for disadvantaged students and those who have special educational needs or disabilities.

Leaders’ recent actions to improve attendance have “not yet had time to bear fruit”.

However, the report also pointed out that the recently appointed principal, Sarah Newall, has brought a “renewed sense of purpose to the school”.

She has “quickly strengthened the quality of teaching, learning and assessment and has improved the school’s systems for tracking students’ progress”.

This is the first time South Devon UTC has been subject to an inspection, after opening in September 2015. The college currently has just over 200 students, but teaching and achievements are below national standards.

“Last year, key stage 4 pupils attained well below their capabilities on the school’s flagship engineering programmes,” Ofsted said.

“Teaching is not providing sufficient challenge for the most able pupils. As a result, they are not developing their skills quickly enough.”

Senior leaders have also “not secured consistently effective” teaching across the school as it has grown in size.

Positives however include the fact that the principal has a “clear vision” for the college. “He is ambitious for all pupils and has the skills necessary to bring about the necessary improvement.”

And last year, as a result of the school’s “extensive business links”, all students found places in education, employment or training when they left.

Most UTCs have struggled since the 14-to-19 institutions fist came about in 2011, mainly because they’ve not been able to attract enough pupils to stay financially viable.

Their performance has suffered as a result. In April last year, FE Week revealed that just 39 per cent of UTCs inspected by Ofsted were rated ‘good’ or ‘outstanding’.

Meanwhile Stockport College, which was actually rated ‘outstanding’ in 2008, received yet another grade four this week. Its report repeatedly warned that lessons had not been learned from the previous ‘inadequate’ inspection findings in November 2016.

“Leaders and governors have not reversed the decline in standards since the previous inspection,” it said, nor had they “responded quickly enough to address all weaknesses identified”.

Ofsted did recognise that “partnerships with local employers and key stakeholders are good”, and accepted that the board had been strengthened since the last report.

Two sixth form colleges also had inspection reports published this week. It was ‘good’ news for Connell sixth form college as it climbed up one grade from ‘requires improvement’.

But The Sixth Form College, Solihull didn’t fare as well as it received a grade three in its first inspection since joining the Ninestiles Academy Trust in August.

The only two other Ofsted reports for FE providers this week came in the form of short inspections at two adult and community learning providers.

Maintaining their ‘good’ grades were the Milton Keynes Christian Foundation Limited and Suffolk County Council.

 

GFE Colleges Inspected Published Grade Previous grade
Stockport College 22/01/2018 01/03/2018 4 4

 

Other (including UTCs) Inspected Published Grade Previous grade
Buckinghamshire UTC 23/01/2018 26/02/2018 3 3
South Devon UTC 30/01/2018 26/02/2018 3 3

 

Sixth Form Colleges Inspected Published Grade Previous grade
The Sixth Form College, Solihull 30/01/2018 28/02/2018 3 N/A
Connell Sixth Form College 15/01/2018 28/02/2018 2 3

 

Short inspections (remains grade 2) Inspected Published
Milton Keynes Christian Foundation Limited 31/01/2018 01/03/2018
Suffolk County Council 07/02/2018 28/02/2018

DfE ‘plain sloppy’ at policing apprenticeship minimum wage adverts

Providers on the government’s apprenticeship search site are not being effectively policed to ensure they advertise legal wages – and the shadow skills minister has accused it of being “plain sloppy”.

The apprenticeship national minimum wage is rising from £3.50 to £3.70 per hour in April, but FE Week has discovered that this detail is often overlooked on the DfE’s Find An Apprenticeship site.

There are many vacancies with start dates after April 1 which are illegally offering the old minimum rate – and beauty therapy apprenticeships at various levels are particularly culpable.

Of 17 vacancies with April start dates FE Week found, 10 were offering to pay the old minimum wage, a shocking 58-per-cent rate of non-compliance.

Dr Mary Bousted, the joint general secretary of the National Education Union, is appalled that history appears to be repeating itself, after similar errors have appeared in adverts before previous minimum-wage rises.

Dr Mary Bousted

“It’s disgraceful that the government is allowing apprenticeships with wages under the national minimum to be advertised on its own website, particularly when it has been alerted to the fact in previous years,” she said.

“It is time that the government got its act together to ensure that it advertises apprenticeship programmes at the legal rate of pay.”

Shadow skills minister Gordon Marsden also laid the blame squarely at the DFE’s door.

“It is plain sloppy,” he said. “The DfE should be monitoring its website carefully to prevent this from happening, but I fear the problem lies with a lack of resources available to do the checking. It’s not the first time this has happened either.”

It is plain sloppy. The DfE should be monitoring its website carefully to prevent this from happening

FE Week has pointed out numerous examples of apprenticeship vacancy adverts failing to recognise minimum-wage rises in past years, inevitably around the time that an increase is introduced.

A DfE spokesperson responded to complaints last year by insisting that “as soon as we become aware of any adverts which do not comply, we ensure these are taken down”.

We went back this week to ask about the raft of non-compliant beauty therapy adverts.

“We are working to ensure that all vacancies advertised on Find An Apprenticeship show the correct minimum-wage rate in time for the new rate coming into effect on April 1,” said a spokesperson.

Yet even though the DfE was alerted to the illegal adverts on February 26, only three of the 10 had been updated to £3.70 an hour as FE Week went to press four days later.

The national minimum wage for apprentices also rose from £3.40 to £3.50 per hour in April 2017.

This year’s increase to £3.70, announced in last November’s budget and based on a recommendation made by the independent Low Pay Commission, represents a 5.7-per-cent boost.

Dr Bousted warned that in spite of this “some employers continue to put profit first by exploiting low-paid workers” and that more stringent enforcement is needed from the government.

University technical colleges will start recruiting from year 9

Two university technical colleges will start recruiting students a year before the standard starting age of 14 from  September, and another is planning to follow suit in 2019.

The JCB Academy in Staffordshire and UTC Sheffield have both confirmed plans to recruit year 9 students from the  start of next academic year.

The London Design and Engineering UTC intends to do the same from the start of 2019/20.

This represents a major new development for the UTC movement, which launched in 2011 with the backing of  former Conservative education secretary Lord Baker.

These specialist technical education colleges that have so far only taught 14- to 19-year-olds. However eight have closed so far as a direct result of problems with recruiting at that age.

The colleges switching to earlier recruitment all claim they wants to harmonise with ordinary comprehensive schools, which transition to teaching the GCSE curriculum from year 9.

“It makes sense for UTCs to consider following suit by changing their age range,” said a spokesperson for the Baker Dearing Trust, which represents UTCs. 

A spokesperson for the JCB Academy, which is rated ‘good’ by Ofsted and is currently running at full capacity for learners, said it had received 666 applications for 264 available places this year.

It claimed this made it the most oversubscribed school in Staffordshire “by some margin”, though it is still taking on  66 year 9 learners from September.

“The year of transfer from middle to high school is year 9 and therefore learners have, in the past, spent year 8 in the middle school, year 9 at the high school and then transferred to us,” a spokesperson explained. 

“The change has therefore been to facilitate these learners joining the JCB Academy at their normal point of transfer. This is the motivation for the change and it has been well received by parents.”

UTC Sheffield has also been given the nod to recruit 200 students at the age of 13 across its two campuses from September.

The ‘good’-rated provider, which is currently teaching just over 700 learners but which has the capacity for 1,200, held a public consultation on whether to change its recruiting age. Sixty-eight per cent of respondents agreed with the plan.

“On the basis of the consultation results and a wide range of other evidence, the DfE has now authorised the trust to proceed,” a spokesperson said.

“As a result, a cohort of year 9 students will be admitted from September 2018 onwards.” 

The London Design and Engineering UTC held its consultation into recruiting earlier shortly after it opened in late 2016. 

Its principal and chief executive Geoffrey Fowler said the response to the consultation was “overwhelmingly positive” in favour of the move.

But the change had been postponed until 2019 due to “delays” on a building project that will not be completed until December.

The specialist technical provider, which has not yet been rated by Ofsted, had 179 pupils in 2016/17, set against its capacity of 600 learners.

Other UTCs consulting on extending their admissions to include year 9 are Aston University Engineering Academy in Birmingham, Cambridge Academy for Science and Technology and Liverpool Life Science UTC.

FE Week recently revealed that 39 of the 44 UTCs still open in 2016/17 were forced to hand money back to the government because they missed recruitment targets, leaving them with a combined debt of around £11 million.

UTC told to join ‘strong’ multi-academy trust amid ESFA investigation

A struggling UTC must join a “strong” multi-academy trust and improve its finances, after reports from a whistleblower prompted an investigation by government funding bosses.

The Education and Skills Funding Agency said ministers would pick out a list of potential new trusts for the ‘inadequate’-rated Bolton UTC to join this September, after issuing the 14-to-19 institution with a financial notice to improve.

ESFA officials visited the UTC last summer after they received “anonymous allegations” of financial mismanagement and poor governance. The college has struggled to recruit pupils, and owes the government substantial debts after it overestimated pupil numbers.

They found evidence that financial decisions had gone unchallenged, and that the lack of an audit committee or any financial checks had led to “inadequate” financial controls and management of conflicts of interest, including around an estimated £920,152 in related-party transactions.

The investigation started last July, but details have only just come to light after the notice to improve was issued last month.

The UTC, which is currently run by an interim management board, has had most of its spending powers suspended until the notice is lifted. It has also been told it must get agreement from ministers to join a “strong” multi-academy trust in September 2018.

“This MAT will be from a selection determined by the department,” the notice said.

The UTC must also develop an action plan to make sure that all of its contracts are compliant with procurement law, avoid all conflicts of interests, “accounting irregularities” and “novel and contentious payments”, ensuring clear lines of accountability among senior figures.

A financial management and governance review of Bolton UTC, which was also published today, reveals that of six suppliers reviewed by the ESFA during its investigation of procurement at the trust, three were classed as connected or “related parties”.

There was “no evidence of any formal procurement exercise” for any of the six suppliers, and five of them did not have a signed contract in place. The one existing contract was described as “brief” and without “adequate detail”.

For the three related parties – the University of Bolton, Bright Tribe Education Services and Greater Manchester UTC – the trust was unable to show adequate management of conflicts of interest or evidence of complying with a policy that related-party transactions must only be “at cost”.

Since September 2015, the UTC has paid £658,922 to the University of Bolton, £209,862 to Bright Tribe and £51,368 to Greater Manchester UTC.

Between September 2015 and December 2016, the UTC, which was less than half full, had a chief executive officer and a principal, but also bought in support from the principal at Greater Manchester UTC at a cost of £297,507. Officials were unable to explain why all three were needed.

Other issues highlighted included paying relocation expenses of almost £6,500 to someone moving around 20 miles away, and a compensation payment of £45,000 paid out with any proof of a business case or professional advice for doing so, and no evidence of board evidence or approval.