Another college merger in doubt following ‘regrettable’ TV comments

Another college merger has been cast into doubt after one of their chairs made “regrettable” comments on local TV.

At one stage, Barnfield College and Central Bedfordshire College were both “seriously committed” to “exploring the potential” of joining forces, according to the report into the South-East Midlands area review, which ended in March.

But a spokesperson for Barnfield has told FE Week the partnership was taken off the table in April, after comments made on the local ITV news by Central Bedfordshire’s chair Professor James Crabbe in March, which were taken as a power grab.

“We felt very strongly that he criticised Barnfield College and appeared to us to position themselves as the takeover partner,” she said.

And while, she added, Barnfield does “recognise that the learners of Luton and Dunstable would be better served by one college”, the merger won’t move on “until we see genuine moves for equal collaboration.”

Despite this, a spokesperson for 3,500-learner Central Bedfordshire College, rated good at its most recent Ofsted inspection in March 2016, has insisted today it is still “committed” to the merger and the recommendations made in the area review report.

“Central Bedfordshire College believes that the proposals made in the area based review will help to reduce skills gaps and shortages in the region and provide greater opportunities for education and training for local communities and employers,” she said.

This row is the 17th merger recommended by the area reviews to get into difficulty, out of a total of 52 proposed through the process.

The colleges had been carrying out a feasibility study into the possibility of a merger, and a final decision was to have been made by July 31.

But a statement on the Barnfield College website, dated April 23, said the college had withdrawn from the study due to Professor Crabbe’s comments.

The college, which has 6,500 learners and was rated as ‘requires improvement’ at its most recent Ofsted inspection in April 2016, has had a troubled history.

It was subject to intervention by the FE commissioner, who first visited the college in January 2014 after it was assessed as ‘inadequate’ for financial control by the Skills Funding Agency.

Sir David Collins was back at the college less than a year later, following an ‘inadequate’-overall rating from Ofsted in that November.

But his involvement ended in September 2015, when he decided the college had “fully addressed all the areas of concern” identified in his first visit.

In their April 2016 report, Ofsted inspectors noted that the leadership team had taken “decisive action” to turn the college’s fortunes around.

Tim Eyton-Jones, Barnfield’s principal, told FE Week at the time that his ambition was for the college to be rated ‘outstanding’ within two years.

Other college mergers to fall through recently include one between North Shropshire College and Reaseheath College, which collapsed last month amid accusations that the government was unwilling to provide the necessary funding, either through the ESFA or the Transactions Unit, which processes requests for cash from the restructuring facility.

Review prompted by autistic teen’s college enrolment heartbreak

A college is reviewing its enrolment procedures after an autistic boy was asked not to return just days after he was mistakenly allowed to start a course – and his mother’s heartbroken Facebook post went viral.

James Parker, 16, began a one-year pathways course at City College Norwich last Monday, but his mother Emma received a letter from the college five days later, explaining he had “been enrolled in error”.

The college hit the news, however, after her Facebook post explaining the distress this caused her son, was shared over 17,000 times.

“My son is autistic and was told beginning of year he had to find a collage for September, as he couldn’t stay on at his autistic school, so we applied and went for interview at city collage,” she wrote in the post.

“He was over the moon to hear the lady say ‘yes 100 per cent James is on the course’ – so he started and enrolled Monday.. had the best week of his life.. he even said,” mum I could cry happy tears” to then get this letter. As you can imagine he is absolutely devastated.”

Faced with a growing storm on social media, a college spokesperson offered “unreserved apologies” for the “deeply regrettable” situation, explaining that “as we are unable to meet James’s support needs, this should not have happened”.

“We are now reviewing our application processes to make sure that something like this cannot happen again,” he said.

He told FE Week that CCN had held “a constructive discussion with the family and this dialogue is ongoing, in conjunction with Norfolk County Council, as we work together to find the best solution to meet James’s individual needs”.

The college supports more than 300 students with special education health and care plans, many of whom join its supported learning provision, which is rated ‘outstanding’ by Ofsted.

“Each application is carefully assessed in order to ensure that we are able to provide the right environment and support to meet the needs of each individual student,” the spokesperson explained.

“In March this year, we conveyed our decision to Norfolk County Council that James needed a higher level of support and a different learning environment from that which the college is able to provide.”

This, the college claimed, should have meant alternative provision was sought to better meet his needs.

“A separate application for James was made direct to the college in July, effectively bypassing the EHCP consultation process,” the spokesperson explained. “On the basis of the information available to our staff at the time, this led to a place being offered”.

It was only later discovered that an assessment had already been carried out, in which it was concluded the college was “unable to provide the level of right support and environment needed”.

This only came to light, however, when the college “cross-referenced enrolment and additional needs funding records”.

A spokesman for Norfolk County Council said the local authority had made “repeated attempts, over several months” to speak to James and his family on the issue.

They “have now agreed to meet with us, so that we can work together to ensure James receives the most appropriate support,” the spokesperson said.

The family were not contacted for comment.

 

Learndirect and DfE scandal referred to NAO by Public Accounts Committee chair

The Learndirect scandal is expected to face a National Audit Office investigation following a request from the Public Accounts Committee, FE Week can reveal.

In a series of events that will be familiar to FE Week readers, the largest training provider in the UK has been afforded special treatment by the DfE and retains all contracts, despite being awarded an Ofsted grade four last month following a failed Judicial Review.

In an interview with FE Week, the chair of the committee, Meg Hillier, today said: “We had hoped to have a hearing today with the DfE permanent secretary Jonathan Slater and we were going to put some of the key questions about how Learndirect can be too big to fail, why it is still getting money and no contract terminations, questions like that.

“We [the Public Accounts Committee] have also been in touch with the National Audit Office, which is considering doing an investigation.”

Speaking to the BBC’s education editor, Branwen Jeffreys, apprenticeships minister Anne Milton said that the government “would claw back from Learndirect any part of their contract that they’ve failed to fulfill.”

This latest twist in the tale comes following an FE Week interview broadcast this evening (see videos below), in partnership with the BBC News, in which the Ofsted chief inspector Amanda Spielman said the most shocking finding was that apprentices “were getting no training at all.”

Amanda Spielman HMCI, Ofsted, interviewed by Branwen Jeffreys, education editor, BBC News

During the Judicial Review, which was attended by FE Week, Ofsted outlined how Learndirect admitted during the inspection in March that 8,211 apprentices out of 19,940 (41%), were not receiving their training entitlement.

And the court heard that in a random sample of five apprentices there was no evidence of learning plans or any progress monitoring. When audio files were presented that proved not to contain promised evidence the inspector questioned in his notes whether Learndirect were “gaming evidence”.

“These are young people often in their first job who most need training and their interests looking after. They weren’t getting trained,” said Ms Spielman.

Learndirect receive around £40m per year for apprenticeship training, and when pressed on the risk to the public purse, Ms Speilman said: “We are the inspector not the regulator here. We do not have enforcement responsibility, just to be clear … the ESFA has the main responsibility for the financial side.”

Amanda Spielman HMCI, Ofsted, interviewed by Nick Linford, FE Week editor

Ofsted shared their concerns with the ESFA on the 27 March, and it is understood the Secretary of State Justine Greening received a briefing about the inspection findings and consequences from the ESFA chief executive Peter Lauener soon after.

Learndirect told the judge during the Judicial Review that the ESFA had informed them they would receive an early termination notice once the grade four report was published, but it seems the ESFA were overruled.

In a statement Ofsted said: “We usually share provisional grades and main findings with the funding agency and the provider at the final feedback meeting – the agency therefore know what the provider’s strengths and weaknesses are as soon as the inspection concludes.

“In the case of Learndirect, at the request of the provider, the final feedback meeting did not take place, so the provisional grades and main findings were emailed to the agency on the Monday following the inspection. This meant that the agency were aware of the weaknesses with Learndirect’s provision within three days of the inspection.”

The DfE has so far not answered the question as to whether any audit or investigative action has taken place, and insists: “It is normal procedure for the department to wait until an inspection report is finalised and published by Ofsted before taking any formal action.”

Ms Hillier concluded the interview by saying: “If the NAO do an investigation, which I hope they will, then we would expect that we would have all the data and information about what money has gone in, what’s been spent.

“If the NAO go in they have all the access to all the contracts and information at the DfE and I would hope that if Learndirect’s got any conscience, given that it’s now got this publicity anyway, it ought to be as willing as it can be to open itself up to the auditors because there is now, I hope, nowhere for them to run and hide.

“There is no real prospect, it seems to me, of Learndirect surviving this scandal.”

Learndirect declined to comment. FE Week will continue our investigations and press for answers.

See edition 217 of FE Week, published on Friday 15 September for the latest developments on the Learndirect and DfE scandal.

Minister ‘misled’ MPs over apprenticeships at Learndirect

MPs were “misled” in Parliament by the skills minister Anne Milton today, after she claimed apprenticeships are “no longer offered” by Learndirect.

The minister was grilled by Labour’s Wes Streeting on the controversy engulfing the nation’s largest FE provider, which is increasingly seen as being offered highly preferential treatment by the Department for Education.

Even though Learndirect was labelled ‘inadequate’ overall by Ofsted in a report belatedly published last month, it has not had its government funding pulled by the Education and Skills Funding Agency as would be usual in such circumstances.

Addressing the House of Commons during education questions this afternoon, Mr Streeting asked Ms Milton about the situation.

“Last month, following unprecedented and thankfully unsuccessful legal action to prevent publication, Ofsted was able to publish its damning report into Learndirect,” he said.

“Given that other FE providers in a similar situation might have seen their contracts terminated, is the minister really comfortable with handing over £45 million of public money to a training provider that has been deemed ‘inadequate’ in terms of outcomes for learners?”

He added: “What message is she going to send to learners and when is she going to get her eye on the ball?”

Ms Milton replied: “I take exception Mr Speaker to the honourable gentleman for suggesting that I don’t have my eye on the ball. I most certainly do.”

“If any provision is judged to be ‘inadequate’, then we will take action to protect learners,” she added. “In this case, the provision judged as ‘inadequate’ by Oftsed – apprenticeships – is no longer offered by Learndirect.”

The provider has not, however, had its apprenticeships contract terminated; in fact, the ESFA is allowing it to continue until July 2018 with no early termination.

In effect it will still train and receive funding for apprentices until that time.

In addition, Learndirect Ltd attempted to sell its apprenticeships division last year, and via Companies House incorporated Learndirect Apprenticeships Ltd to allow for this.

The sale did not go through, but the new company successfully made it onto the new register of apprenticeships training providers in March 2017.

This means it is free to run as much funded apprenticeships provision as it wants, as this entity was not technically inspected by Ofsted.

Mr Streeting (pictured) spoke to FE Week this evening about his anger at Ms Milton’s comments.

“I think it’s pretty clear that the minister has mislead me, but more seriously, misled the House of Commons in response to the question I posed earlier,” he said.

“The central charge that I levelled at Anne Milton was that she and the government didn’t have their eye on the ball. Well, it seems that in not knowing the facts in answer to my question that accusation is absolutely justified.”

“Given the damning Ofsted verdict, damning for apprenticeships but also damning – as I said in the chamber – damning more broadly in relation to outcomes for learners, I think there are serious questions to answer about why so much public money is still being pumped into Learndirect.”

He insisted Learndirect should be at the “top of political agenda” as “lots of learners are being badly failed by the country’s largest training provider”.

Labour’s shadow skills minister Gordon Marsden also weighed in with criticism.

Gordon Marsden

“Both in her apparent factual inaccuracy as to what the current state of Learndirect apprenticeships contract is, and her worryingly complacent and bunker mentality over Learndirect, the minister is showing she’s learning badly on the job,” he said.

“What she should be doing is having a vigorous immediate scrutiny of all aspects of Learndirect apprenticeships.”

Learndirect Ltd will receive up to £30 million between now and July 2018 for their current apprentices.

Contrary to Ms Milton’s claims, Learndirect itself chose to switch new recruitment to Learndirect Apprenticeships Ltd prior to the Ofsted inspection in March, and has already taken on over 3,000 apprentices since May.

FE Week has invited the DfE to respond to criticism that Ms Milton misled parliament over Learndirect today, with no response at the time of publication.

BREAKING: Milton grants Somerset MPs emergency meeting with funding agency

Somerset MPs held an emergency meeting on Wednesday with the skills minister to reverse the massive £3.3 million funding cut imposed on a 10,000-learner community-based provider.

Four of the county’s five Conservative MPs, Marcus Fysh, James Heappey, Rebecca Pow and David Warburton, met with Anne Milton to “urgently review” the 97 per cent cut to Somerset Skills & Learning’s adult education budget.

And in a move that will be watched closely by other training providers facing cuts, the MPs have been promised a return meeting on Monday which, with other interested parties, will include representatives from the funding agency.

The adult community learning provider, which is rated ‘good’ by Ofsted and has around 200 staff, won a new AEB contract during the ESFA’s recent tender, but was awarded a mere £111,000 – a shadow of the £3.4 million it was allocated last year.

Courses have now been put on hold at the provider, which has run in various forms for over 100 years, as it faces a catastrophic reduction in provision at 10 centres across the county.

Ms Milton said that due to the “urgency” of the situation, the MPs will meet her and Department for Education representatives on Monday, “to see what steps can be taken to safeguard the needs of local people”.

Even while SS&L saw its funding slashed, the nation’s biggest FE provider, Learndirect, has been handed an AEB contract worth £45 million – even though it recently received Ofsted’s worst possible grade – something that usually prompts the DfE to terminate a provider’s funding.

It’s imperative that the government immediately reviews this drastic reduction

The DfE finally admitted this week that Learndirect had at first applied for funds during the recent AEB tender, but later withdrew its bid.

As a result, it has been given 75 per cent of the value of its previous contract, after the ESFA changed tender rules at the eleventh hour.

Originally funded through Somerset county council, in 2015 SS&L was encouraged by the government to transition to a private provider. Had SS&L stayed part of the council, it would not have been forced to take part in this bidding round, as local authorities are outside the public procurement regulations.

“Literally hundreds of thousands of people have gained essential skills and qualifications through SS&L, benefiting from the huge range of educational opportunities they offer,” said Mr Warburton, the MP for Somerton and Frome.

“It’s imperative that the government immediately reviews this drastic reduction. My Somerset MP colleagues and I have been in touch directly with Susie Simon-Norris, SS&L’s chief executive, and Councillor David Fothergill, leader of Somerset County Council,” he continued.

“We have written to the ESFA to express our outrage at this hugely damaging withdrawal of funding, which will have catastrophic consequences for both the people of Somerset and our local economy.”

Yeovil MP Mr Fysh added: “The apparent short notice of the funding change is also causing problems for people signed up for courses, so our thanks go to the minister for such a prompt response.”

Ms Pow, MP for Taunton Deane, said it was “vital” that the group finds a “solution to support the services provided by SS&L”, adding: “My colleagues and I have been making the strongest possible case to the minister”.

Wells MP Mr Heappey added: “To lose the services of SS&L would be a huge blow to our plans for Somerset’s economy. I’m glad the minister has engaged so promptly and hope this can be resolved as quickly as possible.”

At an initial meeting on Wednesday, the MPs impress upon Ms Milton the “vital significance” of SS&L.

The next meeting is scheduled for Monday, and will be attended by Ms Milton, the four MPs, and representatives of SS&L, Somerset county council and the DfE.

Ian Liddell-Grainger, the MP for Bridgwater and West Somerset, was the only Somerset MP not to participate in Wednesday’s meeting.

Mr Liddell-Grainger told FE Week that despite being in Parliament at the time he had not been invited to the meeting, an oversight from his colleagues, which he described several times as “utter incompetence”.

He went on to say that the way SS&L was being treated was “blatantly unfair, wrong and the DfE need to come up with the money”.  

“I’ve know Anne Milton for years. She is practical and will want to find solutions. I will also be writing to her,” he added.

Photo caption: From left: David Warburton, MP for Somerton and Frome, James Heappey, MP for Wells, Anne Milton, apprenticeships and skills minister, Rebecca Pow, MP for Taunton Deane, and Marcus Fysh, MP for Yeovil

Education is the missing piece in David Lammy’s race review puzzle

The criminal justice system in this country disproportionately affects people from black and ethnic minority backgrounds, and prison education is failing them, says Nina Champion

The overwhelming message from David Lammy’s groundbreaking new report is the depressing lot faced by minorities at every stage of life: from school exclusions, to engagement with the police, to charging, sentencing and treatment in custody, BAME youngsters get a disproportionately worse deal, and the ill-effects of a criminal record follow them as they return to the community.

Sadly this state of affairs has long been known to students of the UK justice system.

Education has been proven to significantly reduce the likelihood of reoffending

What the Lammy Review does is put forward a number of valuable proposals, including making allowances for younger defendants’ immaturity and in certain cases sealing criminal records to help former prisoners find work. These steps could go some way to redress the injustice, and it is hugely important for the long-term sustainability of our justice system that the government responds energetically to the recommendations. The Prisoners’ Education Trust, alongside every other informed commentator on criminal justice, will endorse that call.

But crucial though the Lammy Review has been in highlighting the most egregious points of injustice, it is only a start at looking at the experience of BAME people in custody. In particular, it does not tell us enough about how they access education in custody, education that has the power to transform lives and has been proven to significantly reduce the likelihood of reoffending.

The report confirms that BAME prisoners are likely to have better prior educational attainment than white prisoners on entry to custody. But what the report doesn’t tell us is what happens next. Given the level at which they enter the system, are they being engaged equally in learning opportunities during their sentence? Are they being supported to progress to the higher levels of educational achievement which can help transform their lives after release? These were questions raised by our alliance of prison education charities, the Prisoner Learning Alliance, in our submission to the Lammy Review, but which went unanswered in the final report.

Our questions went unanswered in the final report

The chapter ‘Education, Training and Employment’ focuses on criminal records as a significant barrier to employment, and suggests measures to tackle disclosure obligations. But another – arguably bigger – barrier to employment is a lack of skills, meaningful qualifications or the attitudes employers look for. Learning in prison can support the development of these crucial skills and attributes. If BAME prisoners are not getting equal access or support to progress during their sentences, this is something we should know.

Its omission from the report matters. Education is not a side issue: it is the engine of rehabilitation. Named in the Queen’s birthday honours this month were two men, Chris Syrus and Frank Harris, both of whom were first funded by PET to complete distance-learning courses while serving prison sentences. Both are black men who have gone to achieve degrees and serve their communities, doing vital work with young BAME people at risk of committing crime. This is the positive ripple effect of education: it has the power not only to change one life but to create role models.

Governors  should be held to account for equality of access to education

As governors take over commissioning prison education from next summer, and become accountable for the educational progress of their prisoners, they should also be held to account for equality of access to education and equality of outcomes for all prisoners. This will require the Ministry of Justice to examine data concerning BAME educational progression and use it as a baseline against which governors are measured and held to account.

It will also require governors to listen to BAME prisoners and understand their needs, interests and barriers to learning when planning the curriculum. It will hopefully encourage governors to seek the expertise of specialist education providers and voluntary and community sector organisations. This is particularly important in young offender institutions and prisons with high numbers of young adults where the proportion of BAME prisoners is up to 40 per cent.

The Lammy Review should provide a starting point for further urgent and critical investigation of every aspect of the prison experience for the BAME population, including whether they leave prison with more skills and qualifications they entered with. Because these are the skills and qualifications that could determine whether they are equipped to build a crime-free life after release, realise their potential and become assets to their families, communities, and our society.

Nina Champion is head of policy at the Prisoners’ Education Trust

University’s controversial takeover of Lambeth College delayed

A university’s controversial plans to take a college over by the back door have been delayed, FE Week can reveal.

Lambeth College consulted in June on proposed changes to its governance structure, which would have handed significant control over how it is run to London South Bank University, ahead of a formal merger.

The changes had been due to take effect from mid-June – but the college has confirmed that they are yet to be implemented.

Monica Box, Lambeth’s interim principal, told FE Week that the college’s board had “considered the responses to the consultation on changes to governance” and had “reaffirmed its commitment to make changes to the governance profile” but admitted that “the timescale has been altered”.

This is to allow the board to take into consideration “feedback from the college application for the designation criteria pilot” which is expected “early in the autumn term”.

The changes would see the college’s principal stripped of many of her responsibilities, while at least half of the college’s governors would be appointed by LSBU.

Amendments would be made under the college’s instruments and articles of governance, which don’t need to be signed off by the government.

Among the powers that Ms Box would therefore pass over to the university include annual budgets, staffing arrangements and the college’s “strategic direction”, according to the consultation document on Lambeth’s website.

“Up to five” governors would be chosen from among LSBU governors and senior staff, sitting alongside the university’s vice-chancellor “unless he or she chooses not to be a governor”.

The college would be represented by an employee and a learner, along with two or three independents, who would be selected from among its current governors.

“All other governors of Lambeth College will resign,” the document explains.

These proposals came months ahead of a consultation on a potential merger between the college and university.

This amalgamation was one of three options proposed for the college, which was rated as ‘requires improvement’ at its most recent Ofsted inspection in December, in the central London area review.

A report published by the former FE commissioner Sir David Collins in March, based on a visit to the college in September 2016, concluded that it was “no longer sustainable” unless it merged.

His visit had been precipitated by a “significant deterioration” in the college’s finances, caused by poor financial management.

The college was bailed out by Education and Skills Funding Agency last year after its projected deficit for 2015/16 ballooned from £500,000 to more than £5 million.

Major provider exposed for offering inducements goes into administration

An apprenticeship provider exposed in June by FE Week offering inducements to an employer has called in the administrators.

After around 100 staff were made redundant on 17 August, Talent Training’s chairman David Harper informed them that he had “reluctantly chosen to agree to appoint administrators today for the company” in an email sent last night.

The decision was apparently made after he failed to reach a deal to transfer the South Tyneside-based firms’ contracts to another provider.

Mr Harper said he had had “detailed discussions” with other providers, “one of which had been in discussions with the ESFA to ensure a smooth transition as far as possible”.

But despite being “reasonably optimistic” that this would lead to a “quick agreement” he had been told that no deal could be reached until “the end of September at the earliest”.

“Having spoken to my advisors, it was obvious to me that the company could not continue in limbo under this timetable,” he said.

David Harper. Source: www.talenttraininguk.com

Earlier this week, FE Week asked Mr Harper to comment on reports that Talent had made most of its staff redundant without pay in August.

In a response sent just hours before the all-staff email, he told us it had been “necessary to make ALL staff redundant without exception” – but made no comment on whether they had been paid.

However, in his email to staff, Mr Harper said that the administrators, David Rubin and Partners, would be “in touch with you to assist with your unpaid wages claim”.

A spokesperson for Gateshead College recently revealed that Talent had been in talks to sell it its remaining learners, in order to “ensure their learners can complete their training”.

Mr Harper said he had “spent the last two weeks speaking to several organisations with a view to safeguarding as many jobs and learners’ programmes as possible and am unable to comment further in this regard at this stage to ensure I do not prejudice any sensitive arrangements”.

A spokesperson for the Department for Education confirmed that it was “continuing to work closely with Talent Training to ensure the continuity of training for learners and minimise any disruption to employers”.

She added: “Where a provider is looking to remove itself from the market place or where the Education and Skills Funding Agency takes action to remove a provider from the market place, it is the responsibility of the ESFA, or the employer, to determine where learners are transferred to in order to complete their learning.”

FE Week also asked the department to confirm whether Talent had its adult funding budget, loan funding and pre-May apprenticeship funding contracts terminated, not only for apprenticeships funded from May via the levy, but are yet to receive a response.

We understand that Talent intends to apply for a judicial review against the ESFA’s decision to pull its contracts.

This saga follows an undercover investigation FE Week carried out in June, in which we exposed a Talent employee offering as much as 20 per cent of its government funding per apprenticeship to a firm that was considering its training services.

Talent at the time insisted that no inducement payments had actually been paid to any employers.

The ESFA initially said it would terminate its “levy agreement” with the provider, but not its non-levy apprenticeships contract.

Nevertheless, the ESFA appears to have stopped making payments – although this was never confirmed.

Training providers join forces to challenge Justine Greening in court

A group of leading training providers is gearing up for collective action against the government’s adult education budget procurement process, FE Week can reveal.

The coalition is made up of organisations which say they’ve suffered financial loss and damage to their business as a result of the recent tender – and they believe they have sufficient grounds to launch a judicial review against the Secretary of State for Education, Justine Greening, or even appeal to the EU Commission.

They even allege that the Education and Skills Funding Agency was negligent of – or even complicit in – corrupt practice under the Public Procurement Act 2015, which states that a procurement must not be interfered with once underway.

They also believe the ESFA has breached the Public Contracts Regulations 2015, specifically with its “failure to treat bidders equally and without discrimination, failure to act in transparent and proportionate manner and artificially narrowing competition by unduly favouring or disadvantaging bidders”.

The ESFA significantly changed its original tender rules this week, almost at the end of a tender process that has been going on for much of 2017 in various guises.

Its original policy, published in January 2017, stipulated that providers which did not bid or were unsuccessful would be offered a contract worth no more than £589,148.

But the ESFA this week sent letters to such providers, telling them that they would now receive 75 per cent of the value of their previous contract to use in 2017/18.

Among them is the nation’s biggest FE provider, Learndirect, which the DfE admitted this week had at first applied for funds, but which later withdrew its tender.

Learndirect had a contract worth £60 million last year, and stands to receive roughly £45 million to recruit and train adult learners until July 2018, even though it was recently slapped with an ‘inadequate’ rating from Ofsted – a situation which usually prompts the DfE to terminate a provider’s funding.

Other providers which made successful bids, on the other hand, have seen their AEBs slashed.

Somerset Skills & Learning, a provider rated ‘good’ by Ofsted, and which has been running in various forms for more than 100 years, has been awarded a contract for November 2017 to July 2018 worth just three per cent of its previous budget and faces catastrophic repercussions.

Another independent provider which did not wish to be named, received 30 per cent of the money it had at its disposal last year, even though it delivers “priority provision in priority local authority areas”, forcing it to lead the legal charge against the entire tender.

Had it been known the ESFA would change its rules and reduce allocations by just 25 per cent for those that did not participate, many providers may well have found themselves ignoring the bidding round to secure sufficient funding to survive.

The unnamed provider told FE Week it had “fully believed” that unsuccessful or non-bidders would receive a maximum of £589,148 when it applied.

“After protecting grant funded institutions and Learndirect, the ESFA contrived to open up £65 million of AEB to the near 4,000 organisations listed on register of training organisations,” a spokesperson said.

“Existing contract holders have been discriminated against at every step of the process and now face having to make large scale redundancies, with the ESFA absolving itself from their legal TUPE responsibilities, despite explicitly stating TUPE applies in the three-month contract extensions.”

The spokesperson alleged that the procurement process had been “unfair, inconsistent and illegal” from start to finish.

The AEB tender for private providers has been dogged by delays. Results were supposed to be released on May 19 after it was first launched on January 27, for a sum that originally came to just £110 million.

The organisations involved in the legal challenge do not wish to be identified at this stage for fear of government retribution, but they are seeking to get in touch with others in a similar position.

Mark Dawe, chief executive of the Association of Employment and Learning Providers said: “We understand the anger and frustration of many of our members and we hope to reach a resolution with the ESFA shortly without court action being necessary.”

The Department for Education was not contacted for comment.

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Providers that wish to get in touch with the group can do so in confidence by emailing news@feweek.co.uk.