FE loans applications down for all established age groups

Applications for FE loans were down in 2016/17 for all age-groups they were available to in previous years.

The total number of applications “received” increased marginally from 80,650 in 2015/16, to 93,660 for 2016/17, according to latest figures published by the Department for Education this morning.

However, this is taking into account 21,240 from 19 to 23-year-olds, who were able to apply for FE loans for the first time from August last year.

All other age groups were down.

The 2016/17 figure for 24 to 30-year-olds was 27,260 – down 12 per cent from 31,060 the previous academic year.

The corresponding drops were 8 per cent for 31 to 40-year-olds (from 28,470 to 26,110); 10 per cent for 41 to 50-year-olds (from 15,650 to 14,040); and 8 per cent for those aged 50-plus (from 5,450 to 4,990).

Mark Dawe, Association of Employment and Learning Providers’ boss, said the fall in applications was linked to new restrictions on loans-funded provision.

The new limits, which include a ban on subcontracted loans provision and growth caps, were brought in by the Education and Skills Funding Agency in 2016/17 following a series of scandals – exposed by FE Week – in which loans-funded learners were left with massive debts but no courses after their providers, including John Frank Training, Edudo Ltd and Focus Training and Development Ltd, went bust.

“Some independent providers can and want to deliver more loans-funded learning but growth is capped,” Mr Dawe said today, a situation that he described as “unfortunate, although we understand the reasons for the agency’s caution”. 

“But even more important and concerning is that the requirements on new entrants gaining access to the loans market are very tight and AELP would like to see them reviewed,” he added.

It comes after FE Week revealed last month, through a freedom of information response, that a massive 58 per cent of FE loans funding – amounting to almost £1 billion – had not been spent since 2013.

The Student Loans Company, which processes advanced learner loans for the government, revealed that only £652 million in loan-funded provision had actually been delivered since 2013, compared to £1.56 billion in allocations.

FE loans, originally known as 24+ loans, were introduced in 2013/14 for learners studying courses at levels three or four and aged 24 and older.

Their introduction corresponded with a fall in adults studying at levels three and four+, from 273,400 in 2012/13 to 195,200 in 2013/14, according to the DfE’s own statistics.

That number had fallen further still, to 169,400 by 2015/16.

Yet loan eligibility was expanded in 2016/17 to include 19- to 23-year-olds, and courses at levels five and six.

FE Week asked the DfE if it was concerned about the fall in applications for all 24+ age groups. In response, a spokesperson said: “Advanced learner loans are available to thousands of adults wishing to retrain, helping them to meet upfront fees and removing one of the main barriers to learning.

“It is vital we build the skilled workforce that business and the country needs to ensure we can compete across the world and adult education is part of this. We will continue to work with colleges and training providers to raise the profile of advanced learner loans.”

Loan applications received by the DfE from 2014/15 to 20167/17 (according to official government statistics):

Unison recommends members reject ‘disappointing’ 1% pay offer

A major public sector union has recommended that its members reject this year’s “disappointing” FE pay offer, and industrial action could be on the cards.

Unison released an e-ballot last week asking its members whether they want to accept or reject the Association of Colleges’ offer of a one-per-cent pay increase for college staff made in September, over which even the AoC’s chief executive David Hughes admitted having regrets.

The union’s FE committee recommended “rejection of this offer”, and stressed that “a vote to reject the offer would require being prepared to take sustained industrial action”, up to and including strike action.

Ruth Levin, Unison’s national officer for FE, said the committee voted to recommend rejection as the offer represented a “real-terms pay cut”, given that inflation is “running at nearly three per cent”.

“This offer was seen as more than disappointing,” she told FE Week today. “Our members are working harder and harder but they are being paid less in real terms. Many members have not had a pay rise for many years as colleges are not obliged to implement the Association of Colleges’ recommendation.

“In our 2017 survey of members working in colleges, over 16 per cent of support staff told us that they receive gross pay of under £12,000 per annum and over 29 per cent earn less than £15,000 per annum. 

“They are telling us that they are struggling to pay their bills, rent or mortgage, and to pay for food.”

She added that improved funding for the sector is “vital and cannot wait”.

The AoC’s pay offer for 2017/18 has provoked widespread dismay.

It’s particularly controversial given that Theresa May announced at the recent Conservative Party conference that the wider one-per-cent public pay cap would finally be lifted for police and prison officers.

The raise does not however apply to pay at colleges.

The National Joint Forum, made up of the unions representing college staff, had submitted a claim for an across-the-board rise of around six per cent in April.

But the final offer was just one per cent, or £250, whichever is greater – a deal which the Mr Hughes said he was not happy with.

David Hughes

“We wish we were in a position to make a better recommendation,” he said at the time. “But current funding levels for colleges do not allow us to do so.”

The University and College Union also voted overwhelmingly in favour of balloting for industrial action over pay earlier this month.

Following its initial e-ballot, which closed on September 29, more than 75 per cent of members said they would support industrial action. The union is now determining which of its branches will formally ballot for action in support of the national claim.

“Following the disappointing one-per-cent pay offer, UCU is currently finalising which branches will take action in support of the national pay claim,” a spokesperson said.

Mr Hughes insisted in response that his association will continue to “campaign for fair funding” and blamed a lack of government investment for holding back staff pay.

“When we made our recommendation to colleges for this year’s pay award we made it clear that we had hoped to be able to make a better offer,” he said.

Mr Hughes added that the AoC would “like to avoid any industrial action as strikes are disruptive for colleges and more importantly for students”.

Unison’s ballot closes on November 17. After the results are in, the union will “make a decision as to how the campaign will be taken forward,” Ms Levin said.

Search on for top FE leaders to support struggling colleges

High achieving FE leaders are being sought by the Education and Skills Funding Agency to support other colleges in need of improvement.

The National Leaders of FE programme, launched today, is part of a package of support for the sector first announced by education secretary Justine Greening in July which also included a £15 million college improvement fund.

The NLFE’s aim, according to today’s announcement, is “to engage and mobilise outstanding leaders within the further education sector to work with their peers in supporting improvement, so as to secure the best possible outcomes for learners at all colleges”.

Designation as an NLFE “will be prestigious” and will help “colleges to attract good quality staff, and to build strong relationships with employers”.

“Participation in the NLFE programme will offer principals and colleges the opportunity to develop the skills of senior staff through leading improvement projects, to work with other NLFEs as part of an active improvement network, and to transfer learning and experience from both back to their home college,” today’s announcement said.  

Anne Milton, apprenticeships and skills minister, said: “This country has fantastic leaders across the FE sector and we want to harness their ability to raise standards across the FE Sector.

“We want to make sure that improvements to schools are replicated in colleges. The National Leaders of FE can ensure this happens. I look forward to welcoming these leaders into this exciting programme.”

Leaders of colleges rated at least good overall, and in other key measures, at their most recent Ofsted inspection are invited to apply to the programme.

They will work with colleges rated as ‘requires improvement’ or ‘inadequate’, and that need to improve significantly in one or more areas. 

NLFEs will be tasked with working with the leadership team of the supported college to identify where they need to improve, providing strategic mentoring, or supporting the leadership team to deliver the improvement programme.

Each NLFE will be expected to commit at least 10 days to the role, and their own college will be provided with a £10,000 bursary by the Department for Education, to cover associated any costs.

The college being supported will be able to apply to the strategic college improvement fund – guidance for which has also been published today – for any work not covered by the bursary funds.

Announcing the NLFE programme in July, Ms Greening said it would “badge the best principals and senior leaders across FE”.

“These leaders will be empowered to spread their expert knowledge, as well as mentor and support weaker parts of the system.”

FE Commissioner Richard Atkins tweeted ahead of today’s government announcement.

“Am writing to College Principals this week inviting applications for FE Commissioner Ref Grp and NLFEs: opps to lead quality improvement,” he said.

Principal resigns as college made aware of “allegations of mismanagement”

The principal of Bishop Burton College has resigned amid “allegations of mismanagement”.

Jeanette Dawson OBE is understood to have informed the college of her decision over the weekend, and staff have now learned of this.

The college, rated ‘good’ by Ofsted in January, provided a full statement this afternoon to FE Week, when asked for an explanation as to why she left.

“Jeanette Dawson OBE has chosen to resign as chief executive and principal.

“The college has been made aware of some allegations of mismanagement. At this stage the allegations have not been substantiated and it is not appropriate to comment further whilst enquiries are on-going.”

He added that deputy principal Bill Meredith, a “highly experienced, longstanding member of the college strategic leadership group”, has stepped up as acting chief executive and principal.

This is pending a permanent appointment by the board of governors.

“As always, the success of our students will remain the priority of everyone at the college,” the spokesperson added.

Ms Dawson was made an OBE for services to land-based education in 2010.

Bishop Burton College is a specialist land-based college, with its main campus in the village of Bishop Burton in the East Riding of Yorkshire and another campus at Riseholme in Lincolnshire.

According to Education and Skills Funding Agency figures, the college had a 2016/17 AEB allocation of £1 million, and an apprenticeships allocation of £800,000.

FE Week has attempted to contact Ms Dawson for comment.

Greening: 61 per cent apprenticeships drop was expected

The government knew apprenticeship starts would drop dramatically after the levy was introduced in May, the education secretary has claimed.

Justine Greening was quizzed on the 61 per cent fall in starts since May compared to the same period of time last year, which was revealed in official government statistics earlier this month, during a hearing of the House of Commons education select committee this morning.

“This is what we were expecting in the fact that we knew that when employers finally took over responsibility for actually spending the money themselves, they may well take some time to look at how they wanted to invest that money in apprenticeships,” she said.

But she conceded that the Department for Education was “tracking that very closely” – and that “we broadly remain on track in relation to 3 million apprenticeships”.

Ms Greening was responding to a question from Trudy Harrison, Conservative MP for Copeland and newly-appointed ambassador for apprenticeships.

She asked: “We’ve had a 61 per cent decrease in apprenticeships take-up since the levy was introduced. Why is that?”

Other questions put to the education secretary included a grilling from James Frith, MP for Bury, over funding for post-16 education, which he said went against Ms Greening’s commitment to social mobility.

Current funding rates per student at post-16 level are significantly lower than for 11- to 16-year-olds – around 21 per cent lower, according to the Sixth Form Colleges Association

“You talk about social mobility, equality of opportunity – these principles are not applied to your funding rationale when in the middle, at a very important time in a young person’s life you turn your back essentially to the tune of £1,000 per pupil,” he argued.

But Ms Greening insisted “I don’t agree with that”.

“I agree there does need to be more investment going in – that’s what we announced [in the spring budget] – but alongside that the other key thing that is going to make a big difference is broader reform in relation to technical education, T-levels, the need for employers to step up to the plate and give us work placements,” she said.

Committee chair Robert Halfon quizzed his former boss about her plans to review the £60 million fund, announced last October, to support apprentices in disadvantaged areas.

At a fringe event at the Conservative party conference in early October Mr Halfon outlined how he would like to see the money spent – which included giving a proportion to “incredible grassroots community groups” to support young people to be ready to start an apprenticeship.

Ms Greening confirmed this morning that the review of the fund was “underway”.

“I’m happy to update you once it’s completed,” she said.

On the subject of the Conservative party’s general election promise to introduce “significantly discounted bus and train travel for apprentices”, Ms Greening said only that she was “looking at taking forward the manifesto commitment”.

Earlier in the session Ms Greening took the opportunity to reaffirm her commitment to social mobility, equality of opportunity and to reforming technical education.

“Britain has never had equality of opportunity – that needs to change,” she said.

“None of us should accept that someone’s future is determined by where they start in life – that must be changed.”

She insisted that “young people in our country have never had a good enough choice of options post-16” and “technical education has never been at the level our young people deserve”.

“Our young people deserve a much higher quality technical education,” she said.

Pilot applications open for new Strategic College Improvement Fund

A fund designed to help failing colleges improve the quality of education and training has opened its pilot scheme for applications.

Struggling general FE or sixth form colleges, supported by a stronger partner, will be able to apply for cash through the Strategic College Improvement Fund, to develop an improvement programme and a tailored package of support.

This is separate from the restructuring facility, which is funding available for colleges to implement recommendations from the area reviews.

Colleges rated as ‘requires improvement’ or ‘inadequate’-overall can apply for grants of between £50,000 and £250,000 from the SCIF, with successful applicants also expected to contribute towards the total cost.

The cash is also available to colleges whose apprenticeship provision was graded three or four at their most recent Ofsted inspection.

Working with a partner college will “enable the applicant college to refine its understanding of the quality challenges it faces, develop a rigorous and costed programme of work, and use the experience and know-how of the partner college to put that improvement programme in place”, today’s announcement said.

The partner college must be rated as ‘good’ or ‘outstanding’ at their most recent Ofsted inspection.

The guidance does not stipulate that the partner college must be part of the connected National Leaders of Further Education programme – also launched today – although colleges being supported through NLFE can apply to the SCIF.

The grant cannot be used for capital expenditures valued over £2,500, staff restructuring or public relations activities, but the college’s own contribution can be used for these things if the applicant demonstrates the relevance of the expenditures.

Applications for the pilot, which expects to award funding to between 10 and 15 colleges, should be submitted before midnight on November 20. Successful applicants will be notified before Christmas.

Colleges can continue to submit applications until January 5 for the pilot’s second round of assessment.

Applications will be assessed by officials from DfE and the ESFA, with improvement work expected to begin in early 2018 and all grant-funded activity completed by July 31.

It’s all part of programme of support for colleges, announced by Education Secretary Justine Greening in July, which also included the NLFE programme – also launched today.

The NLFE, which is designed to complement the SCIF, will seek high achieving FE leaders to support weaker colleges.

Milton only appoints Conservative MPs as apprenticeships ambassadors

Three Conservative MPs have today been named as apprenticeship ambassadors by skills minister Anne Milton.

Maria Caulfield, Stephen Metcalfe, Trudy Harrison are all tasked with championing the opportunities and benefits of apprenticeships, to encourage people from all ages and backgrounds to consider taking one up. But it begs the question, why weren’t the appointments cross-party? 

“All the reforms we have introduced will make sure that there are high quality apprenticeship opportunities for millions of people of all ages and from all backgrounds,” Ms Milton said.

“We want everyone to have the skills to get a job with prospects, and for employers to have the skilled workforce they need. Since May 2015 we have seen over 1.1million apprenticeship starts.

Helen Grant MP

“Although we have seen record numbers with a disability or from disadvantaged backgrounds start an apprenticeship, there is still more to do.

“I am delighted to confirm today’s appointments to the vital roles that will work to ensure apprenticeships are truly open to everyone,” she said.

The apprenticeships ambassador network, chaired by business leader David Meller, is an employer-led body with responsibility to encourage more companies to become involved in apprenticeships.

The three new ambassadors named today are the first MPs to join the network.

Other appointments announced today by Ms Milton include another member of her party Helen Grant MP, as the chair of the apprenticeship diversity champions network, replacing Nus Ghani MP.

The network champions apprenticeships and diversity amongst employers and encourages more people from underrepresented groups, including those with disabilities, women and members of the black, Asian and minority ethnic (BAME) communities, to consider apprenticeships.

Ms Harrison has also been appointed the co-chair of the apprenticeship delivery board.

The DfE was approached for a comment on why the above appointments were not cross-party. A spokersperson replied: “On the make-up of the MPs, each of the MPs were all supportive of apprenticeships and were put forward on that basis.”

Labour’s shadow skills minister Gordon Marsden said: “This is a time when all stakeholders in the skills and apprenticeships area have been working together to champion on a cross-party basis initiatives, like  the recent Team UK’s World Skills  success , as well as other events to celebrate young people’s ambitions and to widen the uptake of apprenticeships by them .

“So  I think many would think it is pretty depressing that this minority government is behaving in so narrow and  partisan a fashion.”

Dominique Unsworth

The board, also co-chaired by Mr Meller, advises on expanding apprenticeships nationally, and aims to increase the number of apprenticeship places that employers offer in both the public and private sector.

Another member of the apprenticeship ambassador network, Dominique Unsworth, managing director of Resource Production, has been named by Ms Milton as an SME Ambassador.

FE Week reported in October last year that entrepreneur Lord Alan Sugar could be about to quit his role as the country’s apprenticeships champion after receiving no contact from government officials after six months on the job.

The businessman, best known for his role in the hit TV show The Apprentice, was appointed “enterprise tsar” by former prime minister David Cameron back in May.

But in the wake of the turmoil in the Conservative government following Brexit, Lord Sugar said he thought he had been neglected by officials and would now “rethink” his position, according his spokesperson.

 

Ombudsman warns councils are failing special needs learners

Councils are not doing enough to ensure special needs learners get the help they need, a report from the local government ombudsman has found.

The new Education Health and Care Plans (EHCP) were introduced in 2014 as a way of providing more holistic and efficient SEND support for learners up to the age of 25.

However, the first 100 investigations carried out by the ombudsman show that, far from making the system easier for learners and their families to negotiate, it has left some facing a “disproportionate burden” to get the help they are entitled to.

The ombudsman warned some students are missing out on places in colleges and schools and “ultimately failing to reach their potential” due to the long delays involved in the process, which is not supposed to take longer than 20 weeks.

The report highlights poor planning from councils resulting in extra meetings being hastily arranged, a lack of communication with learners, and failures to share information.

The EHCP code of practice stresses that learners and their families should be involved in decision making throughout the process, and offered a face-to-face meeting.

However, the report shows councils struggling to arrange meetings in a proper or timely manner, causing delays to the entire process.

EHCPs hit the headlines in September when City College Norwich allowed autistic learner James Parker to begin his studies, and then five days later asked his mother Emma not to let him return, saying the 16-year-old had been “enrolled in error”.

A consultation held by Norfolk County Council had decided the college could not support James’ needs, but the family had not been informed or helped to find an alternative.

As James’ application was made directly to the college it bypassed the council’s EHCP process, and the college did not find out about the result of the consultation until it had already made James an offer. 

The report warns: “The frustration, stress and sense of injustice for the families involved is understandable. When councils then fail to recognise and acknowledge fault, further damage is caused to relationships and trust.”

It also highlighted concerns that officers do not always have the necessary financial information to make informed judgements on preferred placements and that the use of panels to make decisions can leave learners feeling excluded from the decision making process. Delays on councils seeking professional advice was also raised, with some seemingly unaware that they bear the responsibility for gathering evidence for the EHCP and even trying to delegate the role to family members. 

 The ombudsman added a “lack of strategic planning” was not leaving learners enough time to appeal decisions, and that some councils were issuing inadequate or incomplete final plans simply to try and meet government deadlines, leading to preventable appeals and causing “unnecessary distress and confusion”.

Complaints about the system have doubled in the last two years, from 109 in 2015/16 to 217 2016/17, with the number expected to rise further. Investigators have upheld nearly 80 per cent of complaints received compared to the ombudsman’s average of 53 per cent.

Local government and social care ombudsman Michael King said: “When councils get things wrong, it places a disproportionate burden on families already struggling with caring and support.

“Some families have to go well beyond the call of duty to confirm the type of support their children should receive. 

“The system is not failing universally. But for those people who come to use, we are finding significant problems – sometimes suffering long delays in getting the right support and children ultimately failing to reach their potential.”

Apprenticeship funding model report provokes dismay

A long-awaited report on whether the government’s forecasting tool to predict apprenticeship starts is working has caused dismay over “seriously flawed” assumptions.

Cambridge Econometrics won a £15,000 contract in March to assess the Department for Education’s apprenticeships projection tool, that looks ahead to resulting spending requirements under the new apprenticeship levy-based system.

In its tender for the research project, the government referred to a “forecasting model” to project apprenticeship starts and costs for both levy and non-levy paying employers for 2017-18 and 2020-21.

The due date for the research was May 31, but we reported in early September that the DfE had denied our Freedom of Information request to see the resulting report, and refused to specify when it would be unveiled.

The report, now published, explains the tool’s principle assumptions governing starts for levy-payers.

This includes that “only 80 per cent of demand [from lev-payers] will be met”, overall growth in starts with levy-paying employers will be 20 per cent; and that the 10 per cent co-investment rate will result in a “10 per cent increase in starts”.

Only employers with an annual payroll of at least £3 million currently pay the levy, while smaller firms also have to contribute to training costs for the first time, through a 10-per-cent co-investment model.

Having read the report, Association of Employment and Learning Providers boss Mark Dawe said: “If it’s true that the government has been working on an assumption that only 80 per cent of demand from levy payers will be met from levy funds, then it must provide a separate guaranteed minimum budget of £1 billion a year for the smaller non-levy paying employers.

“The fact that the other assumptions in the paper look seriously flawed underlines AELP’s case for an open debate on what the model should look like when all employers join the Apprenticeship Service in April 2019.”

Mr Dawe intervened over non-levy payers following a 61 per cent drop in apprenticeship starts for May, June and July fell 61 per cent, compared to the same period last year, which it is feared reflects in part growing reluctance from smaller employers to take on apprentices.

He warned last month that the government’s second attempt at a £650 million non-levy apprenticeship funding tender was descending into “farce”, after a series of late “clarifications” and document updates were sent out.

Cambridge Econometrics researchers were set the task of reviewing the design of the government’s forecasting model, to consider whether it worked or if other approaches might improve its quality and capability.

The resulting report conceded: “It is recognised that given the major changes that have been made to the apprenticeship system over the recent past that extrapolation of past trends – even using sophisticated econometric techniques – may provide no guide to the future.

“At this stage, it is not clear – because the policies are so new – how employers will behave in the new demand-driven system.”

It did say improvements could be made, although the current model was said to be “well-suited to the users of the model and the intended audience of the outputs” – generally policymakers.

Key recommendations include greater recognition of the impact of the economic cycle on apprenticeships starts, progression and completion rates, and consideration of whether apprenticeships are “given to existing employees or new recruits”.

It also pointed out that “preliminary evidence suggests that employers in some industries may be more sensitive to the policy mechanisms than those operating in other industries”.

Considerations of employer demand across different industries may, it therefore argued, could help to improve the model.

The DfE was approached for a response to the report’s findings and Mr Dawe’s comments. A spokesperson said in response: “Our apprenticeship reforms have put control back into the hands of employers so they will gain the skilled workforce they need to compete globally.

“We developed the model primarily for the purposes of the financial control of apprenticeship spending in the medium term. We are continuously monitoring the model’s performance.”