Training providers that hold national skills bootcamp contracts could be in line for an extension.
The previous government committed half a billion pounds to subsidise the short courses between 2022 and 2025, with funding set to run out in March.
Labour ministers previously announced that there would be no further procurements for national delivery. They plan to fund the programme directly through mayoral combined authorities (MCAs) and local areas in the long term.
However, skills minister Jacqui Smith has now hinted that some national contracts may continue beyond their current end date.
Lord Clement-Jones submitted a parliamentary question before Christmas to ask whether the government had considered “giving short-term contract extensions for high-performing skills bootcamps providers that can demonstrate their ability to meet milestones and deliver outcomes by 31 March 2025”.
Smith said in response to the Liberal Democrat peer: “We will provide further information on contract extensions and variations in due course.
“We will encourage providers to work with their local MCA or local enterprise partnership to find out more about how they can work with them to deliver adult skills training.”
The Department for Education confirmed to FE Week that it would soon write to providers with national contracts to set out further information, but it could not offer a timeframe for final decisions.
It is understood that it is unlikely that all national contracts will be extended, and officials will instead decide each one on a case-by-case basis.
Funding to continue bootcamps through both local and national contracts is likely to be a decision for spending review discussions between the Treasury and DfE.
But providers will be desperate for an urgent decision on national contract extensions to avoid a planning nightmare as they begin to wind down their current allocation.
The Skills Network secured one of the largest national bootcamp contracts – totalling almost £7 million over two years to deliver in areas such as digital, cyber security and project management.
The company’s chief executive Mark Dawe said: “We get fantastic feedback from our learners, and recently Ofsted recognised that many get positive outcomes. An extension for existing contract holders would be a sensible move, but we need to know the details as soon as possible to be able to plan now what resources will be funded for the next 12 months.”
Skills bootcamps last up to 16 weeks and combine training, work experience and are supposed to include a guaranteed job interview.
Providers are paid in three “milestone” instalments based on learners’ performance and the job interview. The final payment is conditional on whether positive outcomes, such as a new job, have been achieved.
The DfE’s director of apprenticeships, Kate Ridley-Moy, told providers in November that there is “definitely a future” for skills bootcamps. One option on the table, she said, is to allow the courses to be fundable through Labour’s upcoming growth and skills levy.
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