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Exclusive FRASER WHIELDON Ofsted concern at AAC as FE Week investigates growth of managementExclusive consultancy apprenticeships See page 3 Grade 1 College CEO says sorry > Dudley College forced to give £500k back to funding agency > Chief executive considered resigning over the dodgy data > DfE excludes college from national achievement rate tables
BILLY CAMDEN [email protected] Exclusive See page 4
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FRASER WHIELDON As the standard has an upper funding advisory firms such as Deloitte, Ernst committee, my personal view is there [email protected] band of £21,000, these starts would have & Young and KPMG, which helped to are serious concerns about both cost used up to £70 million in 2017-18 from develop the standard. and the subsidising of qualifications, the apprenticeship levy pot. Level 6 and 7 apprenticeships have such as level 7 accountancy/taxation Exclusive In total, 88 per cent of the starts proved controversial after the IfATE professional, at the expense of lower- between November and July were estimated the apprenticeship budget level apprenticeships that do actually A member of the Commons Public delivered by four providers – Kaplan could be overspent by £0.5 billion in need taxpayers’ funding. Accounts Committee has “serious Financial Limited, BPP Professional 2018-19, rising to £1.5 billion by 2020-21. “This will become a greater issue concerns” about the government Education Limited, Ernst & Young A National Audit Office when money is tight, and qualifications allocating one provider up to £40 LLP, and First Intuition – with Kaplan apprenticeships progress report earlier such as this one should be the first to be million in nine months to teach a delivering 59 per cent on its own, which this month warned there was “clear risk” excluded.” controversial management consultancy would be worth up to £40 million. that the apprenticeship programme In March last year, Anne Milton, the apprenticeship. Apprentices on this course can expect was not financially sustainable after the skills minister, told a House of Lords Layla Moran, the Lib Dem education to go on to careers as management average cost of training an apprentice inquiry that fears of a “middle-class spokesperson, was responding to an consultants, financial accountants, hit double what the government grab” on apprenticeships were valid. FE Week analysis that showed the level management accountants and business predicted. The accountancy/taxation 7 accountancy/taxation professional and tax advisers, according to the The problem –despite a dip in professional standard is the most standard had 3,250 starts from Institute for Apprenticeships and the number of starts – is the result popular level 6 or 7 apprenticeship, with Layla Moran November 2017, when it was approved Technical Education (IfATE). of higher per-start funding than 5,790 total starts to December 2018; for delivery, to July 2018. This includes jobs at big financial first predicted, largely driven by the about 1,000 more than the second- time”. sharp rise in expensive management placed chartered manager degree When FE Week shared the analysis apprenticeships, which FE Week was standard. of the standard with Amanda Spielman, 'Graduate schemes are first to warn about in 2016. But scrutiny of the providers that Ofsted’s chief inspector, she said she Last week the Association of offer the standard is thin. “very much hopes people will see completely unscrutinised' Employment and Learning Providers Although Kaplan was graded 'requires the logic in us doing level 6 and 7 made the radical proposal that all level improvement' by Ofsted last year, it apprenticeship inspections”. 6 and 7 apprenticeships, including those would not have been inspected on its She also discussed her concerns about Ofsted’s chief inspector is worried with integrated degrees, should be level 6 or 7 provision, including the repackaged graduate programmes now that some level 6 and 7 provision, removed from levy funding to relieve accountancy/taxation professional being sold as apprenticeships (see box which includes “repackaged mounting pressure on the budget. standard, as the watchdog only inspects out). graduate schemes”, is going And on Monday, the Department up to level 5. When asked about its provision of “completely unscrutinised” because for Education’s permanent secretary Inspectors criticised Kaplan’s the accountancy/taxation professional of government policy. admitted to the PAC that “hard choices” managers for not having “sufficient standard, and for comment on the Speaking at FE Week’s Annual would need to be made in the face of information about apprentices’ progress AELP proposal, a Kaplan spokesperson Apprenticeship Conference this the imminent apprenticeship budget so that they can act quickly when said: "We continue to support the week, Amanda Spielman said these overspend. apprentices fall behind”. They also found government's strategy on apprentices." “expensive” apprenticeships were Amanda Spielman Asked whether the government its “talent coaches do not always set BPP declined to comment on its “high-cost programmes that soak up should be limiting the use of the apprentices sufficiently challenging provision of the accountancy/taxation a lot of money”. level 4 provision, while in another apprenticeship levy, Moran said: learning targets, and as a result, too professional standard, as did Ernst & She referred to how graduate room level 7 apprentices were not “While I cannot pre-empt the many apprentices do not complete on Young and First Intuition. schemes were, in effect, being being reviewed. “repackaged” as apprenticeships, an “It was very clearly a graduate issue she raised in her 2017-18 annual training programme that existed for report. many years that had been reframed She was also concerned that slightly to make sure it genuinely Ofsted could not inspect level 6 and did meet the requirements, but 7 apprenticeships and if the standard nevertheless was the kind of training did not have a degree element, it that firm would have always have would not be regulated by the Office been providing and paying for,” she for Students (OfS) if the provider told FE Week. offering it was not on the office’s "We were there to look at register, as revealed by FE Week in only one piece of this graduate November. traineeship programme, which “There are places that go made for an extraordinarily artificial completely unscrutinised because conversation.” they don't come within OfS Asked if she would like Ofsted arrangements and they don't come to inspect level 6 and 7 provision, within our space.” Spielman said: "I very much hope Spielman said the first FE people will see the logic in us doing inspection she observed found it." a large accountancy firm had Higher level apprenticeships now “very clearly” turned its tax make up more than a quarter of the graduate trainees into level 4 and 7 number of starts, which the chief apprentices. inspector said “narrows the options But because of a policy decision for the third of young people who made by the government and “not leave school without a full level 2 us”, Ofsted could only inspect the qualification”. 4 FRIDAY, MARCH 29, 2019 @FEWEEK EDITION 276 FEWEEK.CO.UK News Dudley College chief ‘mortified’ at data inaccuracies and manipulation
BILLY CAMDEN their resignation. does not have any material impact on [email protected] Dudley College then appointed the college’s financial health. auditing firm RSM to undertake an “I recognise the reputational damage “advisory audit”, in agreement with the caused by these errors to the college, Exclusive From front ESFA, which confirmed the findings our stakeholders and the wider sector. I this month. apologise for these mistakes.” The chief executive of a grade one RSM reported that the college had Asked if he considered his college has apologised after an audit “historically had a poor system for own position in the course of the exposed data manipulation that tracking and monitoring the continued investigations, he added: “The truth is resulted in more than £500,000 being activity of apprentices and adult absolutely yes. I’m a national leader of paid back to the government. education budget learners where further education and I considered that Lowell Williams, the boss at delivery is offsite”. my position was compromised. Dudley College, told FE Week he As a result, “funding has been “But advice I received from people even considered resigning over the overclaimed for both adult education I’ve worked with over a career is not “blunder”, which has led to the college budget learners and apprentices as to let a single mistake wipe out a lot of being excluded from this year’s national withdrawals have not been actioned in good work that has been done over a achievement rate tables. a timely manner to ensure funding was number of years.” Following complaints from a returned in the correct year”. Williams said the college is whistleblower last year, the allegations Williams, who has been at the college “extremely disappointed” to Lowell Williams of which are unknown but which for over 10 years and led it to being be excluded from the national have been “dismissed”, the Education rated 'outstanding' by Ofsted in June achievement rate dataset for 2017/18, and Skills Funding Agency conducted 2017, told FE Week he was “mortified” by which was published by the ESFA on for the sector in the future if there was largest college group NCG, was one of a “review” of the college’s data in this “professionally and personally”. Thursday, after the agency “could not a more effective system to analyse several dozen providers hit with recent December. This found numerous late “There’s no question that the college confirm the accuracy of the college’s and report on late withdrawals and mystery audits, and faces not only a withdrawals of apprentices and work- is at fault in this matter,” Williams said. achievement rate for adult apprentices” an automatic reconciliation of funds clawback but also being removed from placed learners. “The management of large work- in time. between Individualised Learner Record the official achievement rate tables. Once notified of these “concerns”, the based learning programmes, delivered He added that the college’s website years”. As previously reported by FE Week, college began an internal investigation, offsite on a national basis, is complex, has published the unofficial data “I note that we are not the only this major review of apprenticeship which identified the late withdrawals but it is our responsibility to get it right instead, which show achievement rates college to have fallen foul of these data is expected to result in the in 2015/16 and 2016/17, which artificially and we didn’t. for all apprentices at 80.7 per cent in complexities, so it is a good time for us sector being officially warned about inflated achievement rates. “We have made provision to return 2016/17 and 77.2 per cent in 2017/18. all to take stock and learn lessons for unacceptable data practices, as was the It also found some learners’ end £504,000 to the agency, which Williams was “grateful” that the ESFA the future,” he added. case nearly a decade ago when the then dates were inaccurate, which resulted represents less than 1 per cent of our brought the dodgy data to the college’s FE Week revealed last week that chief executive of the funding agency in one senior member of staff tendering total funding claim in these years and attention, and said it would be “helpful Intraining, a provider part of England’s published a letter to the sector. Blow your own trumpet and shake off your victim mentality, providers told
JESSICA FINO perceived unsatisfactory state of the “This is no way to run the future of political incompetence and some its “unhelpful” mantra of “employers [email protected] system, when even the government’s our economy and people. impatience and, of course, the fact in the driving seat” in UK skills policy own evidence often doubts whether it “One thing that I would wish for that we have ministers in FE who do because this was “more rhetoric than is as unsatisfactory as it fears”. the sector is that there was a promise not stay very long. I used to say that reality”. Exclusive More alarming was a “realisation” to not interfere with things for a the skills brief in Whitehall is the The FETL president added that for that over time providers had “not been period of five years. To let things take apprenticeship for being a minister.” decades politicians had “scratched FE providers have been urged to “blow effective enough in countering this root, to let things have stability, to let Silver also said ministers had tried their heads” about how employers their own trumpet more” after research view”. managers and leaders have the time of to make public servants of employers, could become more engaged in FE – found they have developed a “victim They were often “too willing to perspective. to change their ways and mind-sets, and were still asking themselves the mentality” because they have been accept this position instead of pushing “Government officials keep changing instead of understanding where they same question today. “unfairly blamed for deficiencies in a back against it”, because the market their minds. This were coming from, what they wanted Meanwhile Mark Dawe, the chief highly complicated system”. was “too risky and uncertain to do is due to and how they saw their role. executive of the AELP, said that A study, conducted by the otherwise”. “As a result, employers lose providers and colleges often knew how Association of Employment and Dame Ruth Silver, the former interest, feel frustrated or they should work with employers, but Learning Providers (AELP) and the principal of Lewisham College in south ill-served, and withdraw, at government red-tape, restrictions and Further Education Trust for Leadership London and president of the FETL, told great cost to learners and the a lack of funding did not allow them (FETL), found that providers now FE Week the sector currently had a sector, not to mention the the “flexibility” to do it. acted in a way that minimised risk and “victim mentality” because it had been treasury and economy.” The report said there was now a optimised regulatory compliance to taking the blame for “inadequate policy As reported last week “strong sense of risk aversion” among “just survive”. implementation”. by FE Week, the report also providers who felt their expertise and The study followed a series of nine “People set themselves up to deliver called on the government achievements were “under-recognised”. roundtable discussions with 81 sector the original design and requirements to move away from It concluded that the sector needed leaders across the country. and then that changes, depending on to “blow its own trumpet more and be It found a “feeling within the sector how much money government needs more assertive of what its role should that it has been held to blame for a to take back from the sector,” she said. Dame Ruth Silver be”. With 140 years of know-how behind us, we put learning at the heart of apprenticeships to give apprentices leading-edge workplace skills.
Together we can help drive Madethe talent that businesses and economies of today need to stand out to in the future. stand out Learn more at cityandguilds.com | i-l-m.com 6 FRIDAY, MARCH 29, 2019 @FEWEEK EDITION 276 FEWEEK.CO.UK News Alert raised on the high volume of ‘tie- breaks’ in latest ESF tendering process
BILLY CAMDEN procurement resulted in a tie-break ESFA employed four temporary staff, at [email protected] after the ESFA marked many bids as a cost of £43,000 in total, as well as their scoring the maximum. full-time European Social Fund staff, to One college director, who used to mark the bids. Exclusive work at the ESFA and who wished to “The use of temporary staff to remain anonymous, told FE Week that mark these tenders is an insult to the Further questions are being asked the number is “unprecedented”. providers, who spent weeks preparing about the Education and Skills Funding “It makes a mockery of the scoring their responses,” said the chief executive Agency’s recent European Social Fund process, or demonstrates inexperienced of a provider who bid in the tender but tender, after FE Week discovered an scorers,” the director said. who did not want to be named. “unprecedented” amount of tie-breaks “All the bidders will have scored “TheFE Week findings prove that in the controversial procurement. the maximum 100 for each of the four this wasn’t an open and competitive The chief executive said his provider multiple providers claimed that the Many providers have alleged that the questions to end up in a tie-break – procurement process, given that such understands that the ESFA is currently government broke tender rules, namely competition, worth around £282 million [which is] unbelievable. And how come a high volume of providers with no undertaking “penetration audits” to test by excluding the “track record” section in total, was botched after the agency all these tie-breaks were resolved in an infrastructure, resources or tangible the validity of what was written in the when marking bids, while the ESFA has broke tender rules and made “errors”. award? What’s the probability of that?” track records in the specified regions bids. admitted to “errors”, such as naming One aggrieved provider even In a tie-break, the bidders were were able to score 100 per cent and Another provider, who wished to Serco Regional Services Limited as a threatened legal action, as revealed asked to “respond to a single tie-break enter into tie-breaks in multiple remain anonymous, said they are winner instead of Serco Limited. by FE Week last week, but has since question”. Whoever the agency deemed contract package areas.” “alarmed” by the tie-break figures Contracts are supposed to go live on decided to drop this because of the to have scored the highest in this He added that since the results were and “think that the procurement has April 1. likely cost and a fear of repercussions question would win. announced, three successful bidders not been designed to capture the best The European Social Fund is funding from the ESFA. Many of the tie-breaks included have “approached us to deliver their provision locally”. that the UK received, as a member state Now, however, this newspaper multiple organisations, and one lot, for newly won contracts as they have “Over one-third of lots going to of the EU, to increase job opportunities has discovered, via a Freedom of the Sheffield Transition area, comprised no capacity to deliver the contracts tie-break shows that not enough due and to help people to improve their skill Information request, that 37 of the five providers. themselves”. Each of the bidders diligence was carried out in analysing levels, particularly those individuals 95 lots, or 39 per cent, tendered in Overall, 87 providers were involved. had scored 200 out of 200 on their the accuracy of the responses,” this who find it difficult to get work. the three competitive areas of the FE Week’s FOI also showed that the “readiness to deliver” the contract. provider added. The three areas of the tender that “We are seeing this in the results of had tie-breaks were “skills support for the awards, with, for example, providers the workforce”, “skills support for the that have no staff, infrastructure, supply unemployed” and “skills support for chains and stakeholders in region [who] NEET [Not in Education, Employment or are not ready for the April 1 go-live Training]”. date.” The other part of the tender was for The agency has delayed issuing community grants, and it is understood contracts several times, since – as there was only one application for each previously reported by FE Week – area, thus none resulted in a tie-break. Funding clawback for college at risk of cash crisis
JESSICA FINO (ESFA), following an investigation into its records". finances. [email protected] use of a subcontractor that entered into Despite the result of this investigation This week Richard Atkins, the current liquidation in 2017. being expected to translate into a commissioner, said the college “should Before its merger with North large clawback to the agency, North be able to avoid insolvency for the time A college already in financial difficulty Warwickshire and Hinckley College in Warwickshire and South Leicestershire being” only if it improved the way its is being forced to pay back nearly £1 2016, South Leicestershire worked with College did not make provision for it in “costed curriculum plan is monitored in million to the government as a result Ambertrain Ltd, which the Institution of its 2017-18 accounts because the sum had year and adjustments made accordingly”. of working with a subcontractor Mechanical Engineers (IMchE) bought in not yet been agreed. The commissioner's report, dated investigated for falsifying learner November 2015. However, a spokesperson for the November 2018, said the college, which records. Two years later, IMchE announced it college said it had “fully provided” in its received a financial health notice to In a report published last Friday was placing the provider into liquidation three-year financial plan for the impact improve after the government assessed North Warwickshire and South by the FE commissioner, North after uncovering “historical practices of Ambertrain’s liability. its monetary situation as “inadequate”, Leicestershire College Warwickshire and South Leicestershire undertaken by some individuals at “This plan, which shows the college was at risk of a “cash crisis” this year. College was warned that it needed to Ambertrain that have given rise to returned to the ESFA’s financial health However, it stressed it was “not currently The report said the college now take “urgent action” to secure its long- claims against the company”. grade of satisfactory in the current year in crisis”. needed to review its organisational term future after it was over-optimistic In May 2017 the ESFA wrote to and moving to good in 2020-21, was According the FE commissioner, the structure, which Anne Milton, the in its forecasting, with “overly complex, the college about its concerns with submitted to the ESFA and to the FE current financial situation was driven skills minister, said was “unnecessarily expensive” staffing costs to income ratio. the learning provision carried out commissioner last November,” she said. by poor forecasting, an overall decline in complex” in a letter published alongside According to its 2017-18 accounts, the by Ambertrain, and requested an Before the merger, South apprenticeship contract and provision, the commissioner’s report. college generated an operating deficit of investigation. Leicestershire and North Warwickshire failure to attract enough students to Milton agreed with the report's £2.9 million, up from £612,000 the year At the time of its insolvency colleges were already in a precarious deliver the adult education budget findings, saying it was clear “urgent before. proceedings, liquidators said Ambertrain financial situation. After a visit to the contract, an “over-dependence” on a late actions are now required”. But the accounts also reveal its had debts of £167,456 due from colleges, colleges in 2015 Dr David Collins, then increase in distance subcontracting and Marion Plant, the college’s principal, financial situation could deteriorate as it including South Leicestershire, which commissioner, recommended that they the requirement to accommodate more said the college had since made “rapid faces a liability of up to £900,000 to the was "investigating claims against the speed up plans to merge after he saw than 100 unfunded 16 to 18-year-olds, and significant progress” against all the Education and Skills Funding Agency company for falsification of learner how their recurring deficits were hitting which cost £1 million. recommendations.
@WSUKLive worldskillsuk.live 8 FRIDAY, MARCH 29, 2019 @FEWEEK EDITION 276 FEWEEK.CO.UK News Off-the-job calculation to be clarified after providers left confused by 30 hour cap
BILLY CAMDEN published guidance does not contradict intended to change the rules. So that’s [email protected] ESFA apprenticeship-funding rules. something I am talking to the team “It was produced to complement the about, to make sure we get that section funding rules and to further clarify areas of the guidance absolutely right. The Education and Skills Funding that have prompted questions since the “This is my message today: the rules Agency will shortly “clarify” what introduction of the policy. haven’t changed, the rules are the same.” appears to be a contradiction in its “The off-the-job section in the funding Asked when an official clarification off-the-job training policy, its director of rules is not intended to be read in would be released by the agency, Smith apprenticeships has said. isolation; the 30 hours is referenced in added: “Over the coming days.” Providers were left baffled after the the minimum duration section.” Mark Dawe, chief executive of agency updated its “apprenticeship However, when the agency’s director the Association of Employment and off the-job training policy background of apprenticeships, Keith Smith, was Learning Providers, said he was “pleased and examples” document on March 22, quizzed on this during FE Week’s but surprised” by the guidance. Keith Smith which for the first time stated that the Annual Apprenticeship Conference “We’ve looked for clarity all the way 20 per cent calculation for full-time staff on Thursday, he admitted “there is a through and it’s never been clear that it’s and not a clarification of policy, I think when calculating the requirement for all should be always be based on 30 hours contradiction”. based on 30 hours,” he told FE Week. most providers will need to review the apprentices who begin their programme of work per week, even where they are “What was issued last week was “We’re pleased but surprised because OTJ requirement for all apprentices,” from August 1, 2018”. paid for many more. guidance on the funding rules to help it was a very easy thing to clarify from said FE consultant Martin West. It means that the calculation to Official funding rules for 2018/19 you interpret them,” he said. “The day one, but it definitely wasn’t there.” The ESFA had already confused many determine off-the-job hours is different make no reference to a 30-hour cap in funding rules are the definitive source, Many in the sector have been using in the sector with regards to the off-the- for apprentices who started before the calculation and providers have been and this new guidance was intended to an online forum managed by the ESFA, job training rule last year. August 1, 2018, compared to those who including all “paid hours”. help you interpret the rules in the best called FE Connect, to discuss the issue. Under original rules for starts from started after. To add to the confusion, the first way possible. One person, who goes by the May 1, 2017, the calculation for the 20 In an attempt to combat confusion, version of the off-the-job training “In this case, there is a contradiction username of PaulB, said the 30 hours per cent off-the-job minimum was the DfE published an off-the-job training guidance included an example of a between the planned 30 hours and the cap will “significantly reduce the based on a 52-week year and included mythbusters document in January. calculation based on 40 hours per week. paid contracted hours. number of OTJ hours required for our annual leave. But the agency changed Apprenticeship funding rules for FE Week sought clarification from “The publication last week was not learners”, some by “around 100 hours”. this in August 2018 and stated that 2019/20, for starts from August 1, have the ESFA, who replied, “To be clear, the intended to complicate it. It was not “In view of what I think is a change, statutory leave should be “deducted not yet been published. January starts up on last year, down on 2017