Select Committee on Education and Skills Minutes of Evidence


Examination of Witnesses (Questions 640--659)

BILL RAMMELL AND PHIL HOPE

24 APRIL 2006

  Q640  Mrs Dorries: Why would you not—not, why have you put the money with the LSC—put it with the local authorities? I know you said it is one monolithic structure, but why not, because LAs look after every community school in the country and have done in the past? Why not put it with the LAs.

  Bill Rammell: I think you need more than just the LA focus. The needs of employers, the employer focus, I do not think, given the LA structure in this country, are delivered through that route. I do think that that is what the LSC additionally has brought to the table. You have to bear in mind that you would be going back on the incorporation of FE colleges, which was brought about in 1992. I just say: go and talk to some FE principals about whether they would welcome going back.

  Chairman: She is suggesting it happened under a Tory administration!

  Q641  Mrs Dorries: Would not FE principals prefer the money to go direct to them from government and cut out the LSC altogether—take away all that funding and give it direct to them? Surely they know how to liaise with employers; surely they are doing it at the gritty edge all the time? Why go through the LSC—this huge monolithic organisation?

  Bill Rammell: Within HE education, which, as the Chairman pointed out, we have universities that are at pains to constantly reassure me that they welcome that intermediary body, and they do not wish to be funded directly from the Department. If you do not have an intermediary body, then you do have the Government constantly micro-managing. Whilst at one Level there might be some attractions to some colleges, when it is reflected upon long and hard I think that being directly managed from the centre in that way is not a recipe for total success.

  Q642  Mrs Dorries: Is that what is going to happen to trust schools then; are they going to be micro-managed? Why can they not operate in a similar way to the White Paper proposals for new trust status for schools?

  Phil Hope: Bill is right; they have to operate within the context of the National Curriculum; but trust schools, I think, are a very positive development to enable external providers, very much building on the success we have had within specialist schools, to come in and promote innovation and drive within schools that can help within the most disadvantaged communities.

  Q643  Mrs Dorries: What about local organisations, employers?

  Bill Rammell: Local organisations are important. To take your question directly, I have not had one college principal in the last year who has said to me "do away with the LSC and let us be funded directly from the Department".

  Q644  Mrs Dorries: Is he likely to say that to you, do you think?

  Bill Rammell: College principals lobby me about all sorts of things all the time, and if that was on their agenda I am fairly confident they would be pushing for it.

  Q645  Mr Chaytor: Minister, can I ask about the focus on skills as the base for the new FE mission. Paragraph 19 of the White Paper states: "This economic mission does not mean narrow vocationalism." If it does not mean that, what does it mean?

  Phil Hope: Because the colleges will still be delivering A-levels and the new Diploma; but also, as we discussed earlier, they will be delivering what Sandy Leitch described as the skills gaps and the skills shortages. They will need to focus on responding to that need out there, but in doing so will be delivering a broad base, including, I might add, courses for Level 1 skills, and PCDL will be playing their part in that as well. However, the priority, the drive, the core mission being around skills is that that will be a major focus for them, particularly responding if we roll out the Train to Gain funding as well. It will be a new opportunity for them to fulfil that mission by going out to the market place and offering employers the training that they know they can provide at a quality that employers need.

  Q646  Mr Chaytor: What will go?

  Phil Hope: It will be a matter for each individual college to determine locally their priorities, but clearly responding to the skills needs of their local communities is a critical part of their core mission as we are laying it out. They will be responding to that core mission—that is where we want them to respond to be delivering. It does not necessarily mean things will go, but at a local level people will be making their own choices and deciding priorities within the funding envelope that they are given.

  Q647  Mr Chaytor: If the impact of the new demand-led funding system, which will move to 60% of the total budget eventually being demand-led-the impact of that and the impact of the introduction of the brokering system for Train to Gain significantly shifts the provision of skills training from colleges to private providers. Will it be open to a college to diversify out of the narrow vocationalism in order to survive, or would you expect the college then to close or merge?

  Phil Hope: I think there are huge opportunities under Train to Gain for FE colleges. At the moment some 28% of employers choose to use colleges to provide their training for them, and those that do provide that training—they get 80% saying it is satisfactory or very satisfactory.

  Q648  Mr Chaytor: So would you expect that percentage to increase?

  Phil Hope: I would; I would expect the colleges to become far more responsive to employers' needs and to deliver the kind of training, funded through Train to Gain—and indeed, as employers get captured, as it were, through the Train to Gain, to deliver apprenticeships and other vocational qualifications for the existing workforce, so this is a big opportunity for colleges to develop. I know that colleges are now already looking at the invitation to tender that was published today by the LSC to see how they are going to take part in making their presence felt so that the brokers, when they are advising employers, can clearly see what FE colleges have to offer.

  Q649  Mr Chaytor: Later in the White Paper it states that: "As general FE colleges increasingly focus on the core economic mission, local authorities and voluntary providers may focus on the wider personal fulfilment and community programmes." Is that an imperative? Is that Government policy, or is that going to be a matter for local determination?

  Phil Hope: It should be a matter for local determination, but we are charging the LSC to establish new local partnerships with local authorities and others—voluntary organisations and others—to audit what is being provided at a local level, to find out where those gaps are and then to maximise all the resources locally to make this happen. In fact, they may be led by a local authority. The LSC in fulfilling that task may say to the local authority, "Let us bring this partnership together and make this happen". It is not happening at the moment.

  Q650  Mr Chaytor: Will there be an incentive in the funding system to segregate out the adult and community programmes from the strictly skills-based, professional programmes?

  Phil Hope: There is the ring-fencing of that PCDL budget. That is what we are referring to, and that is in itself an incentive. We have written in the grant letter to the LSC that this is a task that they need to do and that this money is ring-fenced.

  Q651  Mr Chaytor: Will that budget be shifted to the local authority?

  Phil Hope: No. I would anticipate the partnerships—everybody bringing what they are doing to the table, sharing it, and then perhaps changing and developing what they are delivering at a local level. Now they have had that dialogue, had that discussion, had that assessment, and saying, "It is daft that you are funding it and I am funding it and we are both funding the same thing, and we are both not meeting the needs of the community; why do we not look at what we are doing and find ways of using that resource more creatively at a local level?" I would hope that they would be innovative in their way of going about doing that. It might be that the college is around that table, in that partnership, with a proud tradition and history, as it were, of delivering this and carrying on doing so. It may be that in other areas that has not been the position for that FE institution, and they will not be. That will be a matter for local partnerships to develop.

  Q652  Mr Chaytor: So there would be nothing to prevent colleges that currently have a broad range of provision and have strengths in the adult and community work maintaining—

  Phil Hope: Certainly there will not be anything to prevent it at all; in fact we would want to see them creating better partnerships to ensure that what they are doing compliments what the local authorities and others might be doing, because at the moment the evidence is that that is not happening off around the country—that kind of working-together partnership delivering that kind of learning in local communities.

  Q653  Mr Chaytor: Can I ask about the development of the specialist element in colleges? I understand the analogy with the specialist schools programme, but is it an exact analogy, because, clearly, within a given area, even in a large conurbation, there are far fewer colleges than schools and therefore it is less likely that students will move around college to college because of its specialism because it would be further to travel. So is this a curriculum improvement programme, or is it a device to encourage greater exercise of choice and requiring students to travel greater distances to get to the provision that they are looking for?

  Phil Hope: The network of centres of vocational excellence that we have already has proven its worth in terms of raising the quality of vocational training that is being delivered, both 16-19-year-olds but also to employers who can make use of that facility. We are raising the bar on the quality of that network, and those CoVEs are going to have to go through a quality improvement process to ensure that they then qualify for that status. We are building in the national skills academies, as you are aware, as a new element; that is to say the first four are being planned at the moment. We want to have 12 of these, and eventually one per sector skills council, to be at the apex of a range of CoVEs under the particular skills sector. All of that will be to drive up the quality and standard of training as well as the volume of training that is delivered; and for a particular college that takes on a CoVE or has a CoVE already, there are two things we expect: one is that they will become very good at what they do and better at what they do; second, for example not only is it an automotive CoVE—not only does that have the ability to develop and deliver better training in that specialism, but we do expect it to have the effect it has had in schools, which is to raise the overall performance of the college; that the college gains reputation and it has that impact on the wider delivery of training by the college as the CoVE is seen to be so successful for that particular college.

  Q654  Mr Chaytor: Would you expect there to be a CoVE in every area of the curriculum within a given travel to study?

  Phil Hope: No. We have a combination, do we not, of sector skill requirements and different local requirements; so the skills base of Corby or of Newcastle and the skills needs and the manufacturing versus the service sector and so on, is very different from one area to another. It will be for the college, with the LSC to discuss locally that which meets the needs of that community. As we described earlier, if you get a particularly good college, good at a particular thing, it might want to confederate or be delivering that kind of training speciality in another area, or working with another college in another area, to raise the quality of that training in that other area.

  Q655  Mr Chaytor: Is that model equally applicable to rural areas, where one college may serve a hinterland of hundreds of square miles?

  Phil Hope: Yes, I think the challenge there is to be able to deliver different sorts of vocational skills training to very sparsely populated area. When it comes to delivering the Level 2 and Level 3 diplomas, we have to have ways of delivering that which are outreached to employers in local communities. We have good examples of doing precisely that, but we need to build on that across the country because it is not sufficiently replicated elsewhere.

  Q656  Mr Chaytor: Can I finally ask about the review of reputation that the Foster report argued for and which has now been established. Can you tell us who is in charge of it and when they are going to report?

  Bill Rammell: It is being driven across the LSC with the sector and with ourselves. I think this is a really important piece of work. I would anticipate it reporting by the back end of the summer, the autumn. It is a really important piece of work, to get champions at a local and regional and national level; and to get real advocates within the system. One of the ongoing debates that I have with the Association of Colleges is about the need to recognise that within the FE sector sometimes the glass might be half-full instead of being half-empty. There are challenges, and the sector needs to challenge us about what needs to happen; but actually, if we are constantly talking about the problems within the sector, whatever they may be, we send a message outside about how well or not the FE sector is doing, which is not in the best interests of the sector and does not reflect the progress that is being made.

  Chairman: We are working you well tonight, but let us move to "Oversight and Management". You ought to get some sort of honour for being so patient!

  Q657  Dr Blackman-Woods: Before asking about oversight and management, can I ask a question about employers, because it is not that long since I left this sector. One of the things we had real difficulty with was employer engagement, and although I fully applaud the focus that the White Paper has on employment issues, I am just wondering how confident you are that you are going to get the employer engagement. Indeed, do you see employer engagement as the way forward, or are you happy to deal with proxies like sector skills councils or chambers of commerce; or do you actually want it to be employers? There are so many different ways in which you want to engage—

  Phil Hope: There are two things about this. For an employer who just has a workforce and says "I want to train my workforce"—frankly, they do not need to know or worry about what I call the wiring of sector skills councils, regional skills partnerships and the rest of it. They simply go to their broker and say they have a particular training need under Train to Gain, and they get that training need met quickly with a good training provider. Many employers of course—and we want them to do this—engage with the structures we have created to ensure that we create, with the sectors skills councils, sector skills agreements that map out the training needs and the training gaps and see how in partnership they can work together, maybe contributing to a national skills academy as we develop the specialism within the sector. I think different employers will be engaging in different ways. In terms of at the local level for the FE college engaging with employers, it is critical—and I am confident that FE colleges will respond really positively to this—and we have models like that in the Sussex colleges where they have looked at how they operate, how they behave, how they engage with employers, and completely transform the way that they go about doing their business, to such an extent that it is one of the bases for the quality mark that we will be developing for the years ahead. I think that this is a great opportunity for FE colleges to become much more engaged with employers in a whole variety of ways at a local level to meet those employers' training needs. With the demand-led funding, the funding system drives them in that direction as well. That is different from the infrastructure that we created to ensure that those training needs that we develop are fully thought through and developed in the sector skills councils and all of that area of structure.

  Q658  Dr Blackman-Woods: Moving on to implementation, the Foster report said there should be an implementation unit within the DfES and then a kind of user group, presumably so that that group could monitor what was happening in terms of implementation. You seem to have gone for this ministerial standing group that brings in users and people who are involved in the direct delivery of FE. Can you explain why you went for that model?

  Bill Rammell: There are two levels to it. Firstly, there will be a programme board of officials internally within the DfES, chaired by Stephen Marsden, who is the Director of Lifelong Learning and Skills. That group of officials—their responsibility will be to track the proposals, to track the implementation, to liaise with the external bodies to ensure that is happening. Also, we do want a body that will look at the relationship between colleges and the LSC and the Department, but also monitor the implementation of the proposals within the White Paper. That is the body that will be meeting within the next month or so for the first time. It will be chaired by myself. Phil will be there as well. It will bring all the key stakeholders together, as well as some of the trade union representatives, as well as some of the college representatives. One of the things that we did very proactively in drawing up the White Paper was to go out and establish sounding boards with different groups of principals and providers across the country, to get their input. Some of those will be represented on that body, so you will have the official group, and you will then have the group that is chaired by myself. However, I am keen to see that extended beyond that so that we keep some of that interaction directly with groups of providers on the ground and keep the dialogue going. That is the most effective way to recognise the consensus we have established and make sure we drive the changes through.

  Q659  Dr Blackman-Woods: I think there is a degree of consensus that rationalisation may not have gone as far as it could go. I wondered whether that was something that we shared, and if it was something that the implementation group could keep on board, so that they could keep looking for opportunities to rationalise. I know the FE sector is always complaining about the number of accreditation and awarding bodies they have to deal with—inspection, and employers and employers' organisations; and I just wondered if that was something you had thought about keeping in your sight.

  Bill Rammell: Certainly there are elements of rationalisation within the White Paper, and those will be driven forward. In terms of the accreditation bodies, that is something that Phil has been working on.

  Phil Hope: There are two things: there is the whole quality improvement—and Bill mentioned earlier how that is being brought under the umbrella of the QIA; and there will be a clear simple system for giving support for quality improvement, which will bring together a lot of bodies that so far have been playing a part in that. On the question of awarding bodies and accreditation, the work we are doing around the framework for achievement is a critical part of the landscape here. I will not say it is not challenging, because there are a lot of very important vested interests taking part in this, but it is something we are determined to do. We are clear about where we want to get to, and that is the work of the trials and the pilots that are going at the moment, to ensure that we can know that what we are about to put into place works. What is critical is that you move from one system to another. You do not, as it were, lose things along the way, which is why—I know there is an urgency about this but in conducting it in an urgent way we do not make mistakes because there is so much at stake in terms of the credibility and robustness of the qualifications and the awarding bodies that deliver them.


 
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