Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 140-159)

DEPARTMENT FOR EDUCATION AND SKILLS AND THE LEARNING AND SKILLS COUNCIL

24 OCTOBER 2005

  Q140  Mr Williams: Despite the extras.

  Sir David Normington: There is a chart in here which shows very considerable increases in unit funding for colleges, but alongside that we have been increasing the funding for schools very significantly. We have not been narrowing the gap, they have been going up and the gap continues.

  Q141  Mr Williams: So the gap is still the same as it was before, or has it got even wider?

  Sir David Normington: No, it has got narrower.

  Q142  Mr Williams: Per head?

  Sir David Normington: Per head. That is a contested point between us and the FE sector. These figures are not agreed. I believe it has got narrower, they do not accept that.

  Q143  Mr Williams: Coming to the point of the financial difficulties some of the colleges find themselves in, which Mr Bacon has referred to, this is your fault here if there is a fault. Why on earth do you on the one hand preach the doctrine of three-year programming and then yourself, at six months' notice, alter the financial ground rules?

  Mr Haysom: We are back to paragraph 2.14. We are talking about two issues here: the financial ground rules. What we did was change the phasing of the funding, the allocations we pay, which caused a short-term issue for a number of colleges during that year. I repeat that we actually had to help four colleges during the year.

  Q144  Mr Williams: Why did you need to do it?

  Mr Haysom: Because there was a benefit to everyone from doing it. There was a one-year benefit of £180 million and otherwise we would have had to find savings elsewhere.

  Q145  Mr Williams: So what about the colleges now who are in financial difficulties?

  Mr Haysom: Which colleges? There are not many. There was a very short-term issue.

  Q146  Mr Williams: They are possibly going to have to borrow.

  Mr Haysom: My understanding is that there were four colleges to which we gave exceptional support during the year and that was a short-term cash flow issue for a few months.

  Q147  Mr Williams: Again it is a situation you inherited and I do not know whether you have done anything about it. We are told by the NAO in the briefing they have given us that even chairs of governors, let alone the governors as a collective group, receive little information from the Learning and Skills Council directly; they have to get their information from the principal. From some of our previous dealings with certain principals in further education that does not exactly seem the ideal situation.

  Mr Haysom: No and, as I said earlier, we acknowledge that point. There was probably more going on in terms of communication with governors than the report suggests.

  Q148  Mr Williams: It is not just education, it is sheer basic information, is it not? If they do not know what your objectives are, if they have to go to get the principal's interpretation of what your policy is, that is utterly undesirable.

  Mr Haysom: Absolutely; yes. We have worked very hard to correct that, we have upped the communications, we have a communications strategy all about governors, we have an area of our website devoted to governors, we are trying to make sure we meet with governors on a much more frequent basis, particularly with our Agenda for Change work, we have started to describe how we would work with governors more closely, we are engaged with the Association of Colleges in working with this whole area.

  Q149  Angela Browning: I am very concerned about this shift of emphasis just onto qualifications and the impact that has on students with learning disabilities. May I just ask you, Sir David, particularly, how frequently your Department talks with the Department of Health about the Valuing People White Paper and the strategy which is being put into place by social services departments under the auspices of the Department of Health? There seems to be some moving away now, if you read Valuing People and how education and learning just life skills in a formalised setting is important to that group of people, but would perhaps be setting them up to fail if you were to insist at the end of that course they had to take a national framework qualification. How frequently do you talk to the other department involved in that project?

  Sir David Normington: We talk a lot to the Department of Health; we regard them as one of our key partner Departments for a whole range of reasons, right through from children to adults. I just want to reassure you about this. Our drive to get outcomes in terms of qualifications does not mean that we are unrealistic or insensitive about people who can only take one step on the ladder and who cannot get full qualifications. In fact it is part of our Skills for Life strategy that we will ensure that people can take small steps. We are increasing funding for people with learning difficulties and learning disabilities within the overall funding that we have described. Over the period up to 2008 the funding will increase by 14%. We recognise this point precisely and we shall be very, very concerned if those people above all suffer.

  Q150  Angela Browning: I may need to write to you on the specifics, if I may?

  Sir David Normington: Please do.

  Chairman: Gentlemen, thank you very much. I think that figure 21 is instructive. I am just counting up the number of organisations which are mentioned in that figure circling round the poor learner: it is 23. What I think is quite amusing is that at the outer reaches of those organisations is the Bureaucracy Review Group reviewing the other bureaucracies. I am sure that in our report we would wish to refer back to this figure and see what we can do to help you in your endeavours to reduce the number of organisations between the learner and the learning. Thank you very much.





 
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