Select Committee on Public Accounts Minutes of Evidence


Supplementary memorandum submitted by the Learning and Skills Council

Questions 30-31 (Mr Sadiq Khan): Review of ESOL Provision

  The question of whether changes should be made to the way ESOL is funded was considered in our recent discussions with DfES colleagues on priorities for funding in 2006-07 and 2007-08. We agreed that while the pressures from increasing demand for ESOL provision are great, the sensitivities involved in changing the way it is funded, without due consultation or consideration of the impact this would have on potential learners, would leave both the LSC and DfES open to possible legal challenge. For this reason, we agreed to make no changes to ESOL funding in 2006-07, but to work instead with DfES colleagues on a further review of ESOL to inform arrangements from 2007-08. This intention is confirmed in paragraph 60 of Priorities for Success—Funding for Learning and Skills 2006-08.

  DfES are leading on this review and a detailed proposal, including the timeframe, is being developed, but we expect that work will being by December and continue into 2006, with outcomes available by autumn 2006 to inform planning and funding guidance for 2007-08.

Question 49 (Mrs Angela Browning): Childcare provision at Bicton College

  Mrs Browning expressed concern about a college in her constituency that had received capital funding to develop nursery provision and was struggling to find revenue funding for the nursery. I promised to investigate the situation and I am now in a position to provide the Committee with details. The college in question (Bicton College) received a capital contribution of £78,650 from the LSC to fund a new nursery through the National FE Childcare Places Programme (small scale, second round) administered through the LSC national office. Total projected costs were £121,792. Bicton College contributed £43,142. The application for Bicton College to establish a new nursery was approved in November 2002 and the Saplings Nursery opened in November 2003.

  In 2001-02, Bicton was allocated £12,101 for childcare support (actual spend was £401). In 2002-03, the allocation was £16,216 (actual spend was £583). At that time, a national review identified persistent under or overspending patterns at colleges on caldcare. Consequently, there was a national LSC decision to rebase childcare support allocations for 2004-05 based on actual expenditure by colleges in 2002-03.

  This resulted in Bicton's allocation of £686 in 2004-05. Overall Learner Support Funds (Residential Bursaries, Childcare Support, Hardship Funds) allocated to Bicton were £313k in 2003-04, £291k in 2004-05 and £269k in 2005-06. A significant amount of this funding is available for expenditure at the discretion of the College including expenditure on childcare.

  The aim of the national capital scheme was to establish childcare places in FE. At the application stage, colleges were advised that subsequent running costs were an issue for each institution and that it would be unlikely that the LSC Learner Support Funds on their own would be enough to sustain a nursery.

  It was made clear to colleges that there is no connection between the provision of LSC capital funding for childcare and the allocation of childcare support funds. Most colleges operate their nursery provision on a commercial basis without significant recourse to LSC revenue funding.

Question 60 (Mr Stephen Williams): Learning and Skills Council staff numbers

  Comparison of Learning and Skills Council staff numbers in September 2004 with September 2005 are given in the table below. Please note that the figure of 3,870 is an FTE (Full Time Equivalent) figure, and 4,700 is an actual headcount figure. These are rounded figures. At September 2004 we were not capturing external funding or agency staff details so we are not able to provide a more detailed breakdown.

Sep 04 Sept 05Difference
Contract TypeFTEHeadcount FTEHeadcountFTE Headcount
Fixed Term298304 273285-25 -19
Permanent3,5713,711 3,7783,929207 218
LSC Payroll Total3,869 4,0154,0514,214 182199
Agencyn/an/a n/a500 n/a n/a
Workforce Deployed Total n/a n/an/a4,714 n/an/a


Question 61 (Mr Stephen Williams): Redundancy costs

  Please note that the data below only includes redundancy or voluntary severance payments to employees and excludes the cost of early retirement. This data excludes other associated redundancy costs such as outplacement consultants or tribunal costs.

2001-022002-03 2003-042004-05 2005-062006-07
Statutory redundancy£3,083,273.82 £307,645.86£386,407.53 £185,995.48£105,230.90 £4,068,553.59
Reshaping and
redundancy
£11,799,561.26£52,996.04 £16,006.50£11,868,563.80
Total£3,083,273.82 £307,645.86£12,185,968.79 £238,991.52£121,237.40 £15,937,117.39





 
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Prepared 16 February 2006