Conclusions and recommendations
1. In seven years Ufi has provided over 4 million
courses to 1.7 million people up to July 2005, two-thirds
of whom had not done any learning in the previous three years.
It now provides around 500,000 learners a year with an opportunity
to improve their skills either at one of 2,400 learndirect centres,
at work, or from their home computer.
2. Around 60% of learners enrolling with learndirect
in 2004-05 were low skilled learners (pre-level 2 qualified),
compared with an adult learner average closer to 30%.
Relatively few have taken up adult level 2 and adult literacy
and numeracy qualifications that are priorities for the Department.
Ufi should identify and disseminate examples of how some learndirect
centres are persuading and supporting low skilled people to take
up and achieve these qualifications, for example by providing
successful learners as mentors to people just starting to learn.
3. Only 37% of small and medium-sized businesses
know that learndirect is intended to support them and only 4%
use it. Ufi's rationale is to boost employability
and productivity, but it has done limited work directly with employers.
Ufi should develop a strategy for substantially increasing its
direct work with employers within the next two years. The strategy
should include:
- a campaign to promote
what learndirect can offer to companies, focusing on how training
through learndirect has improved productivity and business results;
- a programme to expand the level of activity
by learndirect providers working predominantly with particular
employers or in specific business sectors; and
- a timetable for reviewing learndirect courses
to identify ways in which they can be made more suitable for use
by businesses.
4. Some 40% of enterprises provide no skills
training for their employees. Lower
levels of skills training compared to some other countries have
an impact on the UK's competitiveness. Skills brokers, who provide
advice on training opportunities and suitable providers, should
work with learndirect providers to make e-learning more appealing
to employers who are otherwise unlikely to provide skills training,
for example by making the course content more relevant to the
needs of small and medium-sized businesses.
5. Access to learndirect is limited in some
rural areas. There is potential for online
learning to improve access to learning in rural areas. Rural provision
is an aspect of Ufi's business that is likely to benefit from
further innovation, for example by providing learndirect services
through online tutoring and within existing local amenities such
as schools and community centres.
6. Ufi is intended to be self funding but
by July 2005 had recovered only £12 million commercial income,
compared with £930 million received in education funding.
Ufi now has a challenging target to increase its commercial income
to £40 million a year. It should compile and publish a detailed
business plan setting out how this is to be achieved.
7. By 2004-05 Ufi was still spending nearly
one third of funding for services to learners on management and
marketing costs. Ufi has reduced these
costs over the past two years but its four-tier delivery chain
carries the risk of duplication of activities and unproductive
bureaucracy. Ufi should develop a simpler, more cost effective
structure, for example by reducing the number of organisational
tiers.
8. Ufi achieved only 54% of its target of
0.45 million calls to its National Advice line in 2004-05 from
people who are pre-level 2 qualified.
Ufi considers that the shortfall is largely due to the timing
of advertising campaigns. But as the service attracts large numbers
of calls from hard to reach learners, Ufi needs to determine with
greater certainty the reason for the shortfall. If hard to reach
learners are using the service less, it should review use of the
learndirect website to make sure that it is providing a satisfactory
alternative for these learners to obtain advice.
9. Only around half of learners are recorded
as meeting their training objectives.
It is unclear how far the problem is poor record keeping or learners
actually not meeting their objectives. Ufi should require its
contractors to keep accurate, relevant records of learner achievement.
10. The full potential for other parts of
the education sector to benefit from learndirect has yet to be
realised. Ufi should invite schools, colleges
and other learning providers such as those working in prisons
to review its products and help determine which are likely to
have widest application. It should adapt its business beyond core
areas, for example by developing training for offenders.
11. Online learning poses particular risks
to financial control. learndirect centres
are funded on the basis of people taking up courses online, but
confirmation of learner existence is challenging where physical
presence cannot be easily verified such as in a classroom. Ufi
should publish the results of its current investigation of learner
existence once it is completed, including a thorough assessment
of the lessons learned from the investigation, which the Learning
and Skills Council should disseminate to other training providers.
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