Select Committee on Public Accounts Twenty-Eighth Report


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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