Memorandum submitted by the Association
of Colleges (AoC)
1. AoC (Association of Colleges) is the
representative body for colleges of further education, including
general FE colleges, sixth form colleges and specialist colleges
in England, Wales and Northern Ireland. AoC was established in
1996 by the colleges themselves to provide a voice for further
education at national and regional levels. Some 98% of the 425
general FE colleges, sixth form colleges and specialist colleges
in the three countries are in membership.
FURTHER EDUCATION
COLLEGES
2. Further education colleges have a major
role in the existing efforts to equipping people of all ages with
the skills they need for working life. The central role of colleges
in education and training is evident from the following facts.
Colleges:
— enrol the largest numbers of 16-18
year olds in full-time education and account for more than 40%
of entrants to higher education;
— are the main providers of work-related
learning for all ages. They deliver part-time vocational education
to 15% of 14-16 year olds, account for 50% of the Train for Grain
programme and support 53% of the learners who successfully complete
National Vocational Qualifications each year; and
— are the main option for any adult
wishing to learn part-time. Colleges are the main providers of
foundation degrees, learndirect, basic skills, technical skills
at Level 2 and 3 and general adult education.
WHERE PEOPLE GAIN VOCATIONAL QUALIFICATIONS
Source: AoC analysis of DfES statistics
on vocational qualifications
SECTION ONE: CONTEXT
What issues should we take from the Leitch report
on UK skills gaps?
3. There are three key conclusions from
the Leitch review about UK skills gaps:
— the stock of UK skills has improved
over the last 10 years;
— the main cause of the improvement
has been the rapid improvement in the qualifications held by young
people (more of whom now go to university). The UK's skills profile
compares well on higher level qualifications; and
— despite the improvements, the UK
compares poorly on intermediate and basic skills. Fewer UK adults
have intermediate skills (Level 2 and 3 qualifications) compared
to the OECD averages. The UK has more adults with low qualifications
than comparable countries and is ranked 18th across the OECD.
Are the measures that we have available to measure
the success of the skills strategy robust?
4. We have three comments on this issue:
— the skills strategy has a strong
focus on qualification levels as a proxy for skills. This creates
problems. Although there is a good educational basis for the different
levels in the national qualification framework, qualifications
at the same level differ in terms of the capabilities they represent.
An A-level assesses very different aptitudes from an Advanced
City and Guilds. It is questionable whether a single national
accreditation system can fully assess the current and future value
of each qualification. The qualification level is a useful shorthand
for skill level but the Government needs to be cautious about
an over-reliance on a single measure of success;
— there is a risk of complacency about
adult learning participation. The Leitch interim report states
that that the UK has relatively high participation levels in education
(16% of 30-39 year olds are full or part-time students compared
to an OECD average of 5%). The OECD survey cited counts all participation
equally—including one day statutory courses but may not
properly address the different ways in which countries capture
data. The strong UK Government involvement in education and training
and the strong emphasis on external accreditation make it likely
that more data is captured on short courses in the UK than in
some other OECD countries; and
— significant improvements have been
made in the measurement of qualifications achieved in the English
education system but the existence of parallel data collection
systems for the school sector, for universities and for further
education is still an obstacle to a full understanding of the
data. The introduction of a Unique Learner Number will improve
the situation but it will be several years until robust data on
individual achievements is available.
SECTION TWO: NATIONAL
POLICY ISSUES
Are the Government's priorities for skills broadly
correct?
5. While the Government's priorities for
skills focus on a number of areas, the coverage of the existing
targets is too narrow. The Leitch review rightly calls for a more
ambitious approach to skills, which would, if implemented:
— treble the number of adults gaining
basic skills qualifications each year;
— significantly increase the numbers
gaining Level 2 qualifications so that 90% achieve this level
by 2020;
— shift the focus of the system towards
Level 3 with four million achievements by 2020 and 500,000 apprenticeship
a year; and
— maintain the expansion of higher
education at current rates.
6. This is a more balanced set of targets
than those set out in the current Public Service Agreement between
the Treasury and DFES.
How do other targets such as the "50% into
HE" fit with the wider skills agenda?
7. The Leitch review rightly focuses attention
on the need for more people to have skills at Level 3 and 4. Achieving
the Leitch review targets by 2020 will require a major catch-up
exercise for those with low skills but also a major expansion
in learning and training at Levels 3 and 4.
8. The Select Committee may want to investigate
issues around the balance of funding towards these targets. The
Leitch review focuses mainly on further education and training
but does enunciates the principle that "at Level 4 and above,
individuals and employers should pay the bulk of additional costs
as they will benefit most" but does not follow this through
to its logical conclusion. In chapter two (para 2.34), the report
states that the Government in England spends £7.4 billion
on higher education and £4.5 billion on further education
and work-based learning. This implies that the Government is spending
the majority of its education budget for over 19 year olds on
higher education students who gain greater individual benefit
from their studies. The Leitch review makes a number of recommendations
to change the further education system but barely covers issues
in higher education.
What is the extent of joined up working between
Government departments, particularly the DfES and Department of
Work and Pensions
9. The amount of joined-up working between
the DfES and DWP is limited. There are three particular issues:
— different targets—the DFES
and the further education system is focused on raising standards,
on engaging with employers and on increasing the number of people
with relevant qualifications; the DWP and Jobcentre Plus is focused
on reducing the numbers of people claiming benefits with less
emphasis on the wider jobbrokerage role;
— different funding levels—the
financial squeeze on the DWP has resulted in a contracting approach
focused on cost-reduction. This has reduced the ability of supply
side to meet the wider needs of unemployed people and resulted
in negative quality assessments on the training programmes for
the unemployed. Few colleges now contract with the DWP; and
— the top-down way in which all Government
departments are managed makes horizontal co-operation more difficult.
Do current funding structures support a more responsive
skills training system. How could they be improved?
10. The current funding system for English
further education is highly focused on the delivery of national
targets. The Learning and Skills Council has been increasingly
focused on delivery of targets in the years since its creation
in 2001. The experience of the last few years has been partly
positive and partly negative. The targets have focused the education
system on common goals and stretched all organisations to achieve
more. Targets have contributed to quality improvement through
the assurance of common standards. The LSC has achieved a dramatic
shift in the balance of public funding.
11. There are, however, negative aspects.
The LSC has shifted money towards public service agreement targets
and this has required funding cuts for other courses. This, in
turn, has resulted in a cut in the number of course places for
adult learners. In some cases, the focus on targets means that
the accreditation of existing skills is valued equally with the
acquisition of new ones. The refocusing of public funding and
the cuts in other provision has limited the ability of colleges
and others to respond to local needs. Colleges can offer employers
and individuals anything they want provided it's a Level 2 qualification
or it's charged at full cost.
12. Given this experience, the recommendation
for more ambitious targets will only make sense if the Government
is equally ambitious with its funding and policy-making, starting
with the 2007 spending review. AoC recommends the following approach:
— a public funding settlement for the
period from 2008-2011 which allows for expansion in adult skills
provision at a time when money will also be needed for the Government's
14-19 reforms;
— a more coherent approach to public
funding for education and training after the age of 16. The current
budget allocations direct the largest amount of public money is
directed to those who do best at school. The 2007 spending review
is an opportunity for a reforming Government to take a different
direction in the interests of the economy as a whole and to promote
social justice;
— a reconsideration of the approach
towards public subsidies for employer training. The Government's
message about the need for employers and individuals to contribute
more is clouded by the expansion of programmes like Train to Gain
which offer a 100% subsidy for employer training, plus wage compensation.
The further education system needs to offer employers a choice
of programmes on a mixed economy basis—with employers and
Government both contributing; and
— a national campaign on individual
commitment to learning. Ministers, officials and college leaders
know that fees have to rise but the message has not been taken
to the general public or employers. There have been several Government
advertising campaigns since the publication of the skills strategy
in 2003 but none on the issue of fees. The Government and education
system need to sell the message that learning pays and that investment
is vital to business and individual success.
Is the balance between the public, employers'
and individual's contribution to learning appropriate?
13. The Government is right to seek a better
balance between public, employer and individual contributions
to learning. In further education, the Government move to a position
where Government pays 50% of the costs of learning and individuals
or employers the other 50%. This policy makes sense for some qualifications
and some learners but there are a number of issues which need
to be addressed in moving to this goal:
— public explanation of the policy
and a clearer approach towards employer training (see para 14
above);
— the inconsistent application of the
policy to all publicly-funded education beyond the age of 19,
including higher education. The higher education teaching grant
provides an average of £4,100 per full-time student in 2007-08,
which implies a fee assumption of 43% for universities. Unless
there is a change in the 2009 review, college students will contribute
a greater share of their costs than university students;
— the lack of financial support for
adult learners facing fee increases. From 2004 and 2010, the change
in the fee assumption for adult learning will require average
annual fee increases of 16%. Financial support for adult learners
is £150 million compared to the £1.5 million annual
cost of higher education student support; and
— the need for greater efficiency in
the further education system, in particular by reducing unnecessary
regulation.
SECTION THREE: SUPPLY
SIDE
Is there a case for a less regulated supply-side
with fewer intermediary bodies? What are the potential risks and
benefits of such an approach?
14. Colleges have improved their operations
in the last ten years in a way that has few parallels equals within
the public services. Colleges have:
— increased the numbers of 16-18-year-olds
in education and training and helping more of them progress into
university and work;
— increased the number of adults enrolling
and achieving basic skills and Level 2 qualifications to enable
the Government to meet its targets;
— managed their curriculum offer to
meet employment growth and clear demand for higher skills, for
example construction and health and social care; and
— significantly improved quality whether
measured in success rates or inspection reports. At the same time,
colleges have maintained satisfaction levels above 90%, compared
to 75% in universities.
FE COLLEGES HEADLINE SUCCESS RATES 1998-99
TO 2004-05
Source: LSC statistical first releases
on learner outcomes
15. Colleges have achieved these improvements
with some assistance from the Learning and Skills Council and
advisory bodies but not to an extent that justifies the continuation
of current arrangements. Much Government regulation of the further
education system is complex and results in unnecessary micro-management.
This wastes hundreds of millions of pounds and saps the morale
of governors, managers and staff in colleges. The performance
of colleges on any measure—rising success rates, better
inspection results, high satisfaction levels—shows that
this regulation could be reduced considerably. We set out some
specific ideas on the Learning and Skills Council below.
16. There are also opportunities to rationalise
the multiple agencies involved in planning, regulating, inspecting
and advising colleges. The Government's quality improvement and
reform programmes uses the Quality Improvement Agency, Centre
for Excellence in Leadership, Sector Skills Councils and Qualifications
and Curriculum Authority to facilitate change. By 2008-09, the
anticipated changes will either be underway or completed.
17. The AoC has no desire to end valuable
programmes but believes that, in a time of public spending restraint,
grants for such activities should not be open-ended. Furthermore
the best people to make decisions about which programmes should
stay are the end-users in colleges, schools and training providers.
The Government should consider enacting a policy that the various
improvement programmes become self-financing from 2008-09.
18. There are also clear roles for external
inspection, national qualifications and public audit but there
needs to be a reduction in the level of college-specific regulation.
Greater use should be made of the public law and regulation that
applies to all business and public services. At the same time,
a move towards more college self-regulation could provide the
assurance that Government, employers and the public require but
without the elaborate regulatory apparatus that currently exists.
Where regulatory powers are retained by Government, they need
to be developed so that there can be effective, co-ordinated action
to address failures in partnership with the sector.
What do national and regional agencies currently
do well? How well are bodies such as Regional Skills Partnerships
working?
19. National agencies have played a major
role in the last few years in raising standards in publicly-funded
further education and skills training. The Success for All strategy
in 2002 launched a number of valuable programmes and focused attention
on common quality improvement objectives. This has helped colleges
and training providers take a robust approach to self-assessment
and to eliminating failure. As a result the further education
sector has responded robustly to criticisms made in inspection
reports from Ofsted and the Adult Learning Inspectorate. The foundations
laid by these initiatives this decade provide the basis for a
different approach in the next few years.
20. The role of regional agencies in skills
has developed more recently and is constrained by their lack of
funds, the inter-agency competition with the Learning and Skills
Council and the artificial nature of some regions. Regional development
agencies (RDAs) have made a positive contribution to skills, for
example in helping college capital development by facilitating
land assembly, but there is confusion at local level over who
is responsible for what. This confusion could become more pronounced
in the next year as a result of the growing interest from local
government in skills and as a consequence of the development of
more Skills and Employment Boards.
Does the LSC need to be subject of further reform?
21. The Learning and Skills Council has
undertaken a major process of reform in the last few years, most
recently with its Agenda for Change. This reform has helped to
clarify the LSC's role, to improve internal decision-making and
to reduce its running costs. Although disruptive, reform of the
LSC should not stop here.
22. A central aim needs to be to reduce
the micro-management of colleges by the LSC and to free colleges
to make their own decisions in response to Government, employer
and individual demand. The combination of national, regional and
sectoral targets; regulatory controls on courses and qualifications
and the failure to properly cost new initiatives has severely
curtailed the ability of colleges to respond to local needs. The
over-regulation also makes it more difficult to hold governing
bodies and principals accountable for their successes and failures.
23. The Leitch Review identifies the needs
for realism about the ability of Government to plan from the centre.
Planning can be used to inform funding allocations, to allocate
capital grants and to pump-prime new developments. Central planning
cannot anticipate and meet complex education and training needs
created by economic and social change.
24. There are a number of ways in which
LSC could be reformed and could operate within a reduced budget:
— partnership teams could be reduced
in size;
— duplication between regional functions
could be eliminated; and
— the national office could be further
slimmed down, particularly if genuine progress is made in simplifying
funding systems.
25. The LSC needs expert staff who can regulate
the sector, control the spending of public funds and make effective
partnerships with other organizations. But the cost of these activities
could be contained within an administration budget of £100
million or less and still leave the college funding body spending
more on administration as the share of the total budget than comparable
organizations do in Scotland and Northern Ireland.
26. The reformed LSC will be the economic
regulation of publicly-funded further education and training.
Economic regulation is a concept that is well understood in the
energy, transport and media sectors and that is increasingly being
applied in the NHS and postal services. Economic regulation in
the further education system will require the LSC to focus on
price, availability and quality rather than the internal management
of colleges and training providers. The LSC will need to ensure
that the market works fairly and openly.
What is the typical experience of a college or
other provider who wants to put on new provision in response to
employer demand?
27. Colleges have a good track record in
responding to new demands but they can only do on a sustainable
basis where income covers costs. Colleges and training providers
need to work with viable groups of learners to keep the average
cost per learner down or to work on relatively limited contact
time for individual learners.
28. Where employers are willing to pay fees
for training, it is possible for colleges to work fast and effectively
to meet new demands. Where training depends on public funding,
colleges can only respond if they have capacity within their LSC
allocations and if the employer is willing to work with national
qualifications. Train to Gain provides more flexibility for colleges
to draw down public funds but only if these are to be used for
Level 2 qualifications.
Case Study: Bridgewater College and Mulberry
Luxury brand Mulberry needed to broaden the age profile
of their employees, to safeguard the brand's future development.
They contacted Sector Skills Council, Skillfast-UK, who recommended
Bridgwater College, Beacon Award Winner for Employer Engagement
2006. Setting aside traditional methods of working the College
created a unique on- premises apprenticeship, attracting 58 applicants
for 10 places. The College conducted skills assessments of applicants
enabling Mulberry to shortlist and interview. These youngsters,
all from the local community, are now learning specialist leather
manufacturing skills and the scheme will continue each subsequent
year, as well as being extended to other staff.
Do we need to consider any further structural
reforms in terms of which institutions provide what kind of learning?
29. Adults learn and train at a wide range
of institutions including colleges, universities, local authority
centres and private training providers. The supply-side is complicated
and decentralised and this largely reflects the way in which institutions
in the public sector are funded and regulated.
30. Over the last 10 years, the number of
colleges has reduced by 20% as a result of mergers. With LSC financial
support in the short-term, the merger of high quality colleges
with their neighbour has strengthened the sector and contributed
to the general rise in success rates and confidence in the system.
The average size of colleges in terms of income has grown by 50%
in the past five years as a result of mergers and participation
growth.
31. At the same time, the LSC has reduced
the number of funded work-based learning providers in recent years
in the interests of improving quality. Further consolidation has
come as a result of merger activity by larger providers.
32. Other changes have been initiated in
response to Government funding. Frequent changes in Jobcentre
Plus, learndirect and community learning funding has caused the
growth and disappearance of a large number of small training providers.
33. In an ideal world, there might be a
case for a different way to organise institutions but significant
structural change would require substantial Government intervention
and considerable costs, not least because of the implications
for employees. A more pragmatic approach for Government is to
rely on market mechanisms to deliver changes on the supply side
but to focus attention on more efficient ways to regulate and
fund the sector.
34. The stated policy of the DfES and LSC
is to expand choice and to "buy quality". An effective
way to increase choice and quality might well be to support expansion
by existing high quality providers. This could support the Government's
other policy to encourage specialisation. Encouraging expansion
by colleges and providers with high quality provision in particular
subject areas would be a cost-effective and reliable way to achieve
Government objectives.
SECTION FOUR: DEMAND
SIDE
What should a demand-led system really look like?
35. Lord Leitch's review describes a demand-led
system as one in which the decisions of employers and individuals
determine the allocation of public funding. This is a fair description
of the way that the funding system currently operates. Colleges
can make commitments to employ staff and equip classrooms on the
basis of this year's allocation in advance but know that they
will lose funding in the following year if they do not recruit
or retain students. Over a period of years, there have been quite
significant changes in funding levels in response to demand.
36. This description of a demand-led system
focuses on choice of where to study and train but in a context
where the choice of what to study is being reduced. The DfES and
Sector Skills Councils are working together to rationalise the
number of qualifications on offer and to reduce the number of
qualifications for which public funding can be claimed.
37. AoC believes that the system should
be demand-led but that it needs to work within Government budgets
subject to annual cash-limits and in a way that protects consumers.
The providers of education and training have better information
on their services than consumers. Government regulation is necessary
through inspection, national qualifications and public funding
decisions to protect consumers.
38. Given these constraints, a demand-led
system needs the following characteristics:
— individuals need the power to choose
where and what to study but, at the same time, are expected to
contribute financially to their own learning;
— employers are given a leading role
in advising Government, colleges and providers on the priorities
for public funding. This should happen via Sector Skills Councils
and via individual contacts. The expectation on employers is that
they will pay for the majority of their staff training but that
training leading to national qualifications is partly funded by
the state;
— public funding is focused on individuals
with low incomes and on areas of clear skills needs but in a way
that also allows individual and employer choice. Public funding
should be allocated largely on the basis of demand but in a way
that supports investment in staff and facilities. Funding should
only go to institutions who can meet quality standards. Public
funding also needs to ensure that there is adequate choice. The
track record of colleges in meeting demand and in maintaining
high standards means that they would have a clear role in such
a system; and
— Government regulation of the system
is focused on ensuring adequate quality standards and on ensuring
sufficient choice in all parts of the country.
Do employers feel that they are shaping skills
training—for example through Sector Skills Councils? Do
employers feel closely involved with the design of new qualifications?
39. There is a strong employer role at all
levels in the existing system yet the majority of employers appear
to feel disenfranchised. Employers are represented on national
councils (for example the LSC), influence Ministers and civil
servants, approve qualifications via their role on Sector Skills
Councils and have a leading role in delivery, both as governors
of colleges and as providers of apprenticeship places and work
experience. The employer role has grown in the system in recent
years yet this has not solved the problem of employer engagement.
40. There is no easy solution to this problem
but perhaps a different approach is needed. The increasing centralisation
of further education makes the whole system less responsive to
individual demand. Rather than introduce yet more consultation
processes at the top (for example a greater role for Sector Skills
Councils in funding decisions), the solution might lie in more
decentralisation so that employers have more choice and involvement
in decisions at a lower level. SSCs have a valuable role but there
have an impossible job in representing employer views.
Case Study: Gateshead College and Nissan
Nissan car plant has a high demand for skilled labour.
However, many temporary workers have little or no experience of
manufacturing or production line work. This inexperience had the
potential to increase staff turnover and lower efficiency.
Gateshead College helped Nissan solve this problem
with a replica off-site production line and the development of
tailored training. This innovation has meant that Nissan are able
to train people away from the demands of a "live" production
environment. Steve Greener of Nissan said; "People that come
off the training course are as good as the people that have been
at Nissan for 10 years. Every process is taught and then speeded
up over the course—one process has been reduced from seven
minutes to 26 seconds."
Should employers be further incentivised to take
up training? If so, by what means?
41. The central proposal in the Leitch report
is a deal between Government and employers. Government should
shake up funding and qualifications so that employer demand takes
precedence with public money focused on those with lower skills.
In return, employers should commit to spending more on training,
particularly on those with intermediate and higher skills. The
deal is offered as an alternative to compulsion and levies on
employers. The idea is that this will lead to an expansion in
training and significant progress towards a new set of targets.
42. The weakness in this deal is that Government
might deliver its part while employers do not change. Employers
have many priorities besides staff training. The record of past
voluntary initiatives to encourage employer investment is not
good.
43. The proposed Commission for Employment
and Skills simplifies the landscape in some ways by bringing together
the Sector Skills Development Agency and National Employment Panel
but leaves many other bodies and committees untouched. The review
focuses very much on issues at a national level and does not address
the difficulties that smaller employers have in engaging with
national organisations.
44. The Leitch review has fairly cautious
in this area. The review has not properly considered other ways
to incentivise employers (for example tax incentives or levies)
and downplays the advantages of further rationalisation.
Case Study: Derby College, Rolls-Royce and local
businesses
Rolls Royce works in partnership with Derby College
to deliver manufacturing training to local businesses. Graham
Schumacher, Head of Learning Operations at Rolls-Royce said; and
"Rolls-Royce values the partnership with Derby
College and Amicus to establish a Centre of Vocational Excellence
to deliver Lean Manufacturing Training. Rolls-Royce has lean engineering
expertise, Derby College has the engineering educational infrastructure
and Amicus the local network of SMEs. Together we have the ability
to be an effective force to assist the local engineering community
to develop a competitive edge."
What is the role of Union Learning Reps?
45. Union learning representatives have
a valuable role in reaching out to people who would not otherwise
participate in learning. A number of programmes funded through
the Union Learning Fund has shown what can be done. Trade union
centres in colleges across the country have an important role
in providing basic training for union members in issues like health
and safety and in encouraging people to develop their skills from
this point.
What role should employment agencies play in facilitating
training?
46. We have no particular views on this
issue.
What is the typical experience of someone looking
for skills training?
47. It is impossible to generalise on this
point but it is important to record that someone looking for skills
training will face a narrower choice of publicly-funded programmes
because of the budget and funding changes but that the quality
of the programmes that are available will be higher where judged
by success rates and inspection scores.
48. In the LSC survey of 74,000 businesses
(the National Employer Survey), 82% of employers approved of the
training they receive from colleges. A 2004 independent LSC survey
showed that employers rate colleges with a Centre for Vocational
Excellence (CoVE) highly—with nine in 10 intending to use
the college again.
Case Study: Park Lane College and Redcats
Park Lane College Leeds has been working with Redcats
the Catalogue Services organisation for the last four to five
years to assist them with developing skills and knowledge of the
Call Centre based Staff—from the Customer Service Advisors
to Admin Staff to Team Leaders and Call Centre Managers. These
development skills are carried out through the staff undertaking
NVQ programmes in the sector relevant to their occupational role
and are linked to their organisational individual development
plans, in which needs are highlighted.
The NVQ programmes have been an integral part of
Redcats' commitment to staff investment and this has in turn seen
an impact over the years of staff attrition and promotion of staff
to higher levels of responsibility. The delivery of the programmes
has been so successful amongst the Redcats group that not only
have they expanded the programme areas but we also now work with
some of their other sites in the region.
What information, advice and guidance is available
to potential learners?
49. The information, advice and guidance
services offered to adult learners vary in availability and quality.
The Leitch review correctly identifies the need for an improvement
as part of reforms to help the consumers in the system become
better informed. Colleges have a significant role in offering
advice and guidance to potential learners, not just on their own
courses but on all the options available to learners. Many colleges
work towards the Matrix standard for guidance as a guarantee of
quality standards. If the Government moves in the direction of
an adult careers service, it should build on the good practice
that already exists and learn from initiatives that are less effective.
It is too early to say that the model of an independent brokerage
service used in Train to Gain could be effectively expanded to
cover all adult learning.
What is available for those with the very lowest
skills levels, who are outside of education, training and the
world of employment?
50. Colleges enrol several hundred thousand
people who are unemployed or on means-tested benefits on adult
further education courses. LSC funding rules allow colleges to
offer these individuals free tuition but Jobcentre Plus rules
limit the amount of study that can be undertaken each week. The
16 hour rule has been in place for more than a decade and remains
a significant obstacle to the ability of unemployed people to
gain skills. An interesting experiment took place in 2005 in the
West Midlands in the wake of the Rover Group collapse. The 16
hour rule was waived for many Rover Group workers which allowed
them to undertake intensive programmes (of around 35 hours a week)
and to return to work faster than they otherwise might have done.
Colleges in the West Midlands retrained many engineers in construction
skills, which were more in demand in the area. Changing the benefit
rules in this way for other individuals might help them acquire
skills faster and more effectively.
What is the role of Learner accounts? What factors
should be considered in their design and implementation?
51. Learner accounts will work best in the
interests of learners if: introduced as part of a package to fund
learning which also includes grant funding and fees:
— the accounts fund only part of the
costs of a course;
— the accounts are used to encourage
fee payments (perhaps with the help of tax relief); and
— their use is confined to colleges
and providers who meet quality thresholds.
52. The proposal in Leitch review goes way
beyond this. If learner accounts act as the route for all public
funds, there will be massive turbulence in the further education
system. Some colleges and training providers will gain from the
opportunity to win public funds in a competitive process. Others
will win contracts but fail to deliver. Yet more will decide to
concentrate on areas where public funds are more guaranteed—16
to 18 education and training. The outcome could be a more concentrated
supply side, offering less choice and ultimately able to secure
higher prices.
53. It will be sensible for the Government
to act carefully because no learner account system is yet in operation
in England. There will be LSC pilots starting in 2007. The schemes
in Scotland and Wales are small scale and involve top-ups to mainstream
funding. This was the approach taken in the Training and Enterprise
Council pilots in 1999-2000 and in the national Individual Learning
Account scheme in 2000-01. The latter scheme was closed at short
notice because of excessive, unexpected expenditure and suspicions
of large-scale fraud. The LSC has stated that it has learnt from
this experience and will only contract with high-quality providers
but a number of issues will need to be addressed:
— how the accounts will be distributed
and controlled;
— how to ensure that the accounts encourage
new learners and do not simply displace existing expenditure;
— whether to increase the money in
an account to take account of the higher costs of certain courses
or faced by certain groups of learners, for example those with
learning difficulties or those who need to travel or stay away
from home;
— whether to increase the money in
an account to encourage learning by disadvantaged groups;
— how to ensure that there colleges
and learning providers have enough income to justify investment
in staff, buildings and equipment; and
— how to ensure that providers do not
take advantage of variations in the accounts.
SECTION FIVE: APPRENTICESHIPS
What should apprenticeships look like? How close
are they currently to this vision?
54. The idea of apprenticeships has a strong
and positive image with the wider public but the programmes themselves
are relatively new and still need improvement. The following issues
need attention:
— it is difficult to get commitment
from some employers to the training of apprentices; and
— the complexity of the programmes
themselves makes it difficult for learners and parents to navigate
their way to completion.
What parts of the current apprenticeship framework
are seen as valuable by learners and by employers and which less
so? Is there a case for reform of the framework?
55. It is difficult to generalise across
all frameworks but the area of key skills is worth examining.
Trainees learn practical mathematical skills associated with the
job as an integral part of his training and not as an artificial
and unconnected test.
Are the number of places available appropriate
and in the right areas, and at the right level?
56. In recent years, colleges have expanded
their role as providers of apprenticeship training. The number
of colleges involved, the number of programmes and the number
of college-based apprentices has all increased. Many colleges
converted further education programmes into programme-led apprenticeships
in 2004 and this had a major role in helping the LSC meet its
participation target of 175,000 apprenticeship places a year.
57. LSC targets and funding rates prioritise
the provision of programmes that are cheaper and easier to complete
rather than apprenticeships in areas that are needed. For example,
there are fewer than 20,000 apprentices a year on college and
Construction Industry Training Board programmes compared to a
national need which is probably twice that.
What is the current success rate for apprenticeships?
58. Success rates in terms of achieving
a full apprenticeships have been relatively low because of the
need to achieve all three elements (NVQs, key skills qualifications
and technical certificates), because of the frequent changes in
specification and because of the problems associated with the
external assessment of key skills.
59. Success rates have risen in recent years
thanks to the drive to improve completion rates and the greater
involvement of colleges in delivering apprenticeship programmes.
What can we learn from practice in other countries
with apprenticeship systems, ie Scotland and Wales?
60. We are happy to facilitate visits to
colleges in Wales or Scotland if this would assist the Committee.
SECTION SIX: QUALIFICATIONS
Do the qualifications which are currently available
make sense to employers and learners?
61. Again it is difficult to generalise
but there are some key issues:
— the best known qualification brands
are the longest lasting ones. A-levels, degrees and many professional
qualifications are much better known than vocational qualifications
even among the employers who are they are designed for;
— the regular changes in vocational
qualifications has been partly driven by a desire to rationalise
and reduce the number on offer. This drive is partly a matter
of bureaucratic necessity rather than a genuine response to employer
need; and
— the use of a standard set of levels
to describe qualifications (Level 2, Level 3 etc) has been in
place for almost 20 years and is generally well understood by
employers and learners but they rarely share the belief of academics
and Government that different qualifications on the same level
involve the same standards of achievement. The Government, the
education system and employers themselves need to promote the
value of alternatives to academic qualifications in everything
they do.
Is the Qualifications and Credit Framework succeeding
in bringing about a rationalised system? Is there a case for further
rationalisation?
62. The Qualifications and Credit Framework
has the potential to rationalise the system but it is not yet
in place and the link to sector qualification strategies is unclear.
In the long-term it must be right to use the strategies as a way
of rationing public funds but in the short-term, there are a number
of difficulties:
— some Sector Skills Councils are relatively
new and relatively untested as representative organisations. The
Leitch review identifies the need to do more to strengthen the
entire network;
— the large number of publicly-funded
qualifications is partly a sign of the responsiveness of awarding
bodies and colleges to employer and individual demand;
— to some extent, the division of the
labour market into sectors is an artificial construct which reflects
current state of thinking about the economy. It is not always
possible to predict future demand for skills and there are risks
in relying solely on the collective views of Sector Skills Councils;
and
— some qualifications have been developed
to encourage adults to return to learning and to accredit general
knowledge and skills. The DfES and LSC will, no doubt, continue
to fund access courses (at Level 3) and provision that falls within
the Foundation Learning Tier but this will leave gaps.
February 2007
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