Select Committee on Education and Skills Minutes of Evidence


Examination of Witnesses (Questions 199-219)

MS MARIANE CAVALLI, MR GRAHAM MOORE OBE AND MR JOHN STONE

26 MARCH 2007

  Q199 Chairman: Can I welcome Graham Moore, Mariane Cavalli and John Stone to our proceedings. I should have warned Graham Moore that if he did not behave himself better he would be called back again; obviously, recidivist that he is, he is in front of us again. I think it was October when we saw you, Graham, on the Sustainability Inquiry, but Mariane and John are new to our proceedings. When we do these double sessions, we do have to emphasise, both for the members of our team and the witnesses, that the shorter and more concise they can make the exchange the better and then we get more information for our buck; thank you very much. Shall we get started then. Normally we give the witnesses the chance to say a little bit about themselves and what they think about this area of our inquiry into skills, and because I am an old-fashioned gentleman, I think, I am going to ask Mariane Cavalli if she would like to go first?

  Ms Cavalli: Hello. I am Mariane Cavalli, Principal and Chief Executive of Croydon College. Croydon is the largest of the general further education colleges in south London, with about 16,000 students, 3,000 of whom are full-time 16-18 students. We are a large HE and FE provider in London and I think the largest also in terms of 14-16 provision. In terms of this inquiry, obviously, I and my colleagues welcome it, in particular the opportunity to look at some of the assumptions which underpin the Leitch Report, and welcome the opportunity to discuss some of those, if that is appropriate.

  Mr Moore: I am the Principal of Stoke-on-Trent College. I am Treasurer of the 157 Group, and we have presented some written evidence here. I am a Board member of Regional Skills Partnership in the West Midlands, and, perhaps most relevantly, I think we are the largest Train to Gain provider in the West Midlands, so we are heavily involved in this agenda and have a large proportion of our budget in the adult field, as opposed to the 16-18 market.

  Mr Stone: I am John Stone, Chief Executive of the Learning and Skills Network, which is one of the two bodies formed when the LSDA split into the QIA and LSN in April last year. As such, we are responsible for research, curriculum development and staff training in the broad learning and skills area; we also have a support contract for Train to Gain, so I need to declare an interest in that area. Prior to last April I was Principal at the Ealing, Hammersmith and West London College, one of the biggest colleges in the country, serving the communities of Acton, Southall and Hammersmith, in west London. Also I had a number of other interests, which came to an end at that time. I was a Board observer on the LDA, so reasonably familiar with the London scene, and Chair of the Association of Colleges, London Region.

  Q200  Chairman: A tremendous breadth and depth of knowledge in the skills sector; so let us get started. Can I ask, first of all, what are your major concerns? You have read Leitch and you must have had that instantaneous kind of reaction to it. Was Leitch the kind of thing that you had been waiting for, for years, and no-one had ever come up with that kind of report and those recommendations; what was your reaction to Leitch: Mariane, would you like to start?

  Ms Cavalli: I think probably very many of us have wanted something like the Leitch Report for a long time, because it has put a really high-level spotlight on skills and the relationship between skills and the economy. Several aspects of the Leitch Report I welcome; a couple of things I query: the focus which Leitch places on the higher-level skills, when, in particular, in London, we have got issues in relation to entry and Level 1 provision, and the lower-skilled workforce with which we are having to deal. Whilst I do not disagree with the fact that he is putting an emphasis on higher-level skills, I think there is a concern that if there is an overemphasis on higher-level skills we will lose some of the building-blocks which we need to have in place, and keep in place, in order to enable our learners to progress. I think also there are issues there in terms of his interpretation and the relationship between qualifications and skills and the assumptions which are made that if you have got one you have got the other, which I think is something we could argue about, but also can lead to distortions in terms of the data we are looking at. The other aspect I think is in relation to what I feel is a tension between what he is saying about reducing the micro management of FE colleges, in particular, and the need for a central planning role to continue, although to be slightly reduced. I think there is a tension there between empowering and enabling those of us who work locally to be able to come up with local solutions to government priorities and problems, whilst at the same time working within a planning framework which makes that hugely difficult to do.

  Q201  Chairman: That is very succinct. Graham?

  Mr Moore: I also welcome Leitch. I think the focus on skills is absolutely crucial for our economy. It is one of three things; skills is one of them, capital investment is another and leadership and management I think is absolutely crucial, and there is a sort of triangle. You have got to get all three points of the triangle right, and if you get one of them right without giving attention to the other two you may have a problem, particularly leadership and management. Leitch was right in saying "demand led" and I think there has been a lot of focus on providers in the past and their ability, or otherwise, to respond, and no doubt we are going to spend some time talking about that today, but I think we have to recognise that there is still a major task to get the demand side up and running. There are lots of blockages in our economy which ensure that employers are not as strong in their demand for the skills which the economy needs as you would expect. I can give a number of examples of that. For example, in the hospital service and in the care service, they do not want to go to Level 3 qualifications because they will have to pay their staff more; Level 2 will do. If you look around the economy, there is quite a lot of "Level 2 will do," and therefore, as an economy, we do not take people on to the next higher level; there is not enough ambition in companies. We can all do business with large companies, most of them are well geared up to training and development, they understand the agenda; we have found SMEs difficult, the new brokerage network is finding SMEs difficult. I do not think necessarily it is because the provider side is creating the problem there, I think it is in the nature of these sorts of organisations, many of which the staff have grown up themselves. We have some fundamental issues, of how we engage SMEs, the people who are going to be our future successes, the companies which are going to grow into large companies, and Leitch has not quite given us the answers there. He suggested that if things do not improve he needs to take more action, 2010. I think we are very interested in the licence to practise; just as the Government has recognised that if you want people to stay on until 18 it is probably a good idea to require them to stay on to 18 in education or training of some sort. Also, if you want to raise the skills level in the economy, I think you have to recognise that things like the licence to practise, perhaps led by Sector Skills Councils, may be a key element in raising that skills level. Once you have got to do it then, surprise, surprise, companies invest in it, and if you have not got to do it, if they have got the choice, they will bring in the overseas labour, or they will try to recruit from somebody else down the road, and that still is a problem for the British economy. Leitch has hinted at the answers, but whether he was brave enough, to have said wait until 2010, I would counsel this Committee that 2010 is a long time to wait when this is an urgent issue.

  Mr Stone: I have a similar reaction really. I think we welcome the drift, which started with Foster, to refocus the system on skills, and it has been given a big boost by Leitch. I suppose my main concern is that I think the Report rather muddies the water, as Mariane says, between skills and qualifications. I think we need to be obsessed with skills and not quite so obsessed with qualifications; all the difficulties in making international comparisons which you have heard about, I know, in some earlier sessions. If anything, I think the system needs to flex up, it needs to become, to coin a phrase, more demand led, demand led perhaps more in the established, dictionary or economics textbook definition of the term demand led, by individuals and by employers. I think the system is still too top-down dominated by PSA targets, which, in a sense, have sucked a lot of the flexibility out of the system, and, although it talks about employers and it talks about individuals, in reality a lot of the flexibility is not there when it comes to making decisions on the ground. I think then what we will see, as I know you have heard from others, is a move away from full-fat Level 2 into other areas, not necessarily full qualifications, modules, perhaps allowing more flexibility at local level, to which Mariane referred, to build those local eco-systems, where the skills match available in a locality actually matches the demand which the communities and employers need in those areas. The danger that we are seeing in London, very starkly, at the moment, is of so much room for manoeuvre being taken out of the system at birth that it will take some time to develop.

  Q202  Chairman: So much flexibility being taken out of the system?

  Mr Stone: At the point of funding, if I can put it that way, with the situation in London at the moment, which I am sure you will come on to, and I am sure it is all across the country, where by the time the PSA target is catered for there is very little room for manoeuvre left for what people need on the ground to be attended to.

  Q203  Chairman: What is your reaction overall to the kind of major part played by Train to Gain: John; you have a vested interest?

  Mr Stone: As I said, really I think Train to Gain, a bit of that vested interest in supporting it; although it is badged Train to Gain, it is actually an initiative to support colleges which are seeking to improve their employer engagement per se, so it is not only restricted to the Train to Gain funding mechanism, which is very, very particular. I think we welcome Train to Gain, inasmuch as it is a much needed, demand side initiative, it is there to encourage employers to take more interest in training, and the age-old game of trying to find ways of doing that. As I indicated in my previous remarks, my problem is, it is the sort of demand led you get in your Russian supermarket, you can have anything you like as long as it is Level 2, anything as long as it is potatoes, whereas employers, Sector Skills Councils, providers, are all screaming actually "This is not what people want." It seems, for Train to Gain to be a success and to be a true demand mechanism it has to get a life, it has to get out more, it has to start living up to its name and finding a mechanism to address the demands which are out there, and I think it has got some way to go on that score.

  Q204  Chairman: Thank you, John. Mariane, what do you think of the criticisms of some of the trends coming out of Leitch, and perhaps beyond, which go back to a system which we saw many years ago, of a very big premium, 50% paid to a college, up front, when you sign someone up for the course, then 50% only on completion with a qualification? Do you have any worries about that kind of thing; it has been criticised in the past with previous programmes, what do you think about it now?

  Ms Cavalli: I do not have worries, in principle. We have gone beyond the point now where we think we will get allocations given to us, irrespective of our outcomes. Provided the funding is aligned with the colleges which are being commissioned, as being the colleges which have got a reputation for delivering that high quality provision, then I think it is not inappropriate to say that a significant part of your funding comes with your ability to enable that learner to succeed. Provided the learner is on a programme he, or she, wants to be on, is on a qualification aim that he, or she, is committed to, and that we are not in a situation where employers or other brokers are sending people to us on the basis that it is good for them and then we have got to deal with the skills delivery while also trying to motivate them and encourage them to continue with something to which they may or may not feel committed. If I may pick up on the Train to Gain point, I think you introduced that by saying the major part which Train to Gain is playing and I think that is something which is challengeable because it is not playing a major part at the moment. In London, Train to Gain is underperforming against its targets by round about 70 or 80%, and colleges have embraced the concept of having some of our funding removed, for it to go to Train to Gain brokers and then for us to bid to have that funding returned to us through the route of Train to Gain. In London it is not working; in London the broker system is not working. In London, brokers are either not sending leads to FE colleges, or when they are sending people to us we are finding that they are not eligible to take advantage of Train to Gain courses. John mentioned the Russian supermarket model. I talk about the fact that I feel like I am Henry Ford; it is anything you like, as long as it is Level 2. We have got issues now, for example, where we are talking directly with employers who still want us to do courses and provide training for them, but we have to say "Go to the brokers." They may come back through the broker system, they may not come back through the broker system, but we are trying very hard to make sure that we contribute to London's Level 2 targets but we are doing it around and outside the broker system now, I have to say, with the consent of the LSC, who now really need us to come up with any way that we can do it. There are very fundamental issues, on the capacity and the strength and, I think, the connections which the current broker services have. They are continuing to be funded, of course, but I think there are issues about what they are being funded for and how we are quality-assuring them, and how we can seriously get behind them to make sure that together we deliver the Train to Gain agenda.

  Mr Stone: We have just done a survey of our FE senior staff engaged in colleges in Train to Gain, and over 80% said they had got next to nothing out of the brokerage network. Another significant concern was the amount of accreditation of existing skills which is going on, because of the "funding on outcome" model; again, on that return, admittedly it is a reasonably small sample but it does give cause for concern. Something like 60% were accrediting more than half of what they do, rather than new skills acquisition, and that does put a question-mark about whether the model is adding sufficiently to the skills base of skills UK. It comes back to that skills or qualifications point; yes, we may be creating qualifications but it does not mean necessarily that we are creating skills.

  Q205  Chairman: Is that a problem of dead-weight then, Graham?

  Mr Moore: I think there is a problem of dead-weight. If you point the FE sector, colleges, providers, at a target, by and large we will do our best to hit it; in this particular case you are giving away training because that is what Train to Gain is all about, it is free training. For quite a lot of this training we used to get a handy income from employers because they were willing to pay for it; now, of course, the Government says that it is free. I think the Government is paying out money unnecessarily into those through the brokerage network, and I can fully support John, I have got information from all the 157 Group members and I would put it at no higher than about 10% of the leads come from brokers. Most of the rest is self-generated by the providers, and I am sure that if you speak to the private providers they will tell you a very similar story. You are spending money on a brokerage network which is not adding a great deal to the situation. Also, for a number of employers, you are telling them that the stuff they used to pay for they can now have free, and that again is dead-weight. They will not pay in areas where it is a requirement of the job that you have the qualification. It is the point I alluded to earlier, if you move down the road of saying, just as if you are a doctor or an architect or you are working in the care system, you have to have qualifications, if you broaden that out through the Sector Skills Councils then the Government will not have to put quite as much money into the pot there, as it is doing at the moment. It could redirect that perhaps to help individuals who are not supported by companies to continue their education and development; companies should be able to look after themselves, and individuals perhaps are the ones who are better served by the support. Having said that, I believe that the colleges and providers have worked extremely hard to help the Government meet the target, and the position in the West Midlands is a good deal stronger than I think it is in London, there is evidence that Train to Gain targets are being met. Very interestingly, at Level 2, when it is free, there was a pilot in the West Midlands at Level 3, where 50% of the cost was to be provided by the employer, and that was going very badly indeed; so the higher-level skills, the Level 3 skills, really are not taking off. That, I think, is something that Leitch will be very upset about, because if you look in his Report he is really wanting to up the ante towards Level 3 and Level 4 and there is not a lot of evidence that is happening at the moment. I do worry about the dead-weight issue that you are suggesting.

  Q206  Mr Wilson: Before we move on to what really I want to come to, I would like to clarify something you said, Graham, in an earlier answer. You seemed to be suggesting that employers try to hold employees down to Level 2 qualifications because they do not want to pay them more; do you want to elaborate on that or confirm that was what you were saying?

  Mr Moore: That is exactly what I am saying, and I think in the Health Service, which is obviously a bit tight for cash at the moment, that is very obvious. There are pay scales, particularly in the public sector, where if you get a higher-level qualification you pay more, so if you do not want to pay the staff more you do not encourage them to get the higher-level qualifications; it is a very simple process but not a very desirable one. Also, if you look at the construction industry and areas like that, where the certificate to practise on site is a Level 2 qualification, there is not a great deal of incentive again to get brickies and carpenters and others on to a Level 3 qualification. We have not built into the system, it seems to me, a lot of incentives to get up to the technician and more advanced levels, and so we are dealing with the deficit model at Level 2 at the moment. I am not certain we have got a structure in place which will take us to where we want to be, which is more Level 3 and more Level 4 people still, except individuals, because individuals care about their future, they want to get on, they want a better job, and it may well be they who are pressing to get the higher-level qualifications. At the moment, you are increasing very dramatically the amount they are going to have to pay for those qualifications; the policy of 50%, that is where they are moving to, and Leitch endorses that, 50% of the cost of Level 3 qualifications paid for by the employer or the individual, and I suspect, in many cases, it will be the individual. In some parts of the country those individuals are not very well placed to pay that, and it is rather speculative, from that point of view, they do not know whether they will get a job which requires Level 3 or not but they thought they might give it a try. If it becomes very expensive, in areas such as Stoke, which has got a very low income level, and many other similar cases, lots of people would not be prepared to put substantial amounts of their salaries into getting a Level 3 qualification and paying for it in the way which is suggested.

  Q207  Mr Wilson: You are saying that the impact on the employee basically is to hold down their skills over a period of time?

  Mr Moore: I am not saying it is always, but quite often it can be, and you can point out sectors where that is the case.

  Mr Stone: There is another impact, which is the diversion of funding, which is also a very significant issue; certainly we heard ALI talking in November about a lack of provision at Level 3, because of the concentration on Level 2, actually reducing provision at Level 3 in construction in order to fund at Level 2. Currently we are seeing in London quite significant reductions in ESOL, which Mariane might know more about, because of, again, money being shifted for an extended Level 2 target, for which there is limited demand. It is not a zero-sum game, this emphasis on one particular area of the skills system, and, of course, it is the area of the skills system which shows the lowest rate of return, with some NVQ Level 2s showing a zero rate of return, so it is slightly curious, in many ways.

  Q208  Mr Wilson: That is very interesting. I think we had better move on to what I am supposed to be asking you about, which is responding to employers. In your submission, Graham, of the 157 Group, you suggest that responding swiftly to employer demand is a very frustrating experience due to funding and measurement systems, which make it very difficult to deliver anything other than full qualifications?

  Mr Moore: If you can pay for it, not a problem; if you are an employer who is going to pay the full cost then we will do whatever you ask, there is no difficulty about that. As soon as you drop in to, if you like, the funding mechanisms, as-soon-as you move from a situation where the employer does not mind how much it costs, or the employee, then you have to jump through a whole host of hoops. Obviously, the amount of time that takes can be quite frustrating to a particular employer. We would say, if you have a Level 2 qualification already then clearly you will have to pay for that, so some staff will get paid for, some staff will be free. If you want a full qualification then you might get the funding; if you want only a part qualification, you will not get the funding. It is quite difficult for employers to understand those distinctions. We might all say, "Well, you're not in a priority area; this is not where the local LSE thinks the money should be spent. You happen to be an employer who unfortunately falls outside of those priority areas and they want us to put the money into other things." You might even say, "Well, the qualification you want is not the qualification that the Government, the LSC, is prepared to fund, so you can't have what you want but you can have what we want." This is the Ford model, or the potato model. There is a fair amount of bureaucracy, because there are lots of different funding streams, each one of which is organised in a different way, so if you are doing ETP you set up one set of forms, if you are doing work-based learning apprenticeships it is a different approach, and if it is mainstream funding it is a different approach again. If it is European Social Funding, it is a different approach; if it is through Jobcentre Plus, it is a different approach again. There are lots of different bureaucracies. As colleges, we try to make it as simple as possible, because we deal with all those different funds; we try to hide that from the employer, but sometimes there is quite a lot of work they have to do to complete the paperwork, because we get audited, and so on, and that has all got to be in apple-pie order.

  Q209  Mr Wilson: Obviously, it is a very bureaucratic, overcomplex system. What are you asking for, a simplification, or are there other things that you want?

  Mr Moore: One funding stream or one set of rules would make life much simpler. After all, the objectives, at the end, are to provide education and training for either employers or individuals. Is it not possible for us to devise a system which has one approach rather than multiple approaches and one which gives overarching targets; a discussion with a local provider, for example, saying "These are the problems in your local community, your local economy. We believe you are an organisation well placed to deal with them. What can you do for us?" You give an outline of how you can help to transform the skills, and you say, "Right, go away and do that. There is a funding stream associated with that; this is what we can afford, we want to see some results in 12 months' or two years' time;" so we are accountable but we are not accountable in very fine detail. What we should be looking at is the overall picture of whether there is a genuine shift, there are more Level 2 or Level 3 qualifications in that community, that particular priority areas are being addressed. If you can do that, you should be able to have a much simpler system, a lighter touch.

  Q210  Mr Wilson: You are saying there that the overall thing you should be judging by are Level 2 or Level 3 qualifications; but, on the other hand, you are saying that you do not want to be judged by qualifications?

  Mr Moore: I am not saying that we do not want to be judged totally by qualifications, because clearly we are in the market of educating to a particular standard and qualifications are probably the only way we have of recognising that standard. If it is a full-cost opportunity then clearly qualifications do not matter, you do what the customer wants; if it is the Government's money, the Government has to have some way of understanding what they are getting for their money and qualifications is a shorthand way. This is where we bring in Sector Skills Councils and their focus on what are the core requirements of a particular industry, and that core requirement maybe is where the Government funds, where it puts the core of its money, then each company has its own particular slant on that, they will want additional specialisms perhaps. What the companies pay for are those specialisms to build round the core and it is a partnership then, but it is a simpler partnership. The Qualifications Framework should be a fairly tight and clear arrangement, to which most companies would agree, and then the bigger, full qualification, if you like, the one that we are being asked to provide at the moment, with all the things that employers do not want, as well as all the things they do want, could be handled more easily, I think.

  Q211  Mr Wilson: Can I move on to you, Mariane, because this may not be true of Croydon but in many colleges the majority of work is focused very much on 16-19-year-olds. In general, do colleges have sufficient capacity to liaise with employers about the training needs, as well as the other things they do?

  Ms Cavalli: Croydon is not untypical of a large GFE college, in that 16-18 actually constitutes the minority, although an important minority, of our provision. I think, if I were sitting here five or six years ago, I would say the answer would be quite a resounding "No." Having said that, I think it is not just the Leitch Report or the introduction of Train to Gain, or even current Government targets and a Government agenda which is behind colleges already having built their capacity to be able to work with employers. Therefore, it is not untypical now, in large general FE colleges, to have sales forces, to have a key account approach to working with major employers, to be out working with employers on a regular basis. One of the points Graham made was, in relation to our providing what employers want, there is a fairly big piece of work which needs to be done before that, with employers, about helping them to work out what it is they need. I think we are highly developed in terms of our ability to be able to work with employers, to anticipate and to work with them planning their training needs as well. The introduction of Train to Gain and the added impetus around employer engagement no doubt has focused those college leaders, that were less familiar with the way, internally, colleges have to be organised, and needed to be reorganised, in many ways, it has focused their minds to enable them to do that. To give you an example, in anticipation of the changes that we are facing now, my own college reorganised so that structurally we are no longer organised around the products that we produce, i.e. courses and qualifications. We are organised around the particular markets that we serve, and therefore we are able to keep a very strong customer focus in relation to whether we are dealing with 16-18s or the skills agenda or higher education. I think capacity has built. Going back to the points which Graham made, in relation to working with employers, yes, there is an issue about whether they are prepared to pay for Level 3. Also there is an issue, and it comes back to this one about whether they want the skills or they want qualifications, very often they are happy for us to help them to upskill to Level 3 but they do not need the full Level 3 qualification or need to pay for the full Level 3 qualification either. In terms of what it is we need, in the way that Graham has just described, and would be hugely helpful, is if we could get rid of the complexities of those different funding streams. It would be particularly helpful if we were able to work to deliver a more flexible Qualifications Framework, and it would be especially helpful if we could have some local discretion, in terms of what we are delivering. At the moment, for example, working in Croydon, we see that in London the creative industries have got a huge skills demand. We cannot talk to any of those employers because the creative industries are not an LSC priority area; there are just no conversations to be had. We need to be able to marry up the national agenda and take account of the fact that in different localities there are different priority areas. Going back to the Level 2 issue, I think we are heading for a crisis with the focus for Train to Gain, work-based learning and main FE qualifications having to be focused around that, at the huge expense of other, very important provision.

  Q212  Fiona Mactaggart: You are heading for a crisis, which is quite strong language. If I have got you right, and it seems to tie up with what John was saying earlier about resourcing skills rather than qualifications, are you saying that you would like to be able to offer, particularly to students who are not engaged necessarily in the kind of normal things, slightly more flexible, slightly more bite-sized stuff that can get together, or have I misunderstood that? That is what I think I did not quite understand.

  Ms Cavalli: FE colleges have been crying out for that for years, an ability to be able to do that. Equally, we have been talking for years about needing to work with revisions to the Qualifications Framework so that we can offer those bite-sized pieces of learning within a framework which enables that learning to be put together and to be accredited. The crisis I am referring to there, I do not know if it is solely a London issue but there are quite a lot of learners in London so I am happy to be speaking on their behalf, in terms of the 2007-2008 allocations, FE colleges have been made to be very clear about the fact that there is a huge stretch target for full Level 2 qualifications which colleges need to deliver, in the context of reduced adult funding. I chair the London Capital Colleges Group, which is the group of the 13 largest GFE colleges, and I chair the South London GFE Colleges Group, and there is not one college, within any of those which would be an exception to this, in order for them to deliver their Level 2 target, having at the same time to absorb the funding cuts which are coming next year, they and we are having to remove from their portfolios provision which is non-PSA target-bearing. In London, that means that amongst the London Capital College Group, just by way of example, we are looking to remove entry Level 1 and Level 2 ESOL to the tune of round about £15 million, alongside other provisions that will have to be taken out. That might not be an issue if you are concerned only with PSA targets, but we are concerned about social cohesion issues and about the fact that, a particular problem I think in Croydon, we have got the Home Office in the Borough. We are told that asylum-seeking status gets sorted out in weeks; we know we have got students who have been with us for two years plus, who are still trying to have their asylum-seeker status sorted. Irrespective, this is across the board in London where, if we are not delivering Entry Level 1 and Entry Level 2 courses, we are cutting off the future supply for being able to deliver Entry Level 3 in full, which is a PSA target. Around all the colleges at the moment they are trying to balance the unbalanceable, because we know we have got to deliver this significant Level 2 target. It has to be at the cost of something, because the adult funding is being reduced; therefore, we have to reduce provision which is non-PSA target-bearing. Because we have already cut out much of what used to be called "other provision" or because we have been very good at making sure that we are only delivering things which are attached to relevant qualifications now we are at the stage where we are having to shave into those non-PSA target-bearing courses, which FE colleges should still be delivering. We need to be able to grow the capacity of students with low levels of achievement, to be able to work with them and get them to the point where they are ready to do Level 2 etc. That is why I think there is a crisis looming, and that is the pincer movement of Level 2 in respect of our allocations and Train to Gain.

  Q213  Fiona Mactaggart: I wonder if either of the other two witnesses would like to comment on that specific point, then I want to ask about advice and guidance?

  Mr Stone: The figures at my old college, the cut next year is £1.4 million, they believe, and that is 1,000 ESOL learners, and we are talking about Somali women living at home, with no basic skills, who are completely isolated by their lack of English, with all that means for social cohesion. Currently they have the students, the demand led is there for that, and they have been asked essentially to replace that with a stretch target of an additional 450 Level 2 students for which currently they do not have demand. I think these are distortions you get when targets are set outside the system, in the Treasury, and then ripple down through the system and create what is an unintended effect. The Government does not want to hurt Somali women living at home but actually wants ESOL to be a priority; but this is the impact of a rigid target system.

  Mr Moore: Bill Rammell has presented to the House on a number of occasions the number of students in FE, and has had questions asked about that; you will see a significant jump in the number of adult learners in FE. The answer to that which the Government gives is that it is about refocusing the effort on substantial learning amounts for people doing Level 2, so there is a very strong focus on the economic agenda; the country needs both an economic and a social agenda. Employers have got a very large say. I am worried that individuals are losing out on this, and we must get the balance.

  Q214  Fiona Mactaggart: In your evidence, you describe the information, advice and guidance system, you say: "is available from most colleges and Connexion services. Learndirect on-line provides a nationwide coverage. A broad range ... " it goes on. Actually, reading this paragraph, about your reference to information, advice and guidance, I was rather taken by the evidence we have received from VT Education and Skills, which says: "There is recognition that in England this is somewhat fragmented," because I thought your description was of a very fragmented service, "and many are comparing this with the more coherent approach to careers information, advice and guidance in Scotland and Wales." I am not asking you to be experts on Scotland and Wales, but what is your view, is it coherent; you do not say it is incoherent, in your evidence, but it sounded incoherent?

  Mr Moore: Obviously, there are a lot of angles there. Are we talking about for individuals or are we talking about for companies?

  Q215  Fiona Mactaggart: For the individuals, for the students?

  Mr Moore: If we are talking about it for individuals, students, where would they normally come; for a student who wants advice, very typically, in most towns, they would come through to local FE college to see what was available. They might go to the Careers Service, as they used that when they were younger, and many career selection services now have an adult arm. There is a role, it seems to me, for local authorities, whether that be their local partners, which would tend to be colleges, for example, with a long-term presence in that community, to provide that advice. If they were matrix-assessed, in other words, they were tested to show that they were giving impartial advice, and that was audited, or if they were giving advice about all of the opportunities that were available, you have a ready-made system. After all, every college in the country, as far as I am aware, has teams of advisers that are available there already to help individuals, and most local authorities have teams; you probably do not need to go much beyond that for advice and guidance for individuals, I would suggest.

  Q216  Fiona Mactaggart: You think it works; you think it does not need to be more coherent?

  Mr Moore: I do not think necessarily it works; it has not been particularly well funded, and so on, so it is a Cinderella provision at the moment.

  Mr Stone: It is patchy, I think. All the information I get is that, yes, there are patches of good advice and there are patches of no advice at all, and I think probably that is a reasonable summary of where we are on it. I think the whole Connexions partnership ideal was rather too complicated an agenda for a large, sprawling partnership to deliver; you need something which is much more focused and, frankly, much more managed, but at the moment it is patchy.

  Chairman: We are moving on, to national policy issues and Leitch.

  Q217  Mr Marsden: I was going to ask all three of you to what extent your work was target-driven and what you saw as the negative and positive consequences of national targets, but I think we have been over that ground quite fairly. Perhaps I could put it round another way, and perhaps, for the moment, I can put myself in the position of a beleaguered minister. We are told frequently by ministers and by people in DfES that they are not against a broader provision, in terms of adult students, but what they want to see is progression. Can I can start by asking you, Graham, to what extent you feel, given that the work, as you have said, is very time-driven, you can give progression in adult studies beyond the narrow targets which are given, or not?

  Mr Moore: I think it is our job to build a curriculum which provides the opportunities for progression. I believe very much in lifelong learning, that further education should be there for you whenever you need it during your career, and we have done as much as we possibly can, and I guess many colleges have done the same, trying to preserve that range, working with local authorities as well, which have the adult and community learning budgets. Remember, those are being protected but not in real terms, only in money terms, so you can progress from those ACL courses, the community courses, which again have been restructured to identify progression routes in them, on to college courses. If you take out some of those steps, because the money is being rationed, if you take out some of those entry-level steps and Level 1 steps, which there is a danger of taking place, then there are some gaps in that provision which people will fall through, they cannot leap the gap. Certainly, the Government has talked about the foundation levels of learning as a priority for it, and they are trying to put something in place, but it has not really happened. What is happening with the FE budget is that 16-18 numbers that is the first priority so money goes into that, everybody is guaranteed a place 16-18, one way or another; adult funding is residual, it is what is left after that money has been allocated, and within that is this very high priority on economic focus. We have to hold up our hands, as the FE sector; if you looked at the balance of the work we did, we did not do enough on the economic front and we did quite a lot on the social front, and it is a rebalancing. Of course, whether we are going from one extreme to the other now and not providing those social routes through, I think there is a danger you go from one extreme to the other.

  Q218  Mr Marsden: You may be throwing out the baby with the bath-water?

  Mr Moore: I think that is the case.

  Q219  Mr Marsden: John, can I come to you and ask you perhaps a broader question about targets and how they have done, because, again, one of the things we are hearing a lot in this inquiry, and it has been talked about a lot outside, is vital enabling skills, soft skills, call them what you will, how far are they catered for, in the sorts of targets that you are set currently, and if they are not should they be more so, is it feasible to do that?

  Mr Stone: I suppose they are catered for in targets in the sense that they are part of a full qualification. Certainly there is a lot of discussion around the new Diplomas, what is coming back from employers about what they want in personal learning and thinking skills, and I think, on an international stage, there has been a drift in what employers want, away from specific vocational and more into that area, that tends to be more what they ask for. I think though it is a big leap to say that you need full qualifications to deliver that. In some of the earlier evidence, I think the Chairman mentioned a scheme in east London where people were given just a small amount of soft skills, which was making people employable. I think it is an illustration, in a way, of how you can do a fairly small-scale initiative and just put in that extra amount needed to be creative.


 
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