The Skills Funding Agency and further education funding - Business, Innovation and Skills Committee Contents


Memorandum submitted by Remit Group

1.  EXECUTIVE SUMMARY

    — The new FE sector structure

    — Working arrangements for all providers and colleges

    — Communication on FE sector structure

    — Funding methodology

    — Contractual arrangements

  1.1  The FE sector faces ongoing challenges as the Young People's Learning Agency (YPLA), Skills Funding Agency (SFA), Local Authorities, Regional Development Agencies (RDA's), National Employer Services and the National Apprenticeship Service take over the previous responsibilities of the Learning and Skills Council (LSC) and the future arrangements for all future FE learning. These changes to the FE sector, if not managed effectively may cause funding arrangement issues, thus impacting the learner and the respective learner journey.

  1.2  The new and existing agencies for the FE sector have not all communicated their respective working arrangements and the impact to the training providers and colleges across the UK. Some national providers will go from having one point of contact for all funding and contractual requirements to potentially having to start and maintain a variety of working relationships with all of the agencies across the respective counties and regions across the UK.

  1.3  Communication from the agencies has been varied. We as a provider attended a regional event in London with representation from the SFA, YPLA, NAS and RDA present. The event was lead by the SFA with the information provided being effective, however the information provided from the YPLA and RDA was limited. Two-way communication is vital in the new FE sector structure to ensure that all key changes are understood and actioned by all parties.

  1.4  The funding methodology utilised by the LSC over the last few years has moved towards a higher employer contribution with some qualifications hitting the 50% mark for 19+ learners. In the current economic climate this is applying pressure to our sector across the UK and will start to impact on the volume of apprenticeships for young people. This methodology also has adverse affects if a learner starts a level two qualification, but does not progress until after their 19th birthday, meaning they move onto the lower rate of funding, even though no break in learning has occurred.

  1.5  The funding contractual arrangements for 2009-10 have been difficult. Our contract value for our Employer Responsive Provision has been split into the first eight months and final four months of the academic year. This means we are being limited in meeting the needs of our sector when they require the support against the contract percentage split.

2.  INTRODUCTION/PROVIDER BACKGROUND

  2.1  Retail Motor Industry Training (Remit) Limited is the learner focussed automotive training provider of choice. We provide structured apprenticeships and adult learning across the UK, predominantly funded by the Government through the LSC, Skills Development Scotland and the Welsh Assembly Government.

  2.2  Remit provides Apprenticeships, Advanced Apprenticeships and Train to Gain through on and off the job training for c2,700 learners mainly for the independent sector with a small number of manufacturer programmes that include Pendragon and Piaggio. Three main delivery methods for off the job training are utilised; delivery at one of 89 subcontracted colleges, distance based delivery on a one to one basis at the workplace or block release delivery in training centres.

  2.3  Remit is the training arm of the Retail Motor Industry Federation (RMIF) which represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMIF has a formal association with the Independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.

  2.4  Remit employ people with passion, pride and commitment. It is these qualities that have ensured strong, positive and powerful working relationships with:

    — Learners.

    — Employers.

    — Government funding bodies.

    — Awarding bodies.

    — Colleges.

2.5  Vision

    — "To be the learner focused automotive training provider of choice".

2.6  Mission

    — "To maximise the skills of everyone in the automotive industry".

2.7  Values

    — Reliability

    — Honesty and integrity

    — Teamwork

    — Quality

    — Communication

    — Consistency

  2.8  The Senior Management Team consists of the Chief Executive, Operations Director, Finance Director, Quality & Group Services Director and Scotland & Wales Director, who are available to be viewed at www.remit.co.uk.

3.  FACTUAL INFORMATION

  3.1  LSC Headline Funding Rates Apprenticeships—2009-10

  The following information is sourced from the Learning Aim Database (LAD) and available from http://providers.lsc.gov.uk/lad. The National Funding Rates and LSC Funding Formula have then been used with the data from LAD to calculate the funding rates below. This refers to 1.4 in our Executive Summary.



Funding Rate Funding Rate
LevelNVQ Ref NVQ Description16-18 19-2425+ TC RefTechnical Certificate Description 16-1819-24 25+

Service Technician
L210055320NVQ in Vehicle Maintenance and Repair 4,988.822,493.05 2,243.751005568X Certificate in Vehicle Maintenance and Repair 3,879.512,036.01 1,832.41
L310055332NVQ in Vehicle Maintenance and Repair 3,416.401,792.96 1,613.6710055708 Diploma in Vehicle Maintenance and Repair 3,879.512,036.01 1,832.41
Vehicle Body/Paint
L21005540XNVQ in Vehicle Body and Paint Operations 4,761.062,379.24 2,141.3110055721 Certificate in Vehicle Body and Paint Operations 3,879.512,036.01 1,832.41
L310055411NVQ in Vehicle Body and Paint Operations 4,125.962,165.35 1,948.8110055733 Diploma in Vehicle Body and Paint Operations 3,879.512,036.01 1,832.41
Parts Consultant
L210026770NVQ in Vehicle Parts Operations 5,707.142,852.02 2,566.821003061X Certificate In Vehicle Parts Operations 3,036.801,593.75 1,434.37
L310026782NVQ in Vehicle Parts Operations 4,077.782,140.06 1,926.0610030621 Diploma In Vehicle Parts Operations 1,518.40796.87 717.19
Service Advisor
L250010037NVQ in Customer Service 3,121.481,638.19 1,474.3750015485 Certificate in Customer Service for the Motor Industry 455.52239.06 215.16
L350010049NVQ in Customer Service 4,181.442,194.47 1,975.0250015497 Certificate in Customer Service for the Motor Industry 712.48373.92 336.53
Business Admin
L21005618XNVQ in Business and Administration 2,826.561,483.41 1,335.0750029496 Certificate in Business Administration 1,296.48680.41 612.37
L310056191NVQ in Business and Administration 2,826.561,483.41 1,335.0750025284 Diploma in Business Administration 2,081.961,092.64 983.37
Vehicle Sales
L210027920NVQ in Vehicle Sales 2,987.161,567.69 1,410.9210033105 Certificate in Vehicle Sales 1,168.00612.98551.68
L310027932NVQ in Vehicle Sales 5,086.642,669.52 2,402.5710033361 Diploma in Vehicle Sales779.64 409.16368.25
KS Rate
LevelKS Ref KS Description16-18 19-2425+


L1
10006394 Information and Communication Technology 233.60185.92 167.33
L210006333 Application of Number233.60 185.92167.33
L210006369 Communication233.60 185.92167.33



  3.2  The date of our regional communication event was 08-12-2009 and was titled Skills Investment Strategy briefings for colleges and providers led by the SFA.

4.  RECOMMENDATIONS

    — The new FE sector structure.

    — Working arrangements for all providers and colleges.

    — Communication on FE sector structure.

    — Funding methodology.

    — Contractual arrangements.

  4.1  To ensure all new and existing agencies have clear demarcation areas of responsibility, which are communicated to all stakeholders.

  4.2  A single point of contact for areas of Government funded provision (16-18, 19-24, 25+), whether they be Apprenticeship or Train to Gain related.

  4.3  Improved two-way communication for all agencies, providers and colleges, which would be far more effective with recommendation 4.2.

  4.4  Current funding methodology to be reviewed without disadvantaging learners by age group.

  4.5  The removal of the contract splits for 2009-10 by eight and four months. This was discussed at the recent communication event in London by David Hughes and how providers and colleges will be offered the opportunity to earn autonomy with respective contract values for future years.

11 January 2010





 
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