Memorandum from Association of Learning
Providers (ALP)
In advance of Wednesday afternoon's session
of the Public Accounts Committee on Train to Gain, you may find
of interest the attached note from the Association of Learning
Providers (ALP).
It is estimated that the majority of training undertaken
under Train to Gain is delivered by ALP's membership which comprises
approximately 470 independent, public and voluntary sector training
providers, including 60 FE colleges.
The note illustrates with provider case-studies
why the approach to funding Train to Gain this year (2009-10)
is likely to result in a significant underspend in the programme
even though our members report strong employer demand for it and
Ofsted is now reporting that Train to Gain is delivering clear
business benefits to the employers that access it.
The underspend will be essentially due to employers
and providers not being able to obtain funding from the LSC for
new starts on the programme until next April, ie in many organisations,
there will only be new learners starting their training in the
final four months of the academic year. With many training providers
laying off staff in the meantime, there will not be enough capacity
in the system to respond to the built-up demand.
ALP recently publicised the acute frustration
among public and private sector employers about this situation
and reports were carried in the Financial Times, Guardian,
TES and others (the ALP press release with employer quotes
can be read at: http://www.learningproviders.org.uk/news/pressReleases/details/employers-recovery-hopes-hit-by-government-trainin/.
Our own frustration is magnified by the fact that we were warning
BIS and the LSC as early as September 2008 that these problems
were going to occur and manifest unless proper action was taken.
Despite regular representations to ministers
and officials since then, no discernable action has been taken.
The key point is that ALP is not asking for more money to be added
to the £925 million allocated to Train to Gain for 2009-10.
We are simply requesting that some of the monies reserved for
April to July 2010 should be released now to meet employer demand.
In summary, a government skills programme, which
could be delivering very good value for the taxpayer by having
a positive impact on Britain's economic competitiveness, is in
danger of being branded a failure because of financial mismanagement.
Graham Hoyle OBE, Chief Executive
10 November 2009
| 
