Socialist Educational Association
Further Education - March 2007  

 1        Introduction  

The purpose of this paper is to

  • provide an overview for SEA members of major changes affecting Colleges over the next few years

  • support the paper with 2 Appendices:  

 AOC Guidance to Colleges

 A summary of the Leitch report which 'informs' the current debate about skills    

2        Context  

As members are aware, the government is facing considerable problems regarding public expenditure. It is also pursuing an agenda of 'reform' for the public sector, and the FE sector is included in this. This is heralding some major changes which FE Colleges is having to face up to, alongside other major projects such as major building replacement programmes, Ofsted and other quality inspections.  

The totality of all these changes faces the Corporations (governing bodies) of the FE College sector with major challenges.  

This paper was originally written for my College Corporation, in which I said: 'In the light of these matters, it behoves the Corporation to take stock of the potential impact of these developments, which involve the curriculum, finance, resources, quality and governance.'

 

3        FE Bill and the Learning and Skills Council

For the first time ever, the FE sector has got its 'own' Bill that is currently moving through Parliament. It has started in the House of Lords, and will now move in to the House of Commons. The key aspects that affect Colleges are

·         the national, regional and local structure of the LSC

·         the powers of the LSC regarding the sacking of Principals

·         the requirement for College Principals to have a formal qualification

·         the provision of powers for FE Colleges to award directly Foundation Degrees 

For the LSC the issues are the major reduction in the number of its staff, linked to a new organisational structure – i.e. no longer 47 Local LSC Councils (which is enshrined in current legislation) but 9 Regional Councils with a much reduced number of local staff. Virtually all of this is in place, including the staffing, but this legislation is needed to 'ratify' this. There are those in the Houses of Parliament who are not happy at all that effectively this has been done largely without legislative approval. For most Colleges this means that there is a much reduced local 'support' service, and the influence of central/national and regional control is much more obvious. One might have expected more strategy and less bureaucracy - as yet this is not how it feels. (e.g. the LSC lists 50 documents as published since 9/03/07).The quality of the bureaucracy also leaves much to be desired. Working in partnership, with appropriate openness, are not characteristics of the current regime. Recent meetings have been quite combative, with little interest in the positive achievements of Colleges. 

A further aspect of the FE Bill is that it will legislate for College Principals to be qualified for the job. Vice-Chancellors too, you may ask? Of course not!  

Of course it is welcomed that, presumably, support for gaining the qualification will come with the legislation. However the detail of this legislation has not been thought through, nor discussed with the relevant bodies. For example, it would appear that even a Principal nearing retirement might have to comply with this!  And Principals/Deputies who have got prior qualifications are not at all happy that these qualifications will apparently not 'count'. This is of course not the only example of poor consultation leading to badly drafted legislation.  

The LSC is seeking to assume considerable extra powers to sack the Principals of colleges, which have implications for the power and authority of Corporations.  At present the only person other than the Corporation that can sack a Principal is the Secretary of State. The House of Lords has voted the new proposal down emphatically, but the government has already said that it intends to re-introduce the Clause in the Bill that goes to the House of Commons. The Association of Colleges is completely opposed to this proposal, and considers that it sets an impossible precedent: how can a person be sacked by two different bodies? How is a Principal to deal with a situation where the funding from the College and their potential job lies in the hands of one body/person? High level legal advice is being sought in this regard. It is not thought that any other individual/position is subject to such a challenge. It certainly does not apply to Head Teachers or Vice Chancellors. Corporations are being asked by the AOC to assist in lobbying MPs on this issue. As Principals are 'parti-pris' the AOC is advising that lobbying on this issue would be best undertaken through Corporation members.  

The ability to award Foundation Degrees is welcomed by the FE Sector, but it is likely only to affect a few colleges who have a significant amount of this work, usually in addition to other Higher Education courses (validated by Universities). In so far as this change will formally recognise Foundation Degrees as being valuable, and provided by FE Colleges, this is a very positive move. Members will not be surprised to hear that the University sector does not think this is a good idea!

 

4          LSC Funding and Curriculum Priorities  

It is tempting to write here a section on LSC Funding and then another section on Curriculum Priorities. The two are immensely entwined, and are therefore discussed together.  

Funding In general terms, College LSC funding is being capped, and demands are being made to support more students for the same or less funding. (2006/7 budget represented real terms cuts of 3%. 2007/8 budget looks like being a further real terms cut of 5%). The government is having difficulty in 'squaring the circle' on finance, and the LSC is having difficulty finalising its allocations to colleges and others. The LSC is not able to give Colleges even an indicative budget until end of May 2007.  This makes financial management for Colleges very difficult, and does not seem 'fair' in that the LSC and the government never hesitate to complain about

the standards of work in colleges, but do not apply similar standards to themselves. A new 'funding methodology' was heralded some time ago, but the LSC has not been able to produce it, and delayed implementation for a further year. Another example of the LSC's lack of ability to do the job it is supposed to do.  

Underperformance is the 'LSC word of the moment'. For the 'core' curriculum for young people and adults, the number of students and the courses that they study are being progressively controlled more and more directly by the LSC. The methods of control are based on the LSC's assessment of the quality of provision, or 'underperformance' of Colleges, together with the priorities of 16-19, first level 2 (equivalent to 5xGCSEs @ A-C) and level 3 programmes (equivalent to 3xA-levels), skills for life, etc. This assessment is separate to Ofsted quality judgements and systems, although a 'joined up' approach to quality is supposedly being developed involving LSC, Quality Improvement Agency, and Ofsted. The plethora of quality systems and criteria are a now an undue burden to Colleges. Currently, however, the LSC focus on 'underperformance' is overwhelming, and linked directly to their proposed new ways of allocating budgets.  

Progressively more work that is identified as 'underperforming' will be withdrawn by the LSC from college budgets, and put out to competitive tender. In 2007 up to 10% of Work Based Learning (Modern Apprentices) will be subject to the first rounds of competitive tender. Over the next few years this will be extended to underperforming areas of core full and part time provision – and depending on the definition of "underperforming" may potentially have significant impacts on College budgets.  

14-19 Agenda

College budgets for full time 16-18 students are significant. The majority of 16-18 year olds study at FE and VI Form College. Continuing to maintain and grow this area of work is a key goal and requirement for the College sector. Standards are a big concern in FE, in that a significant proportion of FE college students have failed at school, and so require extra help to succeed. The extent to which Colleges successfully manage this is critical. All of the ways in which the government constructs its targets and league tables ignore the fact that Colleges have to pick up with students where they have been failed by the school system.  

Work Based Learning (Apprenticeships) is being forced to cope with the knock-on effect of restricted government funding, and a key issue is maintaining a viable portfolio which can be integrated within the mainstream 16-19 funding and college programmes. Some of the current quality controls being introduced by the LSC would make your eyes water, they are so Byzantine.  

There is also considerable pressure on all schools to be working with Colleges on the 14-16 and 16-19 agenda to provide a broader and more vocationally oriented curriculum. Engaging in this area of work has been resource intensive for the College sector, and needs to be considered alongside the other demands on the Colleges. The competitive aspect of school against school, and school/s against college/s is massive. Government policy in this regard is completely contradictory, and leading to vast amounts of time and effort being wasted. The so-called new Vocational Diploma development initiative is almost inoperable because of these conflicts, as well as the fact that there is great confusion as to its purpose. Another example of no consultation, rejection of a good piece of work by Professor Tomlinson, and poor outcomes as a result. Perhaps Professor Tomlinson could give our next Caroline Benn lecture?  

Adult Provision

As members are well aware, the scope and profile of the work of the College sector for adult students has reduced considerably over the last 5 years. Government priorities and funding have focussed on specific priorities, and increasingly funding is linked to these. The less educated you are as an adult, the less likely it is that you will be able get on to the 'learning ladder'.  

The impact on Community Education services and their rationale in this context needs consideration.  Already most Colleges have cut back on some if not all of their community provision in the light of LSC funding and curriculum priorities, and further changes may be needed.  

In addition, a new demand-led approach to funding 'Adult Learning' is being introduced. In this regard the Train to Gain element of work for adults, linked directly to meeting employer needs, should grow quite significantly from its current level. There are however many aspects of this funding stream which make it difficult to integrate within the overall College management and financial frameworks.  

Many colleges have already initiated changes in this area of work by establishing specialist centres as cost recovery, income generating centres. This can be seen as a start to managing a situation where the LSC is going to require Colleges, in theory at least, to be highly flexible, paid on results rather than being 'supply led', with no 'underperforming' areas, and working within the very 'consumer', paid by results, environment of the LSC. The language is about volumes, commissioning, underperformance, and the atmosphere is a negative one that accompanies that sort of terminology. Not user friendly, from a College perspective.  

Higher Education

Funding for Higher Education does not come from the LSC. Good progress is being made in this area in many colleges. Its viability and the HE approach to quality control (very demanding, and used as a lever by HE to 'control' HE in FE) are key issues, which need to be considered strategically alongside the purpose of having a HE portfolio. Larger colleges will find this easier than smaller colleges. As a 'buffer' to the control of the LSC, HE income could become really important to the FE sector. How long before the LSC start to try and control that too?  

Budgets

All of the above means that FE College LSC budgets will be 'earned' in very different ways to hose to which we are currently used. The balance of income sources will change, together with the criteria that go with them. Colleges will need to carry out a serious risk assessment of this and adopt a positive strategy with which to face the future in providing their services to students and clients. The impact on staffing and other resources could be significant.  

AOC

The national Association of Colleges works hard to mitigate against the worst of these changes, and provides good information, as SEA knows, to all colleges. Appendix 1 is an extract from one of their recent briefing papers.

 

5            Education and Skills  

Appendix 2 is a summary of the Leitch Report which is spelling out the importance of skills and the economy. Sadly, this has its origins in the Brown agenda, and indicates that the utilitarian view of education promoted by Blair is going to continue. The disregard for education when it is applied to working class people is breathtaking. It is still perfectly all right to study English, Latin and Politics at school and university – but only if you go to university, and preferably Oxford, Cambridge or Durham. Otherwise, the rest remain condemned to be hewers of wood and drawers of water.

 

6          Conclusions  

The above overview does not pretend to be exhaustive, but hopefully gives members a feel for the impact of current and future plans of the government.

 

Joanna Tait

Joann.tait@talktalk.net  

 

Appendix 1  

Further Education and Training Bill: The impact on your college  

As you will know the Further Education and Training Bill is currently being considered by the House of Lords. The Bill contains significant areas of interest for colleges in particular Clause 19 would allow FE colleges to award their own foundation degrees and Clause 17 proposes that the LSC have a new power to give directions to a college requiring its governing body to dismiss a senior post holder.  

AoC is lobbying Peers on both of these issues. We are also using the legislation to encourage debates in Parliament about two other key issues of importance to members – the level of bureaucracy in FE and the Government's 'choice' agenda.  

Also of interest is Clause 22 which introduces new rules regarding Principals' qualifications.

AoC is seeking clarification from Ministers regarding the time period in which they expect Principals to have achieved relevant qualifications and whether the new measures will apply to all Principals regardless of their circumstances.  

The Bill had its Second Reading in the House of Lords on 13 December and will now be considered in more detail (Committee stage) on 23, 25, 30 January and 1 February.

 

Guidance attached to the above AOC note:  

Foundation degrees – Clause 19  

AoC is strongly supporting Clause 19 of the Further Education and Training Bill which would allow the Privy Council to bestow the power to award foundation degrees only on further education colleges. This would remove the current requirement for colleges to validate their foundation degrees only via a university.  

The power is an enabling one. The Privy Council acts in this area under statutory instruments. In the case of full degree awarding powers, there is a comprehensive and demanding process to assess the capability of individual institutions. The Department for Education and Skills (DfES) is expected to set out its proposed regulations for foundation degree awarding powers this month. There is every reason to expect that there will be high quality thresholds.  

The Government have introduced this Clause as a result of lobbying by AoC and the Mixed Economy Group of colleges. We raised concerns about the length of time universities often take to validate a foundation degree course and the charges / level of top-slicing from universities.  

The Government is under a considerable amount of pressure from many Peers and the universities to drop this Clause.  

Proposed new power for LSC/Welsh Assembly Government to give directions to a college requiring its governing body to dismiss a senior post holder – Clauses 17 and 18  

Clause 17 of the Further Education and Training Bill transfers powers to intervene in the work of an FE college, which currently lie with the Secretary of State, to the LSC.  

Where the LSC has concerns about the way a college is being managed it can:

·                   remove all or any of the governing body and appoint new governors

·                   direct the governing body on how to exercise its duties

·                   order the governing body to dismiss senior post-holders – including the Principal  

The Secretary of State will also have a reserve power to direct the LSC to take action as described above.  

Clause 18 of the Bill proposes similar powers be given to the Welsh Assembly Government (WAG) in respect of colleges in Wales.  

AoC believes that the Government's decision to give the LSC/WAG power to require a College to dismiss a senior post holder has been poorly thought out and therefore we are lobbying for Clauses 17 and 18 to be amended. Both the Conservative Party and the Liberal Democrats oppose Clauses 17 and 18.  

AoC has drafted a proposed amendment to Clause 17 and we hope this will be tabled for debate at Committee stage. The effect of this amendment would be to:  

·         remove the right of the LSC to order the dismissal of a college Principal or other senior member of staff;

·         remove the right of the LSC to direct a Governing body and replace it with a right to 'advise';

·          remove the power of the LSC to intervene where an institution is performing 'less well than it might be expected to do in all the circumstances'. We feel this definition is drawn far too widely;

·            introduce a power identical to that held by local authorities when they are concerned about a school head.  

The 'choice' agenda concentrating on courses and qualifications rather than

institutions - Clause 6  

Clause 6 of the Bill places a duty on the LSC to 'encourage diversity' in education and training and 'act with a view to increasing opportunities for individuals to exercise choice'. 

AoC is concerned that the Government has not defined 'choice' in the context of this Bill and that the LSC may feel obliged to ensure there are many different types of institution in a particular area rather than a wide range of courses and qualifications available.  

We are well aware of the problems associated with the presumption in favour of school sixth forms and the destabilising effect this has had on some college provision. We will be seeking to table amendments to ensure choice is not solely focused on institutions.  

Bureaucracy busting – placing a duty on LSC to account for the paperwork and circulars it sends to colleges and reduce it year on year (proposed new Clause)  

The Education Act 2002 places a duty on the Secretary of State for Education, when communicating with schools, to 'have regard to' the benefits that are expected to result from the guidance; the desirability of avoiding sending excessive material and the imposition of excessive administrative burdens. The Secretary of State also has to produce a report for Parliament listing the number of documents sent to schools in the current year compared to previous years.  

AoC is seeking to table a new Clause into the FE and Training Bill to introduce a similar duty upon the Learning and Skills Council in an attempt to ensure the LSC takes greater strides towards reducing the bureaucratic burden on colleges.  

Principals' qualifications (Clause 22)

Clause 22 states that all Principals need to achieve a specified qualification and allows the Secretary of State to set a time limit by which the qualification must be achieved. The Government's explanatory notes say that any regulations made under this Clause 'will allow adequate time for the acquisition of the qualification'.  

AoC will be tabling an amendment to allow for a debate on this issue and to seek clarification on how long Principals will have to achieve the qualification. We have concerns that Principals who have held the same post for a number of years will be forced to achieve the qualification.  

 

Appendix 2  

 Leitch Review of long term skills needs: A summary  

"In the 21st Century, our natural resource is our people and their potential is both untapped and vast. Skills are the key to unlocking that potential. The prize for our country will be enormous, higher productivity, the creation of wealth and social justice…The case for action is compelling and urgent. Becoming a world leader on skills will enable the UK to compete with the best in the world. I am optimistic." Lord Leitch, December 2006  

"The clock is ticking for the one in three employers who fail to train." Brendan Barber, TUC Reforms were originally announced in the government's white paper on further education last year and have been endorsed by Lord Leitch's report on skills. The report has committed the Government to working towards a demand-led system to put purchasing power for learning in he hands of the employers and individual learners.  

Leitch recommends that the UK commits to a compelling new vision - to become a world leader in skills by 2020. By this date:  

• 95% of working age adults should have basic skills in both functional literacy and numeracy, rising from 85% and 79% respectively in 2005;

• More than 90% of adults should be skilled to GCSE level or to vocational equivalents (at least level 2), rising from 69% in 2005;

• The number of apprentices in the UK to be boosted to 500,000 each year, double the current number, with improved quantity, quality and esteem for intermediate skills;

• More than 40% of adults to be skilled to graduate level and above, up from 29% in 2005. Wherever possible, skills should be portable to deliver mobility in the labour market for individuals and employers.  

Leitch highlights the need for shared responsibility of the three key players. The costs of raised ambitions should be shared between government, employers and individuals. It recommends a new partnership, based on the success of Train to Gain in England: 

·         Government must create an end-to-end system with real clarity and discipline as to who in the education and skills infrastructure does what, ensuring employers and individuals drive the system so that it delivers economically valuable skills.

·         Employers must respond to the opportunities offered, apply their stronger voice in definition of skills qualifications, focus investment on where this will have most effect in meeting their needs.

·         Individuals must invest in their own skills development and raise their aspirations and awareness, sustained by high profile awareness programmes on the value of skills to them and their families  

Radical change is recommended across the whole skills spectrum by:

• Routing public funding of vocational skills through Train to Gain and Learner Accounts;

• Strengthening the employer voice on skills through creation of a new Commission for Employment and Skills;

• Reforming Sector Skills Councils who will simplify and approve vocational training;

• Launching a new 'pledge' for employers to voluntarily train more employees at work. If insufficient progress has been made by 2010, introduce a statutory right for employees to access workplace training;

• Increasing employer investment in higher level qualifications, especially in Apprenticeships and in degree and postgraduate levels; significantly more training in the workplace;

• Raising people's aspirations and awareness of the value of skills, creating a new universal adult careers service to diagnose skill needs with a skills health check available for all;

• Government to introduce compulsory education or workplace training up to age 18 following introduction of new Diplomas and expanded Apprenticeship route;

• Integrating the public employment and skills services to deliver sustainable employment, enabling more disadvantaged people to gain skills and find work, developing employer-led Employment and Skills Boards 

As skills policy in the UK being a devolved issue the Review has worked closely with the Devolved Administrations in Scotland, Wales and Northern Ireland. Its analysis has implications for infrastructure, policies and targets in each country. 

The Commission for Employment and Skills will be an employer led body to deliver leadership and influence formed by the merger of the Sector Skill Development Agency (SSDA) and the National Employer Panel (NEP), reducing the number of bodies involved in skills delivery. A network of employer-led Employment and Skills Board would report to the Commission  

New remit for Sector Skills Councils include:

• Taking the lead role in developing national occupational standards and approving vocational qualifications (only SSC approved vocational courses should qualify for public funding);

• Leading in the collation and communication of sectoral labour market data;

• Raising employer engagement, demand and investment;

• Consider collective action to address specific sector skills needs.  

Skills Pledge

The skills pledge would be a specific promise from employers to its workforce that every eligible employee would be helped to gain basic skills and a level 2 qualification. If by 2010 the skills improvement rate is insufficient, a statutory entitlement to workplace training may be introduced. The LSC is already allocating £10 million to support national employers who 'pledge' to train to level 2. The pledge builds on the recent experience in Wales (currently 10% of employees are covered by a pledge to guarantee them access to training in work).  

Apprenticeships

Employers should drive and control the content of Apprenticeships through their SSCs and SSCs should work with employers to increase the supply of high quality places for young people and adults.  

Management and Leadership

SSCs and skills brokers should drive up employer investment in management skills. The DfES Leadership and Management programme for small and medium sized enterprises (SMEs) should be extended to firms with between 10 and 20 employees. The Leadership and Management Advisory Panel may report to the Employment and Skills Commission. 

 

Joanna Tait,  March 2007