A look at the most recent news (April 2017) and how it is affecting apprenticeship funding and levy and non-levy payers.

1. Apprenticeships and FE Sector News
and the Election

2. In the News
• Levy Payments and Apprenticeship Scheme underway for companies with over £3,000,000 pay bills
although we do not yet know what the uptake will be and how much will be done in house
• Horror story fears over apprenticeship allocations
• With reported huge cuts to small employer funding
As reported by AELP cuts in allocations of around 80% are not uncommon (one or two even
higher) and the range is typically between 50 and 80%. This includes Grade 1 and Grade 2
providers
Rules on co-investment will continue to apply and funding will be calculated as set out in the SFA
Apprenticeship technical funding guide using the new funding bands.

3. Reduced Capacity in the Sector
Mark Dawe in the FE Week recently suggested
• “Without immediate action and additional money allocated, the government will have managed to destroy capacity
and the consequences for non-levy businesses, employees and learners will be dire”
One must ask what is going on?
The recent Area Reviews pointed to an over capacity in some areas of provision across the country and within regions.
This led to a decapitalisation and rationalisation of the FE sector with a series of college closures and mergers.
Ofsted has recently graded a number of Private Training Providers as being inadequate leading to overnight closures;
although it as to be acknowledge that quality needs to be driven up.
Limited funding and delays in ESF and other contracting have led to closures of an estimated 40 - 50 % of Training
Providers
All this in a time when there is a rational for growth in Apprenticeship provision. With skills shortages due to a
significant number of staff within the sector moving on to other employment when will it be recognised that there is a
need to invest in the sector and build capacity to deliver the Governments vison of 3 million apprentices

4. Implications of the Impending Election
• A long-term pause on the first ever procurement process for adult education budget contracts has
been called for –it’s now unlikely any tendering results will be published before the general election
on June 8th
• There are now 42 days to polling day. Purdah started last Friday and parties are effectively in full
campaigning mode so it is unlikely any major decision changes with be made before the forthcoming
election

5. Impact of Election on Commissioners
• Greater Manchester Combined Authority – has confirmed that there is no impact on the
procurement of Working Well
• Scottish Government – has confirmed there is no impact on the procurement of Fair Start
• DWP – has stated that as the procurement of the Work and Health Programme is pre existing activity
that it does not affect the commercial process, including competitive dialogue with bidders
• London Councils – has consulted with the four sub regions and has been able to confirm that there
will be no impact on procurement of the Work and Health Programme in London
• In addition the Ministry of Justice has confirmed that its procurement of OLASS will commence post
election and thus is not affected by the purdah period

6. Keep in Touch:
https://uk.linkedin.com/in/safaraz
https://www.facebook.com/pathwaygroup/
@pathwaygroup @SafarazAli
Safaraz Ali (Saf)
Safaraz@pathwaygroup.co.uk
Eddie Cottis (Eddie)
Eddie.cottis@pathwaygroup.co.uk
Alternatively phone: 0121 707 0550