Further Education White Paper

TUC response to Further Education White Paper - Further Education: Raising Skills, Improving Life Chances

• Summary
• Introduction
• Strengthening the economic focus of FE
• Meeting the demands of learners and employers
• A national strategy for teaching and learning in FE
• Intervention and contestability
• Funding
• New relationship with colleges and providers
• Conclusion

Summary

The TUC welcomes the opportunity to comment on the new Further Education White Paper, 'Further Education: Raising Skills, Improving Life Chances', published on 27 February 2006. The White Paper responds to the report by Sir Andrew Foster on the future role of colleges, which was published in November 2005. It also builds on recent secondary school reforms, the 14-19 and skills strategies, the Success for All programme, and the LSC's Agenda for Change. It also builds on other measures to improve public services.

Many aspects of the White Paper are welcome, particularly:

• The recognition of the important role of FE, and strengthening this through the establishment of a clear mission focused on the employability and progression of learners
• Recognition of the union role, including the development of Unionlearn, and a commitment for the DFES to discuss collective learning funds with the TUC;
• The new system of learner accounts for adult learners, which will be tested with adults studying for a level 3 qualification
• And as flagged up in Budget 2006:

- a £20 million per annum package in response to the Women and Work Commission report,

- a new entitlement to free tuition for a first full level 3 qualification for 19 to 25 year olds from 2007-8; and

- bringing forward the national rollout of the Adult Learning Grant to 2007-08.

However the TUC also has a number of concerns, in particular:

• Ensuring the social role of colleges is maintained in the context of limited funding;
• A lack of measures to ensure that employers contribute more to the cost of training their employees;
• The introduction of competitions in relation to aspects of new provision, and the potential for this to destabilise the FE system;
• The degree of flexibility given to employers, and lack of workforce/union voice;
• The need to ensure that any changes to structures in the learning and skills framework include trade union representation, to ensure that the employee demand side is fully represented; and
• The pay gap between comparable jobs in different areas of the education sector, which makes the recruitment and retention of high quality staff into further education difficult, and threatens to undermine the Government's goals in terms of skills.

Introduction

1. There is much to welcome in the Further Education White Paper, 'Further Education: Raising Skills, Improving Life Chances', published on 27 February 2006. Welcoming the White Paper upon its release, TUC General Secretary Brendan Barber, said:

2. 'This White Paper is a welcome boost for employees who want to advance their careers through improved skills and training. And it quite rightly puts colleges at the centre of a strategy for economic growth, and it still maintains their crucial social role. I am pleased to see that the Government continues to recognise the role of unions in learning and skills. This is a tribute to the outstanding work of our union learning representatives. These reps involve large numbers of workers in training, and their efforts will be further advanced by the new union learning organisation the TUC will launch next month. This White Paper gives more employees opportunities to learn at work, and recognises the importance of extra resources for FE colleges and staff support.'

3. The White Paper sets out the achievements of the FE sector and the improvements made since 1997. However, it also rightly notes the remaining challenges for the UK. These include that the proportion of young people staying on in education and training post 16 is very low and the UK ranks 24^th out of 29 developed countries; the UK lags behind France and Germany in the number of young people attaining level 3 qualifications; and the UK ranks 17^th out of 30 countries in the number of adults in the workforce without level 2 qualifications. While there has been progress, the White Paper notes the findings of the interim report of the Leitch review, that even if all current targets were met, the UK would still be mediocre in the international rankings.

4. This is an important context that should inform further developments in learning and skills policy and practice, including the funding settlement for young people and adults. The TUC looks forward to the final report of the Leitch Review, and the issues of funding being addressed via the Comprehensive Spending Review process.

5. The TUC is however concerned at the continued focus on an 'employer led' approach. To truly address the country's skills needs, it is important to ensure the strategy is 'employment led' rather than employer led. Further, particularly given the significant levels of funding available to incentivise employer engagement in skills training and that many employers will still not train, the Government should introduce mechanisms to ensure that employers do engage in training, including the introduction of statutory rights on collective bargaining, paid time off to train and statutory levies in sectors where they are failing to address skills problems.

Strengthening the economic focus of FE

New mission for FE

6. The acceptance of the recommendations of the review of FE by Sir Andrew Foster to establish a clear mission for further education, focusing on the employability and progression of learners to deliver the skills and qualifications that individuals, employers and the economy need, is welcome. This development sets the FE sector at the heart of the Government's skills strategies as well as making an important contribution to 14-19 reform.

7. The TUC is also pleased that the White Paper notes that this mission does not mean narrow vocationalism, and the sector will maintain stepping-stones provision, and education and training for personal fulfilment and community development. While this commitment to maintain the social role of colleges is welcome, it is clear that tough choices will remain for colleges in determining provision within tight funding arrangements.

National Skills Academies

8. National Skills Academies (NSAs) are expected to provide a key role in driving new specialised networks. The TUC has previously expressed concerns about skills academies, for example in the submission to the DFES following the 2005 Skills White Paper, and in Composite 20 from Congress 2005. Composite 20 expresses concern that ' the proposed skills academies will be outside the public FE service with private benefactors'.

9. At the same time, trade unions should have an opportunity to use their influence, especially through their representation on the Boards of Sector Skills Councils, to seek representation in the governance of any proposed academy and to seek to ensure that any such academies adopt an employment-led approach and are strongly tied into the FE sector . However the TUC has expressed concerns to Government that the governance arrangements for skills academies do not include a commitment to have Union Board members as is the case with Sector Skills Councils. This is an issue that the TUC is concerned about, and we have written in these terms to the Minister for Skills.

Foundation Degrees and FE in HE

10. Further education already plays an important role in higher education, with 10% of all HE learners studying in FE colleges. This is particularly important for accessibility, as 50% of these learners are part-time, compared with about 35% in HE as a whole. The TUC welcomes that links between FE and HE will be developed, with the further expansion of Foundation Degrees and work-based programmes.

11. The White Paper notes that not all FE colleges are well placed to deliver HE, and the Government will ask the Higher Education Funding Council for England (HEFCE) to review the effectiveness of small pockets of HE in FE colleges. The TUC is concerned that this does not involve the closure of provision, particularly in geographical areas where the local FE college may be the only viable access to higher education in a particular locality.

Meeting the demands of learners and employers

12. There are a number of very welcome new measures that will benefit learners, including those in the workplace.

Union Role - Collective Learning Funds

13. It is very welcome that the Government's support for the union role in learning and skills is reiterated in the White Paper, which also notes the development of the new union learning organisation, Unionlearn, which was launched on 2 May.

14. The TUC made proposals to Government around the introduction of collective learning funds, on the basis that there is a clear need to optimise employer and employee contribution to broad workforce development that is not related to employability ie up to Level 2 (the cost shared between employer and state) or specific business requirements (the full cost borne by the employer).

15. Such provision could cover: transferable skills related to progressing through broad occupational pathways; continuous professional development; and personal and social development. Union involvement in such a fund could: increase employee take up of learning accounts (through ULRs); ensure that the accounts did not fund learning for business need that employers should fully pay for; and lever in more employer contributions.

16. Collective learning funds can also help people that fall within PSA target groups, but in practice are not able to access training. The TUC is concerned that many of the low skilled workers that would benefit most from accessing provision up to level 2 are not in the position to take up these opportunities. On the one hand access via Train to Gain requires employer involvement, and while some employers will engage in the programme to train their low skilled staff, many will not. In effect by channelling funding through Train to Gain, employers are acting as gatekeepers. Evidence has long showed that low skilled employees are also least likely to benefit from workforce development opportunities.

17. Further, our understanding is that the level 2 entitlement requires a minimum of approximately 16 hours of direct learning. This requirement far exceeds what most people in work could realistically manage in their own time. This would be particularly acute for people with caring responsibilities. The TUC is concerned about the gap in provision for low skilled workers, and believe that Collective Learning Funds are one mechanism where some of these issues could be addressed. However it is also the case that these issues need to be taken into account in further policy development.

18. Therefore the TUC particularly welcomes the section of the White Paper that states 'The TUC is developing proposals for a collective learning fund bringing together resources from learners and employers. We will work with them to consider actively how this might work alongside other initiatives, particularly the learner accounts and Train to Gain proposals set out in this White Paper' (paragraph 3.20). The TUC is taking forward this commitment with the DFES.

Entitlement to Level 3 for learners aged 19-25

19. The new entitlement to free tuition for a first full level 3 qualification for 19 to 25 year olds from 2007-8, supported by an extra £25 million from Budget 2006 is extremely welcome. This will help ensure that more people are supported to achieve the technical, advanced craft and associate professional skills where many of the UK's skills gaps are most acute. However the TUC would like to see this extended over time to at least the age of 30.

Individual Learner Accounts

20. The introduction of a new system of learner accounts for adult learners, which will be tested with adults studying for a level 3 qualification development, is welcome, particularly as the key role of union learning representatives has been highlighted. The role of ULRs and IAG advisors are particularly important, as learners should have the opportunity receive impartial advice in terms of accessing appropriate provision.

21. Unions can also play a key role through negotiating to introduce learner accounts in the workplace, including levering in money from employers. However the TUC is concerned to ensure that deadweight is avoided, and that the costs of training at Level 3 are not transferred from the employer to the individual. The trial of learner accounts at level 3 alone also means that some low skilled workers as outlined above will miss out on this opportunity. Further, as the White Paper rightly notes, it is important to ensure that there is strong quality assurance of providers.

Train to Gain

22. The TUC welcomes the reiteration of the Government's commitment to Train to Gain, and that Skills for Life and first, full level 2 provision will remain a priority and be free . In line with the 2005 Skills White Paper, it is important to ensure that employers are clearly required to agree with brokers the amount of paid time off to employees in return for the free training, regardless of whether they qualify for wage compensation.

23. The role of unions and union learning representatives is key in engaging 'hard to reach employees'. The TUC is finalising a protocol with the LSC around Train to Gain. We believe that a core element of Train to Gain needs to be that in recognised workplaces, brokers should meet and work with ULRs and the senior representatives that negotiate with management. Where ULRs do not exist, brokers should contact Unionlearn, who would then contact the appropriate union and offer to help establish ULRs in the workplace.

24. While the continued support for Train to Gain is welcome, it is important to ensure that Train to Gain minimises deadweight. This is particularly important given the extent of public subsidy, £288 million for 2006-07 and £457 million for 2007-08. Train to Gain aims to make the system more responsive to the needs of employers. However it is important that the Government keeps employer engagement under review and looks towards a post-voluntary approach to increase the employer contribution to the cost of training.

25. The White Paper also announced trials of higher education level skills within Train to Gain, with some public subsidy for this provision. While the TUC supports the extension of Train to Gain to include higher level skills, it is important to ensure that public subsidy remains targeted where there is market failure, ie Level 2 and below, and that employers contribute to the costs of training that directly benefit their business.

Women and Work Commission

26. The £20 million per annum package in response to the Women and Work Commission report, which is particularly welcomed by the TUC. Unions could play a key role in developing and implementing these initiatives, for example, supporting women learners in the Level 3 trials, influencing the sector developments through trade union representatives on Sectors Skills Councils, and translating these sector initiatives to the workplace.

Foundation Learning Tier

27. The TUC supports the introduction of the Foundation Learning Tier for qualifications below level 2 to develop progression pathways supported by high quality units and qualifications at Entry and Level 1 (including Skills for Life). This approach will help people reach level 2 qualifications through manageable steps, and is therefore an important contribution to helping people achieve employability skills.

Involving Learners in Decisions

28. Increasing the role of learners in decision-making within colleges is also a welcome aspect of the White Paper. These strategies, including the development of a National Learner panel, an expectation that colleges and training providers develop and implement strategies for involving learners and parents/carers of young learners and giving learners the opportunity to play a key role in institutional governance, are all welcome.

29. While these developments are positive measures, there should be more recognition of the needs of learners in the workplace, which will often be different to those of full-time students. Employees participating in workplace learning should be explicitly built into these arrangements through trade unions.

A national strategy for teaching and learning in FE

Workforce Development

30. The White Paper sets out a range of measures to enhance workforce development, equality and diversity and leadership in colleges. These are all welcome measures, however the lack of additional money to achieve these objectives is disappointing.

31. The White Paper reiterates commitments to narrow the funding gaps between schools and FE, with steps being taken to narrow the gaps from 13% to 8% by 2006-07, and 'beyond that we will take steps to narrow the gap further as resources allow' (paragraph 4.33).

32. However, the pay gap between comparable jobs in different areas of the education sector makes the recruitment and retention of high quality staff into further education difficult, and threatens to undermine the Government's goals in terms of skills. This issue needs to be addressed quickly.

Quality Improvement

33. The development of a single Quality Improvement Strategy (QIS) for the FE sector, which will subsume and build on Success for All, is welcome. The QIS needs to be introduced in full consultation with trade unions in the sector.

Personalised Learning

34. There is a commitment to support the development of personalised learning. The White Paper notes developments in reform of advice and guidance for young people and adults. A central element of personalisation is that learners have a proper assessment of their needs at the start of their programme, particularly those without a level 2 qualification. The TUC also supports the inclusion of a range of measures to improve support for learners with learning difficulties and/or disabilities.

Intervention and contestability

Failing and coasting colleges

35. It is welcome that the White Paper acknowledges that outright failure in FE colleges is now very rare. The White Paper also notes that there 'is still too much poor provision in other training providers' (paragraph 5.2). It is also argued that there is a much larger group of institutions which are barely satisfactory, or satisfactory, but not improving.

36. The TUC is concerned that the new intervention strategy to address failing and coasting colleges and other providers will see the LSC issue a formal notice with a specified period in which to see improvement, mostly one year. This is a very short period of time, which would not give enough time to effect real change.

Contestability

37. The White Paper sets out a number of instances where competitions will be introduced. This is the area of the White Paper about which the TUC has a great deal of concern and where the DfES was lobbied hard not to introduce a much wider version of contestability. It clearly has the potential to have a destabilising effect on the FE system and the TUC would like this area of policy to be reviewed.

Funding

Funding Priorities

38. The TUC continues to support the targeting of public funding where there is market failure, which is particularly those with low or no skills. However within this there are some who would miss out on access to support, for example older workers with an outdated level 2 qualification. As outlined in paragraphs 16 and 17, some low skilled workers will not benefit from access to level 2 via Train to Gain or the level 2 entitlement. Further the focus on these priorities means that colleges and providers are posed with some difficult decisions. The TUC is concerned that adult provision that acts as stepping stones, and access provision, are maintained and supported. However, where people can afford to pay for leisure courses, it is not unreasonable that they should be asked to make a contribution. Further, employers need to take responsibility for their share of the cost of training.

39. The question of the balance of responsibilities for who pays what is being taken forward by the review of UK skills conducted by Lord Sandy Leitch. The TUC is clear that employers need to take much more responsibility for training their employees. For example in the LSC's latest Employer Skills Survey, 35 per cent of employers had offered no training to their workforce in the preceding 12 months. And often where training is provided, this is statutory training such as health and safety. The TUC has called upon the Leitch Review to consider levers such as statutory rights for collective bargaining over training, paid time off up to level 2, licence to practice, procurement policies, and sector levies to increase employer engagement in skills provision.

Demand led funding

40. The White Paper sets out that the principle of funding following learner choice must apply to young people and adults. For adults, this will be done by increasing the proportion of the adult skills budget that is allocated according to the demands of customers. For adults, as noted above an accounts scheme is to be piloted for adults at Level 3. For employers, this will occur through Train to Gain. The objective is that the demand led share of adult learning should grow from below 20 per cent in 2006-07 to 40 per cent by 2010-11.

41. The TUC is concerned that current Government policy will not achieve a truly 'demand led' approach, and in particular that more needs to be done to ensure employer engagement, including the consideration of statutory measures.

Role of Local Authorities and LSC in relation to 14-19 provision

42. The White Paper states that the Government wants local authorities to play the strategic leadership role in relation to 14-19 (consistent with their leadership role in children's services overall), with the LSC being the primary partner for the local authority in this regard, using its funding powers to secure rapid and high quality implementation of the 16-19 entitlement in every area.

43. This makes collaborative work at the local level an important element of successful implementation of these proposals. There is a need for Local Authorities and Learning and Skills Councils to work in partnership and to include all key stakeholders, and it is especially important there is a continued Union voice at this level.

44. The objectives of the 14-19 entitlement are that young people are able to pursue courses meeting their needs, and this means that schools, colleges and other providers will need to work together to deliver it. For example young people may need to spend time away from their home institution (paragraph 6.7).

45. The Increased Flexibility Programme is an example where this has already happened. Evaluations of this programme have been generally positive. For example the OFSTED evaluation of the first year of IFP noted that pupils responded positively to broadened learning opportunities, and that where collaborative activity takes place, it successfully strengthens pupils' learning and enhanced teachers' professional development (OFSTED 2004). However these have been well-funded programmes, which underlines the need for any such arrangements to have sufficient resources in the future.

Adult learning grant

46. Regional trials of a means tested Adult Learning Grant are currently being carried out, and an additional £11 million was allocated in Budget 2006 to bring forward the national rollout of the Adult Learning Grant to 2007-08. This is another very welcome development.

New relationship with colleges and providers

Changes to DFES and LSC roles

47. The White Paper reiterates the planned reduction in staff numbers in both the DFES and LSC (paragraph 7.27). In addition to concerns around job losses, the TUC is concerned about the impact this may have on the delivery of skills policy, at a time when skills are recognised as playing a key role in the economy and promoting social inclusion.

48. The TUC notes that the White Paper supports the changes in the LSC structures, and that the strengthening of regional structures and the establishment of 148 LSC partnership teams will have implications for the existing local structures. As requested in the White Paper, the Chair of the LSC is carrying out a review to advise on a new streamlined accountability structure, 'which secures strong engagement of employers and other stakeholders'.

49. It is unclear what the outcomes of such a review will be. Central to the TUC's concerns is the need to ensure that issues of accountability and democracy are fully encapsulated within any further changes. In particular, there is a need to ensure that the demand side is fully represented in the LSC's structures, with trade union involvement key to ensuring that the voices of employees and learners in the workplace are represented.

50. The TUC understands that the models currently being considered do not take these principles into account. If regional boards are constituted without trade union involvement, the important role of the LSC regional structures will not be sufficiently accountable and representative. Trade unions not only represent the voice of employees and learners at work, but also bring to the table a vast array of experience from industry, balancing both social and economic needs, that will assist LSC regional boards in their deliberations. The TUC calls for the inclusion of trade union representatives in these structures as a matter of great importance.

51. There will also be a review of activity at regional level to ensure mechanisms at this level are coordinated and coherent (paragraph 7.36). Further, last autumn's 'city summits' and the recent 'State of the Cities' report highlighted the need for action on employment and skills to be better aligned. Large cities are now preparing to respond to Government with their proposals (paragraph 7.37). Again, it is important to ensure that trade unions have the opportunity to be involved in any new structures arising out of these changes. It is also crucial that these developments lead to joined up proposals across different geographical and sectoral levels.

Streamlining relationships

52. A Ministerial Standing Group on Further Education is to be developed, chaired by the Minister of State for Lifelong Learning, Further Education and Higher Education (paragraph 7.23), currently Bill Rammell. The group will review progress in implementing the vision set out in the White Paper. It will also ensure the proposals for streamlined working are implemented effectively. It is important that there is trade union representation on this body.

New National Learning Model

53. The Government also commits to the development of a new 'national learning model', as recommended in the Foster Report. The model will bring together the analysis of skills needs from the demand side with trends in provision of learning, in order to drive decisions on priorities and funding allocations. The White Paper makes a commitment to draw together the work already done in this area into a nationally agreed and published learning and skills assessment, setting out the skills priorities for the future, the implications for targets, and the funding principles that underpin them. The TUC welcomes the fact that the Government will work with the Skills Alliance to carry this out.

Conclusion

54. There is much to welcome in the White Paper, in particular strengthening the economic mission of FE, the recognition of the trade union role and commitment to dialogue with the DFES around collective learning funds. Also welcome are the new learner accounts, Level 3 entitlement for 19-25 year olds, and measures responding to the Women and Work Commission. There is also some welcome progress around workforce development.

55. However the TUC is concerned that the social role of colleges is retained, given the context of limited funding. Further, the TUC believes more needs to be done to ensure that employers contribute to the cost of training their employees. The TUC is also concerned about the destabilising effect of competitions. The pay gap between comparable professions also makes the recruitment and retention of high quality staff into further education difficult, and threatens to undermine the Government's goals in terms of skills. Further, it is important to ensure that trade unions are included in any structural changes to the learning and skills system to ensure that the demand side, including the voice of employees and learners, is fully heard.