09.10.2018 Grŵp Trawsbleidiol – AB a Sgiliau Dyfodol Cross Party Group – FE and Future Skills 09.10.2018

John Griffiths AC/AM Cadeirydd / Chair Aelod Cynulliad, Plaid Llafur Assembly Member, Labour Party

Mark Jones Coleg Gŵyr Abertawe / Gower College Swansea 

Further Education Funding … an ever changing picture Mark Jones Principal – Gower College Swansea Chair of the FE Finance Directors Group

Further Education Funding Since 2011 - 2012 The unit rate of funding has increased by just 0.14% But the increase in pay awards and other pay cost increases has been 12.68% A difference of over 12.5%

Further Education Funding 2011 - 12 2018 – 19 Budget Number of Colleges 17 13 £000 Total Income 461,933 522,391 Recurrent Grant 290,243 287,960 Other Income £171,690 £234,431 Income > £50m 2/17 5/13

Further Education Funding 2011 - 12 2018 – 19 Budget Reliance on Recurrent Grant 62.8% 55.2% Reliance < £60% 4/17 8/13 £000 Operating Surplus £14,404 £11,600

Further Education Funding What makes up a College’s overall income? Recurrent grant Catering Sponsorships Rentals Fees Work based learning Higher Education Grants Income Transport Income European funding European projects Educational Contracts Schools Income Other commercial activities

Further Education Funding FE Funding – Recurrent Grant Approx £3,500 - £5,500 per student dependent on student/programme - Allocated approx 6 months in advance for generally 1 year only - Changes to ‘methodology’ - Many inefficiencies left unaddressed - Impact of competition

Further Education Funding FE Funding – Higher Education Approx £7,500 - £9,000 per student dependent on course/HEI - Top sliced by HEI+ Bursary payments - Approval required by HEI - Long term sustainability? - Impact of competition

Further Education Funding FE Funding – Apprenticeships Approx £2,000 - £4,000 per student dependent on course - Apprenticeship funding reduced in 2018/19 - New ‘pots’ of funding to bid for - Lack of security in terms of having to bid for contracts and of course the future uncertainty of European funding.

Further Education Funding Some issues for discussion and consideration 1. Longer term funding settlements needed 2. Stability of funding model 3. Need to reduce competition 4. Need to address inefficiencies 5. Changes from secured to unsecured funding and of course….. 6. Managing the impact of ongoing pay and pensions increases Colleges constantly ‘looking over their shoulder’ for ‘what is coming next’

Sharon James Coleg Caerdydd a’r Fro / Cardiff and Vale College

How Funding Supports Curriculum Sharon James Deputy Principal – Cardiff and Vale College Member of the FE Curriculum and Quality Group

Meeting the needs of individuals, employers and the community we serve The role of an FE College is huge: Entry level to level 7 courses Further Education Higher Education Work based Learning Adult learning Schools Provision Community Learning International Learning Commercial Training Full Time, Part Time and Distance Learning Technology Enhanced Learning (TEL) ESOL and ABE Developing a Skilled Workforce

Funding can transform lives and increase opportunities FE is responding well and is proactive in relation to the following : Reliance on Core Funding Regional Skills Priorities Progression – outcomes/outputs Skills Development Fund Commercialising the curriculum Higher level skills Welsh language development Working with employers Increasing apprenticeship offer Efficiency/Value for Money Responsive Adaptable Resilient Collaborative

Creating a curriculum for the future Curriculum Plan Resource Development Staff /Work Force Development Commercial Links LMI , Employer Boards, in House Research LSKIP Priorities & Employer Networks EMSI

Quality Efficiency Growth Funding Priorities Quality Efficiency Growth Quality: 19

National Comparator Data of FE Institutions Data Cymharydd Cenedlaethol Sefydliadau AB 20

The skills gap at age 16 (if we really are going to move to delivering higher level qualifications) Too much of FE funding is being spent on “remedial” tuition – with students (even those with Grade C in English and Maths) not being “academically able/capable” of following a Level 3 or in some cases even a Level 2 qualification This is not just about GCSE resits – there will always be a requirement for those One secondary school with 125 year 11 pupils – produced only 2 with a Grade B in science – and STEM is a national priority Level 1 threshold – 5 G grades at GCSE 70% of learners do not have GCSE maths and English Perception of vocational education Impartial and effective careers advice and guidance – Learner entitlement. 21

Challenges - Industry The Curriculum must / needs to change to deliver more higher level skills / qualifications;   Level 4/5 rapid prototyping, composites, advanced manufacturing, integrated design This “change” will have funding implications The investment in industry standard equipment   This equipment will become out of date and need replacement far quicker than “traditional” engineering equipment   Staffing contracts , Resources and Skills The sector WILL NOT be able to recruit engineers (or IT coding or cyber security experts, or leadership and management coaches) from industry with these skills at the current salary levels that are based on teachers / lecturers of Level 2/3 qualifications 22

Challenges Employers ARE willing to pay for up-skilling of their workforce. However, they are unwilling to send staff on 34 week courses starting in September – have no training provision offered in July and August and have only limited provision in evenings and weekends.  They WILL pay for bespoke courses – put on at times and locations that fit around their business  The FE common contract with lecturers is based on a “traditional” FE offer – of full time courses, mainly 9 to 4 – Monday to Friday, on a three term model with long summer holidays.  As noted above, the FE pay scale is also based on a “traditional” FE offer of delivering Level 2/3 courses  These contractual and pay matters restrict College’s ability to be as flexible as employers require.

Technology Enhanced learning The opportunities for more “exciting”, “immersive”, “engaging” learning experiences for our students provided by the advances in technology from coding, virtual reality, robotics are almost unlimited. Our students increasing live their lives “on-line” and the most effective form of learning is when a learner “learns” – not when a teacher “teaches” or a lecturer “lectures”………. The “challenge” is the up-front investment in the technology and the training for staff (or recruitment of new staff with new skills.) The “opportunity” may not be in the context of savings that an accountant can count – but in a better, more effective learning experience and more “valuable” learning outcome – that will deliver students who understand and can apply “skills” that they have learnt – not just “know facts” that they read in a book or were told in a lecture……… 24

Additional Learning Needs (ALN) 25

Creative Solutions Equipment Aligned to Regional Skills Priorities PAL’s – Programmes of Accelerated Learning Enhanced Programmes Junior Apprentices In house college “employment bureau”

Opportunities Meeting the needs of employers Engineering and construction employers are increasingly asking to take on Level 3 apprentices – to develop their Level 3 skills “on the job” – rather than to recruit a student who has completed a Level 3 full time qualification in college This could lead to a “cheaper” delivery model at Level 3 – with less college based delivery There can also be some “reluctance” from employers to take on a 16/17 year old to do a Level 2 apprenticeship – in part because of their lack of vocational skills, but often poor numeracy, literacy and perhaps not “ready for work” The WG’s “extended” courses in engineering, construction and IT at Level 2 could be rebadged as a “pre- apprenticeship” programme and possibly copied in other sectors / subject areas 27

What can we do? Solution Focussed Skills, Skills, Skills Working closely with RSPs and SMEs Challenge and support schools – Level 1 threshold Impartial comprehensive advice and guidance FE Brand Focus on progression Continue commercialisation of CP Promoting skills and apprenticeships WBQ – that is recognised and valuable Funding wellbeing and links to Health Care Responding to ALN Bill Institutional funding- WBL/FE/HE/ACL Solution Focussed Skills, Skills, Skills Collaboration and Partnership Honest Dialogue 28

Any Questions? 29

David Rees AC / AM Aelod Cynulliad, Plaid Llafur Assembly Member, Labour Party

Sesiwn Holi ac Ateb Questions and Answers

@colegaucymru @collegeswales colegaucymru.ac.uk collegeswales.ac.uk Diolch Thank you @colegaucymru @collegeswales colegaucymru.ac.uk collegeswales.ac.uk