27 March 2006

Further Education colleges are to be the engines of social and economic growth, providing young people and adults with the right skills to meet the demands of our economy. This new economic mission for colleges and the FE sector is the key theme of the Government’s new White Paper, Further Education: Raising Skills, Improving Life Chances, published today.

The White Paper includes the Government’s response to Sir Andrew Foster’s report on the future role of FE colleges, and represents a sweeping programme of reform for FE. It includes provisions to drive up the quality of teaching, to reward colleges for success and to make the sector more responsive to the skills needs of individuals and employers.

Headline reforms include:

• The introduction of free education for 19-25 year-olds studying for their first Level 3 qualification (two ‘A’ Levels or equivalent);

• New Adult Learning Grants to help students with living costs;

• A new £11 million programme to encourage the recruitment and development of the FE workforce of the future

• A new tougher approach to tackling poor quality

• Trials of a new learner accounts programme at Level 3

Launching the White Paper in the Commons today, Education Secretary Ruth Kelly said:

“We have much to be proud of in our further education system. We have many excellent colleges and training providers and success rates are rising fast. Over a million people have been helped to improve their basic literacy, numeracy and language skills. Since 1997, the number of post-16 learners has grown from 4 million to 6 million. We have increased investment in colleges by 48% between 1997 and 2006. But we are still falling short of where we need to be. Improving the skills of young people and adults is one of the biggest strategic challenges facing our country.

“For a modern, competitive and just economy our aspirations should be for all young people to be in education and training, for all adults to be able to continue gaining new and valuable skills and for all employers to see training as an essential investment in their workforces.”

Lord Leitch’s interim report of his review of the nation’s skills needs up to 2020 found that the UK lags behind its international competitors, ranked 24th out of 29 developed nations for the proportion of young people staying on in education or training after the age of 16. The number of adults in the workforce without the skills needed to succeed in a modern economy is also high: the UK is ranked 17th out of 30 countries. At the same time, nations such as India and China are rapidly improving their skills base. Even if the UK meets current targets for raising skills and qualifications among young people and adults, by 2020 it will still be nowhere near the top of the international league. The White Paper addresses these twin challenges of widening participation in FE among young people and adults and upskilling the workforce, by focusing reforms around key themes:

• A new economic mission for FE: placing at the heart of the sector’s role the skills which underpin economic success, employability and social justice.

• World class specialised vocational learning, driven by the needs of employers, including strengthening Centres of Vocational Excellence

• Raising the quality of teaching and training – learning tailored to the needs of individuals, a more selective approach to inspection, and developing the FE workforce;

• Responsiveness to employers and learners: giving learners and employers greater say in the provision of education and training, more choices, and the tools to make the most of these opportunities. That Includes expanding work-based training to meet employers’ needs and trialling a new accounts programme for adults.

• New entitlements for learners – to help more people in their early 20s to keep training to get the crucial technical, associate professional and skilled trade qualifications that are the passport to many good jobs.

• New freedoms for high performing colleges coupled with tougher and speedier intervention to combat poor performance. New styles of delivery of training will be introduced, including federations, trusts and collaborations.

• Reduced bureaucracy and less regulation.

• Increased competition – providing opportunities for new high quality providers to enter the system to bring innovation and drive up quality

• Stronger, more systematic integration of higher education with the FE sector.

• A fairer playing field for capital funding available to schools and colleges.

Alongside these key themes are a range of specific reforms aimed at making the FE sector more responsive to the needs of learners and employers, including:

• A new entitlement for free tuition for learners aged 19-25 studying for their first Level 3 qualification (2 A Levels or equivalent) – backed up with an extra £25 million in funding from 2007/08. For the first time, there will be seamless support through free tuition and maintenance to help young adults carry on training beyond the age of 19 to get the Level 3 qualifications that the economy needs. As resources allow this entitlement will extend to include programmes within the Foundation Learning Tier that support progression through to Level 2 (5 GCSEs A*-C or equivalent) and beyond.

• £11 million for four new programmes of FE Workforce reform: to encourage the recruitment and retention of top-quality graduates and managers into the sector and more staff exchange between FE and business. There will also be a continuous professional development requirement for all staff

• The £11 million national roll-out of the Adult Learning Grant one year early (2007/8) to provide a weekly maintenance allowance for adults on low incomes (19 and above) studying for Level 2 (5 GCSEs A*-C or equivalent) or Level 3 qualifications.

• The introduction of Learner Accounts for learners at Level 3 to give them technician, skilled trade and associate professional qualifications, subsidising the cost of courses at a provider of their choice, together with tailored information and advice.

• Development of a single recognised quality rating, giving new incentives to raise quality and a new, clear source of information for learners and employers.

• The LSC to end funding for failing colleges, providers or departments, encouraging changes such as mergers or federation with another stronger college

Today’s proposals have won support from the business community. Sir Digby Jones, CBI Director-General, said:

“Constant upskilling and retraining will be the hallmark of a competitive economy in the 21st Century. The Government must put employability at the heart of Further Education if it wants to help business to compete, and equip people to enjoy fulfilling and varied careers.

“Ensuring colleges focus on the needs of employers will help banish the identity crisis about their role they have suffered for too long – and the introduction of limited competition to the sector is a positive step towards delivering the flexible, high quality training that has too often been lacking.”

Brendan Barber, TUC General Secretary hailed the White Paper’s emphasis on raising skills. He said:

"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."

The reforms have been backed by FE colleges. Paul Head is Principal of the College of North East London and was involved in the consultations leading up to the White Paper.

He said: "Further Education provides essential and valuable training for millions of young people and adults, but it rarely receives the attention it deserves. Today's White Paper demonstrates a welcome new level of commitment to the sector from the Government.

"The White Paper poses a number of significant challenges for FE. We must accept the need for reform. That is essential if our colleges are to provide the training and skills needed for this country to compete on the world stage. I am confident colleges will rise to the challenge. Doing nothing is not an option".

Sir Andrew Foster said:

“I am pleased to welcome many of the proposals in the White Paper as I think it gives a strong focus on skills and employability that my report argues for. I am very pleased with the emphasis on learners and employers views.

“The increased investment and new entitlements are very timely. It is now critical that the DfES and LSC follow through with a determined implementation plan that simplifies the system and reduces regulation.

“Much work needs to be done to strengthen workforce development. The prize for all of this is high for learners and the economy”.