Five current challenges facing Further Education

As well as developing the careers of school-leavers and adults and contributing to the economy, further education (FE) also plays a crucial, but unsung role in our daily lives. As one college chief executive has observed:

“Over the past 25 years, we have quietly gone about our work producing the people that matter most to our communities – those that build our houses, fix our boilers, our computers and our cars, care for our children and our parents, ensure the planes that take us on holiday are safe and look after us when we get to our destination, cook our special meals, entertain us live and on TV, enrich our lives with their art, cut our hair and make us even more beautiful!”

But now the sector is facing key challenges that are likely to change the face of further education in the years ahead.

  1. Policy reforms

According to the Institute for Government (IfG), since the 1980s there have been:

  • 28 major pieces of legislation related to vocational, FE and skills training
  • Six different ministerial departments with overall responsibility for education
  • 48 secretaries of state with relevant responsibilities

The FE sector has proved to be resilient and adaptable to these changes, but many believe this instability has left the sector unfit for purpose.  In 2016, the Sainsbury review of technical education recommended changes to England’s FE system to make it less complex. These were taken up by the government, which introduced a new Post-16 Skills Plan. The reforms will replace thousands of qualifications with fifteen new technical education pathways. The new ‘T-Levels’, in subjects such as construction, childcare and hairdressing, will be rolled out by 2022.

It’s too early to say what effect the reforms will have, but some already have misgivings. A senior civil servant at the Department for Education has advised deferring the start date for T-Levels, while the shadow education secretary Angela Rayner argued the changes would not make up for “years of cuts” to the FE sector.

  1. Funding pressures

The Social Market Foundation reported in 2017 that, since 2010, the adult skills budget in England has fallen in cash terms. “Alongside this reduction, the Institute for Fiscal studies (IFS) has shown that 16–18 education spending has reduced.”

Funding pressures on FE are likely to continue. In August, the Treasury instructed Whitehall departments with non-protected budgets, including FE,  to identify areas of “potential savings”. David Hughes, chief executive of the Association of Colleges, said “The news that the chancellor may be looking for further funding cuts from unprotected departmental budgets is very worrying for colleges. College students and staff have already taken on too much pain from the funding cuts in further education over the last decade.”

The government has announced a review of post-18 education funding, including further education. The review will be supported by an independent panel, led by Philip Augar, and is expected to conclude in early 2019.

  1. New apprenticeships

The apprenticeship levy was introduced on 6 April 2017. It requires all UK employers with a wages bill of over £3 million per year to invest 0.5% of their bill into apprenticeships.

Once they start making payments, employers can access the funds through a Digital Apprenticeship Service (DAS) account that allows them to pay for apprentice training, choose the training provider they want to provide the training, and find apprentices for their vacancies. Initially, this service is only available to those employers paying the levy. However, the government aims to extend access to all employers by 2020.

In May 2018, the Reform think tank published an assessment of the apprenticeship levy’s impact in its first year of operation. The report found that in the six months after the levy was introduced, the number of people starting an apprenticeship was 162,400 – over 40% lower than the same period in the previous year. Concerns about the levy were heightened in May 2018 with official figures revealing a 40% drop in apprentice starts across all industries in February, compared with the previous year. The statistics prompted further calls for reform of the levy. However, the Learning and Work Institute (L&WI) has argued that it is still too soon to judge the new system.

  1. Devolving FE

Central government continues to control FE funding, but local authorities and Combined Authorities are pressing for greater devolution of the adult skills budget. City mayors are also showing interest in bringing more of FE and skills under local control.

At the same time, the FE sectors in, Wales, Northern Ireland and Scotland have been experiencing their own challenges:

  • College funding in Wales has remained tight over the last few years, but a 2017 report from Colleges Wales highlighted the economic impact of FE in Wales. It reported a return of £7.90 for every £1 spent, an average annual return on investment of 24%.
  • A report by Viewforth Consulting report estimated that the FE sector generated over £524 million of output in Northern Ireland from college and student off-campus expenditure. A new further education strategy was launched in 2016, but the collapse of the Northern Ireland Assembly has presented the FE sector with additional uncertainties.
  • Between 2012 and 2014, 25 colleges in Scotland merged to create ten new regional ‘super colleges’ under a Scottish Government programme to make the sector more efficient and ‘responsive to the needs of students and local economies’. According to the Scottish Funding Council, the merger programme cost £72m, but delivered annual savings of more than £52m. However, Audit Scotland’s 2017 review of further education in Scotland found that student numbers at Scotland’s colleges fell to the lowest level for almost a decade. Performance figures on Scotland’s colleges published by the Scottish Funding Council (SFC) in February 2018 show that the success rate in almost two-thirds of Scottish colleges has dropped.
  1. The future

It’s clear that funding issues and policy changes will continue to affect FE in the UK. But other challenges are also looming.

The Social Market Foundation has highlighted market developments likely to present competitive threats to the FE sector. These include more employers moving in to provide training traditionally delivered by the FE sector, and the advance of educational technology, encouraging more learners to self-direct.

As for Brexit, the Association of Colleges believes the impact of the UK leaving the European Union may be less in FE than in other areas of national life,  but forecasts that Brexit has the potential to bring big changes to the demand for skills and training.


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Delivering digital transformation: the mixed successes of the Government Digital Service

By Steven McGinty

It’s been a period of change for the Government Digital Service (GDS) since losing influential Executive Director Mike Bracken in 2015. Since then, the service has experienced a string of high profile departures, leading many commentators to suggest that the much-lauded GDS could soon be coming to an end.

However, in the November 2015 Spending Review, then Chancellor George Osborne announced that the GDS would receive an extra £450 million over four years – a significant increase on their previous budget of £58 million per year.

Chancellor Osborne highlighted that these additional funds would help fuel a “digital revolution” in central government, and in particular create one of the most digitally advanced tax administrations in the world.

But has new funding – and possibly the public show of support – led to a digital revolution?

In the beginning….

In 2011, the GDS was formed to implement the ‘digital by default’ strategy – a key proposal of UK Digital Champion (and founder of lastminute.com) Martha Lane Fox’s report into the delivery of online public services.

The GDS’s first major project, GOV.UK, has in many ways proved to be a success. Launched in 2012, the publishing platform brought together over 300 government agencies and arm’s length bodies’ websites within 15 months. Replacing DirectGov and Business Link alone has saved more than £60m a year. Early testing showed GOV.UK was simpler for users, with 61% completing tasks on the new Business Link section; compared to 46% on the old website.

GOV.UK has also been viewed as an example of best practice, with GDS team members supporting countries such as New Zealand with their own digital government efforts.

However, it’s not been entirely without its controversies. In October 2016, the Welsh language commissioner accused the UK government of weakening Welsh language services, explaining that provision on the site had “deteriorated astonishingly” since the introduction of GOV.UK. A recent GDS blog article has also identified challenges in making content accessible for users. For example, 73% of the content on GOV.UK is looked at by fewer than 10 people per month.

Government as a platform

A major theme of the GDS’s work has been the introduction of a platform approach to digital government – principles proposed by technology guru Tim O’Reilly. In 2015, Mike Bracken set out a new vision for digital government, highlighting the need to create:

“A common core infrastructure of shared digital systems, technology and processes on which it’s easy to build brilliant, user-centric government services.”

GOV.UK is one such service.

But the concept has gone on to inspire new services such as GOV.UK Verify – a platform which enables citizens to prove who they are when using government services. This common service was a world first and is being used by organisations such as HM Revenue & Customs (HMRC) and the Department for Environment, Food & Rural Affairs (DEFRA).

Additionally, GOV.UK Notify – a service which sends text messages, emails or letters – was introduced in January 2016. It helped support the Valuation Office Agency (VOA) transition some of their services to online only, as it provided them with the ability to send thousands of notifications at the one time.

National Audit Office

On 30 March 2017, the National Audit Office (NAO) published a report into the government’s track record on digital transformation.

The report concluded that the GDS had an early impact across government, successfully reshaping the government’s approach to technology and transformation. However, Amyas Morse, head of the National Audit Office, also observed that:

“Digital transformation has a mixed track record across government. It has not yet provided a level of change that will allow government to further reduce costs while still meeting people’s needs. To achieve value for money and support transformation across government, GDS needs to be clear about its role and strike a balance between robust assurance and a more consultative approach.”

In particular, the NAO highlights concerns over the GOV.UK Verify programme. The service has proven difficult to adopt for some departments, which has led to the GDS allowing the use of alternate identity services. According to the NAO, this significantly undermines the business case for GOV.UK Verify, and provides a poorer experience for users on government websites.

The Institute for Government

Influential think tank, the Institute for Government (IfG), has recently published two reports on the progress of digital transformation.

In October 2016, the report ‘Making a success of digital government’ estimated that the UK Government could save up to £2 billion by 2020 – through efficiency savings – by creating better digital services. Major digital transformation successes were also highlighted, including the online registration to vote by 1.3 million people by May 2016, and the introduction of a new digital road tax system (removing the need for paper disks).

In terms of the GDS, the IfG expressed similar views to the NAO:

“We found that GDS has played an important role in bringing new digital capability into government. But, in the absence of a new digital strategy, its role is unclear. GDS needs to re-equip itself to support a government that now has rapidly developing digital capability, and high ambitions for change.”

In February 2017, the government published a new digital transformation strategy, including attempting to clarify the ‘evolving’ role of the GDS.

However, this hasn’t stopped the IfG making several new recommendations for the GDS in their latest digital government report. These include:

  • clarifying the GDS standards and distinguishing between standards and guidance;
  • re-examining the role of the Government Gateway – an identity assurance platform – and of GOV.UK Verify;
  • taking a more active role in the digital services market, such as designing the Digital Marketplace for different users; and
  • creating a store for Application Programming Interfaces (APIs) to encourage their use throughout the public sector.

Final thoughts

The GDS has played a vital role in creating a new vision for digital government. However, evidence has suggested that over recent years the pace of change has slowed, with key initiatives such as GOV.UK Verify facing a variety of challenges.

In the coming years, it’s likely that the Brexit negotiations will be top priority for politicians and many government departments. It will be important that the GDS works with these departments and looks to prioritise services that are vital for managing the Brexit process.


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From failure to improvement: how public services can turn themselves around

Abhacken

A new report on the instructive role of failure has been published this summer by the Institute for Government.

Failing Well describes the experiences of four previously failing public services organisations which managed to turn their services around.

Introducing the report, the authors highlight what failure means for public services.

“Failure matters because failure happens. The constellation of organisations that constitute public services in the UK is inherently complex and therefore at permanent risk of failure. This risk, while longstanding, is particularly acute at present. Service providers remain under pressure to cut costs and reconfigure the way services are delivered.”

In addition, structural changes to the ways services are being delivered – a push towards more decentralised and autonomous models of public services – can heighten the risk of failure.

And the authors note that the impacts of failure in the context of public services can be serious:

  • unacceptable standards of service provision
  • harm to service users
  • disruption to service provision
  • discontinuation of the service entirely

Doncaster Council

Four case studies in the report illustrate the different ways in which identified failings in a public sector organisation can lead to changes for the better.

In 2010, a corporate governance inspection by the Audit Commission reported that Doncaster Metropolitan Borough Council:

“does not do enough to meet the needs of its most vulnerable people, does not safeguard children, and has not been good at helping vulnerable people find a home.”

In short, the commission described Doncaster Council as “a well-known failure”.

In the light of this damning assessment, the Communities Secretary appointed a new chief executive and a team of commissioners to oversee a turnaround at the council. As Failing Well’s authors note, the move by central government to impose its will on local government in direct opposition to democratically elected councillors was an extraordinary step. One of the lessons from Doncaster’s case is that earlier forms of support may prevent such interventions before a public service reaches the point of serious failure.

The report goes on to describe the improvement plan for Doncaster Council agreed by the new commissioners, covering areas such as corporate issues, health and caring. At the same time, the commissioners sought to repair breakdowns in personal relationships at the council that were partly responsible for the problems in running the organisation. By 2014, confidence in the governance of Doncaster Council was restored, and the commissioners were withdrawn ahead of schedule.

West Sussex Children’s Services

Another case study in Failing Well describes the traumatic impact a poor Ofsted assessment had on West Sussex County Council’s Children’s Services, particularly concerning recruitment and retention. But the labelling of failure also proved to be pivotal in bringing problems into the open and stimulating action.  Children’s Services presented its own improvement plan, with progress measured by the council’s Improvement Board. Subsequent Ofsted assessments demonstrated that the journey from failure to improvement was under way.

Lessons from failure

The case studies from Doncaster and West Sussex, along with those from a school and an NHS foundation trust, highlight the different pressures faced by a range of public service organisations. But the authors found some common lessons emerging from these different stories:

  • Peer-to-peer support provides opportunities for earlier intervention – but it needs a trigger.
  • Interventions may not need to remain in place until the turnaround is complete.
  • Insularity is often a characteristic of failing organisations.
  • Responses to failure can be over-reliant on structural reforms.
  • Creating an open, no-blame culture helps to protect against future risk of failure.
  • There is scope for more sector-wide learning from failure.
  • Failure can appear to get worse before it gets better.
  • Turnarounds should set the foundation for long-term improvement, as well as dealing with immediate problems.

The authors warn against an over-reliance on blame, suggesting that this can forestall attempts to understand why failure arose. And they conclude that cultural reform is key to responding to failure:

“In all of the case studies, turnarounds were to some extent predicated on the adoption of new cultures and ways of working…Open, blame-free cultures, where staff are actively encouraged to flag risks or concerns about standards of provision, allow organisations to prevent further failure and encourage reflection when failure does occur.”


Previous blog posts on the the subject of public sector services include: