Adult Education Budget Devolution Francis Lawlor Adult Education - - PowerPoint PPT Presentation

Adult Education Budget Devolution

Francis Lawlor Adult Education Budget Strategy Executive

Welcome to Over

Central Location in the heart of Cambridgeshire

• 10 miles (16 km) east of the town of Huntingdon
• 10 miles (16 km) northwest from the city of Cambridge

The Over Community Centre was set up with National Lottery funding of almost £1 million in 1999. Some archaeologists believe that the ridge of slightly higher land upon which the village stands was the furthest intrusion inland of the sea — unlike the villages in the fens, which were often surrounded by watery land after the sea receded. Over was an edge-of-fen settlement. Some sayits name derives from the fact that to get to it travellers had to go over the fens to reach it, while others believe it may come from an old English word meaning "on the banks of the river".

Agenda

9.30 – 9.40 Welcome and housekeeping All 9.40 – 10.25 Presentation on the Adult Education Budget Francis Lawlor 10.25 – 10.35 Comfort Break 10.35 – 11.30 Round table / Group discussion All 11.30 – 12.30 Networking Session All 12.30 Close

Purpose of the day

➢ Develop the conversation. ➢ Raise awareness and provide information on the devolution of the Adult Education Budget to Cambridgeshire and Peterborough Combined Authority. ➢ Outline potential considerations, intentions and implications.

NATIONAL AND LOCAL CONTEXT – STRATEGIES AND DATA

National Context

Social Mobility: entrenched low pay and too many people left behind Industrial Strategy: skills underpin every aspect Sainsbury Review & technical education reforms, including work placement requirements and careers inspiration/education Lifelong learning Post 16 Education Review Devolution of the Adult Education Budget to 6 MCA’s and the GLA Apprenticeship reforms Unknown impact

• f Brexit

Local Context

➢ Ambition 2030. ➢ Skills strategy. ➢ Devolution opportunities. ➢ Local Industrial Strategy. ➢ University of Peterborough. ➢ Skills Hub. ➢ Growth Prospectus.

Cambridgeshire & Peterborough Combined Authority Ambition 2030

Cambridgeshire & Peterborough Combined Authority Context

➢ By 2030

• Raise the productivity for those in work
• Meet replacement demand, increase resident employment rates and

create additional jobs.

➢ Skills are critical to

• Shifting the economic and labour market.
• Residents contributing to an increasing productivity, job growth and

pay progression.

➢ Incremental change to deliver vision

• Stronger and adaptive communities with better social wellbeing
• Better engagement between education and business.
• Improvement in basic skills and generic skills – English & Maths, digital

Local Skills Priorities

➢ Higher skills for better jobs.

• Driver to reduce poverty.
• Integrated career pathways.
• Improved work and pay prospects for local people

➢ Skills for the next generation of businesses.

• Employer led approach.
• Skills align with innovation .

➢ Building capacity in our key sectors.

• Strong provider base.
• Targeting skills shortages.

➢ Real choices for young people

• Young people’s career paths and work readiness
• Advise and influence choice.

Cambridgeshire & Peterborough Combined Authority Context ➢ 850,000 residents. ➢ International academic offer ➢ Rich mix of cities, market towns and rural areas ➢ Knowledge intensive industries ➢ AEB annual spend on residents between £11m to £13m. ➢ High employment growth

Current local skills level

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

In-work Working age In-work Working age In-work Working age In-work Working age In-work Working age In-work Working age In-work Working age Cambridgeshire and Peterborough Cambridge East Cambridgeshire Fenland Huntingdonshire Peterborough South Cambridgeshire

No qualifications Other qualifications NVQ1 NVQ2 Trade Apprenticeships NVQ3 NVQ4+

Proportions of individuals aged 16-64 with no qualification and with NVQ 4+ qualification of equivalent; mean gross weekly pay

Current local skills level

0% 10% 20% 30% 40% 50% 60%

% of aim starts by sector by AEB learning type 2017

Community Learning Adult Skills

Local Growth and productivity

• 80
• 60
• 40
• 20

20 40 60 80

Manufacturing - chemicals only Mining & quarrying Manufacturing - electronics Manufacturing - food manufacturing Manufacturing - transport equipment Agriculture Manufacturing - metals manufacturing Manufacturing - pharmaceuticals Manufacturing - general manufacturing Publishing & broadcasting Telecoms Finance Utilities Land transport Research & development Education Other services Wholesale Professional services Waste & remediation Water & air transport Retail Arts & entertainment Computer related activity Health & care Construction Public administration Employment activities Business services Accommodation & food services Real estate

Projected % employment change from 2016 to 2045

Source: EEFM 2017

• Industries with

relatively high skills needs growing

• Construction and

hospitality set to add labour

• Preparation for

significant shifts

Skills levels in IT comparison: AEB starts vs industry employees

7% 31% 23% 23% 33% 40% 36% 6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Industry breakdown from census using: SIC: J - Information and Communication AEB breakdown from cube using: SSA: 6 - Information and Communication Technology

No qualifications (inc entry level) Level 1 qualifications Level 2 qualifications Level 3 qualifications

Priority Sectors

➢ Life Sciences – Astra Zeneca, Eisai, Glaxo Smith Kline. ➢ IT & Digital - ARM. ➢ Logistics & Distribution. ➢ Education. ➢ Professional Services – Addison Lee in Peterborough. ➢ Agri-tech. ➢ Health and Social Care. ➢ Construction.

DEVOLUTION OF THE ADULT EDUCATION BUDGET

Benefits of devolution

Benefits of devolution

➢Alignment of the AEB. ➢Joined up skills system. ➢Flexible training and education. ➢Targeting skills gaps. ➢Effective relationships with providers. ➢Simpler system.

How does AEB fit?

➢ Targeting low skilled and low paid. ➢ Securing skills up to level 3. ➢ Improving progression. ➢ More flexibility. ➢ Targeting priority areas. ➢ Improving earning potential.

Opportunities

➢ Establish clear principles. ➢ Common approach across a local labour market area. ➢ Co design and co produced approach with partners. ➢ Enhance flexibility and freedoms. ➢ Collaborative strategic approach

What does the AEB currently fund?

➢ Combines community learning and adult skills training. ➢ Adult basic skills – English and maths (19-23). ➢ First full level 2 and 3 ( 19-23). ➢ Retraining courses for the unemployed. ➢ Other full time, part time or distance learning – for those who meet eligibility criteria who pay co-funded course fees. ➢ 2018/19 pilot – fully fund learners who are employed and in receipt of a low wage and cannot contribute towards the cost

• f co-funding fees.

What does the AEB currently fund?

AEB supports a set of four statutory legal entitlements: AEB supports learners in the following categories:

Devolved AEB will not support:

• Apprenticeships / 19-23 Traineeships and related provision.
• Adult offender learning and related provision.
• 16-18 provision.

Indicative Allocation (1)

➢ 2016/17 data set ➢ Contracted and grant funded 174 local, regional and national providers – Funding value £12m. ➢ 129 grant funded providers. Funding ➢ 57.0% Further Education Colleges. ➢ 9.2% Independent Training Providers. ➢ 33.4% Local Authority Providers. ➢ 0.4% Sixth Form Colleges.

Indicative Allocation (2)

Significant proportion of AEB was subcontracted ➢ 40.6% ̶ this equates to 12,558 learners. A total of ➢ 123 subcontractors were used by main providers. 22 ➢ % of subcontracted starts were in preparation for life and work to deliver employability skills or basic English and maths qualifications.

Leadership

➢ Influence. ➢ Building engagement. ➢ Building confidence. ➢ Vision to strategy to action. ➢ Restless. ➢ Coherence;

• Focussed direction.
• Collaborative culture.

➢ Agility, flexibility and adaptability. ➢ Monitor – improve – deliver. ➢ Stabilise – improve – sustain.

Principles

➢ Open minded and always optimistic. ➢ Learner focused. ➢ Sharing accountability and commitment. ➢ Responsible for performance. ➢ Collaborative approach. ➢ High standards. ➢ Sense of place and belonging. ➢ High visibility.

Principles

➢ Strategic approach ➢ Creating a funding and contracting system;

• Employment.
• Priority sectors.
• Disadvantaged learners.
• Progression.
• Social cohesion

➢ Unintended consequences and mitigating risk.

Current thinking and intent

Minimise disruption. ➢ Model change implications in ➢ 2019/20. Align all allocations processes with current ESFA ➢ timetables. Monitor delivery performance ➢ – expenditure and activity.

Strategic intent

➢Create a working relationship with providers drawing on your experience, skills and insights. ➢Creating a sustainable provider base to meet learner and employer demand. ➢To contract with grant funded providers with a base in Cambridgeshire & Peterborough who deliver for the local residents. ➢To commission contracted provision from Independent training providers that delivers skills training and education for local residents. ➢To contract with providers that deliver high quality provision and

• utcomes.

So far

➢ Completion of AEB readiness assessment for Department for Education. ➢ Interrogating and analysing data for 2016/17 and 2017/18. ➢ Currently reviewing commissioning and procurement options . ➢ Developing policies including funding rules, contracts and funding agreements. ➢ Reviewing existing CPCA processes to ensure fit for purpose for AEB devolution. ➢ Developing the website.

Procurement timetable ➢ Market engagement event – 17 October 2018 ➢ Supplier Assessment Questionnaire issued – early November 2018 ➢ SAQ submission date – mid December 2018 ➢ Invitation to Tender – early January 2019 ➢ Deadline to tender submission – early March 2019 ➢ Evaluation of tender submission – end of March 2019 ➢ Contract award date - April 2019 ➢ Full AEB devolution – August 2019

Procurement approach

Focus on working with a smaller range of high ➢ quality providers and reduce duplication. Add flexibility and innovation into the contracts. ➢ Maintain a competitive, high quality market place. ➢ Embed adult skills in the wider post ➢ 16 skills and employment infrastructure. Consider additional social value and impact. ➢

Next Steps

➢ Extensive dialogue with Colleges and providers. ➢ Welcome one to one conversations as we continue to develop our policies and process – co production and co design. ➢ Communications Plan once finalised will be available on the CPCA website.

Challenges

➢ Simplicity v transformation – incremental and no year zero . ➢ Financial basics - payments correct and on time. ➢ Outcome focussed. ➢ Residency funding allocation model. ➢ Cultural shift v strategic intent – strategic and operational. ➢ Adult learner, education and training, employer – shared destiny. ➢ AEB is part of an overall skills strategy which is part of a local industrial strategy.

Market Engagement feedback Questions 2, 3, 4, 7

Question 2 – Minimum contract value

Lowest Value £20,000 Average Value £260,000 Highest Value £1,000,000

✓ 10 responses ✓ Some were not prepared to say

Question 3 – Outcome payments

➢ Majority agreed with the outcome payments

Progression into JOB OUTCOMES Progression onto FURTHER LEARNING Progression onto APPRENTICESHIPS

Softer outcomes Other comments

Volunteer work

Opposed to

• utcome

payments chasing job outcomes

Question 4 – Optimum contract Suggested range

1 year 5 years

Annual performance, monitoring and evaluation vital

Regular reviews needed

3 years

Allows for planning and investment

Most Popular

Question 7 – Sub contracting rates Highest Level

20%

Average Level

15%

Lowest Level

0%

Some respondents……..

Disagreed with sub contracting as a concept Wanted it kept as low as possible Asked if the management fee added value Wanted clarity and early communication

• n the value

Group Dis iscussion - Engage and Share Knowledge

Table discussion ➢ – 55 minutes to discuss and note answers Each table will have ➢ 3 questions to answer with the

• pportunity to answer all if time allows

Full questions can be accessed at ➢ http://cambridgeshirepeterborough-ca.gov.uk/about- us/programmes/adult-education-budget/ and can be completed and sent back to: AEBdevolution@cambridgeshirepeterborough-ca.gov.uk – these must be returned by Wednesday 31 October 2018

Thank you.