Area Reviews: The London Approach. Agenda Item 3

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Alyson Cannon
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1 Area Reviews: The London Approach Agenda Item 3

2 C O N T E X T Declining financial health since 2010 more colleges in difficulty, big cost variations. Challenges for next 5 years. Devolution. Apprenticeships. Funding reform. Competition. Demographic decline. Whilst spending review better than expected for Post 16, status quo is not an option need for fundamental reform A refocus of the GFE sector on technical and professional education and training to meet economic needs, under the Productivity Plan, with need for higher level skills and greater specialisation.

Whilst spending review better than expected for Post 16, status quo is not an option need for fundamental reform A refocus of the

3 A R E A R E V I E W G U I D A N C E Need to respond to the productivity challenge with greater collaboration Moving towards fewer, larger, more resilient and efficient colleges And only funding good quality institutions that are financially sustainable Update to guidance in early 2016 Process broadly same; lessons learnt; academisation; Restructuring fund

And only funding good quality institutions that are financially sustainable Update to

4 S P E N D I N G R E V I E W Budgets largely protected but no allowance for inflation in adult skills and funding status quo not an option Big expansion in Apprenticeship funding via employers and loans funding via individuals Access to Restructuring Fund to help meet costs of restructuring college sector Route to Academy status for SFCs

Apprenticeship funding via employers and loans funding via individuals Access to

5 O U T C O M E S Institutions which are financially viable, sustainable, resilient and efficient and deliver maximum value for public investment The right balance of providers, including greater specialisation An offer that meets each area s academic and vocational educational needs, supports growth in Apprenticeships, and is supported by LAs/LEPs Sufficient access to high quality and relevant education and training for all young people, adults and employers Local outcome agreements

academic and vocational educational needs, supports growth in Apprenticeships, and is supported by LAs/LEPs Sufficient

6 T H E PROGRAMME Approximately 40 area reviews to be completed by March 2017 With full implementation by 2020 Covering all areas of the country Incorporating GFEs and sixth form colleges Taking account of school sixth forms and other provision And including other providers where they seek to opt in and steering group agrees

and sixth form colleges Taking account of school sixth forms and other provision

7 L ONDON A R E A REVIEW The September 2015 guidance set out a national framework for reviews, within which areas such as London would have the flexibility to adapt the approach to take account of local circumstances and requirements. London government (the Mayor and the boroughs) worked with central government, in consultation with the FE sector, to develop and agree an approach to Area Reviews in London.

8 S T R U C T U RE London Area Review West subregional review Central subregional review South subregional review East subregional review Wave 2 of national process Wave 3 of national process

9 G E O G R A P H Y

10 GOVERNANCE London Area Review Steering Group West subregional steering group Central subregional steering group South subregional steering group East subregional steering group

11 T I M E F R A M E

12 PA R T I C I PAT I N G I N S T I T U T I O N S Automatically in scope: All General FE Colleges All Sixth Form Colleges Opted in: 4 Specialist Designated Institutions Curriculum focussed engagement: Adult and Community Learning services

13 L O N D O N - W I D E A C L R E V I E W A London-wide review of ACL Led by London government To establish long-term strategic direction of ACL To develop recommendations for future commissioning and delivery of ACL post devolution. Focussing on organisations in direct receipt of the Community Learning budget from the SFA. Curriculum-focussed engagement in Area Review Provision of written information Face-to-face contact with the FE advisory team input to the second sub-regional steering group Not full sub-regional steering group membership.

Focussing on organisations in direct receipt of the Community Learning budget from the SFA.

14 S TA K E H O L D E R E N G A G E M E N T Other providers: Higher Education Institutions Independent Training Providers Specialist LLDD Colleges School Sixth Forms Other stakeholders: MPs Employers Learners

15 S U B - R E G I O NAL PROCESS Usually 5 Local Steering Group meetings, each to consider a different aspect of the review 1) Background to the review, data sharing protocol 2) The curriculum / specialisation 3) The college estate and shared services 4) Finance and structures 5) The way forward Supported by college visits and data analysis [Data-sharing protocol will be in place]

curriculum / specialisation 3) The college estate and shared services 4) Finance and

16 A D VA N CE INFORMAT ION F R O M COLLEGES A detailed curriculum plan The college s latest self assessment report The college s latest management accounts and financial plans A list of key employers that the college works with and their contact details Estates information - space, costs, utilisation A completed copy of a questionnaire [Data sharing protocol in place]

of key employers that the college works with and their contact details Estates information

17 I N F O R M AT I O N & D ATA S H A R I N G Open information and data-sharing are an important part of the review process and the discussions of the steering group Data sharing protocol to be put in place The Commissioner teams will ensure the security of any confidential information that is provided Confidential items may be used to draw conclusions No college or individual should use any data/information from the review for commercial or competitive gain A full confidential report will be produced at the end of the process for the colleges involved A summary report of the process, evidence and outcomes will be published

items may be used to draw conclusions No college or individual should use any data/information from the review for commercial or competitive gain A full

18 P R I N C I P L E S O F A R E A R E V I E W S Evidence-based review of local labour market information and the data available about learners and institutions Review options for whole area Sound financial planning to ensure best area-wide use of resources and discharging of debt to secure long term financial sustainability

Review options for whole area Sound financial planning to ensure best area-wide

19 P R I N C I P L E S O F A R E A R E V I E W S Commitment to collaboration, taking account of the views of learners and employers Consider potential new structures and teaching models including new technology Focus on quality improvement across the area and maintaining provision for disabled students Willingness to change for the greater good, irrespective of vested interests and personal preferences

technology Focus on quality improvement across the area and maintaining provision for disabled

20 T H E RESULT S? Rationalisation of provision? Mergers/federations/alternative structures? Sixth form college converts to academy? Shared back office functions? Better use of estates? Agreements as to affordable levels of service? Greater degrees of specialisation? Apprenticeship units or companies? New Institutes of Technology? Local outcome agreements?

Better use of estates? Agreements as to affordable levels of service?

21 D E C I S I O N - M AKING It will be for the governing bodies of each individual institution to decide whether to accept the review s recommendations, reflecting their status as independent bodies Reviewing post-16 education and training institutions: guidance on area reviews September 2015

22 S U P P O R T F O R I M P L E M E N TAT I O N Implementation must be area-led, requires clear local leadership Access to sector-led offer of support drawn down by colleges Ongoing support for change process from SFA and EFA area teams, and from DfE teams for SFCs becoming Academies Restructuring Funds held in HMT accessible via compelling business case

23 Q U E S T I O N S

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Contents. Page number. 1 Introduction policy context 2. 2 A national programme of area-based reviews 3. 3 Carrying out area-based reviews 3

Contents. Page number. 1 Introduction policy context 2. 2 A national programme of area-based reviews 3. 3 Carrying out area-based reviews 3 Contents Page number 1 Introduction policy context 2 2 A national programme of area-based reviews 3 3 Carrying out area-based reviews 3 4 Early action on financial stability 7 5 Next steps 8 1 Reviewing