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Education Update - News October 2009

Published: 7th October 2009

Further Education

Capital build hope for sixth forms
The Department for Children, Schools and Families has confirmed that Sixth form colleges will be eligible for capital funding from the Building Schools for the Future programme.

The move offers hope to the dozens of sixth form colleges left disappointed by their failure to secure money from the struggling further education capital programme administered by the Learning and Skills Council.

A spokesperson for the DCSF told TES that "Subject to the passing of the Apprenticeships, Skills, Children and Learning bill, funding for education up the age of 18 will pass to local authorities."

"These 16 to 18 institutions will be eligible to be considered for capital funding through the DCSF's BSF programme. We are currently looking at the mechanisms for how this will work."

LSC Funding Policy Documents 2009/10 websites
The LSC has launched a website containing links to all the documents relating to funding for 2009/10. Click here to visit the site

Also, there is now progress on the "approved" status of providers. Click here for more information

http://www.lsc.gov.uk/providers/pfm/ppd/index.htm

A longitudinal study of further education
The Learning and Skills Council has published the results of a survey into the effects of further education on job prospects. According to the figures, of the 4,800 people who had completed a further education course and were out of work when they began their studies, 41% had secured a job within two years.

62% of learners now in work said their course was either vital or helpful to getting a new or different job after college. Among those seeking employment, 64% believed their college course improved their chances of finding work.

Minimum wage for apprentices increased
The statutory minimum wage for apprentices rose from £80 to £95 a week on 1 August 2009. Apprentices are exempt from the National Minimum Wage so a separate contractual minimum is enforced by law. Whilst in practice apprentices earn on average £170 a week, the increase follows news that there has been a decrease in the number of young people enrolling for apprenticeships and is expected to benefit around 26,000 apprentices.

Funding fraud claims up to record high
Geoff Russell of the LSC said in "Making Skills Matter" (published last month) that the number of referrals to the internal audit investigations unit had increased by more than a fifth over the year. Over the last two years, the rise was 115%.

One investigation, relating to 2006-07, has led to give people being charged with a range of offences from corruption to money laundering and obtaining pecuniary advantage through deception.

Judicial Review?
Grimsby Institute of Further and Higher Education is seeking a judicial review of the LSC's decision to use its final £300m of capital to fund new projects rather than compensating colleges that might now have to wait many years for funding.

Higher Education

GT report: "change now or perish"
University surpluses could be wiped out by 2012, leaving institutions facing financial ruin unless they make radical changes to the way they work, an analysis by accountancy firm Grant Thornton states in a study commissioned by the THE.

It suggests that longstanding financial problems, such as the pensions deficit, have been compounded by the recession, leaving Universities little option but to act now to secure their future.

The study has highlighted a series of financial hurdles that Universities must clear. They include:

  • cuts to government funding
  • the growing burden of debt repayments
  • pension and pay commitments
  • a potential drop in international and domestic student numbers

The analysis shows that before the recession, University surpluses grew year on year; but as financial pressures increase, a 'typical' institution's surplus is set to drop from £5m this year to zero by 2012.

Half of all clearing places snapped up within four days
Of the estimated 22,000 places clearing this summer, about half - 12,318 places - were taken by lunchtime on 24 August 2009. This compares with 4,767 of 44,000 places filled at the same point last year.

Universities were inundated with inquiries and many closed their doors to those in clearing just one day after A-level results were published on 20 August.

The Universities and Colleges Admissions Service had received more than 1.2m clearing vacancy searches by midnight on A-level results day - almost twice as many as last year.

However, the total number with University places has risen to 401,310 - up by 39,550 on last year.

Historic and modern foundations face cuts
The Higher Education Funding Council for England is consulting on how to reduce the higher education budget by £180m in 2010-11.

Proposals for saving cash include the withdrawal of a £40m fund designed to help with the high costs of maintaining historic buildings - a measure that would have the biggest impact on Oxbridge.

HEFCE's document, "Review of Teaching Funding: Consultation on Targeted Allocations" states "In a time of pressure on public finances, it was open to question how a high priority should be given to targeted support for old and historic buildings".

A spokeswoman for BIS is quoted by the THE as saying "Funding for Universities is at record levels, and overall their budget this year will still be higher than last - even after taking these efficiency savings into account. It is right that when the nation is tightening its belt in a tough fiscal environment, we ask the higher education sector to do the same."

Unions' react to UCEA's pay offer
The five higher education trade unions have indicated they are likely to reject a 0.5% pay offer made by employees.

In a joint statement, the University and College Union, the Educational Institute of Scotland, and the GMB, Unison and Unite "expressed their dismay at the appalling final pay offer".

The 0.5% offered by the Universities and Colleges Employers Association last week is fractionally higher than the 0.4% it offered earlier this year, but it remains a long way from the 8% minimum demanded by the UCU in 2008.

All five unions will now consult their members before issuing a formal rejection or acceptance of the offer in the autumn.

Economic Impact may account for 30% of researchers' marks in REF
Speaking at a conference held by the Academy of Social Sciences in London last week, Graeme Rosenberg, REF Project Manager at HEFCE, said that increases in public investment in research over the past 10 years had been made on the understanding that economic and social benefits would follow.

According to the THE, the impact of academics' work on the wider world could count for "at least 20%" and "up to 30%" of the assessment process under the forthcoming research excellence framework.

Court Fee limit
The Intellectual Property Court Users' Committee has proposed reducing the cost of a patent or trade mark court case to a maximum of GBP 50,000, making Britain among the lowest cost jurisdictions in Europe, according to the Chartered Institute of Patent Attorneys. The proposals suggest rules for patent courts be rewritten to ensure intellectual property disputes can be resolved more quickly and cheaply.