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Clause 60

Performance assessments
Mr. Hayes: I beg to move amendment 135, in clause 60, page 40, line 16, at end add—
‘(3) The YPLA must consult with the following when adopting or developing schemes as set out in subsection (1)—
(a) the Chief Executive of Skills Funding,
(b) a local education authority in England, and
(c) Ofsted.’.
The Association of Colleges is concerned that further education colleges will have to respond to at least two funding bodies: their local authority and the SFA. It is vital that those agencies and the new Young People’s Learning Agency have a default position of sharing information to ensure that colleges do not spend even more time dealing with bureaucratic burdens and can concentrate their efforts on teaching students.
Both the YPLA, under clause 60, and the SFA, under clause 99, can carry out performance assessments on colleges and use those assessments when making funding decisions. It is particularly important that the assessments are carried out in a co-ordinated and coherent way in order to avoid duplication of the agencies’ work with that of any other funding or inspection bodies. Given how clearly the evidence in the Committee sessions highlighted that the proposed system is likely to be loaded with red tape and bureaucracy, surely the Minister will see the wisdom of the amendment.
Neither the nature of the financial relationship between local councils and colleges nor audit arrangements are included in the legislation. We would welcome clarification of whether local authorities, the YPLA and the SFA will each be able to audit colleges and whether the audits will be co-ordinated. Will they be arranged chronologically? Will they overlap? What kind of shared endeavour will occur in that regard? With those few words, I will be delighted to hear what the Minister has to say.
Jim Knight: We certainly agree that in many circumstances, the YPLA will want to consult as proposed in the amendment and draw on existing practice. A number of bodies are already tasked with assessing the performance of providers, of which Ofsted is the major one, and local authorities are already scrutinised by the Audit Commission, among others.
In other areas, the YPLA might need to develop additional systems to enable it to do its job. It will need to performance manage directly when commissioning directly, and, in the unusual circumstances that we have been discussing, it can take provider quality into account when assessing a local authority’s commissioning plans. It will be able to adopt and develop schemes for performance assessment to support a local authority’s performance management functions. It will, of course, work with the SFA to develop a common assessment framework to provide consistency for providers. By and large, of course, the performance management of colleges will be carried out by the SFA and that of schools and sixth form colleges by the local authority.
Mr. Hayes: The Government’s argument in favour of this convoluted structure and rather clumsy organisational arrangement is that it reflects clumsy thinking. There is no use saying, “We think clumsily about such matters, so we have had to construct a system to match our own failures and faults.” The arrangement is evidence that, rather than reducing the number of bodies with which colleges have to deal, the Government are likely to retain or grow the existing number. In 2005, Andrew Foster, whose report I have mentioned once or twice, identified 17 bodies with which colleges are obliged to deal in respect of inspection, funding, monitoring, planning, and improvement or standard setting. Will the Minister tell us which of those bodies further education colleges no longer have to deal with, or will not have to deal with, as a result of the Bill? What extra bodies will they have to deal with? According to my calculations, FE colleges will have to deal with at least 17, possibly 18, bodies, as a result of this legislation, which directly contradicts Andrew Foster’s call for a slimming down of the structure, a reduction in bureaucracy and a clearing up of what seems to me to be a bit of a mess.
Jim Knight: I have heard the hon. Gentleman’s Andrew Foster speech several times. Will he respond to any of my points? I know that he is a legendary multi-tasker, and I am sure that he was capable, in the middle of the conversation that he was having with the hon. Member for Bognor Regis and Littlehampton, of listening to every word that I said. Will he respond to anything that I did say?
Mr. Hayes: It is not my job to respond to my own amendment, as the Minister will understand. I have tabled the amendment, and it is his job to respond to that. I made it fairly clear that the amendment was tabled after consultation with the Association of Colleges. He made it clear in his response that he thought that in some circumstances the YPLA would still have to audit or inspect colleges. He also said that he anticipated that that would not be a routine matter; he claimed that my assertion that there would be a confusion of auditing and inspecting was unfounded. None the less, the Government have done nothing to strip down the multitude of bodies that inhibit the performance of further education, because they force the professionals running our colleges to spend an immense amount of time and energy dealing with red tape and paperwork. That is not my analysis. It is the analysis of Andrew Foster, who was commissioned by the Government. He said that the Government should do something, and the Bill is the sorry result.
9.15 pm
I shall withdraw the amendment for the sake of brevity, but I am not satisfied with the Government’s position—and neither, I suspect, will colleges up and down the country. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 60 ordered to stand part of the Bill.

Clause 61

Means tests
Mr. Laws: I beg to move amendment 142, in clause 61, page 40, line 22, at end add
‘but it may not make bonus payments under section 58(4)(a) which relate to attendance, academic performance or completion of course work.’.
The amendment is designed as a helpful probing amendment. I shall speak briefly. It invites the Government to withdraw any powers there might for the Young People’s Learning Agency to make bonus payments under the existing educational maintenance allowance or any other financial provision that the Government see fit to introduce. If the Government were to accept the amendment, they would be able to free up the £100 million or so that is used each year to make bonus payments. That money could be used instead to close the long-standing gap between funding those youngsters aged 16 and 17 who go to college and those who attend school.
I look forward to hearing what the Minister has to say; I hope that he will accept the amendment.
Jim Knight: We heard a good explanation of what the amendment would do. Bonus payments are an important element of the educational maintenance allowance scheme, which provides a financial incentive to help young people from lower income households to participate in post-16 educational training. EMA has been shown to have a significant and positive impact on participation and attainment, particularly among the more disadvantaged groups. That is something of which we are proud.
When EMA pilots were introduced, participation in full-time education increased significantly for 16 and 17-year-olds, following a decade of little or no increase. Those increases have been sustained since the national roll-out. More recent analysis found that EMA increased attainment at levels 2 and 3 by about 2 per cent. for male learners and about 2.5 per cent. for female learners.
EMA is a something-for-something scheme. To receive EMA, a young person must sign a contract with their learning provider, setting out what is expected of them if they are to earn weekly payments and bonuses. In September 2008, we amended the criteria for EMA weekly payments and bonuses to include not only attendance but behaviour, achievement and effort.
Learning providers have welcomed that change. It strengthens the something-for-something aspect of the scheme. By providing a further incentive for learners to fulfil the expected standards of behaviour set out by the learning provider, and getting them to put effort into the course, we are encouraging attainment and progression among young people from less well-off backgrounds.
Mr. Laws rose—
Jim Knight: I therefore believe that bonuses are an important, integral part of EMA. I shall indulge the hon. Gentleman and give way yet again.
Mr. Laws: The Minister is being his usual generous self. I did not hear anything in his speech indicating that the Government have measured the effectiveness of the EMA bonuses, rather than the underlying EMA, which is what the amendment is about.
Jim Knight: We believe that the bonus system is working well; as I said, it provides a significant improvement in participation and attainment. We do not have independent quantitative evidence about the impact of bonuses. We will consider it in our review of financial support for young people that we announced in the White Paper on social mobility, which was published at the beginning of the year. Anecdotal evidence from providers, particularly those offering the entry to employment programmes or provision targeted at harder-to-help groups has stressed their importance for attention and for maintaining motivation of learning. That is why, at this stage, I would not want to remove the possibility of continuing with bonuses.
Mr. Laws: In contrast to the impression that the Minister gave at the start of his answer, it sounds as if the EMA bonuses are rather evidence-free parts of the financial support system for students. Bonuses also lead to a great degree of bitterness among students who do not receive an EMA; they find it difficult to understand the fairness of other young people on their courses being rewarded and taking it for granted. After all, such bonuses are paid on top of payments that are already being made for the primary purpose of supporting young people from lower-income backgrounds to remain in education and training.
I am disappointed at the Minister’s refusal to accept the amendment, particularly as the Government do not seem to have a strategy for closing the gap in funding for young people in schools and colleges. The Secretary of State’s predecessor made that commitment a long time ago, but it is yet to be delivered. I fear that I will not persuade the Minister, so I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 61 ordered to stand part of the Bill.
Clause 62 ordered to stand part of the Bill.

Clause 63

Securing provision of education and training
Mr. Hayes: I beg to move amendment 236, in clause 63, page 41, line 5, leave out subsections (a) and (b) and insert
‘only where no alternative provision is available from external providers.’.
The Chairman: With this it will be convenient to discuss the following: Government amendment 312.
Amendment 237, in clause 64, page 41, line 16, leave out subsections (2) to (5) and insert—
‘(2) The YPLA may withdraw funding from the provider and secure the provision of financial resources to other persons providing or proposing to provide suitable education or training to persons in sections 58(a)(i) and 58(a)(ii).’.
Mr. Hayes: The clause that the amendment seeks to alter enables the YPLA to secure provision of education in particular circumstances; it may, for instance, secure provision while sub-regional groups of LEAs are being established. The amendment would constrain the YPLA, because we believe that it should be a funding body rather than one that plans and secures provision. We want to encourage providers to meet need, so the amendment essentially means that provision would be organised by the YPLA, but only where there are no external or underperforming providers. The amendment therefore seeks to limit the extension of the YPLA’s competence.
Amendment 237 attempts to remove intervention rights from the YPLA and ensure that it redirects funding to other providers instead. Its objective is not to inhibit provision, but to direct from where it emanates. We are interested to hear the Minister’s perception of what the limits on the YPLA’s powers will be in that regard.
Jim Knight: Government amendment 312 is consequent to the new local authority duties in relation to young offenders and will extend the YPLA’s powers to enable it to secure the provision of education and training for children who are subject to youth detention.
On amendment 236, clause 63 provides a critical element of support to the system. In those, it is hoped, rare circumstances, which the hon. Member for Yeovil discussed earlier, where a local authority is failing, or likely to fail, to fulfil its duty to commission suitable education or training, or where sub-regional groups of local authorities are not ready to take on that role, the YPLA will have the power to ensure that the education and training required to secure the outcomes for our young people is effectively commissioned. As the YPLA will not itself be a training provider, all providers will be external to it, so the amendment is problematic in that it would create a situation where the YPLA could never intervene in that way.
On amendment 237, intervention in the context of the YPLA’s powers under clause 64 means stepping in and supporting a local authority to develop a commissioning plan, ideally before any financial resources are transferred. In essence, such support would be a back-office function and would not affect the business planning of a local post-16 provider. Our whole direction here is to give as much decision making and accountability as possible to local areas, supported by the YPLA.
 
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