Will the spending review fix the ‘fragmented and broken’ skills system? | FE Soundbite 780

Welcome to FE Soundbite Edition 780: 18th January 2025 | Will the spending review fix the ‘fragmented and broken’ skills system?

This is the weekly e-newsletter and e-journal by FE News: ISSN 2732-4095. We know life is busy, so here is a snapshot of the latest announcements and epic thought leadership articles from sector influencers and cool thinkers across FE and Skills this week on FE News

Gavin’s Reflective Perspective

Welcome to FE Soundbite edition 780. This means this is the 15th birthday of FE Soundbite. Wild!

Will the Spending Review mean that we get more clarification and answers on the Levy?

I loved Rob West from CBI’s article this week on the Spending review and it inspired me to use it as the title for this week’s Soundbite. Will the spending review fix the fragmented and broken skills system? Will the Spending Review mean that we get more clarification and answers on the Levy – what is included in the new Skills and Growth Levy… and what isn’t? Which Level 7’s are funded or defunded? What are the timescales?.. As Rob highlights, In 2022-23 approximately £3.58 billion was raised via the Apprenticeship Levy, but only £2.55 billion was allocated to the Department for Education (DfE) for apprenticeship funding in England.  

So with my quick Gavin Maths.. this was £103M sent back to Treasury and not spent on Apprenticeships. So why are we talking about defunding Level 7 and removing the social mobility barriers for learners,.. and the progression ladder for many? AELP’s Ben Rowland, in literally the most popular article on FE News last year highlighted that by AELP’s calculations: ‘ we believe defunding all level 7 programmes will save a shade over £200M‘.

Aren’t Apprenticeships, and particularly the Levy, All about Employer choice in Apprenticeships?

So why don’t we keep the popular Level 7 Apprenticeships?.. keep the employer choice (after all the Richard’s review was all about Employers choice in Apprenticeships)… and the social mobility progression for learners… Employers are choosing to use £200M of the Levy on Level 7 Apprenticeships, it isn’t like they have over spent and because of this young people on Level 3s are missing out.. £103M is going back unspent to Treasury!

Why not utilise the underspent £103M on more skills flex?… like micro-credentials and nano learning on top of Apprenticeships or longer programmes to help build instant productivity skills… or why not use it to incentivise and support employers to support young people into Level 3 Apprenticeships (not just in cash money, but actual coming alongside employers and providing mentoring support for them to support young people into a new career)? I believe that is the sort of Levy Flex we need!

Speaking of Micro-credentials and flexibilities, we had two very cool articles this week on micro-learning and nano learning from Hannah Young and Stuart Martin.

The New FE Careers is live

So on Monday the new FE Careers job site was launched. Feedback so far has been incredibly positive. We knew it was cool, but it feels great when you get this sort of feedback, thank you! This was Danny’s first big Digital Project, where he was Project Lead … and he smashed it out the park. He also launched it whilst he was in Sydney (as you do). Check it out and let us know what you think. Dan is now in the air heading back from the boiling Australian weather, to the more cooler climate here in the UK. It will be a bit of a shock!

Anyway, I hope you enjoy FE Soundbite this week.

Epic Exclusives Thought Leadership Articles

Our Top 3 Thought Leadership Articles This Week

What’s Coming in 2025 By Alice Gardner is CEO at the Edge Foundation

EpAO business planning in 2025: Part 1: Ten quality assurance tips By Jacqui Molkenthin, Specialist support for End-point Assessment Organisations

Looking Ahead to the Spending Review By Robert West Head of Education & Skills, CBI

This week, we also had some other Epic Exclusives!

Why and How Education Should Be Preparing for War By Stuart Martin, the Founder of George Angus Consulting.

The Future of Learning: Micro-Learning, AI, and the Fourth Industrial Revolution By Hannah Young FCCT, Director of Education at thinkfour

What’s New in the World of FE?

Announcement

Chancellor’s National Wealth Fund fuels 8,600 jobs in six months By HM Treasury

Government Reaffirms Commitment to Defending Freedom of Speech Rights in Universities

Voices

The Value of Professional Association-Endorsed Courses By Natasha Eason, Associate Director (Education), the Chartered Institute for the Management of Sport and Physical Activity

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We hope you enjoy FE Soundbite this week. Stay curious, keep innovating, and let’s shake up the world of FE together – catch you next week!

By Danny O’Meara, Digital Project Manager, FE News

By Gavin O’Meara, CEO and Founder, FE News and FE Career