The Area Review Process Webinar Question and Answer Session General questions What is the evidence base for this process? Evidence is set out in the Government s productivity plan, Fixing the Foundations creating a more prosperous nation and the overall objectives and context for the area review process are set out in the government policy document: Reviewing post-16 Education and Training Institutions. When should we expect our area review to kick off? Area reviews in Birmingham and Solihull, Greater Manchester, Sheffield City Region, Teesside, Solent and Sussex Coast have already been announced and we are in discussion with other areas which will be included alongside these areas within the early part of the programme. Further announcements about other areas will be made in due course. We expect all reviews to be completed by March 2017. You mentioned a map that is being developed of the areas for the reviews. When do you expect to have that work completed? We are currently in the process of mapping out and prioritising review areas and further information will be announced as these plans advance. When ready, the map will be available on the following website: https://www.gov.uk/government/collections/post-16-education-and-training-areareviews. We expect all reviews to be completed by March 2017. How will areas be defined in London? The local steering group will determine the area for the review. In respect of London, it is recognised that the number of colleges is significant and we are talking to the Greater London Authority about this and know they, together with London colleges, are already considering this issue. Is there an appeal process if colleges don t agree on their area? There will be no formal appeals process should a college not agree with the review area it has been included in, but an institution will have every opportunity to set out its concerns, and to contribute to other reviews where appropriate.
Why are these reviews being conducted at such a rapid pace? Surely a more measured risk based approach would be more effective and less open to error and poor decision making. The overall objectives and context for the area review process are set out in the Government policy document: 'Reviewing post-16 Education and Training Institutions '. It outlines the significant need and scope for greater efficiency in the sector, in a way that frees up resources to deliver high quality education and training which supports economic growth. The review timetable takes account of the lessons learnt from the pilots undertaken so far, which suggests that it is possible to undertake a thorough review in three or four months. Who actually initiates each area review? Reviews may either be proactively initiated by a group of institutions in a local area, or by Government where it sees a need to progress rapidly, in particular where there are concerns about some or much of the quality of the provision, capacity, or financial sustainability of individual institutions. Given the aspiration to move towards larger, more resilient and efficient providers: could you please identify the quantitative evidence base that demonstrates that larger providers are more resilient and efficient? Earlier this year we published a report from one of the further education advisers about new structures: Current Models of Collaboration. That confirmed that where the decision to change has been subject to rigorous assessment and careful implementation, larger institutions can create valuable economies of scale, protect and improve student access and progression, and address issues of poor quality. There is much good practice in the sector about how to ensure that these important features are realised, and a willing-ness by those visited and consulted during the course of this work to share their views and experiences with others. Could the following statement on page 14 of the guidance be clarified - "Separately, we are reviewing the criteria for the opening of new school sixth forms because of the risk of oversupply in various local areas." Is there another process going on? The Department for Education (DfE) is internally reviewing the criteria for the opening of new school sixth forms. We want the best schools to be able to increase choice and improve quality by opening sixth forms, and there are no plans to prevent any schools from applying to do so. 1
Has an Equality Impact Assessment been undertaken with regards the Government's policy on area reviews? If not, why not? A full impact assessment is being undertaken to understand the impact on students, employers, colleges and providers, local and national stakeholders and government. Each review will consider the impact on equality. The area review guidance makes clear that in considering options each local steering group should consider the impact on groups of students with protected characteristics in line with the requirements of the Equality Act 2010. Decisions on future provision will ultimately be made by individual providers and they will need to take account of the Public Sector Equality Duty as part of their deliberations. Having said the outcome is rationalisation, this is an expensive exercise to go into without targets. What is the BIS target for a smaller FE sector? The reviews are being conducted at minimal costs with both departments (BIS and DfE) and agencies (SFA and EFA) re-prioritising their existing resources to accommodate the additional work. There are no set targets. The reviews will serve a number of purposes as we set out in the guidance document in section 1. It is acknowledged that these reviews take place within a challenging financial context and, as a result, there may be a reduction in the size of the FE sector but this will not be clear until the all reviews are completed and recommendations agreed. Will there be an opportunity for a representative from colleges neighbouring the review area to attend the initial conference for governors? No. The initial conference is intended for the governors of colleges directly involved in the area review so that they have an early opportunity to hear about the purpose of the review and can help shape it. But colleges in neighbouring areas will have an opportunity to feed in their views. Why is an organisation being allowed to consult on the development of more post-16 provision PRIOR to the undertaking and completion of the post-16 area review? It is not absolutely clear what organisation is being referred to here. Area reviews are focused predominantly on FE and sixth form colleges in order to ensure there is a high quality and financially resilient set of colleges in each area. Alongside the analysis of educational and economic need, each review will conduct a comprehensive analysis of the current post-16 provision in an area. This will include the offer made by schools with sixth forms. This analysis will inform the development of options and 2
recommendations for the providers in scope of the review (which in the main will be colleges). However, we expect the analysis about the other providers not in scope to help in wider deliberations about the area that will be considered by the Regional Schools Commissioners and local authorities (who are both on the steering groups). Has ONS been consulted with regards its previous reclassification of colleges as private sector organisations? There is no intention to change the ONS status of colleges. Colleges are independent bodies and will make their own decisions. However, they are expected to act responsibly to consider the right structures that are financially sustainable, resilient and efficient, and deliver maximum value for public investment Has BIS calculated how much each area review will cost? The departments and their agencies will undertake this work with no additional staffing. Additional costs will be minimal. The departments and agencies have reprioritised from within existing resources to accommodate the additional work, including providing access to additional advice and support from FE advisers. In terms of implementation, we will expect colleges, LEPs and local authorities with relevant devolved skills budgets to provide funding and support to implement changes, particularly as we expect change to deliver significant net savings in the longer term. Government finance would need to be provided as a last resort. What role will DfE play in these reviews? DfE and BIS are jointly overseeing the area review process which will review the provision of post-16 education and training in England. The data analysis for reviews will cover all post-16 education and training but the focus for options analysis is primarily likely to be on FE colleges and sixth form colleges the latter for which the DfE has responsibility for funding and performance. Both departments and their agencies (SFA and EFA), alongside the FE and Sixth Form Commissioners, will sit on the National Steering Group, which is overseeing the area review process. 3
Who is involved in an area review Please can you justify the omission of sixth from provision in schools and UTCs in this area review process? Area reviews are focused predominantly on FE and sixth form colleges in order to ensure there is a high quality and financially resilient set of colleges in each area. Alongside the analysis of educational and economic need, each review will conduct a comprehensive analysis of the current post-16 provision in an area. This will include the offer made by schools with sixth forms. This analysis will inform the development of options and recommendations for the providers in scope of the review (which in the main will be colleges). However, we expect the analysis about the other providers not in scope to help in wider deliberations about the area that will be considered by the Regional Schools Commissioners and local authorities (who are both on the steering groups. Please can you explain the exclusion of principals in this review process and why it is felt appropriate to rely upon chairs and governing bodies to drive this initiative, all of whom are unpaid volunteers? Principals are not being excluded. They will be expected to attend steering groups and support their chair, subject to how local the steering group is organised and the size of the area. The steering group will be responsible for making strategic decisions in line with meeting the needs of the area rather than from an institutional focus and it is therefore appropriate for the formal membership to rest with the chair of the governing body recognising that it is the college corporation that is responsible for the college. Where does the student have a voice in this FE review process? The views of students are vital and understanding their views will be an essential element of every review. At our recent advisory group discussion, which involved members from colleges and the NUS, we agreed to look again at formalising the templates for ensuring this is done in a structured way. The National Union of Students has confirmed that it will support a mechanism to ensure that its members views are represented in the area review process. We will be working with them to make sure that they have the right information to enable them to secure informed feedback from their members. 4
How will the views of students, families and employers be sought? The reviews will actively engage with students, employers and wider communities to understand their views. The National Union of Students and the British Chamber of Commerce are members of the national area review advisory group helping to shape the process. We will be working with them to make sure that they have the right information to ensure their members can feed into the arrangements. Where the review recommends structural change such as merger or closure then the affected institutions will be required to consult with the local community upon those changes in line with existing statutory requirements. To what extent will the reviews consider the local offer for SEND in the local area? Reviews will need to take into account appropriate provision for 16 to 19-year-olds and adult students with special educational needs and disabilities (SEND). Local authorities will be represented on the local steering groups that will oversee the reviews and we expect them to be responsible for ensuring that students with additional needs are not disadvantaged by this process. What about rural areas and rural counties? The reviews will consider all levels of provision in their area and will make recommendations that reflect the needs of students to access education that meets their needs at every level and deliver the best outcomes for all students in their area. Each review will take account of the travel to learn patterns as they apply in the area, and this will be a consideration in the final recommendations. Ultimately the focus of the process is to deliver the best for students in their area, and travel patterns will form part of this. What happens in areas where there are multiple LEPs / overlapping LEPs? Which LEP takes the leading role on the steering group? Area reviews are not restricted to existing LEP boundaries. Each area review will be led by a local steering group, which will be chaired by either the FE Commissioner or the Sixth Form Commissioner or a representative from the combined or lead authority, where devolution arrangements are being put in place. It will comprise of a range of stakeholders from that area, including chairs of governors, the FE and Sixth Form Commissioners, local authorities, LEPs etc. The local steering group will oversee and 5
steer the review s work, and it will be for each individual steering group to decide which LEP should sit on the group and whether others need to be involved. Will colleges that cross area review boundaries become involved in a number of reviews? This could present a range of contentious options and create conflicts for such colleges and steering groups. Where a college is on the border of more than one review area, we would expect to see it formally take part in one review but its role taken into account by, and for it to be fully consulted about, other reviews that could also affect it. Institutions can and should be involved in reviews which will have an impact on local demand and supply of education and that will have an impact on their future. Many now have delivery models that span geographical boundaries and this will be taken into account, as they will be part of the solution to any review process. It is important that those institutions who recruit on a regional or national basis, but have a local presence are also considered. What happens when there is more than one tier of local authority i.e. county, borough and district and city deal area? Which has priority? We expect the relevant local authority with responsibility for strategic oversight of education to be involved in area reviews. It will be for the local steering group to decide which other bodies need to be invited to join to the group and those who will be will be consulted as part of the review process. How will specialist colleges such as land-based and art colleges be treated in these reviews. They often provide education and training for a regional and national audience? Colleges with a national recruitment profile will have an opportunity to participate in the area(s) in which they are situated, and will also have an opportunity to feed in to other reviews where they have a significant contribution to make to the solution for example where they recruit a significant number of students to further study and qualifications. What will stakeholder consultation look like? It is for each local steering group and the providers themselves to decide which providers should be in scope for the review. But all providers and stakeholders in an area will be consulted, using the existing networks that exist in many areas including those supported by AELP, Holex, the third sector national learning alliance, and HEFCE. 6
The joint delivery unit supporting each of the reviews will be putting place detailed stakeholder consultation arrangements. The reviews will be particularly keen to secure the views of students and employers throughout the process. How might universities, particularly those with a strong FE interest, be included in the reviews? The reviews are predominantly focused on FE and sixth form colleges in order to ensure there is a high quality and financially resilient set of colleges that will provide the future educational and economic need in each area. The review analysis will include offers made by schools with sixth forms, UTCs, independent providers and HEIs where appropriate to get the full scope of post-16 student needs for that area. There will be detailed stakeholder engagement arrangements put in place to enable all stakeholders to contribute to the reviews including universities. HEFCE is on the advisory group helping to inform the review process. What if one college in an area wants to proceed with a review and another resists engagement? All institutions have an interest and a responsibility, as publicly funded bodies, to engage with the process and take action to ensure that the offer in their area is of good quality and relevant to the needs of students and employers and that they are financially stable for the long term. Institutions will be strongly encouraged to participate in the process in their own long term interests, as well as the interests of students and employers. If institutions choose not to participate then they will miss an important opportunity to shape the future offer in their area, and the chance to contribute to that process on behalf of their students. A refusal to participate could be construed as actively obstructing the implementation of Government policy. Will the role of LEPs be looked at particularly where there appears to be significant overlap in geographies, which could potentially result in duplication of effort and inefficiencies? No. This is not in scope for the reviews. Not every area review will necessarily be based on LEP areas. It will be for the local steering group (comprised of the FE and Sixth Form Commissioners, the colleges, local authorities and LEP) to determine the appropriate area for the review, taking account of economic and educational needs and travel to learn patterns. 7
Area Review Process Who actually does the substantial analysis necessary and how is it funded? Each area review will be led by a local steering group, which will be chaired by either the FE Commissioner or the Sixth Form Commissioner or a representative from the combined or lead authority where there are devolved arrangements being put in place. The steering group will comprise of a range of stakeholders from within that area, including chairs of governors, the FE and Sixth Form Commissioners, local authorities, LEPs etc. The local steering group will oversee and steer the review s work, and it will be for each individual local steering group to decide whether to call on wider expertise if they feel it is required. The joint delivery unit, made up of the departments (BIS and DfE) and their agencies (SFA and EFA) will undertake this work, with support of the FE Commissioner and his expert advisers. Existing resources are being used to accommodate the additional work, including providing access to additional advice and support from FE Advisers. Colleges are autonomous institutions who will be taking their own viability into consideration to ensure they can provide a good service to students within financial constraints, so why can't a new delivery structure if needed be left to colleges themselves? We see the process running alongside the arrangements that colleges will already be making as to their future viability. All institutions have an interest and a responsibility, as publicly funded bodies, to engage with the process and take action to ensure that the offer in their area is of good quality and relevant to the needs of students and employers and that they are financially stable for the long term. Whilst it is appreciated that there is a need to improve higher level skills will there still be consideration of other skills needs e.g. anticipated growth of care sector? The reviews will look at all educational and economic skills needs of the area so every sector will be covered not just higher level skills. Can an area ask for an early review if there is an appetite for this? Yes, we are encouraging areas to be proactive in this. There is no fixed timetable for areas to start their reviews but they should all be completed by March 2017. The timing of reviews can be triggered by either the local area coming forward to propose a review or because a risk assessment by the FE Commissioner and Sixth Form College 8
Commissioner confirms that an early review is needed. If you and other partners in an area are interested in requesting a review for your area, it is recommended that you initially contact the area review mailbox at: Area.REVIEWS@education.gsi.gov.uk. If an area initiates its own review, who pays for the review? Whether a review is initiated locally or not, the joint delivery unit (comprised of resources from the departments and funding agencies) along with the expertise of the FE advisers will support the review. These costs are being met by government from reprioritising existing resources. We will expect colleges, LEPs and local authorities with relevant devolved skills budgets to provide funding and support to implement changes, particularly as we expect change to deliver significant net savings in the longer term. Government finance would need to be provided as a last resort. Will the area reviews take account of Ofsted ratings and judgements if the area is not covered on the college questionnaire? The area review team will collate detailed financial and quality information on each of the providers in scope in the area to establish the current position. This is normally data and information provided by the colleges as part of the routine of returns made to the funding agencies, or published data and information. This will include the latest Ofsted ratings. In addition, Ofsted has agreed to provide a summary report on all post 16 provision in an area, taking account of their inspections. The timescale to get a thorough discussion with governors is far too short and this will inevitably impact on informed decision making. Taking account of lessons learnt from the two pilot area reviews, the typical timescale we would expect would be three to four months. However, these timings could vary depending on the size and scope of each review. It is essential that this process is conducted at the right pace to achieve the best outcomes for all concerned. Will all members of local steering groups be expected to behave in accordance with Nolan Principles? Yes. We will encourage the Nolan principles to apply as with all government backed programmes. 9
One slide appears to imply that "other supporting organisations" will be on Local Steering Groups. Is that correct? Each area review will be led by a local steering group, which will be chaired by either the FE Commissioner or the Sixth Form Commissioner or a representative from the combined or lead authority, where devolution arrangements are being put in place. The local steering group will comprise of a range of stakeholders from within that area, including chairs of governors, the FE and Sixth Form Commissioners, local authorities, LEPs etc. It is for each local steering group and the providers themselves to decide which providers should be in scope for the review. If in scope, these providers will be considered as part of the options analysis and to consider the recommendations. But all providers in an area will be consulted, using the existing good networks that exist in many areas including those supported by AELP, Holex and the third sector national learning alliance. If there are different views within the Local Steering Group on how the boundaries should be set, how will these differences be resolved? Initially the area covered by each review will be decided by the National Steering Group at the review initiation stage. However, there is flexibility within the process, particularly once information is forthcoming from the review, and it will be up to the members of the local steering group to decide what the best option is for the students in that area. Please explain the reference to five steering groups. The five steering groups refer to the five meetings of the local steering group recommended in the model process for area review which is set out in the Area Review Guidance document. The number of meetings could however vary subject to local requirements. Will minutes of the local steering group meetings be published? If not, why not given that they will - presumably - be subject to FOI disclosure anyway. No. We will not publish minutes as they are closed meetings and members need to be free to discuss their business effectively. There will be a report published at the end of the review. 10
Will members of local steering groups be expected to declare any conflicts of interest? For example, local authorities in direct receipt of SFA funding for their own adult education units? Yes. Local steering groups will take in to account areas of potential conflict of interest as they are responsible for conducting the business of the area review in an appropriate way. Which stakeholder(s) has the ultimate authority if there is dispute over what should be included within an area and would there be an appeal process where there is disagreement? Individual area reviews will be overseen by a local steering group which will be led by an independent chairperson who will be the FE Commissioner, the Sixth Form Commissioner or the combined authority, where local devolution arrangements are being put in place. It will be for the steering group to resolve any disputes relating to their review and agree the best way forward to meet the current and future educational and economic needs of the area. There is no appeal process. After the review Is the government predicting that there will be fewer students? The reviews will take account of both current and future economic and educational needs including demographic changes. Options for each area will be considered taking account of this data consistently and there is no assumption that there will be fewer students in an area. If there are fewer colleges how will students be able to afford the travelling costs? Each review will take account of the travel to learn patterns as they apply in the area, and this will be a consideration in the final recommendations. Ultimately the focus of the process is to deliver the best for students in their area, and travel patterns will form part of this. 11
Will large colleges be broken up if it appears that the area's provision needs that to happen and what happens to the investment which will have been made in that provision at that college? Colleges are independent bodies and will make their own decisions. This will be an evidence based approach and it is impossible to confirm that this might not be a solution in some areas. Whatever happens, we expect colleges to act responsibly to consider the right structure to most effectively deliver for local areas and employers. Ultimately we would expect funding agencies and LEPs only to fund institutions that are taking action to ensure they can provide a good quality offer to students and employers, which is financially sustainable for the long term. Overall, we need to move towards fewer, larger, more resilient and efficient colleges. What is the rationale for Institutes of Technology, given the existence of extensive higher learning across FE colleges and the presence of UCTs? It seems to add another layer of provision at a time of spending constraints. As part of the area review process local areas will determine the need for an Institute of Technology. Once established we would expect Institutes of Technology will operate collaboratively and complement other providers, including FE and sixth form colleges, National Colleges and University Technical Colleges. One criteria in determining the institutional options available will be about the future needs of students and the underpinning analysis will, in each case, take account of the known demographic changes in future years. If the aim is to create prestigious Institutes of Technology what will happen to L1 and L2 students and those with special educational needs? The reviews will consider provision at all levels in an area and will make recommendations that reflect the needs of students - not just those studying at higher levels. The review analysis will consider the need for an Institute of Technology. Reviews will also take into account appropriate provision for 16-19 year olds and adult students with Special Educational Needs and Disabilities (SEND) and ensure that students with additional needs are not disadvantaged by this process. Is it likely some existing colleges will become Institutes of Technology following the area review process? As part of the area review process local areas will determine the need for an institute of technology (IoT). Further information on IoTs is expected to be published shortly. Once established we would expect IoTs will operate collaboratively and complement other providers, including FE and sixth form colleges, national colleges and university technical colleges. 12
If a college takes steps on the basis of the review outcome and it does not work out as planned/something goes wrong, who will be liable for the consequences? We expect institutions to take the right action, in light of the findings of a review, to ensure that they are resilient and able to respond to future funding priorities. College governing bodies will be responsible for deciding whether to accept recommendations relating to their institutions and if recommendations are accepted, individual institutions will be responsible for implementing changes. They, therefore, will still remain liable (as they are now). How does this dovetail with the independence of institutions? Is there a chance that institutions may be overruled by the FE Commissioner or Area Based Review team? No. The local steering group will oversee and steer the area review process. The group will be comprise of a range of stakeholders from within that area, including chairs of governors, the FE and Sixth Form Commissioners, local authorities, LEPs etc. At the end of the review, they will put forward evidence based recommendations which each college s governing body will be responsible for deciding whether to accept or not and if recommendations are accepted, individual institutions will be responsible for implementing changes. Colleges will have the opportunity to challenge any of the recommendations before they sign up to them. Once a local outcome agreement is in place how will the period of structural change be funded? As soon as recommendations are agreed, it is important that they are implemented as soon as possible. Colleges should be aware that this may involve the need to employ a different skillset and resources in each individual review case. The funding agencies will undertake detailed monitoring of how implementation is going, and the national steering group will have oversight of progress. The local steering groups may also consider continuing to play a role in overseeing progress. Funding for the implementation work is expected to be provided by colleges, LEPs and local authorities with relevant devolved skills budgets, particularly as we expect that change will deliver significant net savings in the longer term. Government finance would need to be provided as a last resort. Rationalisation of back office functions and implementation of online systems require significant investment to achieve and set up.eg restructuring costs, software implementation costs, hardware costs, system. Where will the financial backing for merging? 13
We will expect colleges, LEPs and local authorities with relevant devolved skills budgets to provide funding and support to implement changes, particularly as we expect change to deliver significant net savings in the longer term. In addition the Education and Training Foundation and Jisc will support areas to learn from existing best practice including in the use of technology. Government finance would need to be provided as a last resort. Will the government look at the VAT position with regard to shared services to make it easier to share? We are aware of this issue and will be considering whether there is anything further that might be done to support shared services. How much money does Government expect will be saved as a result of the area review process? The aim of the reviews is to ensure the long term viability of the further education system, which is so essential to driving productivity. It is clear that the number of colleges facing financial issues is increasing whilst there is also significant potential for greater efficiency. The reviews provide an evidence based and structured approach to reforming the sector so that it is better able to meet the needs of students and employers and at the same time secure it long term financial viability. If a local outcome agreement determines that a course should be delivered in one location in a LEP and another college cease to deliver it, what will be done to prevent a school sixth form near to the second college from deciding to start that course? By allowing all stakeholders to have input into the process, and through the appointment of an independent chairperson, each review will be expected to arrive at evidence-based recommendations that all parties are able to sign up to. There is no intention to establish further reviews. However, it may be that the stakeholders involved in the process may see merit in reconvening in whole or part in the event of subsequent significant change in an area. We expect area reviews to provide the basis for ongoing collaboration in the area to maintain an effective post-16 offer, after the area process is complete. We also expect the Regional Schools Commissioner and the local authorities to take the findings of the review into account in their wider deliberations on schools provision. 14
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