Contact: Lionel Paris, Head of Adult and Community Learning, ext 6848, [email protected]

1 Summary

1.1 This report invites the Education Policy Review Committee to comment to the Executive Member for Education on a proposed three year Development Plan for adult learning, before it is presented to the County Council for approval.

1.2 The report explains how the Learning and Skills Council (LSC) has changed the planning requirements of LEAs, moving from an annual Adult Learning Plan to a rolling three year plan. After describing the changing financial context, it sets out new planning guidance given by the Hampshire and Isle of Wight Learning and Skills Council (local LSC) for the first Development Plan covering the period August 2003 to July 2006. The guidance responds to the Government's national skills strategy.

1.3 The key elements of a revised strategy are then described, which includes new arrangements for the support of programmes currently engaging about 8000 learners as part of community programmes in secondary schools and arts centres. The LSC funding released will be re-allocated in support of the total provision. The implications of these changes are assessed.

1.4 A report on these issues was presented to the Cabinet on 28 June. It was agreed that the County Council should express its concern to the national LSC and the Local Government Association about the low level of funding and the late notice given of the changes required. It was also agreed that joint work should be initiated by the Cabinet with the local LSC to improve national understanding of adult learners' needs in Hampshire..

1.5 The proposed Development Plan supports all six aims of the County Council's corporate strategy, as described in the first section of the Plan. Race and equality impact assessment have been considered in the development of this report and no adverse impact has been identified other than access to courses being made more difficult by necessary increases in learner fees. Providers are being encouraged to continue fee discounts for the elderly and those on low income and the effects will be monitored closely and reported to the local LSC.

1.6 The proposed Development Plan has been circulated prior to this report. A full copy, including a Business Plan and Quality Improvement Plan, is available in the Members' Room

2 Background

2.1 The local LSC funds the County Council's Adult and Community Learning Unit (ACLU) to secure adult learning through funding agreements with a network of providers. To date, ACLU has been working to annual Adult Learning Plans agreed by the County Council and the local LSC, produced in response to planning guidance issued by the national LSC. The plan for 2003/2004 was agreed by the County Council in July 2003. The ACLU receives an annual block grant from the local LSC to deliver the provision and performance is monitored against targets included in the Plan. The ACLU is expected to comply with LSC funding criteria in the use of the grant and to ensure that the provision matches national quality standards set by the Adult Learning Inspectorate in a Common Inspection Framework.

2.2 The national LSC has been charged by Government with introducing a funding formula for the support of adult and community learning (ACL) managed by LEAs. There is considerable variation in the value of grants paid to LEAs, mainly because of different historical spending priorities. The value of the grants paid to LEAs in the local LSC area is low compared to others in the SE region. The County Council's plans for 2002/2003 and 2003/2004 have been anticipating an increase in core funding with the intended start of formula funding from August 2004.

2.3 The ACLU was asked in October 2003 to draft a three year Development Plan for the period August 2003 to July 2006. The LSC's intention is to move towards a three-year planning cycle in line with post-16 colleges. The local LSC's original planning guidance given to the ACLU assumed a 5% increase in the block grant following the intended start of the funding formula in 2004/2005, plus 3% for inflation. Grants for subsequent years would also be increased by 5%, until there was convergence with a national funding level based on learner numbers.

2.4 Shortly after the submission of the draft Plan, the local LSC announced the national LSC's decision to postpone the introduction of the funding formula. The County Council's total grant for 2004/2005 will be increased by slightly less than inflation. Furthermore, a number of specific costs had been previously supported by additional grants from the LSC totalling about £500,000, including the introduction of a computerised management information system, funding for learner support and learning support within ACL provision, staff development and capacity building within the network of providers. The ACLU is being asked to absorb these continuing costs within the core funding, which reduces the value of the grant considerably. The funding available in 2004/2005 is as follows:

2.5 Table 1

3 Performance review feedback

3.1 The LSC gave feedback to the ACLU in December 2003 following a formal review of performance. The Unit's overall grade was 'acceptable' and participation and recruitment was judged to be 'strong'. The Review Panel noted that targets had been exceeded by 5% across the range of provision and that the NCFE Quality Licence had been achieved. Good practice was recognised in the strong development of Family Learning and in the training programme for tutors. However, the Panel advised the ACLU to set more challenging targets for learner numbers in 2004/2005, particularly in basic skills. This, and other recommendations included in the report, has considerable revenue implications.

3.2 The County Education Officer had to report to the Chief Executive of the local LSC that the level of the proposed grant in 2004/2005 was insufficient to enable the current ACL provision to roll forward, or be increased in response to the performance review feedback. In the absence of additional funding, he sought clarification about the local LSC's expectations of the County Council's contribution to adult learning in Hampshire and sought agreement for a reduced level of service which would be manageable within the available resources. It was recognised that the targets and actions in the first draft Development Plan for 2003/2006 would subsequently need to be revised.

4 National skills strategy

4.1 A Government White Paper "21^st Century Skills: realising our potential' sets out a national skills strategy and sets new priorities for the LSC. These include raising the level of basic skills across the population and increasing the number of adults with a level 2 qualification (equivalent to five good GCSE passes). There are an estimated 400,000 adults in the Hampshire and Isle of Wight area who do not have this level of qualification. The strategy recognises the value of learning for personal interest unrelated to the pursuit of any qualifications, but emphasises that priority must be given to the needs of the less well qualified. The Government intends to safeguard such courses and the future funding of ACL is being reviewed. Recommendations will be published in the autumn for any changes to be made from August 2005. It is widely expected that public funding will be targeted in support of courses intended to engage new learners, rather than those with open enrolment. Any changes will also impact on ACL provision made by Hampshire colleges, some of whom have already begun to make adjustments.

5 Changed priorities for the County Council

5.1 The local LSC was sympathetic to the County Council's reported funding difficulties and agreed to a reduction in the expected level of service, provided that the ACLU moved towards using the grant in support of the new LSC priorities. Consequently, the ACLU was asked to plan for the following:

· Widening participation in adult learning by using internal and external relationships with County Council departments and the community and voluntary sector to reach those who have not participated in learning and are not attracted to formal learning delivered by other providers such as colleges.

· Raising literacy and numeracy skills through family learning opportunities in schools.

· Contributing to other LSC priorities by using the ACL block grant to entice adults without qualifications into learning which will enable them to progress to further learning.

5.2 The year 2004/2005 is being viewed as a transitional year. The ACLU has been asked to work towards these new priorities for full implementation in 2005/2006.

5.3 Final planning guidance was received on 28 May 2004, enabling the County Council's draft Development Plan for 2003/2007 to be updated, revised and re-submitted to the local LSC for approval. The revisions in the Plan are shown in italics. Most changes relate to provision planned in 2004/2005. Any further changes to funding will impact on the forward projections for 2005/2006.

6 ACLU's response

6.1 The key elements of the revised strategy detailed in the Development Plan area as follows:

· Reduce the overall LSC funded learners for 2004/05 by transferring 8000 learners from the LSC programme to community programmes in schools and arts centres supported by the County Council.

· Continue to support 12,000 learners in non-qualification courses which can better contribute to skills development and offer progression to further learning.

· Engage 3,000 new learners in widening participation initiatives through increased partnership with the Recreation and Heritage and Social Services departments.

· Build on the current Family Learning and Family Literacy, Language and Numeracy (FLLN) activity engaging 4000 learners. This activity will be supported through a new strategic partnership with the Pre-School Learning Alliance.

· Target any development of FLLN or widening participation in priority areas including Havant, Gosport and Rushmoor.

· Develop closer partnerships with colleges to plan local provision and to identify progression routes for learners from ACL and from Family Learning.

· Facilitate greater collaboration within the network of adult learning providers in Hampshire.

· Continue a programme of pre-inspection preparation in anticipation of a visit from the Adult Learning Inspectorate during 2004/2005.

6.2 The vacant post of Basic Skills Development Officer has been deleted from the ACLU's staffing structure, achieving a saving of £36,000 (including on-costs). Development opportunities in basic skills will be planned in collaboration with colleges.

6.3 The proposed transfer of courses from the LSC funded programme will make about £324,000 available for re-allocation. Some of this will be invested in the new service priorities during 2004/2005 if the LSC is able to confirm a grant to support ACLU's Quality Improvement Plan for the Service (confirmation still awaited). The main impact will be at 24 secondary schools, with just £32,000 being withdrawn from 4 of the County Council's arts centres.

7 Implications for adult learning in Hampshire

7.1 Most of the LSC's block grant is currently supporting learners engaged in courses for personal interest, well-being or health. Many of these learners are already well qualified and others have been continuing in the same group from year to year without progressing to a higher level. The programmes fulfil important social, recreational and sometimes therapeutic needs, but in many cases, the educational benefits are less apparent. ACLU's strategy utilises the existing support given by the County Council to the community use of the 24 secondary schools delivering adult learning. About £800,000 is currently allocated from the Education budget to the schools in support of locally managed programmes of sports development, recreational and community activities, including childcare and study support. The subsidies support a management infrastructure and the costs of opening schools during evenings and weekends for use by the community. Similar arrangements apply at arts centres which are made possible by support from the Recreation and Heritage budget. In 2004/2005, ACLU is proposing to withdraw LSC funding from courses which presently enrol about 8000 learners, of whom 534 are attending courses at the arts centres. As many as possible of the courses will be continued within local community programmes on a self-financing basis. Schools and arts centres will need to increase learners' fees in order to recoup the cost of tuition.

7.2 The courses most affected by these changes are those providing opportunities for sport and physical well-being such as yoga and exercise classes, together with painting and craft courses. Claims are often made that such courses give 'first-step' opportunities for adults returning to learning. Although potentially true, the data about individual learners now collected by the ACLU suggests that this is not happening to any significant degree within the present arrangements. The actual fees to be charged are determined by local providers, often in consultation with others in their area and usually taking account of the fees charged by colleges. The level of fee income needed to cover the direct costs will vary from one provider to another, depending in part on the share of the overall management and premises costs charged to the school's adult learning and community budgets. An average school's total expenditure on its adult learning programme is £68,000 of which this year's LSC subsidy accounts for 7%. However, the same school has another £300,000 expenditure in its community budget supported by the County Council. Fees will be increased by more than the cost of inflation. The ACLU is encouraging providers to continue to offer some discount for older learners and those on low income. However, any support may have to be targeted at those most in need, rather than through automatic qualification by age. The impact on the participation of the elderly and others will be monitored closely.

7.3 Initially, ACL managers reported that as many as 60 tutors could be made redundant at the end of this summer term, mainly because of concerns about the financial viability of their courses under the new arrangements. In the event, it looks as if only 15 will be in this position. There could be more in September if courses do not enrol the required minimum numbers of learners, but this is a situation applying every year.

7.4 The changes are likely to be unpopular with many adult learners who have been enjoying subsidised courses, sometimes for many years. The ACLU has circulated a statement for learners agreed with the local LSC, which explains the reasons behind the proposed changes (attached as appendix 1).

8 Other options considered

8.1 The ACLU did consider two other options before proposing the strategies outlined in this report. One option was to continue the level of provision as in the present 2003/2004 annual plan, without making any changes to the funding support for courses until after the national review currently underway. Although it would have postponed difficult decisions about re-allocating funding at least until 2005/2006, it was not considered to be viable financially because of the reduced value of the LSC's funding.

8.2 The other option considered was to withdraw from providing adult learning entirely, except for continuing a programme of Family Learning and Family Literacy, Language and Numeracy. Colleges could be invited to take over the LEA's programme. However, advice from the LSC suggested that colleges would be subjected to the same changes to funding and policy priorities in future. An infrastructure delivering services for adult learners across the county would be dismantled with no guarantee that the provision could be continued by others..

8.3 The options included in the revised Development Plan are intended to position the County Council so that the ACLU can refocus over time and develop particular contributions to the total provision of adult learning in ways which support national and local priorities and which complement provision made by other providers, particularly the colleges.

9 Performance review feedback - July 2004

9.1 The ACLU's performance against the LSC contract during the period August 2003 to March 2004 was formally reviewed in April 2004. The results were taken to the LSC's Performance Review Panel and reported back to the ACLU on 3 June 2004. The LSC has decided only to categorise providers found to be excellent or to have serious concerns. The ACLU's performance was not categorised, but the Panel fed back some key observations summarised as follows:

· The comprehensive system for measuring learner experience was recognised as best practice and leads to high retention and achievement rates.

· The continuation of NCFE accreditation and the gaining of IAG Matrix by the Andover Learning Partnership was "applauded".

· The Self Assessment Process was found to be effective, staff are involved and the process is validated.

· There was felt to be room for improvement in recognising and recording learner achievement, using the management information system to track progression by learners, working more closely with the college network, and enhancing the capacity of the provider network to assess and respond to learner needs.

The ACLU is addressing all the areas needing improvement through the Development Plan and the Quality Improvement Plan.

Recommendation

1 To provide the Executive Member for Education and the County Council with appropriate comments before the Adult Learning Development Plan for August 2003 to July 2006 is finalised and submitted for approval.

Section 100 D - Local Government Act 1972 - background documents

The following documents discuss facts or matters on which this report, or an important part of it, is based and have been relied upon to a material extent in the preparation of this report.

NB: the list excludes

1. Published works

2. Documents which disclose exempt or confidential information as defined in the Act.

"Guidance for local LSCs and LEAs on planning, funding and allocations for ACL 2004/05" - Issued by the National LSC

"Final Guidance to Hampshire LEA on LSC priorities and Adult LearningFunding" - Issued by the local LSC

Appendix 1

CHANGES TO THE FUNDING OF ADULT LEARNING

A briefing note for adult learners

Background

· You are enrolled on a course supported by Hampshire County Council. The direct cost of the course is covered by income raised from learners' fees and a subsidy from the public purse. Overheads such as premises costs are spread across the wider range of community activities at the school.

· The subsidy allocated to your course comes from funding made available to the County Council by the Learning and Skills Council (the LSC). The LSC has responsibility for securing adult learning on behalf of the Government.

· Your local school or adult learning centre actually sets the fees you pay so as to balance the cost of delivery against income from all sources.

Changes to the present arrangements

· A Government White Paper (21^st Century Skills: realising our potential) sets out a strategy to improve basic skill levels amongst the adult population and support adults in achieving employment-related qualifications. The LSC is charged with delivering the strategy through colleges, local education authorities, training agencies and other providers.

· The strategy recognises the value of adult learning which is not work-related, particularly for older learners and adults who are returning to learning, often after a gap of many years. However, the resources available to the Government are such that priorities are having to be reviewed.

· Like many others, your course is primarily about learning for interest, personal well-being or health. Many learners joining such courses for personal interest are already well-qualified and others continue in the same group from year to year, without progressing to a higher level. The courses fulfil important social, recreational and sometimes therapeutic needs. The top priority for subsidies however is the need to reach the estimated 400,000 adults in the Hampshire and Isle of Wight area who do not have the qualifications currently expected of a 16 year old.

· As always, there has to be a balance between available resources and official priorities. The emerging policy concentrates subsidies from public funds on adult learners with low levels of skill or qualification.

· Courses like yours will continue to be offered as part of the programme but the direct cost will need to be met from fees.

What does this mean for you?

· From September 2004, the County Council has recognised that resources released will need to be re-invested in support of the local targets as part of the Skills Strategy developed by the LSC, which means that it will not be possible to subsidise the direct costs of some other courses.

· Your local centre has been encouraged to continue the courses on a self-financing basis. The County Council uses its own resources to subsidise the cost of making schools available for use by the community during evenings and at weekends. The school's subsidised community budget also helps support the management of the adult learning programmes. The County Council will continue this support but your local centre will need to increase some fees by more than the cost of inflation in order to meet direct costs.

· The centre may judge that a few courses may not be viable financially. This is a decision taken every year according to the uptake and viability of courses. Some may be discontinued and others may be turned into self-programming club activities. You will be informed as appropriate.

· The County Council will still be using LSC funding to support a programme of non-qualification courses which are better placed to contribute to the Skills Strategy. This may give you other options or you may be ready to move on to qualification courses at a local further education college. The centre will be pleased to advise.

Impact

· Both the LSC and the County Council appreciate that these new arrangements will disappoint many learners who have become accustomed to subsidised activities over many years. Nonetheless, we trust that you will understand the difficult choices that are having to be made and will accept that we have a duty to make the best use of the public funding made available to us.

Lionel Paris

Head of Adult and Community Learning, Hampshire County Council