Saving BIS a billion

Potential options for savings from Higher Education and Adult FE

Planned revenue spending by the Department for Business, Innovation and Skills in 2014/15 is £13.8bn. If the Treasury and BIS agree on savings of 8% in 2015/16, the Spending Revenue on the 26th June would confirm savings of £1.1bn.
The rumour in the FE sector is that the entire saving will be made from the adult FE budget. Meanwhile, the HE sector has convinced itself that universities will bear the brunt of the entire savings through cuts in HEFCE funding and downward pressure on fees because of competition.

The truth is that neither of the sectors will face the full £1.1bn of cuts.  A package of savings across both adult FE and HE is the most likely outcome.

Adult Apprenticeships: Funding the User

by Mark Corney

The signs are that the Coalition Government is intent on routing public funding for adult apprenticeships through the user rather than the provider.

The question Whitehall must resolve in Spending Review 2013, due to be published on the 26th June is whether the user is defined as the individual or the employer.

Why no 18-24 traineeships?

by Mark Corney

One by one representative bodies have proclaimed surprise and disappointment at the decision by the Coalition to restrict ‘traineeships’ primarily to 16-18 year olds and delay them for 18-24 year olds.

Economists would point out that they have been surprised because they have focused on the wrong variable.

The delay is not to do with the budget for delivering 18-24 traineeships paid to providers and funded by BIS but the cost of benefits trainees will receive paid by DWP. The failure of the framework document* to have ‘DWP’ on the front cover gives the game away.