MD2389 Skills for Londoners Framework

From the academic year 2019-20, the Adult Education Budget (AEB) in London will be devolved via a transfer of powers from the Department for Education (DfE) through delegation to the Mayor via section 39A of the GLA Act 1999. This decision is subject to a number of readiness conditions and agreement by the Secretary of State for Education, followed by a further Mayoral Decision to approve the proposed delegation.

The AEB covers skills provision for learners aged 19+ including Adult and Community Learning. It is delivered by a range of different provider types including general FE colleges, local authorities, independent training providers, sixth form colleges and universities.

As part of the preparation for the proposed delegation of the AEB to the Mayor in 2019-20, the GLA published a draft Skills for Londoners Framework for consultation. The consultation ran from 17 July to 17 August 2018. The consultation responses were considered at the AEB Mayoral Board and Skills for Londoners Board meetings on 19 and 21 September 2018. A consultation report analysing the responses to the consultation is attached as an appendix to this MD.

The final Framework outlines how the Mayor will support the delivery of the objectives of the Skills for Londoners Strategy, which was published in June 2018. It sets out the implementation plans for the AEB, as well as the European Social Fund (ESF) and the Skills for Londoners Capital Fund.

This MD is related to MD2321 which approved publication of the draft Framework, ADD2235 which approved expenditure of up to £25,000 on a consultant to support public consultation on the draft Framework, and MD2299 which approved the publication of the final Skills for Londoners Strategy.

The final Framework sets out the key priorities for the AEB, and how they will be delivered, as well as wider policies to remove barriers to participation and achievement in adult education. The key priorities are:

• Eligibility for full-funding for people in low-paid work;
• Basic English and maths skills;
• English for Speakers of Other Languages (ESOL);
• Basic digital skills;
• Adult and Community Learning (ACL);
• Support for disadvantaged learners;
• Support for learners with Special Educational Needs and Disabilities (SEND); and
• Addressing London’s key sectoral and occupational skills needs.

The AEB will also be used to unlock some uncommitted ESF funding to help deliver on these priorities (subject to a further MD), as well as to pilot innovative approaches to the delivery of skills and employment provision to support the most disadvantaged groups in the capital. The Framework also contains information on commissioning and contract management arrangements for each of the different funding streams, and how these will complement each other to deliver the Mayor’s strategic aims. Additionally, the Framework sets out how the GLA intends to move towards an outcomes-based approach to delivering the AEB and ESF in London in future years.

Under Section 149 of the Equality Act 2010, as a public authority, the GLA must have ‘due regard’ to the need to:

• Eliminate unlawful discrimination, harassment and victimisation; and
• Advance equality of opportunity and foster good relations between people who have a relevant protected characteristic and those who do not.

The final Framework has been informed by the Skills for Londoners Strategy consultation and the wider skills evidence base. It sets out how the priorities in the Skills for Londoners Strategy will be delivered. These priorities have been assessed for their impact on equality and diversity through the Economic Development Strategy Integrated Impact Assessment, in line with the Public Service Equality Duty.

The draft Framework was published on the GLA website for consultation between 17 July and 17 August 2018. The Framework set out 23 key questions under the relevant chapters in the document for stakeholders to respond to as part of the consultation. The questions covered a range of issues including the types of provision and groups of learners that should be prioritised for funding, rules for subcontracting for providers and the outputs and outcomes most important for London’s residents.

In total, 56 responses were received from a range of stakeholders, including local authorities, independent training providers, further education colleges and employer representative bodies. In the main, the responses to these questions were positive with the majority of respondents in favour of the proposed changes. As part of the consultation report, 13 key issues were identified which were divided into four sections:

• AEB and ESF priorities;
• Commissioning and contract arrangements;
• Outcomes; and
• Next steps and overall Framework.

- On AEB priorities, there was support for the widening of eligibility to enable more low paid workers to access education and training. However, there was some concern expressed around the lack of additional funding available to deliver this and the negative impact the extension could have on learner numbers. Respondents also highlighted the need for greater funding flexibility to develop and deliver programmes that better suited learner and sector needs. On ESF programme priorities, there was support for the priority groups identified in the programme but some concern that the areas were too broad or lacking clarity. A recurrent theme was the need for better labour market information to inform and improve service delivery.

- On contracting and commissioning arrangements, respondents were broadly in favour of minimum contract values but identified the negative impact it could have on smaller, specialist provision. There was also majority support for a maximum 20 per cent cap on subcontractor management fees, providing higher or varied fees could be negotiated where required. However, there was concern that implementing a cap on subcontractor fees could cause an upward shift in fees.

- On outcomes, there was a positive response to the proposed outcomes-based approach to commissioning and respondents welcomed the focus on social outcomes as well as labour market outcomes as part of this. However, there was some concern expressed around the proposals to introduce payment by results models in the future and the unintended consequences which could follow.

- On next steps and the overall Framework, many respondents emphasised the importance of partnership working and collaboration between the GLA and providers, Boroughs, employers, and sub-regional partnerships to promote inclusive decision-making and the sharing of resources where appropriate.

As part of the consultation report, GLA officers have responded to each key issue and have indicated where any changes have been made to the final Framework.

As well as inviting written consultation, GLA officers hosted and presented the draft Framework at a range of stakeholder events, as well meeting with representatives from boroughs, colleges and other independent training providers to discuss its contents.

There are no direct financial implications arising from approving the publication of the final Skills for Londoners Framework. As detailed within the main body this report, work relating to the framework was previously supported by consultancy expenditure up to the value of £25,000 as approved by MD2321.

The decisions requested of the Mayor, so far as they relate to the AEB, concern the exercise of powers proposed to be delegated to the Mayor by the Secretary of State under section 39A of the Greater London Authority Act 1999 (GLA Act). So far as the decisions relate to other funds, the GLA has power under section 30 of the GLA Act to do anything which it considers will further any one or more of its principal purposes, which include the purpose of promoting social development in Greater London. Under section 34 of the GLA Act, the GLA may do anything (including the acquisition or disposal of any property or rights) which is calculated to facilitate, or is conducive or incidental to, the exercise of any functions of the GLA. Further consideration will need to be given (in relation to how funding is distributed) to certain statutory restrictions on the GLA incurring expenditure in providing education services which may be provided by other public bodies.

In implementing the proposals in respect of which a decision is sought, GLA officers should comply with the GLA’s related statutory duties to:

- Pay due regard to the principle that there should be equality of opportunity for all people;

- Consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom; and

- Consult with appropriate bodies.

In taking the decisions requested, as noted in section 3 above, the Mayor must have due regard to the Public Sector Equality Duty under section 149 of the Equality Act 2010, namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, to advance equality of opportunity between persons who share a relevant protected characteristic (age, disability, gender reassignment, pregnancy and maternity, race, gender, religion or belief, sexual orientation) and persons who do not share it, and to foster good relations between persons who share a relevant protected characteristic and persons who do not share it.

Should the Framework be approved, with or without amendment, appropriate contracts and grant agreements should be used so as to ensure that these documents reflect the GLA’s requirements under the Skills for Londoners Framework.