LSC Turmoil
The LSC CEO Mark Haysom resigned this week in the midst of a couple of high profile scandals that may have serious implications for some Welfare To Work providers who deliver LSC contracts.
The money promised for Further Education capital build projects has been pulled. This leaves colleges who have invested £millions in architects, land purchase and agency fees massively out of pocket, with some stating that they could now face insolvency (Barnsley College have been badly hit having already demolished half of their existing learning centres).
Secondly, the Train to Gain pot appears to be empty. Massive overspend in some regions means that poor providers may not get contracts for 2009-2010 and good providers will receive considerably smaller contracts than anticipated.
I'm not sure the disappearance of £hundreds of millions of LSC cash for next year is all attributable to Mark Haysom. Given spiralling unemployment it wouldn't suprise me if the government in robbing DIUS to pay DWP. In the current climate it would make sense to make more money available to support those out of work than those lucky enough to be in employment.
It's beginning to look like the 'skills' side of the industry is heading into a recession of its own.
I hadn't reported on this myself as it's more of a training story which is outside my field of expertise, but thanks for putting this post together Bungle. I'm linking in the newsletter.
Also, I hadn't heard about the Train to Gain issues. Blimey.
What a calamity. Did not hear until today.
I too have heard that the T2G pot is empty - apparently the tendering round in May is going to be using ESF funds to support T2G.
A BBC report goes into more detail
I read an article in TES magazine this week which talked about the scam related to T2G.
Some training providers have been cashing in on Skills for Life/NVQ side of T2G. Learners have been recruited (mostly unemployed) by training providers by paying well known recruitment agencies a sum of money to use their data base, who then recruit learners. Once learners have been recruited, agencies get them to sign a zero hours contract. Learner also get a sum of money once the 'zoom' ten hour course is complete. TES has stated that Colleges have not been involved coff!!! in this scam coff!!!! is it still going on coff & splutter !!
This is utter greed, vulunerable unemployed people are being used as 'cash-cows' now we have a situation whereby people working in the sector are being laid off left right and centre. Colleges in particular are laying people off in their hundreds.