Apprentice policy hit as chief executives resign

The leaders of two major bodies with responsibility for apprenticeships, the Skills Funding Agency (SFA) and the National Apprenticeship Service (NAS), have announced their resignations on the same day.

Geoff Russell, chief executive of the SFA, said he plans to retire from his post in the summer, while Simon Waugh, NAS chief executive will step down rather than extend his contract.

Their decisions to quit come at a time when both organisations had faced media criticism for their recent record. The SFA has been accused of allowing taxpayers’ money to be wasted by training providers, while the NAS has faced claims that it failed to educate teachers about the benefits of apprenticeships.

Last December skills minister John Hayes announced there would be a review into the quality and length of schemes; a BIS select committee inquiry into apprenticeship schemes and how they are managed is due to start in February.

A recent BBC investigation into the standard of one particular apprentice scheme, Luis Michael Training (LMT), has highlighted concerns over the quality of the schemes receiving funding. The BBC reported that young people enrolled on the scheme did not know it was an apprenticeship, while others were not paid despite being entitled to a weekly wage. The provider’s contract with further education colleges has now been ended.

Adrian Bailey, chairman of the BIS select committee, said in a radio interview that the LMT scheme was "probably the worst example of a series of scandals that does seem to be emerging across a whole range of businesses and obviously makes the proposed investigation by my select committee more relevant than ever.”

However, Russell and Waugh say that their resignations are not linked to the Department for Business’s investigation. 

A Department of Business Innovation and Skills spokesman said: "Geoff Russell and Simon Waugh made their decisions independently and for different and personal reasons. Both planned to make the announcements together to ensure that staff and the sector were provided with the full picture.

"As a result of their work the government's apprenticeship programme has achieved real success - including record numbers of apprenticeships and the introduction of new standards to guarantee quality."

Commenting on his decision, Russell said: “My task was to create an agency structured and able to perform a new role promoting and funding further education colleges and other training organisations to meet the challenge of equipping England’s economy with the skills it needs to overcome economic challenges. 

"I am proud of the critical role that the SFA is playing in establishing the incentives and accountabilities to assist the further education and skills sector to respond creatively, flexibly and dynamically to the demands of employers, learners and communities. With my task complete, it is time to move on.”

Meanwhile Waugh said: “Since the NAS was established in 2009, we have seen a significant increase in the number of employers and young people participating in the apprenticeship programme; quality is at an all time high and still improving, and the programme provides opportunities in more sectors and job roles than ever before and we are investing in apprenticeships at levels 4, 5 and 6.” 

An Association of Employment and Learning Providers (AELP) spokesman said: “We are obviously sorry to see Geoff and Simon leave because they have played a key role in the large expansion of apprenticeships over the past 18 months. Nevertheless they are leaving good teams at the SFA and NAS in place with whom AELP meet on a regular basis and we can do business with. 

"This is important because there are some major issues to address such as the detailed implementation of 1-year minimum course requirement for apprentices aged 16 to 18 and protecting quality provision against a backdrop of new funding rates.”