Minimum Contract Values

Yesterday with the education world distracted by the protests, the Skills Funding Agency quietly got on with the process of destroying our smaller adult learning providers. As a result of the policy of rationalising the adult learning & skills sector, by reducing the number of providers, over 600 learning providers across the country received letters to tell them they would no longer be able to hold direct contracts with the Skills Funding Agency.

This reduction will impact heavily on voluntary and community learning providers. Many of these organisations are essential in delivering learning and skills provision, in the heart of our communities, to those individuals who require the greatest support.  The introduction of minimum contract values will force smaller organisations, such as Derbyshire Learning & Development Consortium to merge with other organisations. This will not result in new or increased economies or efficiencies, nor will it increase collaboration and sharing of good practice, because, like so many of the ‘Big Society’ ideas the voluntary and community sector already do it, and do it well. 

Voluntary and community sector learning providers have a long history of sharing and supporting one another.  Local VCS learning providers work with their members to identify needs and move quickly to meet them. They train and mobilise staff and volunteers to deliver learning at the coalface, in the heart of our communities. They use resources effectively and efficiently and ensure that public money is directed to supporting the most disadvantaged in our society to change their lives through learning.

Some VCS learning providers will be able to merge, or create holding companies with other VCS organisations. This may mean they can continue to deliver part of another organisations contract but they may lose the flexibility to be rooted in local communities therefore understanding and meeting local needs. Some organisations may not be able to continue delivering their service, leaving vulnerable learners without learning provision. Others might find themselves with the ethical dilemma of working in partnership with the private sector, where surplus is regarded as profit, not additional funds for learner support.

VCS learning providers deliver excellent programmes. Derbyshire Learning & Development Consortium over performs on its targets and moves people furthest from the labour market into sustainable work. We support individuals to achieve their learning goals from pre entry level right up to degree level and our members are instrumental in reducing offending, increasing achievement and putting learning at the heart of communities. We deliver high quality learning with excellent achievement and progression rates. Our only crime is that we are a small organisation with a turnover of less than 1 million, and less than £500k of that in Skills Funding Agency contracts.  It is clear that in David Cameron’s ‘Big Society’ there is no room for the small, local organisations.

Lisa Vernon, Chief Executive

Derbyshire Learning & Development Consortium