Member Article

Groundbreaking research points to fall in skills training across Greater Manchester

The numbers of adults undertaking skills training across Greater Manchester will fall by up to 18 per cent in the wake of the introduction of a student-style loans system for further education colleges, new research finds.

The research undertaken by New Economy is the first authoritative investigation anywhere in the UK of the impact of loans since the policy was introduced.

From the academic year 2013-14, all adults aged over 24 who are undertaking courses at level 3 and above - broadly equivalent to ‘A’ levels - in colleges or private training providers must fund the cost of learning themselves, typically through a loan.

The report finds that learner numbers are likely to fall by between 15 and 18 per cent. But this figure is lower than was feared, and also lower than the government’s projection of a 20% fall.

The finding is based on a survey of learners aged over 24 in Greater Manchester. A total of 83% had taken out a loan to enable them to study.

Marie Gilluley, principal of Bolton College, and vice chair of the Greater Manchester Colleges Group, said: “At the time the loans policy was announced, many of us believed that a toxic combination of recession plus loans would decimate investment in adult skills.

“This report shows that although some people will be put off from bettering themselves through skills, the numbers may not be as large as feared. It is worrying, though, that the report finds that people on lower incomes, who often have debts already as well as caring responsibilities, are more likely to be deterred.”

The report finds that a key reason why people are willing to take out a loan is that learners on ‘Access to Higher Education’ courses – ‘A’ level equivalent courses that prepare students for a first degree – get the cost of further education loans written off if they progress to higher education. Almost half of learners who have taken out a loan are doing access courses. In effect, this policy incentivises ‘academic’ learning paths rather than ‘vocational routes’, such as apprenticeship, the report notes.

The report also supports the government’s decision announced in December 2013 to exempt apprenticeships from the system of further education loans. The research finds that hardly any adults in Greater Manchester had taken out a loan to pursue an apprenticeship because of the significant cost involved.

James Farr, director of skills and employment at New Economy, said: “This research confirms that the growth of apprenticeships among adults over 24 would have been reversed had government not decided to exempt apprentices from Further Education loans.

“But it also carries warnings if the government decides to extend the system of loans to other target groups in the future – to older learners at level 2, for example. The clear implication is that the loans policy will lower investment in skills and harm employment prospects in years to come.”

Greater Manchester’s ambition of encouraging more learners to progress from courses at level 2 (broadly equivalent to GCSEs) to level 3 – the skill level where the most future job growth is expected to be - will be negatively affected, the report says.

The majority of people surveyed who were currently doing a level 2 qualification did not know about loans – a reflection, perhaps, of how the further education loans policy has not been widely communicated thus far. Once it was explained that they would need to fund a level 3 course themselves, fewer than half expressed a willingness to do so.

To read a copy of the report, ‘Advanced Learning Loans (24+) Assessing the Impact on Greater Manchester Learning Providers’, click here:http://neweconomymanchester.com/stories/1939-the_impact_of_advanced_learner_loans

This was posted in Bdaily's Members' News section by Simon Malia .