Issue details

Proposed decision:

To APPROVE the sub-contracting of provision for the delivery of the 16 to 19 year olds Study Programme for Community Learning and Skills, and Post 16 provision for those aged 19 to 24 with an Education, Health and Care Plan through an evidence based commissioning programme

Reason for the decision

-      Savings or expenditure of more than £1m

-      Affects two or more Electoral Divisions

Kent County Council has historically funded an element of provision for those Not in Education, Employment or Training (NEET) aged 16 to 19 years old from the European Social Fund (ESF) via subcontracting arrangements between The Education People and colleges and/or other providers. 2019/2020 saw a near collapse of provision that is still yet to fully recover, leaving many young people without access to suitable education options.

In order to mitigate this occurring again, new provision needs to be developed that meets need and reduces gaps in provision.

On 9 October 2024, the Cabinet Member for Education and Skills took a key decision to enable sub-contracting of provision for vocational and specialist provision for adults aged over 19 (decision 24/00085). The Young People’s element, for persons aged 16 to 19, was not able to progress as part of that original decision due to a late change of funding guidelines which necessitated a review.

Background:

The Community Learning and Skills (CLS) team within KCC is responsible for delivering the Education and Skills Funding Agency (ESFA), Adult Skills Fund (ASF), Greater London Authority (GLA) budget and ESFA ‘Study Programme’ courses for NEET young people.

Since 2019/2020 there has been a reduction in provision available to 16 to 19 year old NEETs across Kent. Whilst exacerbated by COVID, the reduction in provision has been largely due to the removal of funding options, in particular the European Social Fund (ESF) and Reconnect funding, both of which supported alternative delivery to meet the needs of those young people for whom School or College is not a suitable provision.

KCC has a statutory duty to secure enough suitable education and training provision to meet the reasonable needs of all young people in their area who are over compulsory school age and under 19, or aged 19 or over and for whom an EHCP  is maintained. Additionally, local authorities are required to make available to all young people aged 13 to 19, and those between 20 and 24 with an EHCP, support it considers appropriate to encourage, enable or assist them to effectively participate in education or training. Due to the rise in NEETs  and the reduction in available places, it is estimated that in 2024/2025 there will be a requirement for an additional 725 places than are currently available.

Current funding arrangements with the Department for Education (DfE) is ‘lagged’ by two years (i.e. not paid until two years after delivery) which has removed the capacity of the market to keep up with increasing demand.

Senior Officers are working with the DfE to address this, and as part of the move from provision being subcontracted via The Education People (TEP) to being contracted by CLS under the bequest of the DfE, the Local Authority will be looking to move away from a ‘lagged’ funding approach. This approach will aim to build a sustainable base of long-term provision as well as to respond to emergency needs where they arise.

How the proposed decision supports the Framing Kent's Future - Our Council Strategy 2022-2026 and Securing Kent’s Future.

Implementing the subcontracting proposals for specialist provision for young people, in the two cohorts identified, will contribute towards delivering on the following priorities:

Framing Kent’s Future2022-2026: LEVELLING UP KENT:

·           To support the Kent economy to be resilient and successfully adapt to the challenges and opportunities it faces over the coming years.

·           To work with partners to develop a skills system for Kent that delivers skills that are resilient to changing workforce needs and opportunities and supports people to achieve higher level skills.

Spending the Council’s Money:

In accordance with the Cabinet decision to support the recommendations in the paper Securing Kent’s Future on 5 October 2023, the approach set out makes sure that, in line with Objective 2 any future procurement does not over specify need, ensuring best value for the Local Authority. Spend will be limited to the total value of the grant funding received, whilst also ‘working to achieve the delivery of value for money, whilst considering how to maximise wider public benefit’ through the reduction of those young people who are Not in education, Employment or Training (“NEET”).

Financial Implications

CLS funding is received from the DfE. The funding amount for 2025/2026 totals £9,729,000, with funding allocation £729,444 allocated for 16 to 19 year olds and £8,500,000 for vocational and specialist provision for Adults.

There is a potential for an additional £301,452 per annum in the 16 to19 year olds provision, which could fund an additional 91 places. It is this money that will be made available for a procurement process, once it is confirmed

Under current guidelines, the ESFA allows the Local Authority to retain up to a maximum of 20% for management and oversight costs. However best practice indicates a target ceiling of 15% of the sub-contracted delivery amount to support the commissioning, operational management, procurement, selection, audit, and subsequent contract management.

The wider planned restructure of CLS delivery will ensure CLS is fully funded from both grants and fee income when completed (including any sub-contracted element) and there will be no expectation of contribution from the general fund.

Commissioning:

Current provision by CLS goes some way to meet current need. However, there are gaps in provision across the county that can not be met under the current arrangements. These include the provision of specialist subjects and interest areas that focus on moving long term NEETs into a provision.

Through implementing the Key Decision for vocational and specialist provision for adults over 19, the Commercial and Procurement Division identified a contractual framework approach under the ‘Light Touch’ regime through the Public Contracts Regulations (2015). This was to have a competitive procedure with negotiation and establish a multi-supplier framework.

A viable approach to managing the procurement of a 16-19 offer  is to add a second “Lot” to the Adults Learning contract. This ‘Lot’ enabled at a point that funding and governance is in place. The Adult Education procurement process has an expected commencement date of 10 February 2025, no award will be made until the governance process has been completed for the Key Decision (25/00020) which builds upon Key Decision 24/00085 .

 The contract (including any additional Lot) will run for an initial term of two years with an option to extend for 12 months.

Additional contracts or alternative frameworks may need to be procured, pending full exploration of options, in liaison with colleagues in the Commercial and Procurement Division, for the 16 to 19 year old cohort to support the delivery of provision.

 Contract award will not take place until funding has been confirmed, limiting the financial risk to the Local Authority.

Legal Implications  

Local Authorities have target duties relating to participation, which include broad duties to encourage, enable and assist young people to participate in education or training. Specifically:

·         The Education Act 1996 - To secure enough suitable education and training provision to meet the reasonable needs of all young people in their area who are over compulsory school age but under 19 or aged 19 or over and for whom an Education, Health and Care (EHC) plan is maintained.

·         Section 68 Education and Skills Act 2008 - To make available to all young people aged 13 to 19 year olds, and to those between 20 and 25 with special education needs (SEN), support it considers appropriate to encourage, enable and assist them to effectively participate in education or training.

Whilst the current provision delivered by CLS goes some way to address this, there are gaps in provision across the county that cannot currently be met by the internal team. Contract award will not take place until funding has been confirmed, limiting the financial risk to the Local Authority.

As the procurement would be amending a previous commission that was let under Public Contract Regulations (2015) there would be no need to retender this procurement under the Procurement Act 2023