Purpose

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
 

Decision

As Cabinet Member
for Education and Skills, I agree to:
 

A)  
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 to align with the
Decision
24/00085 and associated updated
key decision 
B)  
APPROVE the commissioning approach to procure
a two
year contract
with an option to extend for 12 months.

C)  
To DELEGATE authority to the Corporate Director
of Director of Children, Young People and Education, in
consultation with the Cabinet Member for Education and Skills, to
exercise relevant contract extensions and enter into relevant
contracts or legal agreements; and

D)  
DELEGATE authority to the Corporate Director of
Children, Young People and Education, to take other relevant
actions, including but not limited to, finalising the terms of, and
entering into required contracts or other legal agreements, as
required to implement the decision.