Office of Public Sector Information

97.In considering requests to establish companies or charitable incorporated organisations for the purpose of delivering education, the LSC will look at whether the entity should be designated as part of the further education sector (under section 28 of the 1992 Act). Designated institutions are required to comply with all legislation appropriate to further education corporations.

98.This provision is intended to facilitate collaboration between further education corporations and schools, businesses, universities and other partners. The background to this section is a Government commitment in the White Paper ‘Further Education: Raising Skills, Improving Life Chances’ to encourage new delivery models for further education provision in England.

Consultation with employers and learners

99.Section 22 inserts a new section 49A into the 1992 Act. New section 49A imposes a duty on the governing bodies of further education institutions in England to have regard to guidance from the Secretary of State and for the governing bodies of institutions in Wales to have regard to guidance from the Welsh Ministers, about consulting with learners, with people likely to become learners or with employers in connection with decisions which will affect them. The section does not define consultation nor does it specify how or when consultation is to be delivered. These issues will be included in the guidance. The section specifies that guidance must provide for the views of a learner or prospective learner to be considered in the light of his age and understanding.

100.The background to this section is a Government commitment in the March 2006 White Paper ‘Further Education: Raising Skills, Improving Life Chances’ to create a demand-led system of further education provision, whereby funding follows the choices of employers and learners.

Qualifications of principals of further education institutions

101.Section 23 amends section 137 of the Education Act 2002 (“the 2002 Act”). Section 137 allows the Secretary of State (in relation to England), or the Welsh Ministers (in relation to Wales), to make regulations requiring a person appointed as a principal of a further education institution after commencement of that section to have achieved, or be working towards, a specified leadership qualification. Persons who were appointed before the commencement of section 137 are thus exempt from the requirement that may be imposed by regulations.

102.Section 23 limits to institutions in Wales the exemption from the regulations for those appointed as principals before the commencement of section 137. The effect of this will be to enable regulations made under section 137 by the Secretary of State to extend to all further education college principals in England.

103.The removal of this exemption applies to principals in England only, although section 137 of the 2002 Act applies to England and Wales.

104.This section also inserts new subsection (2A) which provides that regulations made under subsection (1) of section 137 may limit the period of time a principal may be given to achieve the qualification. This provision applies to England and Wales.

Part 3: Industrial Training Levies

Sections 24 and 25: Amendments to the Industrial Training Act 1982. Levy proposals

105.Section 24 amends section 11 of the Industrial Training Act 1982 (“the 1982 Act”).

106.The 1982 Act would, but for the amendments made by this Act, require an Industrial Training Board (ITB) to demonstrate that a levy proposal has the support of organisations representing more than half the employers who are likely to be liable for levy payments and organisations representing employers who together are likely to pay more than half the total amount of levy payable, before the Secretary of State imposes that levy on the industry. These representative organisations have traditionally taken the form of employer federations and trade associations. However, an increasing proportion of employers no longer choose to be members of such organisations. Without the amendments made by this Act, it would continue to be difficult for ITBs to demonstrate support for a levy among employers within their industry, even where this support exists.

107.This section amends the 1982 Act to allow support for levy proposals to be demonstrated by consulting more widely with employers, whether or not they are members of representative organisations. It allows the Secretary of State to make regulations about the detail of how support for levy proposals is to be demonstrated, including allowing a sample of employers to be consulted.

Three-Year Levy Orders

108.A levy order is an order issued by the Secretary of State requiring that employers in a given industry pay a levy and that the ITB for that industry collect and administer the levy. A levy order also includes provision for exempting employers from payment of the levy in appropriate cases.

109.Current practice is for ITBs to make proposals for levy orders annually. However, levy rates have remained unchanged for a number of years.

110.Section 25 requires ITBs who wish to submit proposals for levy orders to submit proposals for three-year levy orders to the Secretary of State. These proposals must specify up to three levy periods for each three-year period. There are certain exceptions to this. The levy is imposed in respect of the levy period.

111.The ITB submitting the proposal for a three-year levy order must also specify a base period for each levy period of the proposed order. A base period is usually a period covering a financial year (6 April to 5 April) prior to the beginning of a levy period. The emoluments to their workers and payments for sub-contract labour that are paid or payable by employers during a base period are used as the basis for calculating the levies due as a consequence of passing the proposed levy order.

112.The first and second levy proposals made by an ITB do not need to cover a three-year period; they may specify one levy period. Subsequent levy proposals, if the ITB chooses to make them, must cover a three-year period, subject to certain exceptions.

Part 4 – Miscellaneous and General

Section 26: Power of a higher education corporation to form or be involved in certain bodies corporate

113.The Charities Act 2006 created a new form of body corporate called charitable incorporated organisations (CIOs) which will be regulated by the Charities Commission. Section 26 clarifies the power of higher education corporations to form or invest in companies and gives them a new power to form or become members of charitable incorporated organisations.

114.Subsection (4) contains retrospective provision that ensures that any companies limited by guarantee that have already been formed between 1 April 2001 and the date on which this section comes into force were formed lawfully.

Section 27: Powers of National Assembly for Wales

115.This section makes amendments to Part 1 of Schedule 5 to the Government of Wales Act 2006 (“GOWA 2006”), so as to confer enhanced legislative competence on the National Assembly for Wales in specific subject areas. Section 94 of GOWA 2006 provides that a provision of an Assembly Measure is within the Assembly’s competence if it relates to (or is incidental or consequential on provision that relates to) one or more of the matters specified in Schedule 5. Part 1 of Schedule 5 to GOWA 2006 sets out twenty fields and matters in respect of some of those fields. Assembly Measures may include any provision that could be made by Act of Parliament, subject to specific restrictions set out in Part 2 of Schedule 5 to GOWA 2006.

116.The matters added by section 27 of this Act to field 5 in Part 1 of Schedule 5 to GOWA 2006 cover a broad range but centre on post-16 education and training.

Sections 28, 29, 30, 31, 32, 33 and 34: General provisions

117.Sections 28, 29, 30, 31, 32, 33 and 34 contain general provisions, including: those relating to the exercise of powers to make orders and regulations; general interpretation provisions; commencement; extent of the Act; and the short title of the Act.

118.Section 29 introduces Schedule 1 which contains miscellaneous and consequential amendments.

119.Section 30 introduces Schedule 2 which specifies the extent to which the enactments listed are repealed.

Commencement

120.Section 32(1) specifies those provisions that come into force on the day on which this Act is passed. These are sections 9, 21 and 26 and a number of general provisions such as: provisions about orders and regulations; financial provisions; interpretation; commencement; extent; and the short title of the Act.

121.Subsection (2) specifies those provisions that come into force at the end of the period of two months beginning with the day on which this Act is passed. This applies to provision securing measure-making powers for Wales.

122.Subsection (3) specifies that section 18 will come into force in accordance with provision made by a commencement order made by the Welsh Ministers.

123.Subsection (4) specifies that sections 22 and 23 (which are about consultation by governing bodies of further education institutions and qualifications of principals of further education institutions) will come into force in accordance with provision made by a commencement order made by the Secretary of State in relation to England and the Welsh Ministers in relation to Wales.

124.Subsection (5) specifies that the remaining provisions in the Act will come into force in accordance with provision made by a commencement order made by the Secretary of State.

Hansard References

125.The following table sets out the dates and Hansard references for each stage of this Act’s passage through Parliament.

Royal Assent – 23 October 2007 House of Lords Hansard Vol. 695 Col. 973 House of Commons Hansard Vol. 465 Col. 187