Lessons for learndirect
Learndirect and Ufi (University for Industry) have achieved a great deal since their launch, but need to do more to control costs and market themselves, a report from the National Audit Office (NAO) finds.
Since Ufi was established in 1998 by the Department for Education and Skills, it has grown into the largest education provider of its type in the world.
While this is to be commended, the NAO points out that in the last seven years the organisation has received £930 million, and suggests that much of its £200 million annual budget is being wasted due to inefficiency.
But this does not take away from the fact that Ufi has done a “good job establishing the learndirect service in a relatively short period” and “pushed the boundaries of learning methods”, the NAO reports.
“Learndirect is a major innovative feat that within a few short years has become the largest education provider of its type in the world. It is attracting large numbers of learners who otherwise would not have undertaken learning,” said Sir John Bourn, head of the NAO.
But there is still work to do.
“Management and administration costs have reduced with time but still take up too large a portion of the budget. They need to be streamlined so that more money can go into services for learners, and to increase the emphasis on small and medium-sized businesses,” Sir John added.
He pointed to marketing and management costs of £54.2 million – 29 per cent of the organisation’s budget.
Another cause for concern was the “four-tier delivery chain”, which leads to “duplication and unproductive administration”.
Ufi should look into removing one of theses tiers, the NAO recommends.
Another concern is that the organisation is not making the most of its opportunities.
While three quarters of the general public have heard of learndirect, just 37 per cent of employers are aware of its service for businesses and many employers think that it is only for people with low levels of literacy, numeracy, or IT skills.
The NAO believes Ufi should plan a campaign, “through relevant, cost-effective channels”, to promote what the organisation can offer to companies.
Additionally, the audit office recommends that the large number of high-quality learning materials that have been developed by the learndirect should be put to better use.
Ufi today responded that it has already begun to address some of these recommendations through a programme it started in February and is already seeing progress – delivering the same amount of learning for eight per cent less funding than last year.
Ufi chairman John Weston said: “We are delighted that the NAO acknowledges the innovative approach to learning delivery developed by Ufi, and acknowledge the progress we need to make in working with government to exploit learndirect services more widely across public service delivery.”
