Further Education and Training Act 2007 Part 1 The Learning and Skills Council for England The Council Minimum membership of the Council 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Regional councils 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Abolition of local councils 3 1 The local learning and skills councils established under section 19 of LSA 2000 are abolished. 2 In consequence of the abolition of local councils, the following are repealed— a sections 19 to 24 of LSA 2000; b Schedule 2 to that Act. Strategies for functions of Council 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Young people's learning committee and adult learning committee 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Functions of the Council Duty in relation to diversity and choice 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Consultation by the Council 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Plans for academic years 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Powers to form or be involved in certain bodies corporate 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Directions 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provision of services 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assistance with respect to employment and training 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assistance with respect to employment and training: Northern Ireland 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part 2 Further education institutions Further education corporations Incorporation of further education institutions 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dissolution of further education corporations 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Publication of proposals 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Intervention in further education institutions Intervention: England 17 Before section 57 of FHEA 1992, insert— Intervention: England 56A 1 This section applies if the Learning and Skills Council for England is satisfied as to one or more of the matters listed in subsection (2) in the case of an institution in England within the further education sector; and it is immaterial whether or not a complaint is made by any person. 2 The matters are— a that the institution's affairs have been or are being mismanaged by the institution's governing body; b that the institution's governing body have failed to discharge any duty imposed on them by or for the purposes of any Act; c that the institution's governing body have acted or are proposing to act unreasonably with respect to the exercise of any power conferred or the performance of any duty imposed by or under any Act; d that the institution is performing significantly less well than it might in all the circumstances reasonably be expected to perform, or is failing or likely to fail to give an acceptable standard of education or training. 3 If this section applies the council may do one or more of the things listed in subsection (6). 4 Before doing one or more of those things, the council must give the Secretary of State a notice stating— a the matter or matters listed in subsection (2) as to which the council is satisfied; b the reasons why the council is so satisfied; c the thing or things that the council proposes to do; d the reasons why the council proposes to do that thing or those things. 5 If the council does one or more of those things, it must at the same time give the institution's governing body a notice stating— a the matter or matters listed in subsection (2) as to which the council is satisfied; b the reasons why the council is so satisfied; c the reasons why the council has decided to do that thing or those things. 6 The council may— a remove all or any of the members of the institution's governing body; b appoint new members of that body if there are vacancies (however arising); c give to that body such directions as it thinks expedient as to the exercise of their powers and performance of their duties. 7 The directions that may be given to a governing body under this section include a direction requiring a governing body to make collaboration arrangements (within the meaning of section 166 of the Education and Inspections Act 2006) with such bodies and on such terms as may be specified in the direction. 8 Directions may be given to a governing body under this section despite any enactment making the exercise of a power or performance of a duty contingent on the body's opinion. 9 The council may not direct a governing body under subsection (6)(c) to dismiss a member of staff. 10 But subsection (9) does not prevent the council, where it considers that it may be appropriate to dismiss a member of staff whom the governing body have power under their institution's articles of government to dismiss, from giving the governing body such directions under this section as are necessary to secure that the procedures applicable to the consideration of the case for dismissal of that member of staff are given effect to in relation to that member of staff. 11 A governing body must comply with any directions given to them under this section. 12 An appointment of a member of a governing body under this section shall have effect as if made in accordance with the instrument of government and articles of government of the institution concerned. Intervention policy: England 56B 1 The Learning and Skills Council for England must— a prepare a statement of its policy with respect to the exercise of its powers under section 56A, b keep it under review, and c if it considers it appropriate in consequence of a review, prepare a revised statement of its policy. 2 When preparing a statement or revised statement of its policy, the council must— a undertake such consultation as it thinks appropriate; b consider any representations made to it about the policy to be set out in the statement. 3 The Secretary of State may give the council guidance in relation to the exercise of its functions under subsections (1) and (2), and in particular in relation to the form and content of the policy. 4 It is the duty of the council to have regard to any guidance given to it under subsection (3). 5 The council must send a copy of the statement or revised statement prepared by it to the Secretary of State. 6 If the Secretary of State approves it he shall lay a copy of it before each House of Parliament. 7 The council must publish— a the statement of its policy approved by the Secretary of State; b where the Secretary of State approves a revised statement of its policy, the revised statement. 8 The council must have regard to the statement most recently published under subsection (7) in exercising, or deciding whether to exercise, any of its powers under section 56A in relation to an institution. Directions 56C 1 This section applies if— a the Secretary of State is satisfied as to one or more of the matters listed in section 56A(2) in the case of an institution in England within the further education sector, and b the Secretary of State is satisfied that the circumstances are such that it would be appropriate for the Learning and Skills Council for England to do one or more of the things listed in section 56A(6) in relation to the institution. 2 In such a case the Secretary of State may give to the council such directions as he thinks fit as to the exercise of the council's powers under section 56A. 3 Where the Secretary of State gives the council a direction under this section, he must at the same time give the council a notice stating the matter or matters listed in section 56A(2) as to which he is satisfied. 4 The council must comply with any directions given to it under this section. 5 Where the council does a thing listed in section 56A(6) in relation to an institution in compliance with a direction under this section— a the council must give the institution's governing body a copy of the relevant notice under subsection (3), and b the requirement to give a notice under section 56A(5) does not apply. Intervention: Wales 18 1 Section 57 of FHEA 1992 (intervention) is amended as set out in subsections (2) to (4). 2 In subsection (2) (conditions for intervention), for paragraph (d) substitute— d they are satisfied that the institution is performing significantly less well than it might in all the circumstances reasonably be expected to perform, or is failing or likely to fail to give an acceptable standard of education or training. 3 After subsection (5) insert— 5A The directions that may be given to a governing body under this section include a direction requiring a governing body to make collaboration arrangements (within the meaning of section 166 of the Education and Inspections Act 2006) with such bodies and on such terms as may be specified in the direction. 4 After subsection (6) insert— 6A The Welsh Ministers may not direct a governing body under subsection (5)(c) to dismiss a member of staff. 6B But subsection (6A) does not prevent the Welsh Ministers, where they consider that it may be appropriate to dismiss a member of staff whom the governing body have power under their institution's articles of government to dismiss, from giving the governing body such directions under this section as are necessary to secure that the procedures applicable to the consideration of the case for dismissal of that member of staff are given effect to in relation to that member of staff. 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foundation degrees Power to award foundation degrees 19 1 Section 76 of FHEA 1992 (power to award degrees etc ) is amended as follows. 2 In subsection (1) (power of Privy Council to specify institutions by order)— a the words from “specify any institution” to the end become paragraph (a), and b after that paragraph insert ; b specify any institution in England within the further education sector as competent to grant in pursuance of this section an award of the kind mentioned in subsection (2A) below. 3 In subsection (2) (kinds of award) for “subsection (1)” substitute “ subsection (1)(a) ” . 4 After subsection (2) insert— 2A The kind of award referred to in subsection (1)(b) above is a foundation degree granted to persons who complete an appropriate course of study and satisfy an appropriate assessment. 5 After subsection (2A) (as inserted by subsection (4)) insert— 2B Where the Privy Council is considering whether to make an order under subsection (1) above specifying an institution as mentioned in subsection (1)(b) above, the Privy Council may not make the order unless— a the institution gives the Privy Council a statement setting out what it proposes to do as regards making arrangements for securing that any person granted an award under or by virtue of any power that would be conferred on the institution if the order were made (other than the power described in subsection (4A) below) has an opportunity to progress to one or more particular courses of more advanced study, and b the Privy Council considers that the proposals are satisfactory and are likely to be carried out. 6 In subsection (3) (power to grant awards), after “subsection (2)(a) or (b)” insert “ or (2A) ” . 7 In subsection (4) (power to grant honorary degrees etc), after “such an order” insert “ as competent to grant in pursuance of this section either or both of the kinds of award mentioned in subsection (2)(a) or (b) above ” . 8 After subsection (4) insert— 4A An institution specified in such an order as competent to grant in pursuance of this section the kind of award mentioned in subsection (2A) above may also— a grant honorary foundation degrees, and b grant foundation degrees to members of the academic and other staff of the institution. 9 In subsection (5) (powers comprised in the power to grant awards), for “Any” substitute “ Subject to subsection (5A) below, any ” . 10 After subsection (5) insert— 5A An order under subsection (1) above specifying an institution as competent to grant in pursuance of this section only the kind of award mentioned in subsection (2A) above may provide that the institution's power to grant such awards does not include the power described in subsection (5)(a) above. 11 In subsection (6) (power of institution to determine appropriate course of study etc) for “It” substitute “ Subject to subsection (6A) below, it ” . 12 After subsection (6) insert— 6A An order under subsection (1) above specifying an institution as competent to grant in pursuance of this section only the kind of award mentioned in subsection (2A) above may provide that the institution is not to grant such an award to a person unless he was enrolled at the institution at the time he completed the course of study for which the award is granted. Report 20 Within the period of four years beginning with the commencement of section 19, the Secretary of State must lay before Parliament a report about the effect of that section. Other provisions relating to further education institutions Powers of a further education corporation to form or be involved in certain bodies corporate 21 1 Section 19 of FHEA 1992 (supplementary powers of a further education corporation) is amended as set out in subsections (2) to (6). 2 In subsection (4), for paragraph (bb), substitute— bb form, participate in forming or invest in a company, bc form, participate in forming or otherwise become a member of a charitable incorporated organisation (within the meaning of section 69A of the Charities Act 1993), . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 At the end, insert— 8 A reference in this section to investing in a company includes a reference to becoming a member of the company and to investing in it by the acquisition of any assets, securities or rights or otherwise. 7 In relation to the period beginning on 1st April 2001 and ending immediately before the coming into force of this section, the power conferred by section 19(4)(bb) of FHEA 1992 is to be taken to have included power to form, participate in forming or become a member of a company limited by guarantee. Consultation by governing bodies of further education institutions 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Qualifications of principals of further education institutions 23 1 Section 137 of the Education Act 2002 (c. 32) (power of Secretary of State or Welsh Ministers to make regulations requiring principals of further education institutions to have specified qualifications) is amended as follows. 2 After subsection (2) insert— 2A Regulations under subsection (1) may limit the period of time during which a person may serve as the principal of an institution in reliance on subsection (2). 3 In subsection (3) (regulations made for England or Wales not to apply to persons already appointed to institutions)— a for “under subsection (1)” substitute “ made under subsection (1) by the Welsh Ministers in relation to Wales ” , and b after “an institution” insert “ in England or Wales ” . Part 3 Industrial training levies Conditions relating to levy proposals 24 1 Section 11 of the Industrial Training Act 1982 (c. 10) (levies imposed for industrial training board expenses) is amended as follows. 2 In subsection (6) (conditions relating to certain levy proposals), for paragraph (a) substitute— a that the Secretary of State is satisfied that— i the board has taken reasonable steps to ascertain the views of persons who the Secretary of State considers are likely to be liable to make payments by way of levy in consequence of the levy proposals, and ii a class of persons, who together satisfy the requirements in subsection (6A) below, considers that the proposals are necessary to encourage adequate training in the industry; . 3 After subsection (6) insert— 6A The requirements referred to in subsection (6)(a) above are that— a the class must consist of more than half of those persons who the Secretary of State considers are likely to be liable to make payments by way of levy in consequence of the levy proposals; and b the class must include such persons as the Secretary of State considers are together likely to be liable to make payments by way of levy in consequence of the levy proposals which amount to more than half the aggregate amount of those payments. 4 After subsection (6A) (as inserted by subsection (3)) insert— 6B The Secretary of State may by regulations make provision as to what constitutes “ reasonable steps ” for the purposes of subsection (6)(a) above. 6C Regulations under subsection (6B) above may include— a provision for ascertaining the views of persons with respect to levy proposals by means of a sample of those persons; b provision for treating a person who is represented by an organisation of such description as may be prescribed by the regulations as having the same view as the organisation with respect to levy proposals. 6D Regulations under subsection (6B) above shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament. 5 In subsection (8) (interpretation) omit the definition of “the relevant organisations”. Duration of levy orders 25 1 Section 11 of the Industrial Training Act 1982 (c. 10) is amended as set out in subsections (2) to (5). 2 After subsection (2) insert— 2A Levy proposals must provide for one or more periods (in this Act referred to as “ levy periods ”) by reference to which a person's liability to levy is to be established and the levy period or periods must fall within the period of three years beginning with the day on which the levy order giving effect to the proposals is made. Levy proposals may not provide for more than three levy periods. 2B Subsection (2A) above is subject to subsections (2C) and (2D) below. 2C If the levy order giving effect to levy proposals submitted by an industrial training board would be the first or second levy order giving effect to proposals submitted by the board, the proposals may instead provide for a single levy period that falls within the period of one year starting with the day on which the levy order giving effect to the proposals is made. 2D No levy order may be made in reliance upon subsection (6)(b) below unless the proposals in pursuance of which the order would be made provide for a single levy period that falls within the period of one year starting with the day on which the levy order giving effect to the proposals is made. 2E Levy proposals must specify, for each levy period, a period (in this Act referred to as a “ base period ”) by reference to which the relevant emoluments are to be calculated. 3 In subsection (6), for paragraph (b) substitute— b that the order will be made— i after the making of a levy order (“ the earlier levy order ”) in respect of which the Secretary of State was satisfied that the condition in paragraph (a) above applied, and ii within the period described in subsection (6E) below, and the condition in subsection (6F) or (6G) below is satisfied; . 4 After subsection (6D) (as inserted by section 24) insert— 6E The period mentioned in subsection (6)(b)(ii) above is— a if the earlier levy order provides for such levy periods as are referred to in subsection (2A) above, the period beginning with the third anniversary and ending with the fourth anniversary of the making of the earlier levy order; b if the earlier levy order provides for such levy period as is referred to in subsection (2C) above, the period beginning with the first anniversary and ending with the second anniversary of the making of the earlier levy order. 6F The condition in this subsection is that the proposals relating to the earlier levy order included proposals for securing— a that no exemption certificates should be issued; or b that the exemption certificates to be issued should not exempt employers from any of the levy payable in respect of any levy period. 6G The condition in this subsection is that— a the proposals in pursuance of which the earlier levy order was made included proposals for securing that exemption certificates should not exempt employers from a portion of the levy payable in respect of a levy period; and b the percentage of the relevant emoluments from which under the current proposals the exemption certificates will not exempt any person will not exceed the percentage of the relevant emoluments in respect of any of the base periods specified in the earlier levy order from which that person was not exempted under that order. 5 In subsection (8), in the definition of “the relevant emoluments”, for the words from “the period specified” to the end substitute “ a period specified in levy proposals as a base period. ” 6 In section 12 of that Act, after subsection (1) insert— 1A Subsection (1B) below applies where a levy order (“ the new levy order ”) giving effect to levy proposals submitted by an industrial training board will be made— a after the making of a levy order (“ the earlier levy order ”) that gives effect to earlier proposals submitted by the board, and b within three years or, where the earlier levy order provides for a single levy period in accordance with section 11(2C) or (2D) above, within one year after the making of the earlier levy order. 1B The proposals for the new levy order must include proposals for securing that no liability to levy is imposed under the earlier levy order by reference to such part of a levy period provided for in the earlier levy order as falls on or after the day on which the new levy order is made. Part 4 Miscellaneous and general Powers of a higher education corporation to form or be involved in certain bodies corporate 26 1 In the Education Reform Act 1988 (c. 40) (“ the 1988 Act ”), section 124 (powers of a higher education corporation) is amended as set out in subsections (2) and (3). 2 In subsection (2), for paragraph (f), substitute— f to form, participate in forming or invest in a company for the purpose of carrying on any such activities; fa to form, participate in forming or otherwise become a member of a charitable incorporated organisation (within the meaning of section 69A of the Charities Act 1993) for the purpose of carrying on any such activities; . 3 At the end, insert— 7 The reference in this section to investing in a company includes a reference to becoming a member of the company and to investing in it by the acquisition of any assets, securities or rights or otherwise. 4 In relation to the period beginning on 1st April 2001 and ending immediately before the coming into force of this section, the power conferred by section 124(2)(f) of the 1988 Act is to be taken to have included power to form, participate in forming or become a member of a company limited by guarantee for the purpose mentioned in section 124(2)(f). Powers of National Assembly for Wales 27 1 Part 1 of Schedule 5 to the Government of Wales Act 2006 (c. 32) (Assembly Measures) is amended as follows. 2 In field 5 (education and training), after matter 5.10 insert— Matter 5.11 Provision for and in connection with securing the provision of facilities for post-16 education or training. Matter 5.12 Provision for and in connection with the establishment and dissolution of— a institutions concerned with the provision of further education, and b bodies that conduct such institutions, including the circumstances in which an educational institution becomes or ceases to be an institution concerned with the provision of further education. Provision about— a the conduct and functions of such institutions and bodies that conduct such institutions; b the property, rights and liabilities of such institutions and bodies that conduct such institutions; c property held by any person for the purposes of such an institution; d the governance and staff of such institutions. Matter 5.13 Provision for and in connection with securing collaboration— a between bodies that conduct institutions concerned with the provision of further education, or b between one or more such bodies and other persons or bodies that have functions relating to education or training in Wales, including, in particular, provision for and in connection with the establishment of bodies for the purpose of discharging functions on behalf of one or more persons or bodies that are party to arrangements for collaboration. Matter 5.14 The provision of financial resources for and in connection with— a education or training provided by institutions concerned with the provision of further education; b post-16 education or training provided otherwise than by such institutions; c the carrying out of research relating to education or training falling within paragraph (a) or (b). Matter 5.15 The inspection of— a education or training provided by institutions concerned with the provision of further education; b post-16 education or training provided otherwise than by such institutions; c the training of teachers and specialist teaching assistants for schools; d services of the kinds mentioned in matter 5.8. Matter 5.16 The provision of advice and information in connection with, and the carrying out of studies in relation to, any of the kinds of education, training or services mentioned in matter 5.15. 3 In that field, immediately after the heading “ Interpretation of this field ”, insert— In this field— “ post-16 education ” means— a education (other than higher education) suitable to the requirements of persons who are above compulsory school age, and b organised leisure-time occupation connected with such education; “ post-16 training ” means— a training suitable to the requirements of persons who are above compulsory school age, and b organised leisure-time occupation connected with such training. References in this field to an institution concerned with the provision of further education are references to an educational institution, other than a school or an institution within the higher education sector (within the meaning of the Further and Higher Education Act 1992), that is conducted (whether or not exclusively) for the purpose of providing further education. Orders and regulations 28 1 Any power to make an order or regulations under this Act is exercisable by statutory instrument. 2 A statutory instrument containing an order or regulations made by the Secretary of State under any provision of this Act other than section 32 is subject to annulment in pursuance of a resolution of either House of Parliament. 3 A statutory instrument is subject to annulment in pursuance of a resolution of the National Assembly for Wales if the instrument contains an order made by the Welsh Ministers under section 11. 4 A statutory instrument is subject to annulment in pursuance of a resolution of the Scottish Parliament if the instrument contains an order made by the Scottish Ministers under section 11. 5 The power of the Department for Employment and Learning in Northern Ireland to make an order under section 11 shall be exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 ( S.I. 1979/1573 (N.I. 12)); and any such order shall be subject to negative resolution within the meaning of section 41(6) of the Interpretation Act (Northern Ireland) 1954 (c. 33 (N.I.)) as if it were a statutory instrument within the meaning of that Act. 6 Any power to make an order or regulations under this Act includes power— a to make different provision for different cases or areas; b to make provision generally or in relation to specific cases; c to make such incidental, supplementary, transitional or saving provision as the person making the order or regulations thinks fit. Amendments 29 Schedule 1 (which contains miscellaneous and consequential amendments) has effect. Repeals 30 The enactments specified in Schedule 2 are repealed to the extent specified. Interpretation 31 In this Act— “ FHEA 1992 ” means the Further and Higher Education Act 1992 (c. 13); “ LSA 2000 ” means the Learning and Skills Act 2000 (c. 21). Commencement 32 1 The following provisions come into force on the day on which this Act is passed— sections 9, 21, 26, 28 and 31; this section; sections 33 and 34. 2 Section 27 comes into force at the end of the period of two months beginning with the day on which this Act is passed. 3 Section 18 comes into force in accordance with provision made by the Welsh Ministers by order. 4 Sections 22 and 23 come into force in accordance with provision made by order by— a the Welsh Ministers, in relation to Wales; b the Secretary of State, in relation to England. 5 The remaining provisions of this Act come into force in accordance with provision made by the Secretary of State by order. Extent 33 1 Subject to subsections (2) to (4), this Act extends to England and Wales only. 2 The following provisions extend also to Scotland— section 11; section 12; sections 28, 31 and 32, this section and section 34. 3 The following provisions extend also to Northern Ireland— section 11; section 13; sections 28, 31 and 32, this section and section 34. 4 Any amendment or repeal made by this Act has the same extent as the enactment amended or repealed. Short title 34 This Act may be cited as the Further Education and Training Act 2007.