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Press Release - Extending access to learning through technology: Ufi and the learndirect service

 

4 November 2005

 

Sir John Bourn, head of the National Audit Office, reported today that Ufi has done a good job establishing the learndirect service in a relatively short period and has pushed the boundaries of learning methods. The NAO looked at the operation of Ufi and the learndirect service and, building upon the success already achieved, found several areas where performance should be improved and savings achieved.

The Department for Education and Skills established Ufi in 1998 to deliver learning in new ways and help address the skills gap in the workforce. It has received £930 million in education funding. It has established a national advice line and website that provide around 6 million advice sessions a year on careers and learning opportunities, and established a network of some 2,400 learndirect centres in England, Wales and Northern Ireland. learndirect is the largest education provider of its type in the world. A total of 1.7 million people have taken 4 million learndirect courses. In addition, Ufi has since 2003 been responsible for co-ordinating the network of 6,000 UK online centres across England. Some 500,000 people a year take advantage of UK online centres and a recent pilot demonstrated these centres’ ability to support other e-government services.

Building Ufi and the learndirect network from scratch required significant up-front investment. By 2004-05, marketing and management costs were reducing but £54.2 million was still being spent, 29 per cent of the budget allocated for services to learndirect learners. Ufi has started to cut administrative costs, but its four-tier delivery chain leads to duplication and unproductive administration. As part of its ongoing change programme Ufi should explore the potential for eliminating one tier, thus freeing up more resources for front-line services.

The long-term sustainability of the learndirect network in rural areas and those centres dealing with disadvantaged groups – where the need for services is high – is in question. Ufi needs to identify those centres at risk and work with the Department and the Learning and Skills Council to develop plans for their viability.

Nine per cent of learndirect learners have gone on to gain a full level 2 qualification within two years. Ufi plans to increase learndirect’s contribution to the Department’s Public Service Agreement targets on adult level 2 qualifications and adult literacy and numeracy by increasing its contribution to literacy and numeracy test passes, increasing the number of pre-level 2 learners progressing to level 2 courses with other providers and by delivering level 2 qualifications.

Ufi has achieved high recognition of the learndirect brand and has developed increasingly high-quality learning materials. It needs to do more to disseminate these materials across the education sector. 180,000 small- and medium-sized businesses have used learndirect services, representing 4 per cent of the sector. There is lower recognition of learndirect among employers than among the general public, and many employers are not aware of the full range of services offered. When Ufi was established one of its objectives was to generate substantial income of its own, but by July 2005 its total self-generated income was only £12 million. Ufi needs to do more to market itself to the small- and medium-sized business sector.

Sir John Bourn said:

 

“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. 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.”
 

Notes for Editors

  1. Press notices and reports are available from the date of publication on the NAO website at www.nao.org.uk. Hard copies can be obtained from The Stationery Office on 0845 702 3474.
  2. The Comptroller and Auditor General, Sir John Bourn, is the head of the National Audit Office which employs some 800 staff. He and the NAO are totally independent of Government. He certifies the accounts of all Government departments and a wide range of other public sector bodies; and he has statutory authority to report to Parliament on the economy, efficiency and effectiveness with which departments and other bodies have used their resources.

Press Notice 57/05

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