Largest UK apprenticeship provider 'at risk of collapse after critical Ofsted report'

The biggest apprenticeship provider in the UK is reportedly “at risk of collapse” after a highly critical Ofsted report.

Learndirect, which provides training courses for a range of sectors including advanced manufacturing and engineering, tried to block the report’s publication, according to the Financial Times and FE Week. The publications said Ofsted gave the government-funded, Lloyds Bank-owned organisation an “inadequate” rating – the worst possible score.

Set up in 2000 by the Labour government and privatised during the coalition, Learndirect works with employers to develop tailored apprenticeships and is the UK’s largest provider of skills, training and employment services.

Following an inspection in March, Ofsted reportedly listed many failings. The regulator allegedly found one third of apprentices had no off-the-job training as required, and discovered “no evidence of learning plans or monitoring of process” in a random sample of apprentices.

The FT/FE Week investigation found “tens of millions of pounds” was extracted from Learndirect after its privatisation, with payments to financiers and managers accounting for 84% of cash generated.

The organisation reportedly obtained an injunction against the report’s publication, claiming it could lose government contracts “and be forced into administration”.

Learndirect has been contacted for comment.