Government pulls raft of Learndirect contracts

A Sheffield-based adult learning and apprenticeships provider, Learndirect, has had its Government contracts pulled, the day before a damning report is due out.

Learndirect has reportedly been banned from taking on any more apprentices. According to The Guardian, it has said it could collapse into administration if the Department for Education withdrew its £158m funding.

The report from Ofsted is said to label the learning provider “inadequate” and the firm, which employs 1,645 staff, has attempted to suppress it.

The High Court ruled on Monday that it was to be published.

The Ofsted report reportedly gives Learndirect a grade four, the lowest possible mark.

Learndirect said they were “extremely disappointed” with the decision to release the report, which they had managed to block previously. In a statement the firm said: “Learndirect Limited’s underlying business remains stable, and we continue to be focused on supporting our learners as usual.”

Learndirect, which was privatised in 2011 after a £40m acquisition by LDC, has more than 70,000 trainees on its books.

In its latest available accounts for 2015, it made £171m in turnover and returned pre-tax profits of £2.9m.

The company has dozens of centres across the UK, including Birmingham, Carlisle, Doncaster, Manchester, Liverpool, Leeds, Halifax, Hull and Nottingham.