championing young people’s learning 16-18 allocations 2011/12 january 2011 championing young...

Championing Young People’s Learning

16-18 Allocations 2011/12

January 2011


Championing Young People’s LearningChampioning Young People’s LearningChampioning Young People’s Learning

Allocations 2011/12Timeline

December – February

The YPLA uses data alongside information provided by local authorities to calculate provisional provider allocations.The first step will be an allocation of learner numbers and the final funding rate will be set later in the process. The YPLA exchanges information with providers, where required, to refine allocations. Local authorities receive information on provisional allocations to providers.

March The YPLA confirms the final funding rate and final allocations to providers.

May – August

The YPLA issues funding agreements/contracts to organisations either directly or through the lead contact, which are required to be signed and returned by the funded organisation.

August Payment commences for the academic year through the lead contact organisation where applicable.


Allocations 2011/12Overview

• Lagged learner number basis for funding for vast majority of provision – but not ‘lagged funding’

• Policy to be confirmed on exceptions/gaps

• All calculations (SLN, factors, rates) will take into account final decisions on savings


Worked ExampleLagged Learner Numbers

Data returned Lagged Learner

Numbers

A – FE College

B – Private provider

1500 x 1.2

1100

400

1800

1100

C – School sixth form 400

LR01 return – December 2010

School census – November 2010

F05:F01 ratio – 2009/10

F05 return 09/10 and LR02 return Feb 11: In learning for last 12 months (Feb 10-Jan 11)


Learner Numbers 2011/12Exceptions

• Infrastructure Changes New/closing/mergers/guaranteed commitments

• Re-distribution on quality groundsMLP, Inspection, Finance, breach of contract

• Re-distribution by agreementBy LAs/Providers - remedial action – collaboration etc


Learner Numbers 2011/12Exceptions (2)

• New provision (sixth forms/SFCs) – agreeing numbers to be funded:

Year 1 – starting point one-third of long-term capacity - exceptions to be moderated

Year 2 – double lagged numbers in year 1

Year 3 – fully lagged

• Any other situation – only if there is an existing formal written commitment, negotiated up to that level


SLN/Learner Ratio

• Update SLN/learner ratio to use 2009/10 outturn data

• Update to reflect reduction in entitlement

• Manage range of ratios by reducing top 20% halfway to 80th percentile to part fund increases to 2009/10 levels

• One-off change to reflect start of CSR period - no guarantee that the ratio will be uprated each year


Worked ExampleVolume of Provision

Learner Numbers

SLN/learner ratio

SLN to be funded

A – FE College


1800

1100

1.3

0.7

2340

770

C – School sixth form

400 1.4 560

Based on 2009/10 actual data with policy changes and cap applied


Provider Factor 2011/12Overview

• Latest whole-year data used – 2009/10 ILR and schools census

• Will take into account the reduction in entitlement funding – so using 2011/12 rates

• Main areas to be aware of: Programme weighting – impact of policy changes Disadvantage factor – update to IMD 2007 Success factor


Provider Factor 2011/12Disadvantage Factor

• For 2010/11 and earlier years used Index of Multiple Deprivation from 2004 (IMD 2004)

• Updated to IMD 2007 for 2011/12 allocations

• General principle to use most up to date data – but also keep track of developments in pre-16 schools funding and 19+ funding

• Impact of changes likely to be offset by impact of policy changes (additional funding for disadvantage)


Provider Factor 2011/12Success Factor

• The only element of the provider factor based on 2008/09 rather than 2009/10 data

• FE - stable methodology - main issues likely to be next year when we will be using 2009/10 data (earlier close)

• Schools data is based on DfE matching process – hence recent detailed checking exercise with schools.


Worked ExampleProvider Factor

SLN to be

funded

Provider factor

SLN weighted by

provider factor

A – FE College


2340

770

1.15

1.24

2691

955

C – School sixth form 560 1.04 582

F05 from 2009/10, except success factor (2008/09)

Summer census from 2009/10, except success factor (2008/09)


National Rate

• Policy implications for headline figures – subject to agreement

• Final rate calculated towards the end of the process to balance the budget but strong expectation is that we base this on the current FE rate (£2920)…

• Current timescale says final figure will be confirmed in February/March – will aim to make this as early as possible as long as we can minimise the resulting risk


Worked ExampleAllocation

SLN weighted

by provider

factor

National Rate

Allocation

A – FE College


C – School sixth form

2691

955

582

£2920

£2920

£2920

£7,857,720

£2,788,600

£1,699,440

All figures purely illustrative – national rate not yet confirmed


Additional Learning Support - Low level (<£5500)

• Maintain the current split between formula driven and ‘non-formula’ Additional Learning Support (ALS)

• Use historical spend as the basis for allocating ‘non-formula’ low level ALS in 11/12

• Clearer separation between low and high level ALS in preparation for 12/13

• Additional funding as a result of overall policy changes


Worked ExampleAdditional Learning Support (low cost)

SLN unweighted by provider

factor

Formulaic

ALS

FE 60%

School 100%

Historic

ALS

FE 40%

Allocation

A – FE College


2340

770

£300,000

£120,000

£200,000

£80,000*

£500,000

£200,000

C – School sixth form 560 £80,000 £0 £80,000

* Based on formula from 2010/11


Sequencing

• Update to 2009/10 SLN/Learner ratios• Reduce ratios in line with reduced entitlement and cap• Prevent any increase above 80th percentile by provider type• Reduce ratios for top 20% by provider type 50% to 80th percentile• Update provider factors using 2008/09 success rates, IMD 2007, all other

data• Calculate allocation using national rate• Calculate Transitional Protection • Calculate and add in high level ALS


Transitional Protection

• Based on funding/learner• Incorporate all change in one phase of protection:

• Policy changes (programme size, disadvantage/ALS)• Changes in delivery (provider factor, ratio)• Capping top 20%• Convergence of national rates• Removal of teachers’ pension funding in schools

• Calculate funding per learner in 10/11 and unadjusted 11/12• Allow a maximum 3% decrease in funding/learner compared to

10/11 to get final 11/12 allocation


Transitional ProtectionExamples – Stable Numbers

2010/11 Funding (£)

Funded

Learners

£/learner

College A 6,765,000 1650 4100

Provider B 3,937,500 1125 3500

School C 1,824,000 380 4800

2011/12 Lagged

Learners

Indicative Funding

(£)

£/learner Raw % change

Capped %

change

Revised Funding

(£)


(£)

College A 1650 6,467,340 3920 -4.4% -3.0% 6,562,050 +94,710

Provider B 1125 4,146,188 3686 +5.3% n/a 4,146,188 n/a

School C 380 1,650,720 4344 -9.5% -3.0% 1,769,280 +118,560


Transitional ProtectionExamples – Increasing Numbers

2010/11 Funding (£)

Funded

Learners

£/learner

College A 6,765,000 1650 4100

Provider B 3,937,500 1125 3500

School C 1,824,000 380 4800

2011/12 Lagged

Learners

Indicative Funding

(£)


Capped %

change

Revised Funding

(£)


(£)

College A 1820 7,133,672 3920 -4.4% -3.0% 7,238,140 +104,468

Provider B 1240 4,570,020 3686 +5.3% n/a 4,570,020 n/a

School C 420 1,824,480 4344 -9.5% -3.0% 1,955,520 +131,040


Transitional ProtectionExamples – Decreasing Numbers

2010/11 Funding (£)

Funded

Learners

£/learner

College A 6,765,000 1650 4100

Provider B 3,937,500 1125 3500

School C 1,824,000 380 4800

2011/12 Lagged

Learners

Indicative Funding

(£)


Capped %

change

Revised Funding

(£)


(£)

College A 1480 5,801,008 3920 -4.4% -3.0% 5,885,960 +84,952

Provider B 1010 3,722,355 3686 +5.3% n/a 3,641,050 n/a

School C 340 1,476,960 4344 -9.5% -3.0% 1,583,040 +106,080


Data Sources (1)Further Education

Purpose Data Source Provider factors (other than success factors)

ILR return F05 for 2009/10 as returned by 22 November 2010

Success factors ILR return F05 for 2008/09 as returned by 22 January 2010

In-year learner numbers for 2009/10

ILR return F01 for 2009/10 as returned by 31 January 2010

Full-year learner numbers and SLN for 2009/10

ILR return F05 for 2009/10 as returned by 22 November 2010


ILR return LR01 for 2010/11 as returned by 6 December 2010

Additional learning support (formulaic element)

ILR, school census and awarding body data for 2008/09


Data Sources (2)School Sixth Forms

Purpose Data Source Provider factors (other than success factors)

School census return for summer 2010

Success factors Matched awarding body data for 2008/09 In-year learner numbers for 2009/10

School census return for autumn 2009

Full-year learner numbers and SLN for 2009/10

School census return for summer 2010


School census return for autumn 2010

Additional learning support ILR, school census and awarding body data for 2008/09


• Lagged Learner Number basis for funding except where superseded by funding agreements

• No in-year or end-year adjustment if grant-funded and on lagged learner numbers except in exceptional situations

• Pupil adjustments if the academy is not funded on lagged learner numbers

16-18 Allocations in Academies


In Year and Year End Adjustments to Allocations

• Grant funded providers must as a condition of funding operate within a regulatory framework which imposes certain restrictions on the use of public funds.

• Funding is paid on profile and except where emergencies happen is not reconciled.

• Commercial and charitable providers however are funded under a contract of services and Treasury guidelines require that the YPLA holds them to account for delivery.

• During 2011/12 contract funded providers will be subject to one in year adjustment should they not be on track to deliver their full year allocation at the mid year point.

• Reconciliation will then take place at the end of the year and be complete by March 2013.


Next Steps

• Data collated for all colleges, schools and other providers

• Infrastructure changes and data issues moderated

• Produce first run of January allocations• Review overall and at detailed level• Allocations sent out by end of January• Outstanding issues resolved during February• Final allocations in March…

championing young people’s learning 16-18 allocations 2011/12 january 2011 championing young...

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