16-19 Funding 2013/14
Update
Princes Trust Delivery Partners
June 2013
The participation age will be raised to:•For 16 year olds -end of the academic year in which they are 17 from Summer 2013•For 17 year olds to their 18th birthday from Summer 2015
•Applies to all those resident in England
•Enforcement deferred
What counts as participation?...
•full time education (school, college or independent provider for at least 540 hours
•home education
•Apprenticeship
•full-time work including at least 280 hours of education
Raising Participation Age
Funding per
student
Studyprogrammes
Raising Participation
Age
• Applies to all 16-19 year olds
• Students will take either academic programme or a substantial vocational qualification recognised by employers – these must help them secure skilled work or a university place
• Where appropriate students will also take part in work preparation or work experience
• Participate in value-added non-qualification activity
• Students who don’t have GCSEs grade C in English and maths at 16 will continue to study these subjects
• Students who aren’t able to study a substantial qualification will take a programme of work experience and continue to develop their numeracy and literacy skills
StudyProgrammes
Funding per
student
Studyprogrammes
Raising Participation
Age
Funding per student
16-19 education was funded…Qualification by qualification•Funding is unfit to support RPA•Wolf found there to be perverse incentives which didn’t help raise standards•System is very complex and opaque
16-19 education will be funded…student by student•Increased focus on providing the student with a holistic study programme which will get them into university or work•All students receive same basic level of funding•Enables and supports a simple and transparent funding system•Subject to A level and GCSE reform
Funding per
student
Studyprogrammes
Raising Participation
Age
What is changing for 14-19?
Opportunities
NEET remains at
10%
Public Spending Pressures
Cohort declineCohort decline
Larger Provider
Base
Funding per student
The new 16-19 funding formula
Total Programme
Funding
Programme Cost
Weighting
Disadvantage Funding
Area Cost
Allowance
Student Numbers
National Funding Rate per student
Retention Factor( )
• This is a count of students to be funded
• Must meet qualifying period of 2 weeks or 6 weeks- will not fund programmes under 2 weeks
• Based on autumn census or ILR return
• Either full time => 540 hours
• Or Part Time < 540 hours
• For 2013/14 and 2014/15 Band 4 = full time
• The bottom band treated as Full Time Equivalent (FTE), that is a proportion of 600
• Age groups 16-18 and 19-24 for HNS are treated the same
Programme Cost
Weighting
DisadvantagFunding
Area Cost Allowanc
e
National Funding Rate per student
Retention Factor
( )Student
Numbers
Student numbers
Student statusHours required
per year
Full time 540 +
Band 4 450-539
Band 3 360-449
Band 2 280-359
Band 1 up to 280
Single National Full Time funding rate per student expressed in £
All 16-19 year olds in sixth forms, colleges and independent providers are funded at the same national funding rate
Out of scope Youth Contract, Young Offenders, 16-18 Apprenticeships and European Social Fund (ESF)
This is the final element of the formula fixed by the EFA. It depends on how much learning is taking place across the country and the budget.
The rate used in the 2013/14 allocation is £4,000
Programme Cost
Weighting
DisadvantagFunding
Area Cost Allowance
Student Numbers
Retention Factor( )
National Funding Rate per student
The National Funding Rate
A full time rate based on circa 600 hours
Three part time rates for bands 2,3,4
Each funded at mid-point of the band
For Band 4 (450-539 hours) for 13/14 and 14/15 we will fund at the full time rate
Band 1 (below 280 hours) funded as a proportion of 600 hours ie 150 hours gets 25% of the National Full Time funding Rate
Programme Cost
Weighting
Disadvantage Funding
Area Cost Allowance
Student Numbers
Retention Factor( )
National Funding Rate per student
Part Time Funding rates
Student Number
status
Hours funded at…
FundingRate (13/14 allocations)
Full time 600 £4,000
Band 4 600 £4,000
Band 3 405 £2700
Band 2 320 £2133
Band 1 % of 600 % of £4,000
Hours that are:Directly relevant to the study programmePlanned, explicit in the Learning Plan or TimetableSupervised and/or organised by the provider Quality Assured by the providerWithin normal working pattern
Prog Cost
Weighting
Disadvantage Funding
Area Cost Allowance
Student Numbers
National Funding Rate per student ( )
Retention Factor
What is Funded?
Hours that are delivered towards qualifications that are approved for teaching to 16-19 year olds
under section 96 of the LSC act 2000
Prog Cost
Weighting
Disadvantage Funding
Area Cost Allowance
Student Numbers
National Funding Rate per student ( )
Retention Factor
Qualification Hours
Not counted towards a qualification Informal certificates Non-qualification activity Tutorial purposes Work experience/Work related activity Volunteering/Community activities Enrichment activities
Prog Cost
Weighting
Disadvantage Funding
Area Cost Allowance
Student Numbers
National Funding Rate per student ( )
Retention Factor
Non Qualification Hours
Voluntary extra-curricular activities and clubs delivered during breaks or outside normal working pattern
Study that is homework or independent study/research that is not timetabled Employment or Work Experience organised by anyone other than by or on
behalf of the provider Volunteering/Community activities that are not organised by or on behalf of the
provider
Prog Cost
Weighting
Disadvantage Funding
Area Cost Allowance
Student Numbers
National Funding Rate per student ( )
Retention Factor
Not Funded
In some cases, where this best meets the assessed needs of the students and/or is strictly necessary to prepare them for their progression outcome, institutions will plan compressed programmes to allow students to complete a significant number of hours in a short period of time. These programmes will be funded at the standard funding rates based on the planned hours.
We would expect such compressed delivery to lead to excellent results, as demonstrated through qualification success rates and positive destinations. We would not expect this to lead to a student being funded for more than one full-time programme in an academic year. We will monitor the delivery and value for money of compressed programmes during 2013/14 and will decide whether to apply a funding cap to such provision in future accordingly.
Prog Cost
Weighting
Disadvantage Funding
Area Cost Allowance
Student Numbers
National Funding Rate per student ( )
Retention Factor
Compressed Delivery
Where a student progresses within an institution, the maximum of 600 hours funding is applied automatically and no student will be funded above this level.
Where a student moves onto a new institution, the level of funding depends on the number of hours the second institution will provide for the remainder of the academic year. In general, we would expect this second programme to be less than a full time full year programme. We would, therefore, expect to fund it in one of the part time bands.
Prog Cost
Weighting
Disadvantage Funding
Area Cost Allowance
Student Numbers
National Funding Rate per student ( )
Retention Factor
Second study Programmes
Success no longer used in funding, a retention factor is now used
Applied at student level, not qualification level
Retained means still studying a core aim on planned end date or leaves early and is recorded as completed the core aim
For academic programmes – still studying one of the academic aims
For vocational programmes still studying the core aim
Retention FACTOR = half way point between Retention RATE and 100%
Student retention and funding
Funding
Leaves before qualifying period
0
Leaves before planned end and not recorded as completed
50%
Retained to planned end date and recorded as completed
100%
Leaves before planned end date and recorded as completed
100%
Programme Cost
Weighting
Disadvantage Funding
Area Cost Allowance
Student Numbers
National Funding Rate per student ( )
Retention Factor
Retention Factor
Number of students completed
Number of students started
Recognition that some vocational subjects are more expensive to teach than others
Applied to the student’s whole programme Determined by the student’s core aim ie A Levels or substantial vocational
qualification All academic programmes uplifted by one weight, which has been
determined by merging the 2 current academic weightings and low cost vocational programmes and rebasing these as 1,
Vocational Programme Weighting categories are being reduced in number and re-set to make it simpler: applied at sector subject areas
Cost Weighting Category
Agreed for 2013/14
Base 1.0Medium 1.2
High 1.3Specialist 1.6
Disadvantage Funding
Area Cost Allowance
Student Numbers
National Funding Rate per student
Retention Factor
( )Programme
Cost Weighting
Programme Cost Weighting
Recognises that some students require additional support to participate and achieve if we are to achieve full participation and improve attainment
Principle is to create a single budget that institutions use as they see fit
Disadvantage Funding
Disadvantage Funding
EconomicDeprivation
Prior Attainment
ProgrammeCost
Weighting
Area Cost Allowance
Student Numbers
National Funding Rate per student
Retention Factor
( )Disadvantage
Funding
• Based on student’s home postcode
• Deprivation is calculated using Index of Multiple Deprivation 2010. This examines the student’s home area based on: income; employment; health and disability; education, skills and training; housing and services; living environment; and crime
• Uplift is between 8.4% and 33.6% of 27% most deprived super output areas
Block one:
Disadvantage Funding
EconomicDeprivation
• Care Leavers attract a standard uplift- rate £480
ProgrammeCost
Weighting
Area Cost Allowance
Student Numbers
National Funding Rate per student
Retention Factor
( )Disadvantage Funding
Prior Attainment
• Acknowledges the additional cost of students who need extra learning support
• Based on student’s achievement of GCSE English and maths at end of Year 11
• Funding rate for 13/14 = £480
• Flat rate for part time bands 2 and 3 = £292
• Pro rata as per programme costs for band 1
Block two:
ProgrammeCost
Weighting
Area Cost Allowance
Student Numbers
National Funding Rate per student
Retention Factor
( )Disadvantage
Funding
Disadvantage Funding
ExampleMaths below
grade CEnglish below
grade CFunding attracted
per student (£)
Student 1 yes £480 x1
Student 2 yes £480 x1
Student 3 yes yes £480 x2
• Used to be graduated payments based on student’s grades
• Now only a flat rate based on non-achievement of grade C
Area Cost Allowance
Reflects the cost of delivery in high cost local areas – remains unchanged
We will continue to calculate this using the same methodology as now
Applied to the whole participation formula (including all disadvantage)
Program Cost
Weighting
Disadvantage Funding
Student Numbers
National
Funding Rate
per student
Retention Factor
( )Area Cost Allowanc
e
Area Cost Allowance
Area Uplift
Inner London 20%
Outer London 12%
Berkshire 12%
Crawley 12%
Surrey 12%
Buckingham (London fringe) 10%
Hertfordshire (London fringe) 10%
Buckinghamshire (non fringe) 7%
Area Uplift
Oxfordshire 7%
Essex (London fringe) 6%
Kent (London fringe) 6%
Bedfordshire 3%
Hertfordshire (non-London fringe) 3%
Cambridgeshire 2%
Hampshire and Isle of Wight 2%
West Sussex non-fringe 1%
Programme Cost
Weighting )
Formula protection funding (FPF)
• Will be paid for at least three academic years until and including 2015/16, where the move to a basic funding rate per student would otherwise result in a reduction in funding per student.
• Calculated by comparing funding per student allocated for 2013/14 (excluding transitional protection) with funding per student for 2012/13
• The operation of formula protection funding for future years will depend on progress of Ministerial Working Group on the reforms for large programmes, A levels and GCSEs.
• Enables you to move on with curriculum reforms and simplification while final details are resolved
? ? ?Student Support Funding
Formula protection funding (FPF)
For example:
Funding per student at Shakespeare College in 2012/13 is calculated at £4500 per student,
The new methodology for 2013/14 gives them £4060 per student,
FPF of £440 per student is included in the 2013/14 allocation
? ? ?Student Support Funding
High Needs Students (HNS)
• This is funding for students with learning difficulties and/or disabilities and/or special educational needs with support costs above £6,000
• There’s a system based on the same principles for all children and young people from ages 0 – 24
• It is called place plus – places are funded by the EFA and any additional top-up funding by the home local authority
• There are three elements to High Needs Funding
? ? ?Student Support Funding
High Needs Students (HNS)
The place – EFA Funded•Element 1 This is the standard 16-19 Funding Formula as we have described – it is based on lagged student numbers – this aspect rolls on from year to year.•Element 2 This is the first £6,000 of additional support – numbers are calculated based on information provided by the local authority about the number of places it is going to commission from each institution and the EFA adds £6,000 for each place to the allocation – completing the place funding.The Plus – Top up Funding – LA Funded•Element 3 any funding the individual requires above the first two elements is negotiated and agreed with the student’s home LA
? ? ?Student Support Funding
Any student 16-18 without a minimum grade C in English and/or maths must be working towards this level from 2014/15 Academic Year
Or that student WILL NOT be counted in lagged funding for 2015/16
DfE will publish a list of what counts as having a grade C – watch the bulletin These students must enrol on a GCSE, Functional Skills, Free standing maths
or ESOL Functional Skills are a stepping stone towards GCSE and not an end in itself –
if the student already has a FS at level 2 then must enrol on GCSE We are producing reports to show you how you are doing before the summer
Prog Cost
Weighting
Disadvantage Funding
Area Cost Allowance
Student Numbers
National Funding Rate per student ( )
Retention Factor
Condition of Funding M&E
Identify core aim
Record planned student-level hours:
– Qualification hours
– Non-qualification hours
Less emphasis on detail at aim level for funding purposes
Prog Cost
Weighting
Disadvantage Funding
Area Cost Allowance
Student Numbers
National Funding Rate per student ( )
Retention Factor
Key Data Implications (1)
TEAM Programme Example
Activity Funding
Participation of 420 hours therefore part time band 3 370 to 449 hours
£2,700
Retention factor assuming 90% retention is -0.95 -£135
Programme cost weighting is 1.0 £0
Disadvantage Block 1 (IMD) Could be anywhere between 8.4% (£227) and 33.6% (£907) per student
£382(up to £612)
Disadvantage Block 2 (Prior attainment) assumes below grade C in both English and maths – pro rata
£548 (2x£274)
Total funding over the 12 weeks (Area Cost Allowance of 0)
£3,495