fe planning and funding 2008/09

1

Planning & Funding

Len TildsleyDIRECTOR OF CURRICULUM & INFORMATION

Len Tildsley • November 2007

2Len Tildsley • November 2007

Planning & Funding

The Planning Context The 08/09 Funding Mechanism Business & Provision Planning


Planning & Funding



The Planning Context


Grant Letter 14-19 Learning Adult Skills Sustainable employment & progression Reforming the system


LSC Statement of Priorities National Statement accompanying the

government grant letter “Better Skills, Better Jobs, Better Lives” Covers 08/09 to 10/11 Published 16th November 2007


Targets & Priorities Priority 1 : Creating Demand for Skills Priority 2 : Transforming FE Priority 3 : Better Skills, Better Jobs, Better

Lives


Creating Demand for Skills

9

…more people to demand more learning because they are clear about the social and economic

benefits that it brings.



10

Young People• 90% of 17 year olds in learning by 2013• 90% of 18 year olds in learning by 2015• 82% of 19 year olds achieving L2 by 2011• 54% of 19 year olds achieving L3 by 2011• NEETs 2% lower by 2010



11

Young People• LSC to work with Connexions and LEA to ensure

that the supply of provision matches demand• The ‘September Guarantee’• Greater flexibility – able to start in January• More Apprenticeship places - matching• National entitlement to diploma places• Clear L1 and pre-vocational offer• Clear progression routes to HE and employment



12

Adults• Bias funding towards those without skills and

qualifications• Link funding to ‘skills accounts’• Adult careers service• Personal learning – time and location• Increased full-cost work• Open College buildings for community use



13

Employers• Use ESF funding to extend TtG service• Numeracy, Literacy and ESOL available as stand-alone

options through TtG• Adult Apprenticeships merged with TtG• Part-funded 2nd L3 pilot through TtG• Full-funded 2nd L2 to retrain unemployed• Progress towards funding only SQS qualifications• Fund more employers to provide their own

apprenticeship programmes



Lives


Transforming FE Align fees policies across all publicly funded

provision Increase income through fees and full-cost work Focus on income targets Fully integrate ESF funding Fairer funding methodology Establish Framework for Excellence Develop The Qualifications & Credit Framework


Transforming FE £2.3bn of capital investment Allow non-FE providers to bid for LSC capital funding Embed and Extend ILT Drive CPD Work with leading colleges to ‘blueprint’ future

business models Increase the number of national skills academies Increased commissioning and tendering to fill skills gaps



Lives


Better Skills, Better Jobs, Better Lives


“We want to increase the sector’s focus on integrating skills with employment so that more

people get the training and qualifications they need to come off benefits, enter work and progress -

more of the learning we fund to result in job outcomes.”


Protect opportunities for students with learning difficulties and/or disabilities

Protect funding for PCDL and neighbourhood learning in deprived communities

Protect funding for ESOL and learning below L2 that forms the FLT.



Focus funding on FLT, Skills for Life and Level 2

People and communities most excluded from the labour market and those in ‘vulnerable’ employment

Numeracy skills Offender learning



All young people to take part in work experience

Employers encouraged to recruit untrained or low-skilled staff to access supported training (inc. Pre-employment) through TtG.

Employability skills programmes for the unemployed

Higher skills programmes in conjunction with HEFCE


Becoming Demand Led Common funding mechanism for all 16-19

year olds Common approach to funding ‘New Diplomas’

for all 14-19 year olds All vocational skill funding to move towards

skills accounts and Train2Gain• £500m in skills accounts by 2011• £1.5bn in skills accounts by 2015

50:50 balance between funding and fees


Demand Led – First Steps More sophisticated commissioning of

provision – focussed on social inclusion New funding models – learner and

employer choice Qualification reform Increase MLP acceptable rates FE self regulation by 2012


Demand Led Funds


Commissioning 1 Sector Skills Council priority qualifications 14-19

• Partnerships• Colleges• Schools• WBL Providers

LEA to run ‘competitions’ to fulfil perceived gaps in provision > 200 places


Commissioning 2 Adult Learners

• LLDD, PCDL, FLT, S4L• Full Level 2, Full Level 3• Whole qualifications at Level 4

Negotiated volumes with existing providers Further negotiation or tendering to fill gaps


Commissioning 3 Provision for employers

• Accelerate the expansion of TtG• Reward excellence• New providers linked to employer choice• New providers from competitive tendering• Multi-year contracts• Contract values varied in-year


Qualification Reform 1 Qualifications ‘fit for purpose’ Smaller ‘chunks’ Sector qualification strategies (End of Nov) Funding discontinued for a large number of

qualifications – progressive Employer and Provider developed training

eligible for full QCF approval by 2010


Qualification Reform 2 Foundation Learning Tier (FLT)

• Intended to improve progression to L2• Enhance ‘employability’• Majority of sub L2 provision will be units and

qualifications in FLT• Will replace E2E and LLDD provision


Raising and Assuring Quality Eliminate inadequate provision in FE Minimum levels of performance

• More areas of provision• Increased rates for 08/09

TtG Providers expected to move towards success rates >80%


Minimum Levels of Performance


Self Regulation A new relationship between the LSC and the FE

system LSC to discuss, in detail, what we offer How we respond to learner, employer and

community needs Support the integration of employment and skills Demand Led funding = financial planning challenge Transitional arrangements and support


Funding Allocations 1 16-18

• New funding system• Average rate increase of 2.1%• No funding for transferred qualifications• Keys skills removed from entitlement funding• Reduce funding for L3 learning• 40,000 ‘new diploma’ places funded by LSC


Funding Allocations 2 Adult Learners

• Funding targeted – those excluded from the labour market

• Total number of funded learners expected to reduce• Longer or more substantial programmes• In-year and end-year reconciliation• No viament to other categories• Average funding rate increase of 1.5%• At least 15% to deliver Full L2• At least 10% to deliver Full L3


Funding Allocations 3 Employer Driven

• Rapid expansion of TtG• >£160m of adult FE funding moved to TtG• Scope to include L3 and Higher Skills• S4L to be available independantly• 20,000 more aged 19-25 apprentices• £30m for aged 25+ apprentices


Exercise 1


In your table groups compare the college today with the college we need to become if we are to respond to the priorities and changes outlined

for the sector over the next three years.

Agree your top THREE priority changes and text them along with your name to...

07703 ??????One text per table !

Planning & Funding



Funding Systems


School 6th Forms

E2E

Further Education

Apprenticeships

Train to Gain

16 to 18

Adult

LearnerResponsiv

e

16 to 18

Adult

Employer

Responsive

Funding aligned but with transitional protection

Variance capped at +/- 2.1% from 07/08• Funding at the Learner Level only

Funded by DCSF Move from LSC to LEA in 2011


School 6th Forms

E2E

Further Education

16 to 18Learner

Responsive

PSA targets and prioritisation Variance capped at +/- 2.1% from 07/08

• Funding at the Learner Level only Mid-year and end-year reconciliation with tolerance and

cap Different rates for fee paying students (42.5% in 08/09) Funded by DIUS Fully funded through skills accounts by 2015


Further Education

AdultLearner

Responsive

Monthly payments in arrears on 10th working day of the following month

25% of funding paid on achievement Planned alongside FE provision Funded by DCSF


Apprenticeships 16 to 18Em

ployerResponsiv

e

Targets and priorities critical Monthly payments in arrears on 10th working

day of the following month 25% of funding paid on achievement Part Time adult NVQs included Funded by DIUS


Further Education

Apprenticeships

Train to GainAdult

Employer

Responsive

Demand Led Funding Taken 2 ½ years to develop Single mechanism – use wholly or partly Standard Learner Numbers (SLN) National funding Rate per SLN Modified by the Provider Factor New census points New calculation to determine ALS


Standard Learner Numbers 1 Similar to FTEs Use GLH to Calculate GLH determined by Awarding Body / QCA /

LSC and published in LAD Some qualification have ‘variable’ GLH 16-18 entitlement = 114 GLH Capped at 1.75


Standard Learner Numbers 2

SLN = Total Annual GLH

450


National Funding Rate One rate for each category Co-funded rate for those paying fees (-42.5%)

• 16-18 Learner Responsive• Adult Learner Responsive• Co-Funded Adult Learner Responsive• 16-18 Employer Responsive• Adult Employer Responsive• Co-funded Adult Employer Responsive


Co-Funded Rate

co-funded rate = full rate – fee element

Fee element similar to current system Fee element varies with provider factor but is

not the same as the fee to the learner

Fee element = full rate x Fee rate

provider factor


Provider Factor Replaces

• Programme Weighting• Disadvantage uplift• Area costs• Funding amount variation on withdrawal (by using

the overall GLH weighted success rate)

ONE factor for the whole college each year No variation by team or subject


Provider Factor 2


Learner GLH PWF Disadvantage

Short Programme

Modifier Area Cost

Provider Success

RateSuccess Factor

Provider Factor

A 200 1.3 1.040 1.033 1.03 74% 0.87B 500 1.0 1.025 1.000 1.03 74% 0.87

Weighted Average 1.086 1.029 1.010 1.03 0.87 1.011

Based on prior year history for learner responsive

Based on actual aims delivered for employer responsive

Funding Calculation 1 For each category of learner

Provider funding rate

=

national funding rate x provider factor


Funding Calculation 2 For each learner

££££

=

provider funding rate x SLN


Example 1


Qualification Actual GLH LSC GLH SLNEDEXCEL Diploma 380 450NCFE Additional Cert 100 120Entitlement 48 114Key Skill 48 48TOTAL 576 732 1.63

National Funding Rate (16-18 LR)• £2,775 (confirmed)

Provider Factor • 1.0275

Example 2


National Funding Rate (Adult LR) ??? Funding =

Qualification Actual GLH LSC GLH SLNCity & Guilds Certificate 119 140 0.31

Provider Factor 1.1228National Rate per SLN 2,345.00Fee per SLN 996.63Provider Rate per SLN 2,632.97Fee Element 887.62Cofunded Rate 1,457.38

Starts and Census Dates Old census dates will no longer apply ‘Starts’ are

• >24 weeks - counted after 6 weeks• 2-24 weeks – counted after 2 weeks• <2 weeks – must attend once

Full funding eligible after this date No funding if the student withdraws before Starts counted in each year for multi-year

programmes55Len Tildsley • November 2007

Exercise 2


Qualification Actual GLH LSC GLH SLN Qualification Actual GLH LSC GLH SLNVTCT NVQ 3 456 450 C&G Diploma 136 220VTCT Certificate 68 100 C&G Numeracy 68 68C&G NVQ 2 34 200 Health & Saftety 17 10Health & Saftety 17 10 TOTALKey Skill 48 48Entitlement 48 114 PWF 1.095TOTAL Disadvantage 1.062

Short Pr Mod 1.007Area Cost 1.000Success 77%

National Rate per SLN £2,775 Provider FactorProvider Factor 1.011 National Rate per SLN £2,345

Fee Per SLNFUNDING Provider Rate per SLN

Fee ElementCofunded Rate

FUNDING

Weighted Average

Adult Learner Responsive Student16 to 18 Full-Time Student

Exercise 2 Answer


Qualification Actual GLH LSC GLH SLN Qualification Actual GLH LSC GLH SLNVTCT NVQ 3 456 450 C&G Diploma 136 220VTCT Certificate 68 100 C&G Numeracy 68 68C&G NVQ 2 34 200 Health & Saftety 17 10Health & Saftety 17 10 TOTAL 298 0.66Key Skill 48 48Entitlement 48 114 PWF 1.095TOTAL 922 2.05 Disadvantage 1.062

1.75 Short Pr Mod 1.007Area Cost 1.000Success 77%

National Rate per SLN £2,775 Provider Factor 1.036Provider Factor 1.011 National Rate per SLN £2,345

Fee Per SLN £997FUNDING £4,909.67 Provider Rate per SLN £2,430

Fee Element £962Cofunded Rate £1,383

FUNDING £949.39

Weighted Average

Adult Learner Responsive Student16 to 18 Full-Time Student

Planning & Funding



Planning Process


Planning Software


Business Plan Updated for 08/09 Coordinated by schools Planned at Programme Team level Designed to address priorities May be reviewed by LSC for the 1st time Tries to avoid SAR/QUIP overlap


Structure Directed Actions Demand Addressing Priorities Learning Pathways Provision Changes Strategic Themes Agreed Targets Revenue Plan Capital Bids


Directed Actions Specific changes requested by senior

management How they will be fulfilled Who will be responsible Improving efficiency


Demand Market analysis Historical trends Successes and Failures Competition Opportunities Marketing


Addressing Priorities Young People 14-19 Work Placements Adult Skills

• Skills for Life• Full Level 2 and 3• Higher Skills

Employment skills Income Generation


Learning Pathways Progression Routes & Entry Criteria

• Full Time• Part Time

Employment• Job Skills• Apprenticeship


Provision Changes New Provision Changed Provision Discontinued Provision


Strategic Themes Employer Engagement VLE (Moodle) Implementation ILT in the classroom Curriculum Learning Centres Functional Skills & Embedding eILP Every Child Matters


Agreed Targets Learner Numbers SLNs Retention Achievement Attendance Budget Surplus


Revenue Plan Expenditure

• Staffing• Agency• Non Pay

Income• Funding Allocations• Fees


Capital Bids Link to business plan Justification Impact if not agreed


fe planning and funding 2008/09

Business

better lives len tildsley

skills priority

skills gaps len tildsley

employment len tildsley

fees len tildsley

better jobs

hefce len tildsley

system len tildsley