Skills Funding Statement –2013-2016

Introduction

The Skills Funding Statement was launched by the Minister Matthew Hancock on the 10th February 2014.

This presentation is intended to provide an overview of the key points contained in the Statement however it does not cover everything included in the document. It is recommended that you read the document in full.

Context to

Statement• Tough fiscal times

• Skills system in reform

• OECD report on English and maths

• Richard Review of Apprenticeships

• More radical approach to the use of available educational technologies

• Funding

• Traineeships

• Apprenticeships

• Standards (higher)

• Qualifications (better)

But also:- supporting the unemployed- innovation - future reforms

Main Themes - TASQ

SFS Funding table

Supporting notes are included in the Skills Funding Statement (page 26)

  Baseline 2013-14 £000s

Funding 2014-15

£000s

Indicative funding 2015-16

£000s

Adult Skills Budget 2,467,875 2,258,311 2,004,547

Employer Ownership 46,000 73,400 73,400

24+ Advanced Learning Loans 129,000 398,000 498,000

Offender Learning and Skills Service 130,400 128,900 128,900

Community Learning 210,747 210,747 210,747

European Social Fund 171,000 173,000 170,000

TOTAL: Teaching and Learning 3,155,022 3,242,358 3,085,594

Learner Support 176,800 205,507 174,342

National Careers Service 87,868 90,878 90,878

TOTAL: Student /Learner Support 264,668 296,385 265,220

Skills Infrastructure 55,161 58,900 23,675

Funding to Support the FE and Skills Sector

156,706 125,004 81,983

Capital Grants 449,871 414,857 410,000

GRAND TOTAL 4,081,428 4,137,504 3,866,472

Budget – Adult Skills and

LoansRecap: Spending Review headlines (2010-11 to 2014-15):• Adult Skills Budget: 25% real terms reduction (18% cash terms)• Adult Skills Budget and 24+ Loans: 12% real terms reduction (4% cash

terms)

Adult Skills changes to 2014-15• Additional £30m for ESOL (£45m in 2015-16)• Additional £10m for Higher Apprenticeships (£30m in 2015-16)• Overall budget £4.1bn (1.4% increase from 2013-14)

Indicative 2015-16 budget - headlines• Baseline Adult Skills reduction of £250m• Overall budget £3.9bn (6.5% decrease from 2014-15)

Key priority:• Maintaining focus on ‘high quality’ delivery • Continued expansion in future years • Ofsted Grades remain a gateway criterion

Reforms for 2014/15:• Widened access to include 24 year olds• Removal of 16 hour rule

Reform for 2015/16: • Unified funding system, focussing on incentivising positive

outcomes

Traineeships

Apprenticeships

Key Priority:

• Implementation Plan for the Reform Programme published in October

2013 which confirmed need to be more rigorous and responsive to the

needs of employers by putting them in the driving seat

• Apprenticeship funding to be routed through employers to spend with

providers - consultation on technical detail in Spring

• Must support employers and learners on current Apprenticeships and

start streamlining and standardising delivery of funding to be ready for

new standards

• Reaffirmed as top government priority

Apprenticeships

Reforms for 2014/15:

• Additional £40m for 20,000 Higher Apprenticeships

• Advanced level and Higher Apprenticeships removed from 24+

Advanced Learning Loans and returned to grant funding

• Apprenticeship Grant for employers continues subject to affordability

• English and maths - Level 1 learners will be required to take up offer of

Level 2 training

• Employer Ownership Pilot has now closed and the Large Employer

Outcome Pilot will close to new starts from August 2014

• Trailblazers will test new funding models and develop new standards

and assessments to pave the way for full implementation of reforms by

2017/18

Higher Standards

Key priorities for English, maths and ESOL:

• GCSE A* to C to be the benchmark with continued full funding

• Embedding of English and maths across all major programmes

including Apprenticeships and Traineeships

Reforms for 2014/15:

• Pilot for young people aged 18 to 21 with below Level 2 English and

maths a requirement to undertake predominantly online English and

maths provision

• All offenders to be assessed for English and maths on entry to prison

• ESOL - increased conditionality for below entry level 2, extra £30m for

2014-15 (£45m for 2015-16). (Start in April 2014)

Key priorities for Practitioner Development:

• Raising standards in teaching and learning is critical

Reforms in 2013/14 and for 2014/15:

• New Education and Training Foundation supporting the drive for high

standards in teaching and learning

• New bursaries of up to £20,000 for talented graduates wanting to

become maths, English, or LLDD teachers (available in 2013/14)

• Support for CPD for up to 2,000 teachers who want to teach maths

with other programmes

• Support for the new Core Maths teachers and lecturers to teach new

maths qualifications for students aged between16 to 18

Higher Standards

Higher Standards

Key priorities for Accountability and Autonomy:

• Autonomy will only be successful when coupled with 3 accountability

tools:

- access to high quality information

- new tough minimum standards

- strong intervention regime

• Exploring how new providers can enter the system to bring greater

diversity and innovation

• Encourage all recipients of Adult Skills Budget to make annual

accounts available via their website

Higher Standards

Key priorities for Intervention:• Where performance is poor we will take swift action • New FE Commissioner appointed who will ensure

consistently high-quality offer. He will review providers that have failed inspection and/or failed to reach minimum standards, financial health or financial control and will advise Ministers and the Chief Executives of funding agencies on the action that needs to be taken to secure improvement

• Contracts to be terminated if standards are not maintained

Higher Standards

Key Priorities for National Careers Service:

• Committed to improving the quality of careers information, advice and

guidance. New Statutory guidance for schools and equivalent requirements on

colleges to help deliver this as well as a reformed service focussed on delivery

that meets local and individual need

• National Careers Service to be flexible, responsive and agile organisation

Reforms for 2014/15:

• 95% of the delivery budget earned for one or more of three outcomes:

Customer satisfaction, Career management, Jobs and learning

• remaining 5% will support the inspiration agenda for young people, facilitating

relationships between schools and employers

• Refreshed website to engage and enthuse users of all ages and circumstances

with improved labour market information and a greater local focus

Qualifications

Key Priorities:

• Rigorous, relevant and recognised vocational qualifications

• Build on design principles for Adult Vocational Qualifications contained

in ‘Whitehead Review’

• Align with DfE requirements for vocational qualifications at Level 3 for

16 to 19 year olds (and Level 2)

Reforms for 2013/14:

• New business rules for qualifications to enter and stay in public

funding focussing on size, purpose, employer recognition, proven track

record and outcomes.

• A streamlined and more focussed publicly funded qualifications offer

• In 2014/15 the Agency make clear the categories of non-regulated

provision it will fund

Support for the unemployed

Key Priorities:

• Those mandated to training by the Jobcentre will continue to access fully-

funded learning to help them into work

• Stronger requirement for those fully funded because they are unemployed but

not on unemployment benefit – provision must be linked to gaining

employment

Reform for 2014/15:

• Continue to fund certain qualifications in first aid, food hygiene, health and

safety, use of fork lift trucks and also to include security industry

• Pilot for claimants on JSA after 6 months who will be required to participate in

work experience, Traineeship or other relevant skills provision or community

work

Responsiveness to local

need• LEPs have articulated skills needs through their strategic Economic

Plans (SEPs). They are currently discussing Growth Deals with

Government, to support the specific asks in their SEP. These are due

for final agreement by 31 March,

• City Deals testing how LEPs and providers can together deliver skills

• LEPs have submitted strategies for use of European Structural and

Investment funds 2014-2020. This will lever in £170m ASB in areas

where LEPs have opted in to the Agency’s ESF service.

• More local accountability by giving LEPs allocations of ESF for 2014 to

2020 and FE Capital from 2015-16

• Skills Funding Incentive pilots – from July 2013 in North East, West of

England, Stoke & Staffordshire to test models of skills provision

aligned to need.

 

Innovation

Key Priorities• As a way of improving teaching, driving efficiency, value for

money and responsiveness

Reforms for 2014/15:• To work with providers and awarding organisations to

identify qualifications in scope for online delivery and to look at how this may be funded

• Pilots highlighted for young people aged 18 to 21 with below Level 2 English and maths. Mandation to provision that will be predominantly online English and maths

 

Other changes in 2014/15

• Mechanisms in place to capture destinations on the ILR which providers are expected to complete

• Strengthen the annual per-learner funding cap by introducing a new monthly limit

Longer term reform

• Build stronger focus on outcome funding with focus on unemployed learners, Traineeships and English and maths provision

• New outcome focused success measures intended to inform learner and provider choice:- destinations (into further learning or in/within employment)- progression (through learning)- earnings change (following completion of learning)

• Develop methods of capturing distance travelled• Trial and implement a means of capturing data on learner

progress

Skills Funding Statement

2013-2016

Any questions