Transcript Slide 1

Summary of funding
changes and the
implications for the future
Nick Linford
Special Adviser on Funding and Performance
(formally Director of Planning and Performance at Lewisham College)
22nd January 2010
Barking College
Funding reform in 2008/09
Last year demand-led funding became a methodology and
formula to fund FE mainstream, Apprenticeships, Train to
Gain and Entry to Employment
New terminology: SLN x NFR x PF (weightings) = Funding
New inflexibilities:
Old funding
stream
New learner and employerresponsive funding models
16-18 LR (DCSF)
Old funding
stream
16-18 ER (DCSF)
Work-based
Learning
FE mainstream
Adult LR (BIS)
19+ ER (BIS)
Investment Strategies and MoG
BIS
DCSF
YPLA
SFA
Local
authorities
Funding colleges and other providers
Demand-led funding budgets
2010/11
DCSF
BIS
Funding
Learners
19+ ER
Adult LR
£7.5bn
16-18
Appren
16-18 LR
(FE)
16-18 LR
(FE)
19+ ER
4m
Adult LR
16-18
Appren
Demand-led funding budgets
2010/11
16-18 LR
(FE)
Funding
DCSF +7.5%
BIS
-6.5%
+ 6.6%
16-18
Appren
Adult LR
+ 12.2%
-0.1%
Total +2.0%
-11.5%
+ 23.3%
Learners
DCSF +2.7%
BIS
-2.1%
19+ ER
+ 10.4%
+ 1.1%
Total -0.7%
- 25.3%
The double whammy
16-18 LR & ER
Adult LR
19+ ER
Not rate increase
3% rate decrease
In-year adjustments
between providers
50% fee element
3% rate decrease
(19-24 Appren)
Challenge expensive
colleges/programmes
Roll-out of
Functional Skills
14-19 Qualification
Strategy
14% SfL weighting
reduction
Massive developmental
learning cuts
10% allocation cut
confirmed as best
case scenario
13% rate decrease
(25+ Appren)
6% rate decrease
(Train to Gain)
50% fee element
(incl. non-first
Level 2 TtG)
In many cases, to achieve lower allocations will require more delivery
Fundable qualifications
Strategies and Prioritisation (UKVQRP and QCF)
JACQA
OfQUAL
(accredit and
put on NDAQ)
14-19
(15 organisations)
& DCFS
Adult
To determine
funding eligibility
YPLA
To set funding
rates
SSCs, UKCES
RDAs, NAS
SFA & BIS
This process can
take six months+
from accreditation
Available for
funding
Data
Service
SFA
Learning Aim
Database
Enrolment funding
Do staff know the impact of class size, retention and
achievement have on learner-responsive (FE) income?
Funding allocations are
reduced by a success factor
0.5 +
Weighted average
success rate
=
Success
Factor
2
80% for College X
0.5 +
=
0.9
2
0% for College Y
0.5 +
=
0.5
2
Although based on a historical
average, it means 50% lost if a
learner does not finish and achieve
Target of 16 recruited at £5k
each (£80k income budget)
Group 1
Income
lost
Success
rate
2 leave within
first 6 weeks
£10k
14 start
3 more do
not finish
£7.5k
79%
retention
3 finish but
do not pass
£7.5k
73%
achieve
8 succeed
£25k
57% SR
Budget missed by 31%
Next allocation cut by 31%
Now it’s your turn
Target of 20 recruited at £4k
each (£80k income budget)
Group 2
Income
lost
Success
rate
Target of 18 recruited at £6k
each (£ 108 k income budget)
Group 3
Income
lost
Success
rate
3 leave within
first 6 weeks
£12k
17 start
6 leave within
first 6 weeks
£36k
12 start
2 more do
not finish
£4 k
88 %
retention
2 more do
not finish
£6 k
83 %
retention
4 finish but
do not pass
£8k
73%
achieve
1 finishes but
do not pass
£3 k
90%
achieve
11 succeed
£24 k
65 % SR
9 succeed
£45 k
75 % SR
Budget missed by 30 %
Budget missed by 42 %
Opportunities post-recession
Funding 2010-11
A. Flexible New Deal (DWP)
E
B. Six Month Offer (BIS)
D
£500m
C
A
C. Young Person’s Guarantee (BIS)
D. Response to Redundancy (BIS)
B
E. Employability and Skills
Programme (BIS)
New funding pots to train the unemployed
Example college now
Government funding
F
G H IJ A
Funded learners
GH I
F
J
A
C. Adult LR
B
£34m
B
E. Train to Gain
F. HE Direct
15k
E
G. HE Indirect
C
C
D
DCSF funding (14-18)
B. 16-18 LR incl E2E
D. Apprenticeships
E
D
A. 14-15 year olds (WRL)
BIS funding (19+)
H. ESP (or SfJ)
I. Six month offer
J. Response to Redun’
Example college next year?
Government funding
J
K
A
E
£37m
B
C
A. 14-15 year olds (WRL)
B. 16-18 LR incl E2E
A
K
C. Adult LR
J
I
H
G
F
D
Funded learners
B
D. Apprenticeships
E. Train to Gain
I
H
G
F
19k
F. HE Direct
C
G. HE Indirect
H. ESP and R2R
E
D
I. Six month offer
J. YPG
DCSF funding (14-18)
DWP funding (18+)
BIS funding (19+)
K. FND
So both funding cuts as well as
opportunities, with a heavy
emphasis on efficiency,
priorities and performance
Any questions?