Transcript Slide 1

Train to Gain planning and funding:
what went wrong and how to fix it
Nick Linford
NTRL Autumn Conference
Monday 26 October (my birthday!)
TtG funding history
National roll-out from Aug 2007, and by
August 2008 £100m under-spend went to HE
FE Focus 08/08/08 and 29/08/08
TtG ‘flexibilities’ introduced from Aug ’08 and in
less than a year demand outstripped supply
FE Focus 03/07/09 and 04/09/09
TtG funding pressures
1
The
flexibilities
2
Payment
profile
3
More
providers
“it is unlikely that there will be sufficient funding to
meet the high level of demand from employers and
learners for new starts, particularly in the AugustMarch period of the 2009/10 academic year”
Source: Geoff Russell’s LSC letter to providers (11/06/09)
1st Pressure: flexibilities
For 2008/09 ‘flexibilities’ were introduced to
stimulate both demand and supply. These included:
> Skills for Life at Entry Level
> Non-first full level 2s fully-funded (free)
> Level 3 (incl.19-24 ‘first’ fully-funded)
> Selection of thin and unitised QCF quals
The policy worked too perhaps too well!
and 3% TtG premium has already been scrapped
2nd pressure: profile
Achievements, new profile and higher rates
Example for 1 NVQ in Construction
Monthly instalments
£500
• Instalments quickly ramp up
09/10
08/09
07/08
£400
£300
Consequences
• Funding for achievement is now
starting to be claimed in big numbers
£200
• Big ‘carry-in’ funding commitments
£100
£0
Jan Feb
Mar Apr May Jun
Jul
Cumulative instalments
£2,000
£1,600
£1,200
09/10
08/09
07/08
• Qualification rates simplified for
09/10, which will be expensive for LSC
• LSC and providers really struggle to
forecast monthly instalment profile
£800
£400
£0
Jan Feb Mar Apr May Jun
Also
Jul
2nd pressure: profile
£925m 09-10 TtG budget in Grant Letter
(more than last financial year but less than last academic year)
Financial year Grant Letter (government budgets)
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Academic year provider contracts (MCVs)
About half of 09-10 financial year spent on last four
months of 08/09 academic year. The eight months
(67%) left of 09-10 financial year only covers 47%
of 09/10 academic year commitments
Jun
Jul
3rd pressure: more providers
Number of 19+ ER contracts
(TtG and Apprenticeship)
2035
1212
920
2006/07
2007/08
2008/09
Nearly all the additional contracts have
been for new providers of TtG
Source: LSC provider Allocations Spreadsheet (Feb 2009)
Solution p1: prioritisation
> Stop funding 19-24 year-olds who should be apprentices
> Stop funding Level 3 in many, if not most cases
> Stop funding Level 2 repeats in the same sector
> Co-fund Level 2 repeats if new to the sector
> Continue to fully-fund first full Level 2
> Review numeracy and literacy/language rates
> Marginal funding rate for large employers
Return Train to Gain to its original model of a broad
training offer, to suit a range of employer needs
(including real fee contributions and full-cost)
Solution p2: payment profile
> Simpler and better understood instalment plans
> Trusted and well organised contract management
> Long-term plan to move to financial year contracts
Need to do everything to avoid
Solution p3: No. of contracts
Train to Gain contracts
1200
Contracts
1000
800
600
30%
400
200
35%
38%
43%
47%
50%
53%
25%
18%
10%
£20k
£40k
£60k £80k £100k £120k £140k £160k £180k £200k
Contract size less than
What if the SFA only gave £200k+ contacts?
Source: LSC provider Allocations Spreadsheet (Feb 2009)
TtG future is uncertain
> Providers waiting for confirmed 09/10 contracts (MCVs)
> Lack of funding and cash-flow issues mean
many likely to go out of business
> Government will scrap some flexibilities
(claw-back 3% uplift and remove fully-funded non-first L2)
> Uncertain impact of QCF and interim ‘fullness’ definitions
> NAO report said poor value for money (21/07/09)
> Conservatives say they
would scrap TtG
> Skills Funding Agency (SFA) will take it over
from LSC from April 2010
The pre-employment market
For many providers TtG presented an opportunity to
offer a package of support to SME and large employers
The biggest opportunity is for those that can act as
both recruitment, induction and training agencies
New pre-employment programmes:
> Employability and Skills Programme (LSC)
> Response to Redundancy (LSC)
> Six Month Offer (LSC)
> Flexible New Deal (DWP)
Other stuff…
The hands-on guide to post-16 funding
> 2009/10 edition with new chapters (160 pages)
> Find out more at www.fundingguide.co.uk
> Now working in partnership with The Data Service
on The hands-on guide to post-16 performance and data
> Find out more at www.dataguide.co.uk
Funding masterclasses and free resources
> Training events around the country
> Sign-up online for access to a variety of free resources
> Find out more at www.planningandfunding.co.uk
Any questions?
These slides will be sent to you and are a free
resource on www.planningandfunding.co.uk