Transcript Slide 1

Further Education – New Horizon
Investing in Skills for Sustainable Growth
David Hughes
National Director of College & Provider Services
Skills Funding Agency
17 November 2010
AoC Conference
Coalition Approach
• Investment strategy for truly lifelong learning, nurturing
sustainable economic growth & social renewal
• Based on:
– Fairness
– Shared responsibility
– Greater freedom
• And in context of Skills for Sustainable Growth strategy
Reform Programme:
1
Confirm, restate and communicate the need for a skilled nation
2
Work with employers over the need to train and where appropriate introduce
levies and licences to practice
3
Empower the prospective student by providing a career service that gives
impartial advice
4
Provide a prestigious suite of qualifications that are well regarded by employers
and portable
Through the development of Life Long Learning Accounts financially support the
most vulnerable in society by fully subsidising programmes:
5
• For those with poor basic skills, Young adults (19-24) who didn’t complete their secondary education (level 2
qualification) and who could progress and gain level 3.
6
Rebalance Government investment by introducing co-funding and loans for full time adults
(over 24) programmes leading to a recognised Level 3 QCF qualification.
7
Deregulating the sector, simplifying the funding system and reducing the number
of organisations involved in the skills delivery landscape
Headlines
• FE resource budget reduced by 25% to 2014-15
• Savings through:
– Efficiencies
– Policy changes
– Unit cost reductions
– Changes to statutory entitlements
– Re-balancing who pays
– More freedoms for colleges
Funding and
Investment
(£000s)
SR baseline
Budget
Indicative Budget
2010-11
2011-12
2012-13
2,835
2,795
2,685
360
605
648
OLASS
134
133
131
Adult Safeguarded Learning
210
210
210,
Learner Support
144
151
163
Information Advice and Guidance
82
81
84
Skills Infrastructure (including LSIS)
137
56
51
305
278
3,734
3,607
179
172
Adult Skills Budget
of which Apprenticeships
Capital Grants
Total Skills Funding Agency
Funding not routed through the Skills Funding Agency
337
Skills Strategy sets
out key commitments
• Expand Adult Apprenticeships
– Over 200,000 starts per year
– 75,000 increase by 2014/15
– Reshape programme so Level 3 becomes the level to aspire to
• Employers
– New Growth and Innovation Fund
– Financial support to SMEs to co-fund the costs of training up to
and including a Level 2
• Unemployed
– State subsidy for targeted provision for people on active
benefits to help them obtain work
Skills Strategy sets out key commitments (2)
• Individuals
– Government backed loans to help finance intermediate and
higher level qualifications from 2013/14
– Lifelong Learning Accounts for all adults
– All Age Careers Service
• The Funding System
– Simplified systems and processes
– Greater alignment across pre- and post-19 systems
– Remove regulations to free colleges to deliver to their local
communities
Reform of Funding
Who is eligible for funding?
From 2011/12:
• More flexible delivery for unemployed / offenders through funding
units and full qualifications
• Greater focus on those on active benefits
• Consequent narrowing of fee remission category
• Continued full funding for literacy and numeracy (uplift removed)
• ESOL fully-funded for unemployed / offenders (as above); cofunded for those settled here.
• ESOL in the workplace will no longer be eligible for funding
• Skills for Life uplift (1.2) removed from literacy and ESOL
• Rates reduce by 4.3% - new and existing learners
Reform of Funding
What is eligible for funding?
From 2011/12:
• Growth in Adult Apprenticeships
• Adult Apprenticeships continue to be co-funded; expectation that
employer contributions will increase
• Co-funding at Level 2 for workplace learning outside of
Apprenticeships will only be available to SMEs (fewer than 250
employees)
• Level 3 and above delivery in the workplace (outside of
Apprenticeships and current entitlement) will no longer be eligible
for funding
• Adult Safeguarded Learning protected
Reform of Funding (2)
From 2012/13, proposed changes to statutory entitlement:
• Full funding for first full Level 2 and 3 focused on young people
(19 to up to 24, ie 23)
From 2013/14
• FE Fee Loans introduced for Level 3 or higher qualifications
where public funding is no longer available (24 and over)
Simplification of
funding system
For 2011/12
• Single Adult Skills Budget
• Rationalisation of Adult Safeguard lines
• Minimum Contract Level (£500k)
• Introduction of Outcome Payments
– For jobs from 2011/12
– Wider consultation on approach for 2012/13
From 2012/13
• Simplified rates system
• Removal of provider factor (except area costs)
• Simplification of data returns
• Simplification of learner support / hardship fund
• Disadvantage uplift incorporated into Learning Support
2011/12 Allocations
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Single Adult Skills Budget
Indicative for 12/13….
Need to ensure growth of Apprenticeships….
….and reflect end of Train to Gain / reduced work-based learning
offer
Transparent methodology will be set out in Skills Funding Agency
Guidance Note
Expect to get indicative Adult Skills allocations out before
Christmas
Additional Learning Support Budget (ALS) to be aligned
Offender Learning and Skills Service (OLASS); European Social
Fund (ESF) and Adult Safeguard will be separate
Final Allocations in March 2011
• Reflect impact of MLP
• Update for mid-year estimates/Quarter 2 changes
• Reflect outcome of discussions for those providers falling below
MCL
Alignment with YPLA
• Joint briefings for sector – with AOC, ALP and UKCES – in
January 2011
• Agreement over LLDD
• Entitlement funding for 16–18 year olds turning 19 (sixth form
colleges especially)
• 16-18 funding for colleges and providers routed through Agency
• 16-18 Apprenticeship budget available in December?
Questions?