Transcript Slide 1

Employer-responsive (ER) funding
(Apprenticeships and Train to Gain)
Nick Linford
Funding Masterclass
www.planningandfunding.co.uk
Contents
10.05
10.30
11.15
11.30
Employer-responsive (ER) overview
The demand-led funding formula
Coffee and homemade biscuit break
Apprenticeship funding
12.30
13.30
Lunch break
Apprenticeship funding
14.00
Train to Gain funding
15.00
Coffee and homemade pastry break
15.15
ER data, audit and future
16.00
End
Introduction and ER overview
ER Overview
The Employer-responsive funding model was referred to
as the WBL (excl. E2E) funding stream before 2008/09
There are four ER funding types, each with different rates
16-18
Apprenticeships
DCSF
19-24 and 25+
Apprenticeships
Train to Gain
BIS
Colleges, independent training providers, local authorities, charities etc
16-18 ER funding (England)
16–18 Apprenticeships
2008/09
2009/10
Increase
Starts (academic year)
108k
116k
7%
Completions (academic year)
68k
72k
6%
Participation (academic year)
213k
223k
5%
DCSF Funding (financial year)
£628m
£675m
11%
Source: Statement of Priorities, LSC (November 2008)
16-18 Apprenticeships remain a high priority
and a significant growth market (LSC have
said funding will always be available)
16-18 ER landscape
2008/09 Maximum Contract Values (MCVs)
Academic year (Aug 08 – Jul 09)
Local Authority
£18m (3%)
Other public
£30m (4%)
Charities
£90m (14%)
FE
£210m
(32%)
• Number of MCVs: 1161
• Total MCV value: £664m
• Average MCV value: £572k
Largest MCV value by provider type:
Private
£316m
(47%)
•
•
•
•
•
Charities: £41m (CITB)
Other public: £15m (MoD)
Private: £9m (Carillion Construction)
FE: £6m (City of Bristol College)
LA: £2m (Kingston Upon Hull City Council)
Source: LSC provider Allocations Spreadsheet (Feb 2009), 16-18 ER Total
19+ ER funding (England)
19+ Apprenticeships
2008/09
2009/10
Increase
Starts (academic year)
120k
122k
2%
Completions (academic year)
51k
57k
12%
Participation (academic year)
243k
254k
5%
BIS Funding (financial year)
£328m
£367m
12%
Train to Gain
2008/09
2009/10
Increase
900k
949k
5%
£797m
£925m
16%
Participation (academic year)
BIS Funding (financial year)
Source: Statement of Priorities, LSC (November 2008)
19+ ER landscape
2008/09 Maximum Contract Values (MCVs)
Academic year (Aug 08 – Jul 09)
Local Authority
£21m (2%)
FE
£494m (46%)
Largest MCV value by provider type:
Other public
£28m (3%)
Charities
£44m (4%)
• Number of MCVs: 2073
• Total MCV value: £1bn
• Average MCV value: £515k
Private
£479m (45%)
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•
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•
•
Charities: £16m (CITB)
FE: £11m (West Nott College)
Other public: £11m (MoD)
Private: £6m (Economic Solutions Ltd)
LA: £1m (Lancashire County Council)
Source: LSC provider Allocations Spreadsheet (Feb 2009), 19+ ER Total
The demand-led funding formula
The funding formula
The ER demand-led funding formula is an
enrolment based funding methodology
Therefore, every enrolment has an individual value
Elements in the ER demand-led funding formula:
> Standard Learner Number (SLN)
> National Funding Rate (NFR)
> Programme Weighting (PW)
> Disadvantage Uplift (DU)*
> Area Cost Uplift (ACU)
* Not included for Train to Gain
Elements
multiplied together
equals maximum
funding for the
enrolment
Funding formula examples
16-18 Appren’ example
Train to Gain example
Key Skills in Communication
NVQ 2 in Beauty
SLN
0.08
SLN
0.429
NFR
£2,920
NFR
£2,901
PW
1.00 (A)
PW
1.2 (L)
DU
1.1234
ACU
1.0
Funding
£1,493
ACU
1.00
Funding
£262
The funding sources
SLN
NFR
‘Listed’ on the Learning Aim Database (LAD) for the
relevant qualification and funding type
Set each year nationally
2009/10 figures shown here:
> 16-18 Appren’ = £2920
> 19-24 Appren’ = £2817
> 25+ Appren’ = £2535*
> Train to Gain = £2901
PW
On the Learning Aim Database (LAD) for the relevant
qualification and funding type
DU
Based on an LSC postcode file and the learner home
postcode (no uplift or between 8 and 32%)
ACU
Based on an LSC postcode file and the provider puts the
postcode of the delivery location in ILR field A23
The Learning Aim Database
The LAD contains funding information for each
qualification : http://providers.lsc.gov.uk/lad
Every qualification
will have an eight digit
learning aim
E.g. NVQ 2 in Beauty
Therapy from Edexcel
has the learning aim
50032690
The Learning Aim Database
ER funding tab
Qualification
Appren’ SLN
TtG SLN
Appren’ PW
TtG PW
Fee assumption
All 19+ apprenticeship learners, and some TtG learners,
are not eligible for full funding
An Employer Contribution Percentage (ECP) is
deducted from the total funding
> The TtG percentage in 2009/10 is always 47.5%
> The Apprenticeship percentage differs and is on the LAD
This deduction assumes a fee will be charged to
the employer, but does not require it
Funding formula examples
19-24 Appren’ example
Train to Gain example
Key Skills in Communication
NVQ 3 in Beauty
SLN
0.08
SLN
NFR
£2,817
NFR
PW
1.00 (A)
DU
1.0000
0.644
£2,901
PW
1.2 (L)
ACU
1.12
ACU
1.00
ECP
17.5%
ECP
47.5%
Funding
£186
Funding
£1,318
ER minimum attendance
This is commonly referred to as the definition of a start
If an Apprenticeship or Train to Gain withdrawal is before
the minimum attendance period no funding is generated
Planned duration (calendar days)
Minimum attendance
24 weeks or more
6 weeks
2 to 24 weeks
Less than 2 weeks
2 weeks
Once
Achievement and on-programme funding
instalments will be covered shortly
Apprenticeship funding
The Framework
Competence A National Vocational
Qualification (NVQ) with assessment
methods designed to test competence
Knowledge
Some frameworks
have a technical
certificate whilst
others demonstrate
knowledge within
the NVQ element
Apprenticeship
Framework
Employment
Rights and
Responsibilities
This element is
often covered as
part of the NVQ or
technical certificate
Transferable, or ‘key’, skills Frameworks
include as a minimum, Key Skills in
Communication and Application of Number
The Framework on the LAD
Framework tab
This will enable
you to find the
required/eligible
framework
qualifications
Example Framework rate
Level 2 Construction Apprenticeship (framework 116)
Framework elements
SLN
PW
ECP
NVQ 2 in Construction Operations
1.064
1.50 (K)
45.6%
Construction Award (Tech Cert)
0.978
1.30 (C)
45.6%
Key Skills in Communication
0.08
1.00 (A)
17.5%
Key Skills in Application of Number
0.08
1.00 (A)
17.5%
Values from the LAD
To calculate the maximum funding the remaining
elements of the formula need to be applied
Example Framework rate
16-18 Level 2 Construction Apprenticeship in central London
Framework elements
SLN
NFR
PW
DU
ACU
Funding
NVQ 2 in Con Ops
1.064
£2,920
1.50
1.08
1.2
£6,040
Construction Award
0.978
£2,920
1.30
1.08
1.2
Key Skills
0.08
£2,920
1.00
1.08
1.2
£4,811
£303
Key Skills
0.08
£2,920
1.00
1.08
1.2
£303
£11,457
Total
Remember: > 16-18 Appren’ NFR = £2,920
> 19-24 Appren’ NFR = £2,817 and apply ECP
> 25+ Appren’ = £2,535* and apply ECP
* To achieve a 10% lower 25+ apprenticeship rate ILR field A51a needs to be used
Achievement instalment
Achievement is 25% of main qualification (NVQ) funding
This is held back and only funded once full
framework (all qualifications) have been achieved
In this example 25% of £4,660 (£1,165) is for achievement
Framework elements
SLN
NFR
PW
DU
ACU
Funding
NVQ 2 in Con Ops
1.064
£2,920
1.50
1.0
1.0
£4,660
Construction Award
0.978
£2,920
1.30
1.0
1.0
£3,712
Key Skills
0.08
£2,920
1.00
1.0
1.0
£234
Key Skills
0.08
£2,920
1.00
1.0
1.0
£234
Total
£8,840
On-programme instalments
The on-programme funding is the total funding less
the funding for achievement
The LSC pay monthly on-programme funding
instalments based on submitted ILR data
The first month instalment will be worth twice as
much as each of the remaining months (n+1 approach)
So, if 12 month course then each month is worth total onprogramme funding divided by 13 (with month 1 paid twice)
e.g. £5,000 on-programme funding over 9 months would be
£1,000 in first month and £500 for the remaining 8 months
I agree – it’s confusing!
Practice what you’ve learnt
Three month Advanced Apprenticeship in Beauty for 22 year-old
in Leeds delivered during 2009/10 (the learner DU is 1.0000)
Framework
elements
SLN
NVQ 3
NFR
PW
ACU
DU
ECP
Funding
1.739 £2,817 1.25 (J) 1.00
1.0000
45.6%
£3,331
Key Skill
0.08
£2,817 1.00 (A) 1.00
1.0000
17.5%
£186
Key Skill
0.08
1.0000
17.5%
£186
Key Skill
0.08
£2,817 1.00 (A) 1.00
£2,817 1.00 (A) 1.00
1.0000
17.5%
£186
Total
£3,889
OP Month 1
£1,528
Achievement
£833
OP Month 2
£764
Total funding
£3,889
OP Month 3
£764
Train to Gain funding
Train to Gain
Range of qualifications – but no framework
Skills for Life
Vocational ‘full’ quals
Train to
Gain
Nearly always NVQs
“bite-sized chunks”
Announced 21/10/08
Train to Gain funding example
NVQ 2 in Beauty in central London
SLN
0.429
NFR
£2,901
PW
1.2 (L)
ACU
1.2
Funding
£1,792
Monthly on-programme
and achievement funding
works in the same way
as for apprenticeships
Train to Gain Instalments
Four full calendar months of TtG NVQ 3 in Health
in central London delivered during 2009/10
Framework
elements
SLN
NVQ 3
0.644 £2,901
NFR
OP Month 1
£424
OP Month 2
£212
OP Month 3
OP Month 4
£212
£212
PW
ACU
ECP
1.2 (L)
1.20
47.5%
Achievement
£353
Total funding
£1,412
Funding
£1,412
Train to Gain instalments
The monthly TtG instalments was new in 2008/09
E.g. for an NVQ in Construction
Monthly instalments
£500
09/10
08/09
07/08
£400
£300
£200
£100
£0
Jan Feb
Mar Apr May Jun
Jul
Cumulative instalments
£2,000
£1,600
£1,200
09/10
08/09
07/08
£800
£400
£0
Jan Feb Mar Apr May Jun
Jul
Train to Gain in 2009/10
Rates that changed for 2009/10
2008/09
2009/10
High and low rates
One rate
0.18
0.193
National funding rate
£2,858
£2,901
Top PW
1.5 (K)
C (1.3)
Middle PW
1.25 (J)
1.2 (L)
Skills for Life PW
1.5 (K)
F (1.4)
SLN NVQ rates
SLN Skills for Life rates
Carry-in will have some months at 2008/09 rates and some
months (including achievement) paid at 2009/10 rates
Train to Gain 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 > perhaps too well!
The 3% TtG premium was scrapped for 2009/10 and we
can expect more to be scrapped for 2010/11
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 August 2008
and before long demand outstripped supply
FE Focus 03/07/09 and 04/09/09
TtG problems for 2009/10
£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
Jun
Jul
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. Will lead to cash-flow problems for some
ER data, audit and future
ER data and payment
Providers submit monthly Individualised Learner Record
(ILR) data online, which leads to an automatic payment
Example for the first month (period one) payment for August
ILR W01
04/09/09
Submit monthly on
4th working day
OLDC portal
and AMPS
LSC data collection
and payment systems
Provider
paid 14/09/09
BACS payment on
10th working day
Other related software and databases:
> Learner Information Suite (LIS)
> Learning Aims Database (LAD)
> Data Self-assessment Toolkit (DSAT)
ER data audit
Data quality is now high on the agenda after Geoff
Russell’s ‘data irregularity’ letter
Three things particularly on the ILR audit radar:
> Changes to planned end dates
> Use of the fee remission field (A14)
> Use of the discount field (A51a)
Does anyone have experience of Train to Gain or
Apprenticeship ILR audit that they wish to share?
16-18 Apprenticeship future
Raising the Participation Age (RPA) and the
Apprenticeship Entitlement
“The ambition is that, by 2019/20, one in five young
people will have started an Apprenticeship before the
end of the academic year in which they reach their 18th
birthday [from one in 15 at present]”
Source: Statement of Priorities, LSC (November 2008)
Role of the DCSF, YPLA, RPG, SRG, LAs, NAS and SFA
in the planning, commissioning and payment
processes from April 2010…..
19+ Apprenticeship future
> Employer contribution (rate reduction) will rise further
> Level 3 Apprenticeships prioritised over TtG for 19-30
> Questions will be asked about whether employers are
making a financial contribution
> 19-24 Apprenticeship rates reduced by 3%
> 25+ reduced by a further 10% (so 20% less than 19-24)
> Pressure will be on to find savings and prioritise
the younger apprenticeships (particularly 16-24 year olds)
> 25+ Apprenticeship may simply prove too expensive
TtG future is uncertain
> Lack of funding and cash-flow issues
mean many providers will suffer
> Government are scrapping some flexibilities
(e.g. full-funding for non-first level 2) and reduce rates 6%
> 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. Look out for the Single Account
Management System (SAMS), and possibility of going to
financial year contracts from April 2011)
Official funding guidance
LSC guidance 08/09 (six ‘booklets’ totalling 320 pages)
Plus the 2009/10 update (currently version 4.2)
Plus a number of Annex’s, such as use of
A51a for 25+ Apprenticeships
Unofficial funding guidance
The hands-on guide to post-16 funding
> 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
> A variety of free online resources
> www.planningandfunding.co.uk
Thank you for attending
Any questions?