22nd January 2010Barking College

Nick LinfordSpecial Adviser on Funding and Performance(formally Director of Planning and Performance at Lewisham College)

Summary of funding changes and the implications for the future

Funding reform in 2008/09

Adult LR (BIS)

16-18 LR (DCSF)

Old funding stream

FE mainstream

New learner and employer-responsive

funding models16-18 ER (DCSF)

19+ ER (BIS)

Work-based

Learning

Old funding stream

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:

Investment Strategies and MoG

Funding colleges and other providers

YPLA SFA

Localauthorities

DCSF BIS

16-18 LR (FE)

16-18 Appren

Adult LR

19+ ER Adult

LR

19+ ER

Demand-led funding budgets

16-18 LR (FE)

16-18 Appren

£7.5bn

BISDCSF

Funding Learners

4m

2010/11

Demand-led funding budgets

DCSF +7.5%

2010/11Funding

+ 6.6%

+ 12.2%

-11.5%

-0.1%

16-18 LR

(FE)

16-18Appren

Adult LR

19+ ER

BIS -6.5%

Total +2.0%

+ 1.1%

+ 10.4%

- 25.3%

+ 23.3%

DCSF +2.7%Learner

sBIS -2.1%

Total -0.7%

The double whammy

16-18 LR & ER

Adult LR 19+ ERNot rate increase

3% rate decrease

3% rate decrease (19-

24 Appren)13% rate

decrease (25+ Appren)6% rate

decrease (Train to Gain)

50% fee element

50% fee element (incl. non-first Level

2 TtG)

14% SfL weighting reduction

Massive developmentallearning cuts

10% allocation cut confirmed as

best case scenario

In-year adjustments

between providersChallenge expensive

colleges/programmesRoll-out of

Functional Skills

14-19 Qualification Strategy

In many cases, to achieve lower allocations will require more delivery

Fundable qualificationsStrategies and Prioritisation (UKVQRP and QCF)

OfQUAL(accredit and put on NDAQ)

JACQA(15 organisations)

& DCFS

SSCs, UKCESRDAs, NASSFA & BIS

YPLA

SFA

Data Servic

e

Learning Aim

Database

Available for funding

To set funding rates

This process can take six months+ from accreditation

To determine funding

eligibility

14-19

Adult

Enrolment funding

0.5 +Succes

s Factor

=Weighted average

success rate

2

0.5 + 0.9=80% for College

X2

0.5 + 0.5=0% for College Y

2

Although based on a historical average, it means 50% lost if a learner does not finish and achieve

Group 1Income

lost

Success

rate

Target of 16 recruited at £5k each (£80k income budget)

Do staff know the impact of class size, retention and achievement have on learner-responsive (FE) income?

Budget missed by 31%Next allocation cut by 31%

14 start

£10k2 leave within first 6 weeks

79% retention£7.5k

3 more do not finish

57% SR£25k8 succeed

73% achieve

£7.5k3 finish but do not pass

Funding allocations are reduced by a success factor

Now it’s your turn

Group 2Income

lost

Success

rate

Target of 20 recruited at £4k each (£ k income budget)

Budget missed by %

start

£ k3 leave within first 6 weeks

% retention£ k

2 more do not finish

% SR£ k succeed

% achieve

£ k4 finish but do not pass

80Target of 18 recruited at £6k each (£ k income budget)

108

12

4

8

2411 65

73

88

17

30

Group 3Income

lost

Success

rate start

£ k6 leave within first 6 weeks

% retention£ k

2 more do not finish

% SR£ k succeed

% achieve

£ k1 finishes but do not pass

36

6

3

459 75

90

83

12

Budget missed by %42

Opportunities post-recession

E. Employability and Skills Programme (BIS)

E

D. Response to Redundancy (BIS)

D

C. Young Person’s Guarantee (BIS)

C

B. Six Month Offer (BIS)

B

A. Flexible New Deal (DWP)

A

Funding 2010-11

£500m

New funding pots to train the unemployed

J JI IH HG GF F

E

E

D

D

CC

B

B

A A

Example college now

B. 16-18 LR incl E2E

C. Adult LR

D. Apprenticeships

E. Train to Gain

F. HE Direct

G. HE Indirect

H. ESP (or SfJ)

I. Six month offer

J. Response to Redun’

£34m

Government funding Funded learners

BIS funding (19+)

DCSF funding (14-18)

15k

A. 14-15 year olds (WRL)

Example college next year?

B. 16-18 LR incl E2E

C. Adult LR

D. Apprenticeships

E. Train to Gain

F. HE Direct

G. HE Indirect

H. ESP and R2R

I. Six month offer

J. YPG

K. FND

Government funding Funded learners

BIS funding (19+)

DCSF funding (14-18)

A. 14-15 year olds (WRL)

DWP funding (18+)

A A

B

B

C

C DD

E

E

F

F

G

G

H

H

I

IJ

J

K K

£37m

19k

Any questions?

So both funding cuts as well as opportunities, with a heavy emphasis on efficiency, priorities and performance