Future of 6th Form Funding

WELCOME

Housekeeping

• Please switch off all mobile devices

• Fire evacuation procedure

• Toilets

• Delegate packs

• Q&A (index cards)

• Evaluation forms

• Presentations can be downloaded:http://6thformdemandledconsultations.acclaimlive.com/presentations

Agenda

• The Case for Change

• How the System Will Work

• The Funding Formula & Feedback from Trials

• Question & Answer Session - Chair and Panel

• Summary & Next Steps

• Close

Future of 6th Form Funding

THE CASE FOR CHANGE

14-19 Reform Group (DfES)

14-19 Reform objectives

• Boosting participation, progression and attainment

• An engaging curriculum with qualifications more valued by employers and HE

• Better guidance and support

• Full range of choices available in each local area

• Supported through funding system meeting principles set out in FE White Paper

14-19 Targets

• 90% participation at age 17 by 2015

• Reduce the number of young people not in education, employment or training (NEET)

• 85% of 19 year olds attaining level 2 by 2013

• Raise the participation age

Why?Post-16 training/skills are biggest weaknesses…

Age stage 0-11 11-19 Workforce HE

OECD ranking

Post-16 participation rate

Proportion of workforce with skills above Level 2

Research outputProportion of

4 year-olds enrolled in education

10 year old reading and literacy

15 year old mathematics and literacy

3

7

20 18

24

Survival rate on academic courses

2 - 6

14-19 Reforms• Entitlement for all young people to have access to 14

Diploma lines from 2013

• To deliver this institutions will need to collaborate

• The funding will need to support this particularly:– learner choice driving funding allocations

– a common funding system with comparable rates

– incentivising institutions to improve participation, progression and achievement rates

– a simple, transparent and easy to understand system, based on a relationship between LSC and providers

Diploma timetable

2008/09 First teaching of Diplomas in ICT, Health & Social Care,

Engineering, Creative & Media, Construction

2009/10 Land based, Manufacturing, Hair and Beauty, Business

Administration, Hospitality

2010/11 Public services, Sport & leisure, Retail, Travel & Tourism

2013 14-19 entitlement in place

Future of 6th Form Funding

HOW THE SYSTEM WILL WORK

Key principles of the 14-19 landscape

• To ensure every young person can exercise their 14-19 entitlement and

– undertake elements of programmes in other institution and

– access a broad programme of learning

• With planning overseen by the 14-19 partnership and

– effective collaboration

• The White Paper challenges us to develop a system which:

– incentivises improved participation, progression and achievement factors

• Whilst being

– transparent, simple and avoiding bureaucracy

• And providing

– appropriate stability and certainty for planning

Further Education Raising Skills: Improving life chances

The Challenge

Principles of ademand led system

• Purchasing power devolved to employers and individuals

• Expanding choice and quality of provision

• Intervening in areas of market failure

• Building capacity

• Appropriate levels of planning

• Collaboration and competition

• Responsiveness to demand

Demand Led Models

Apprenticeships 16-18

Employer Responsive Model19

+16

–18

Learner Driven Employer Driven

16-18 Model

Learner Responsive Model

14- 19 Partnership

Research needs and demand to meet entitlement

14-19 Plan

LA/LSC Review Provision against plan

LA/LSC agree contributions to plan by discussion and agreement with schools, colleges and providers

Allocation calculated

How does it work?

Option 1:Strategic Commissioning

14-19 Planrequirements

Growth built intofuture baseline

Assess previouscontribution and

performance

Plan changes andnegotiated

growth

Allocation basedon plan

Review actualdelivery

14-19 planrequirements

Reconcile atYear-end

RetrospectiveAdjustments

(up and down)

Assess previouscontribution and

performance

Plan changes andnegotiated growth

Allocationbased on

previous yearand plan

Review actualdelivery andreconciliation

based on Septemberrecruitment

Adjust allocation mid-year(up or down)

Option 2: 16-18 ModelStrategic Commissioning with reconciliation

ReconciliationSchool sixth forms 2005/06 to 2006/07 % change in funding (formula + MFF)

-30%

-20%

-10%

0%

10%

20%

30%

1 201 401 601 801 1001 1201 1401 1601Schools

% c

ha

ng

e i

n f

un

din

g

↑£93.2M

↓£49.4M

ReconciliationSchool sixth forms 2005/06 to 2006/07 % change in funding (formula + MFF)

-30%

-20%

-10%

0%

10%

20%

30%

1 201 401 601 801 1001 1201 1401 1601Schools

% c

ha

ng

e i

n f

un

din

g

FE colleges funding v allocation 2005/06

-30%

-20%

-10%

0%

10%

20%

30%

1 51 101 151 201 251 301 351

Colleges

% v

ari

ati

on

in

fu

nd

ing

↑£100.2M↓£33.2M

Reconciliation

Demographic data Numbers of 16-18 year olds in England

1,840,000

1,860,000

1,880,000

1,900,000

1,920,000

1,940,000

1,960,000

1,980,000

2,000,000

2,020,000

2002 2004 2006 2008 2010 2012 2014 2016

Year

Declining pupil numbers in the future?

School sixth forms Possible % funding changes in 2012/13

-30%

-20%

-10%

0%

10%

20%

30%

1 201 401 601 801 1001 1201 1401 1601

Schools

% c

han

ge

in f

un

din

g

Balancing incentivesand stability

Create demand-led incentives

Create stability and certainty for provider

planning

Other significantchanges for schools

• New formula involves success rates

• Revised data collection

• Disadvantage factor uses IMD 2004

• Creation of ALS budget (from existing budget)

LLDD including SEN

LLDD/SEN Costs

ALS Formula

Provision Costs

New Diplomas

• Collaborative arrangements

• Pre-16 “off site provision”

• Pre-16 “whole school funding” consultation

• Post-16 funding flow

Transitional protection

• Aim – to reduce the effects of funding changes that result directly from the formula

• May be similar to the Minimum Funding Floor in schools

Key Issues for Consultation

• 16-18 - Incentives v predictability

• Revised data - Early or accurate collection

• Disadvantage - Use of IMD 2004

• ALS Allocation - Impact on rates

• Diplomas - Funding flow

Future of 6th Form Funding

THE NEW FUNDINGFORMULA

Funding formula

Standard learner number (SLN)x

National Funding Rate x

Provider Factor+

Additional Learning Support (ALS)=

FUNDING ALLOCATION OR OUTTURN IN £

Standard learner number

• Definition of a start - 6 weeks for longer courses

• Based on nominal guided learning hours for the qualifications each learner studies

• SLN = glh/450 with maximum of 1.75

– Calculated individually for each pupil

• Funding allocations use SLNs that are based on discussions each Autumn

• In-year monitoring using Schools Census data

National funding rate

• Announced annually by LSC

• In 2008/09 expected to be around £3,000 per SLN

How does this compare with current rates?

Provider factor

• Calculated annually using previous data

• Provider factor contains

– Programme weighting

– Disadvantage (based on IMD 2004)

– Area costs

– Success factor (uses published success rates for each school)

• For 2008/09 funding allocations, the provider factor will be calculated using PLAMS 2006/07

Implications of the changes

• Maximum funding per pupil is calculated on individuals

– lower level than now

• Funding per qualification is increased

• Success element increased

Sample calculationfor a ‘real’ school

SPC Data PLAMS Data

Funding Rate

Pupil Pupil SLN £3,011School Name Headcount Headcount

199 198 297 1.50

Provider FactorsSPC Data PLAMS Data

Area Disadvantage Programme Success Success ProviderCost Uplift Weight Rate Factor Factor

1.0000 1.0100 1.0561 92% 0.9600 1.0240

SPC Data PLAMS Data2006/07 Funding A4C Percentage

incl. pensions Funding Change£911,727 £916,293 0.5%

Aim Data Comparison

Source AS/A2 levels Applied A / AVCE GNVQ GCSE NVQ Other Total aims

SPC 797 1 0 8 0 0 806

PLAMS 790 0 0 0 0 0 790

SLN Per Pupil

A ‘real’ school

Additional learning support

• Lower level claims

– Partly based on formula using prior attainment

– Partly based on negotiation

• Higher level claims

– Based on evolving SEN model

Funding trials

• Trials took part with 18 volunteer schools

– These schools provided 2005/06 data in PLAMS format

– LSC compared funding using new formula with actual allocations

– Schools/LSC meetings and visits

Confirmed

Unconfirmed

No data

PLAMS data 2006/7Number of Sixth Forms

1723

32

39

PLAMS v SPC data

Numbers of PupilsSPC 361,249 PLAMS 357,758 Variation –1.0%

PLAMS v SPC data 2006/07 Pupil Numbers

-100

-50

0

50

100

1 201 401 601 801 1001 1201 1401 1601

Sixth Form

Dif

fere

nc

e

Variations by schools

A levels

PLAMS v SPC 2006/07 - Numbers of A level subjects

-100

-50

0

50

100

1 201 401 601 801 1001 1201 1401 1601

Sixth Forms

Dif

fere

nc

eVariations by schools

Numbers of A-level subjectsSPC 1,145,227 PLAMS 1,121,781 Variation –2.0%

Modelling for all

• Next steps

– All schools will receive a comparison of PLAMS and September pupil count 2006/07

– Schools are asked to ensure June PLAMS submissions are accurate, with help from LSC

– Comparisons of funding approaches are only accurate where SPC and PLAMS closely match

Future of 6th Form Funding

Comfort Break

Question & Answer Session -

Chair and Panel

Future of 6th Form Funding

NEXT STEPS

Diploma timetable

2008/09 First teaching of Diplomas in ICT, Health & Social Care,

Engineering, Creative & Media, Construction

2009/10 Land based, Manufacturing, Hair and Beauty, Business

Administration, Hospitality

2010/11 Public services, Sport & leisure, Retail, Travel & Tourism

2013 14-19 entitlement in place

National next steps

• Post 16 Consultation Ends End March

• School funding arrangements 2008 -11 March - June

• Ministerial Decisions April - July

• Feedback on PLAMS Data April

National next steps

• PLAMS Data Collection June

• Success Rates Calculated Autumn

• Indicative Allocations & Dialogue Autumn

• School Census Collection October

• Final Allocations March 2008

Please hand in your completed evaluation forms

on your way out. Thank you.

Future of 6th Form Funding