Facilitator – Stewart Segal and co-chaired by Paul Warner

16 May 2013, 2pm-3pm

AELP WebinarEssential Funding Update –

The Provider’s Perspective

Webinar Approach1. Simple slide structure

2. Input from providers through Q&A and

comments

3. Not just a webinar but part of a support

system for providers

4. Sharing interpretations

5. Developing policy

Agenda

• Funding Policy Context

• 2013/14 Funding Rules

• 2013/14 Allocations

• Q&A

• Traineeships

• Loans

• Final Q&A

Policy Context

• New Streamlined Funding System

• Rigour and Responsiveness

• Spending review

• Traineeships

• In Year and 2013/14 allocations

• Priorities – Apprenticeships, English and Maths,

Programmes for the Unemployed

Streamlined Funding

Funding of awards

One rate per qualification – no differentiation by provider type

Achievement element 20%

Retain Area uplift, DLS, Disadvantage Uplift

Current Apprenticeship rates retained

Funding Matrix

Funding

Band

(Credits)

Programme Weighting (PW)

A – Base (unweighted

rate)

B – LowC –

MediumD – High

E – Lower Specialist

or

G* – Higher Specialist

Award (1-4) £148 £166 £193 £237 £255

Award (5-

12)

£336 £376 £437 £537 £578

Certificate

(13-24)

£724 £811 £941 £1,159 £1,246

Certificate

(25-36)

£1,265 £1,417 £1,645 £2,025 £2,176

Diploma

(37-48)

£1,987 £2,225 £2,583 £3,179 £3,417

Diploma

(49-72)

£2,573 £2,882 £3,345 £4,117 £4,425

Diploma

(73-132)

£4,170 £4,670 £5,421 £6,671 £7,172

Diploma

(133+)

£6,602 £7,395 £8,583 £10,564 £11,356

Awards Matrix

Funding Band

(Credits)

Programme Weighting (PW)

A – Base (unweighted rate)

Award (1-2) £50/credit

Award (3-5) £150

Awards (6_8) £300

Certificate (9-12) £450

Diploma (12) £600

Apprenticeship Funding

Retain current rates

20% achievement on all elements

Large employer and 25+ reductions still apply

New frameworks funded using new methodology including Apprenticeship

Element (Base £1,350

Additional Learning Support

• Merged ALS and ALN

• Single rate £150 no additional for 16 -18(more than current 19+ rate but less than dual rate)

• Same methodology as existing WBL

• Grant funded providers will be paid on

profile and reconciled on actuals

• Audit based on appropriate support

provided not amount spent

Transitional Support

• Not applied to Apprenticeships

• Designed to prevent turbulence

• Compares rates in 12/13 vs 13/14 on

2011/12 activity

• Maximum increase or decrease 3%

• Factor applied to all 13/14 delivery

• Not designed to protect changes in

volumes

5 Flexibilities

1. Delivering English and Maths

2. Innovation Code

3. Programmes for the Unemployed – new single units

4. Access to Apprenticeships and Traineeships

5. Micro Businesses and Additional Units

Delivering English and Maths

• New funding rates - £724

• 50% reduction for 19+ - £362

• 16-19 rates to be confirmed - £471

• Additional FS are now WITHIN a

framework – additional funding for all ages

• Using the unit based qualifications

Funding Allocations

2013/14 allocations based on overall reduction in budgets

Apprenticeships protected but now a ‘separate budget line’

12/13 Quarterly reviews – rate corrections

Priority is 16 -19 and 19 -24 Apprenticeships and PfU

Providers need to manage within their MCVs (where they can!)

EFA Allocations

• Based on volumes in 2011/12

• Removal of previous protection

• Assumptions made on size of programmes

• Review of individual calculations

• Some funding retained for In year growth

Any Questions??

• Please continue to submit your text

questions and comments using the

Questions Panel

For more information, please

contact Citrix UK Customer Support

on:

0800 0327756

Note: Today’s presentation is being

recorded and will be provided within 48

hours

Your Participation

GoToWebinar Housekeeping: Time for questions

Poll 1: Do you think the Funding Rules 2013/14 allow more or less flexibility than this year?

More Less Not sure

Loans• New section in the Funding Rules

• Loan rates are based on what the provider is

‘charging’ the learner

• Capped by funding rate maximums and for

Apprenticeships 50% of a calculated framework

maximum

• ITPs have to charge VAT unless exempt

• Payments are made by SLC monthly – no

achievement element but no N+1

Loans Continued

• Loan facility increases and in year reviews

• Loan bursaries

• Policy for discretionary support

Traineeships

• Age restricted to 16 -19 - extended in ‘due course’

• Funded through EFA Study Programmes methodology

• 16 -19 Apprenticeship providers Grade 1 and 2 only

• Change to contract with additional funding?

• Access to Apprenticeship retained for 19+

• EFA based on lagged funding and SFA based on

increases in year

• Employers funded through EOP and direct contract

• No change to benefit system

Summary

Streamlined funding rules retain flexibilities

Continued focus on Apprenticeship and English and Maths

PfU not prioritised for in year re allocations

Introduction of Traineeships restricted

EFA allocations still to be resolved for some providers

Any Questions??

Poll 2: Would you welcome a regular webinar on funding issues or webinars on specific topics

Regular weekly webinar Regular monthly webinar Webinars on specific topics

Web Pages

Skills Funding Statement

https://www.gov.uk/government/uploads/system/uploads/attachmen

t_data/file/36604/12-p172-skills-funding-statement-2012-

2015_1_.pdf

Funding Rules 2013/14

http://media.skillsfundingagency.bis.gov.uk/Funding-Rules/FRInteractive.html

Performance Management

(Quarterly Reviews)

http://readingroom.lsc.gov.uk/SFA/2012-

13_Provider_Performance_Management_Guide_August_2012.pdf

Performance Management (Q3

Update)

http://skillsfundingagency.bis.gov.uk/providers/QuarterlyPerformanceManagement/

ILR Changes 2013/14

http://www.theia.org.uk/NR/rdonlyres/F338BB33-CFC0-42A2-BF34-

A237A68BD3D3/0/SummaryofILRChanges20131430Nov2012.pdf

Streamlined Funding System

(March 2013) http://skillsfundingagency.bis.gov.uk/providers/FundingSimplification/

List of Qualifications

http://skillsfundingagency.bis.gov.uk/providers/FundingSimplification

/

Maximum Loan Rates

http://skillsfundingagency.bis.gov.uk/providers/FundingSimplification

/

Future AELP Webinars

22 May Traineeships UpdatePaul Warner, AELP

6 June Putting Equality and Diversity into PracticeLCMA Partnership

20 June Delivering 24+ Advanced Learning LoansStewart Segal, AELP

27 June Digital Tools To Support The Apprentice Journey Carolyn Lewis, Vocational Innovation

Visit www.aelp.org.uk/events for more information

The webinar survey will now appear on your screens. Your completion would be greatly appreciated.

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AELP WebinarEssential Funding Update –

The Provider’s Perspective