Contents

> 19+ learner-responsive

> Employer-responsive

> The demand-led formula

> Train to Gain instalments

> New ways to fund support for employed and unemployed

Don’t be afraid to snooze, butplease first complete yourpostcard to ensure youget a copy of these slides

> The fee element

19+ Learner-responsivein 2009/10

National rate rises 1.5%

Learners decrease 10%

1.469m1.626mLearners

2009/102008/09

Funding decreases 2%

£1700m£1735mFunding

2009/102008/09

Fee element rises from 42.5% to 47.5% of unweighted rate

Skills Accounts to be pilotedin all regions

Adult Safeguarded Learningremains at £210m but learners fall from 630k to 605k

Pre-Level 2 flexibilities to deliver“more or less Skills for Life, Foundation Learning Tier or developmental learning than the indicative figures agreed during the allocation process”

Flexibilities have also be put into the 08/09 reconciliation process

The only learner reduction applies to developmental learning, falling 51% to 271k

Employer-responsivein 2009/10

“Our two flagship programmes will continue to grow over the next year”

• Apprenticeships

• Train to Gain

“Apprenticeships are the Government’s preferred work-based route for all young people aged 16 to 24”

Train to Gain rate 6% higher than 19+ Apprenticeship rate

£1967m£1754mTotal ER

£926m£797mTrain to Gain

£1041m£956mAppren’s

2009/102008/09

Appren’s + £85m+ 9%

+ 16% + £128m

+ 12% + £214m

ER funding (all ages)

1.4m ER learners in 2009/10

Trainto Gain

+ 5%949k67%

Appren’s+ 5%

477k33%

Train to Gain fully-funded level 2, unlike 19+ Apprenticeships

Train to Gain

Total ER

The funding formula

Standard Learner Numbers (SLN)

X

National Funding Rate (NFR)

Provider Factor (PF)

Additional Learning Support (ALS)

Funding

X

+

=

Demand-led funding is anenrolment based formula,which differs in LR and ER

Train to Gain formula (ER)Standard Learner Numbers (SLN)

X

National Funding Rate

Programme weighting

Area Cost Uplift

Funding

X

x

=

Apprenticeship formula (ER)Standard Learner Numbers (SLN)

X

National Funding Rate

Programme weighting

Area Cost Uplift

Funding

X

x

=

Disadvantage uplift

X

Learner-responsive formula (LR)

Fee element

04/05

£0£200£400

£600£800

£1,000£1,200

£1,400£1,600

05/06 06/07 07/08 08/09 09/10 10/11

Full time tuition fees

Lewisham College

LSC fee element

LSC tuition fee element has been rising each year, from 25% in 04/05 and it will reach 50% in 10/11

The fee element is the fundingdeducted based on an assumed fee

The assumed fee is the basis onwhich the LSC set tuition fee targets

In 2009/10 the fee elementrises from 42.5% to 47.5%

This means the fee element is at least £1,338 for a full time learner

2009/10

Learner-responsive fee element isunweighted whilst the employer-responsive is fully weighted

NFR – (NFR x 0.475 / PF)

LR co-funded rate formula

£2,817 x 0.475 = £1,338

LR fee element - example

0.644 x £2,987 x 1.2 x 1.12 x 0.475 = £1,228

TtG level 3 fee element - example

The LSC apply LR co-funded rate

£100

£200

£300

£400

£500

£0

Jan Feb Mar Apr May Jun Jul

TtG InstalmentsPlanning and performancemonitoring in 08/09 needed totake account of three fundingmethodologies:

Monthly installments

Total funding

07/08

09/1008/09

> Carry-in NVQs (FE)> Carry-in TtG (50:50)> New starts TtG (75:25)

Remaining carry-in valuecan be calculated usingdata held in PFR spreadsheet

The new starts require a careful approach to monthlyinstallment profiles (75:25 withn + 1 where n = months)

The changeE.g. construction NVQ in 9glh

07/08

09/1008/09

£0

£400

£800

£1,200

£1,600

£2,000

Jan Feb Mar Apr May Jun Jul

New ways to support

• Train to Gain flexibilities

• Adult learner responsive QCF unit trials

• Skills for Jobs

• Train to Gain QCF units

• Six Month Training Offer

• Response to Redundancy

New eligibility rules and approaches to existingfunding sources withqualification basedoutcomes

New sources of fundingwith sustainable employment basedoutcomes

employed and unemployed

TtG Flexibilities

Fund at full rates some non-first full level 2

Fund at co-funded rates some non-first full level 3

Fund Skills for Life at all levels (E1 – level 2)

Increasing and simplifying the rates further for 09/10

Funding for QCF units/thinqualifications (list of 138)

Trouble ahead?

We have been warned that funding is now stretched

Much of the 09/10 fundingmay be to support 08/09starts. Achievement is key

LSC already withdrawingsome flexibilities (suchas concurrent unit and non-unit delivery)

Clearly now critical not to be over-reliant on TtG

Adult LR Unit Trials

“test whether unit fundingcan incentivise thecompletion of full quals”

“limited to QCF units and test Credit Success Rate”

“Trial restricted to specificsectors and units”

Only some awarding bodies included the trial

434 eligible units are onLSC website

Skills for Jobs

New(ish) pre-employability programme funded by LSC

Up to £1500 per learner

£750 to start a learner£350 if get a job in 6 weeks£350 if in job after 13 weeks

Well established links withJCP and employer critical

Bespoke training tailoredto employer oftenmost successful

Six month offer

New training package announced by Prime Minister in Jan ’09

R2R

£100m ESF and LSC funding Apr ’09- Dec ‘10

75,000 additional training places for £83m

Up to £1500 per learner, of which £300 if progress into work and further training

Only eligible if unemployed for 6 or more months

Only FE Colleges with LR and ER funding eligible

Specifications determined regionally

Aimed at reskilling thoseat risk or recently maderedundant

Will it complete with JCPDay One provision?

Funded like six month offer

And finally….This presentation and otherresources are available online

Complete and leave your card for access

Oh, and the unofficial funding guide is proving popular with a wide range of FE staff

www.fundingguide.co.uk

Thank you

Any questions?