16-19 Transfer - update 09 December 2008 David McVean Head of 14-19 Funding and Finance Division

1. 16-19 Transfer - update 09 December 2008 David McVean Head of 14-19 Funding and Finance Division

2. Transferring responsibility for planning and funding 16-19 provision from the LSC to Local Authorities from 2010as proposed in Raising Expectations White Paper (March 2008) Following positive response to consultation, we have been working closely with stakeholders and partners on the following developments: 16 -19 commissioning transfer: progress Legislation New LA duties and powers, YPLA set up and sixth form college designation currently being drafted for Children, Skills and Learning Bill LA capacity and capability • Initial SRG proposals received end September identifying 41 groupings • Joint LGA/ADCS support programme ‘React’ launched Commissioning cycle Detailed end-to-end commissioning process has been developed YPLA design Detailed design work progressed with stakeholders – including agreeing core functions and purpose and interactions with SFA and NAS Transition planning • Working with LSC to best retain staff expertise • Tracking and transition years in place for 2009/10 and 2010/11 Communications • Joint DCSF / DIUS bulletin published monthly • Comms strategy in place covering all stakeholders Performance assessment Progressing FfE pilot in SSFs and working on detailed performance management arrangements for all providers

3. Sub-Regional Groupings as at 31 October 2008 41 proposed across 9 regions Guidance issued for Stage 2

4. End-to-end commissioning cycle

5. The ‘Working Together’ Strategy identified the following as particular strengths of Third Sector provision: Developing provision in direct response to community needs; Responding quickly to changes in demand; Working holistically across boundaries. We believe that the 16-19 transfer offers the opportunity to build upon these strengths, ensuring that LAs can best draw upon the high-quality personalised services that Third Sector providers offer to communities and young people For all providers, a governing principle of the new system is to minimise the number of commissioning conversations. We recognise that “Third Sector” covers a broad range of organisations, from large organisations covering the whole of England, to small groups serving the needs of a particular community, and that both small and large groups have a vital role to play. There therefore has to be a differentiated approach, to ensure that the needs of all learners are met. Commissioning from Third Sector providers

6. For Third Sector organisations operating at a local or sub-regional level: the ‘home’ local authority will commission provision directly, informed by discussions with sub-regional partners For organisations making provision for young people right across the country, we propose that there could be a single contract covering all these operations, rather than contracts with every local authority. Contracts will be drawn up by the YPLA (potentially at a regional or national level), informed by aggregated demand from LAs. Commissioning: local and national levels

7. Further work is now underway internally on the commissioning function for specific groups: LLDD, Third Sector and specialist providers (e.g. land based colleges) looking at: Whether a common approach should be taken to all national providers, and if so, definition of the approach. Assessing how national level provision in these areas is different to Youth Offender provision (which we are clear should be commissioned locally by the host LA). Working through implications for YPLA and LA resourcing. Whether the YPLA should have a small role in national level analysis. If so how does this fit with LA analysis? Working out how a DCSF national provider system might link with DIUS’s accreditation system for post-19 providers. Commissioning function for specific groups

8. Strong sectoral presence - Ensure governance structures (in particular the NDPB Board) are well represented by LA and wider sector bodies Minimise bureaucracy - Nature, scope and size of the regional structures will be designed to ensure there is maximum capacity being transferred to LAs and sub-regional groupings, with the support to deliver in a non-bureaucratic way. An enabler - YPLA is in the background as an enabler – ensuring LAs are provided with the data, management information and strategic analysis that enables them to make excellent local commissioning decisions. Will have back-stop powers - YPLA will not be undertaking provider performance management or the performance management of local authorities, but will have as a last resort a backstop function to intervene where LAs’ duties are not being delivered effectively. YPLA – Design Principles

9. Proposed next steps include the following: 16 -19 commissioning transfer: next steps Legislation Continued dialogue with stakeholders on the drafting of clauses; Bill introduction early 2009 LA capacity and capability Stage 2 proposals further developed by February 2009 Commissioning cycle Further detailed guidance on end-to-end commissioning process to be published YPLA design Design work continues with further testing and refinement required – blueprint due to be published Transition planning Further guidance on tracking and transition years to be published Communications • Formal stakeholder reference group to be established • Comms programme • Policy sessions at national conferences Performance assessment Progressing FfE pilot in SSFs and working on detailed performance management arrangements for all providers

10. Questionstransfer.16-19@dcsf.gsi.gov.uk