16-19 Funding 2013/14 Update

1. 16-19 Funding 2013/14 Update May 2013

2. What is changing? Autonomous Professional Education Institutions Raising Participation Age Study programmes Funding per student

3. 16-19 education was funded… Qualification by qualification Funding is unfit to support RPA Wolf found there to be perverse incentives which didn’t help raise standards System is very complex and opaque 16-19 education will be funded… student by student Increased focus on providing the student with a holistic study programme which will get them into university or work All students receive same basic level of funding Enables and supports a simple and transparent funding system Subject to A level and GCSE reform Funding per student Raising Participation Age Study programmes Funding per student

4. The new 16-19 funding formula ( ) Student Numbers National Funding Rate per student Retention Factor Disadvantage Funding Area Cost Allowance Programme Cost Weighting Total Programme Funding

5. Student Numbers ( ) National Funding Rate per student Retention Factor Programme Cost Weighting DisadvantagFunding Area Cost Allowance Student numbers This is a count of students to be funded Must meet qualifying period of 2 weeks or 6 weeks- will not fund programmes under 2 weeks Based on autumn census or ILR return Either full time => 540 hours Or Part Time < 540 hours For 2013/14 and 2014/15 Band 4 = full time The bottom band treated as Full Time Equivalent (FTE), that is a proportion of 600 Age groups 16-18 and 19-24 for HNS are treated the same

6. National Funding Rate per student ( ) Student Numbers Retention Factor Programme Cost Weighting DisadvantagFunding Area Cost Allowance The National Funding Rate • Single National Full Time funding rate per student expressed in £ • All 16-19 year olds in sixth forms, colleges and independent providers are funded at the same national funding rate • Out of scope Youth Contract, Young Offenders, 16-18 Apprenticeships and European Social Fund (ESF) • This is the final element of the formula fixed by the EFA. It depends on how much learning is taking place across the country and the budget. • The rate used in the 2013/14 allocation is £4,000

7. National Funding Rate per student ( ) Student Numbers Retention Factor Programme Cost Weighting Disadvantage Funding Area Cost Allowance Part Time Funding rates • A full time rate based on circa 600 hours • Three part time rates for bands 2,3,4 • Each funded at mid-point of the band • For Band 4 (450-539 hours) for 13/14 and 14/15 we will fund at the full time rate • Band 1 (below 280 hours) funded as a proportion of 600 hours ie 150 hours gets 25% of the National Full Time funding Rate

8. Retention Factor ) ( Programme Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor • Success no longer used in funding, a retention factor is now used • Applied at student level, not qualification level • Retained means still studying a core aim on planned end date or leaves early and is recorded as completed the core aim • For academic programmes – still studying one of the academic aims • For vocational programmes still studying the core aim • Retention FACTOR = half way point between Retention RATE and 100% Number of students completed Number of students started

9. Programme Cost Weighting ) ( Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor Programme Cost Weighting • Recognition that some vocational subjects are more expensive to teach than others • Applied to the student’s whole programme • Determined by the student’s core aim ie A Levels or substantial vocational qualification • All academic programmes uplifted by one weight, which has been determined by merging the 2 current academic weightings and low cost vocational programmes and rebasing these as 1, • Vocational Programme Weighting categories are being reduced in number and re-set to make it simpler: applied at sector subject areas

10. DisadvantageFunding ) ( Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor Programme Cost Weighting Disadvantage Funding • Recognises that some students require additional support to participate and achieve if we are to achieve full participation and improve attainment • Principle is to create a single budget that institutions use as they see fit Disadvantage Funding Economic Deprivation Prior Attainment

11. Disadvantage Funding ) ( Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor Programme Cost Weighting Disadvantage Funding • Based on student’s home postcode • Deprivation is calculated using Index of Multiple Deprivation 2010. This examines the student’s home area based on: income; employment; health and disability; education, skills and training; housing and services; living environment; and crime • Uplift is between 8.4% and 33.6% of 27% most deprived super output areas Economic Deprivation Block one: • Care Leavers attract a standard uplift- rate £480

12. Disadvantage Funding ) ( Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor Programme Cost Weighting Disadvantage Funding • Acknowledges the additional cost of students who need extra learning support • Based on student’s achievement of GCSE English and maths at end of Year 11 • Funding rate for 13/14 = £480 • Flat rate for part time bands 2 and 3 = £292 • Pro rata as per programme costs for band 1 Prior Attainment Block two: • Used to be graduated payments based on student’s grades • Now only a flat rate based on non-achievement of grade C

13. Area Cost Allowance ) ( Student Numbers National Funding Rate per student Retention Factor Program Cost Weighting Disadvantage Funding Area Cost Allowance ) Area Cost Allowance Programme Cost Weighting • Reflects the cost of delivery in high cost local areas – remains unchanged • We will continue to calculate this using the same methodology as now • Applied to the whole participation formula (including all disadvantage)

14. Student Support Funding TP from 11/12 High Needs Students Formula Protection Funding ? ? ? Formula protection funding (FPF) • Will be paid for at least three academic yearsuntil and including 2015/16, where the move to a basic funding rate per student would otherwise result in a reduction in funding per student. • Calculated by comparing funding per student allocated for 2013/14 (excluding transitional protection) with funding per student for 2012/13 • The operation of formula protection funding for future years will depend on progress of Ministerial Working Group on the reforms for large programmes, A levels and GCSEs. • Enables you to move on with curriculum reforms and simplification while final details are resolved

15. Student Support Funding TP from 11/12 High Needs Students Formula Protection Funding ? ? ? Formula protection funding (FPF) For example: • Funding per student at Shakespeare College in 2012/13 is calculated at £4500 per student, • The new methodology for 2013/14 gives them £4060 per student, • FPF of £440 per student is included in the 2013/14 allocation

16. Student Support Funding TP from 11/12 High Needs Students Formula Protection Funding ? ? ? High Needs Students (HNS) • This is funding for students with learning difficulties and/or disabilities and/or special educational needs with support costs above £6,000 • There’s a system based on the same principles for all children and young people from ages 0 – 24 • It is called place plus – places are funded by the EFA and any additional top-up funding by the home local authority • There are three elements to High Needs Funding

17. Student Support Funding TP from 11/12 High Needs Students Formula Protection Funding ? ? ? High Needs Students (HNS) • The place – EFA Funded • Element 1 This is the standard 16-19 Funding Formula as we have described – it is based on lagged student numbers – this aspect rolls on from year to year. • Element 2This is the first £6,000 of additional support – numbers are calculated based on information provided by the local authority about the number of places it is going to commission from each institution and the EFA adds £6,000 for each place to the allocation – completing the place funding. • The Plus – Top up Funding – LA Funded • Element 3any funding the individual requires above the first two elements is negotiated and agreed with the student’s home LA

18. ) ( Retention Factor Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Funding for 14-16s in FE

19. ) ( Retention Factor Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Funding for 14-16s in FE • Student numbers:- all full time • National funding rate:- same as post-16 • Retention factor:- there is no retention for pre-16; we intend to use factor of 1 • Programme Cost Weighting:- uplift of 4% • Disadvantage Funding (Block 1) • uses IMD based on pupils home postcode • Disadvantage Funding (Block 2) • All those who attract funding for IMD also get ALS payments • Area Cost Allowance :- exactly the same

20. ) ( Retention Factor Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Additional funding applies Pupil Premium for those who qualify: • those who qualify for Free School Meals (FSMs) • and, those in Care

21. ) ( Retention Factor Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Who Can be Funded Directly Those FE Colleges who wish to claim direct funding for 14-16s: • Good or Better (Grade 1 or 2) on most recent Ofsted assessment or Satisfactory and improving • Satisfactory/Requires Improvement (Grade 3)  rating with significant improvement in past 4 years • Significant improvement is defined as an increase in the average point score per student at L3 GCE A/AS in 2008/09 with the score in 2011/12 (as published in the Performance Tables)

22. ) ( Retention Factor Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Who Can be Funded Directly • To have completed Self Assessment against criteria checklist and signed off by Chair of Governors and Principal • To have written to EFA Territorial Director stating that: - self –assessment been completed - signed off by Chair and Principal - college meets quality criteria - which year 14-16s direct recruitment will start

23. 14-16 Data & Funding flow Autumn 2013 ILR return – first 14-16 student numbers January 2014 Collect data on Pupil Premium eligibility January 2014 2014/15 Student Number Statement includes 14-16 March 2014 2014/15 Allocations finalised and Funding Guidance April 2014 First payment of 14-16 funding; profiled payments based a Financial Year (payments continue for 12 months)

24. ) ( Retention Factor Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Key Data Implications (1) 2013/14 Data returns – key changes for EFA funding: • Identify core aim • Record planned student-level hours: • Qualification hours • Non-qualification hours • Less emphasis on detail at aim level for funding purposes

25. ) ( Retention Factor Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Key Data Implications (2) 2013/14 Data returns – Learning Delivery Monitoring: • 14-16 year olds - code 320 – Direct 14-16 provision - code 321 – Home educated • Traineeships - code 323

26. ) ( Retention Factor Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student What is Funded? Hours that are: • Directly relevant to the study programme • Planned, explicit in the Learning Plan or Timetable • Supervised and/or organised by the provider • Quality Assured by the provider • Within normal working pattern

27. ) ( Retention Factor Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Qualification Hours Hours that are delivered towards qualifications that are approved for teaching to 16-19 year olds under section 96 of the LSC act 2000

28. ) ( Retention Factor Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Non Qualification Hours • Not counted towards a qualification • Informal certificates • Non-qualification activity • Tutorial purposes • Work experience/Work related activity • Volunteering/Community activities • Enrichment activities

29. ) ( Retention Factor Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Not Funded • Voluntary extra-curricular activities and clubs delivered during breaks or outside normal working pattern • Study that is homeworkor independent study/research that is not timetabled • Employment or Work Experience organised by anyone other than by or on behalf of the provider • Volunteering/Community activities that are not organised by or on behalf of the provider

30. ) ( Retention Factor Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student What Else is Happening? • Review queries raised in response to March allocations • Funding Guidance 2013/14 published (early May) • Review overall process  feed into 2014/15 allocations • Ministerial Working Group – large programmes • Specific review of Programme cost weightings for 2014/15 • RPA and Study Programmes in place from autumn 2013…

31. ) ( Retention Factor Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Feedback • Any questions? • What are key issues for data and systems? • What areas do we need to review/refine? • What else can we do to simplify?

32. Welcome to Capita’s Further & Higher Education National Conference 2013 Delivering Solutions to Improve the Student Experience

33. Day 2 - Closing remarks

34. Improving the customer experience • Nigel.Rayner@capita.co.uk

35. Capita Strategy • Product Strategy • Out of the back office • Move to Mobile • Partnership…in FE and HE • Technology Strategy • Representing you at national level • The largest user group in further education • Getting the basics right • Consulting on Student Journey

36. Customer led presentations

37. Nigel RaynerHead of Further & Higher Education

39. Welcome to Capita’s Further & Higher Education National Conference 2013 Delivering Solutions to Improve the Student Experience