16-18 Allocations 2011/12 January 2011

1. 16-18 Allocations 2011/12January 2011 Championing Young People’s Learning

2. Allocations 2011/12Timeline Championing Young People’s Learning Championing Young People’s Learning Championing Young People’s Learning

3. Allocations 2011/12Overview • Lagged learner number basis for funding for vast majority of provision – but not ‘lagged funding’ • Policy to be confirmed on exceptions/gaps • All calculations (SLN, factors, rates) will take into account final decisions on savings Championing Young People’s Learning

4. Worked ExampleLagged Learner Numbers F05:F01 ratio – 2009/10 LR01 return – December 2010 F05 return 09/10 and LR02 return Feb 11: In learning for last 12 months (Feb 10-Jan 11) School census – November 2010 Championing Young People’s Learning Championing Young People’s Learning Championing Young People’s Learning

5. Learner Numbers 2011/12Exceptions • Infrastructure Changes • New/closing/mergers/guaranteed commitments • Re-distribution on quality grounds • MLP, Inspection, Finance, breach of contract • Re-distribution by agreement • By LAs/Providers - remedial action – collaboration etc Championing Young People’s Learning

6. Learner Numbers 2011/12Exceptions (2) • New provision (sixth forms/SFCs) – agreeing numbers to be funded: • Year 1 – starting point one-third of long-term capacity - exceptions to be moderated • Year 2 – double lagged numbers in year 1 • Year 3 – fully lagged • Any other situation – only if there is an existing formal written commitment, negotiated up to that level Championing Young People’s Learning

7. SLN/Learner Ratio • Update SLN/learner ratio to use 2009/10 outturn data • Update to reflect reduction in entitlement • Manage range of ratios by reducing top 20% halfway to 80th percentile to part fund increases to 2009/10 levels • One-off change to reflect start of CSR period - no guarantee that the ratio will be uprated each year Championing Young People’s Learning

8. Worked ExampleVolume of Provision Based on 2009/10 actual data with policy changes and cap applied Championing Young People’s Learning Championing Young People’s Learning Championing Young People’s Learning

9. Provider Factor 2011/12Overview • Latest whole-year data used – 2009/10 ILR and schools census • Will take into account the reduction in entitlement funding – so using 2011/12 rates • Main areas to be aware of: • Programme weighting – impact of policy changes • Disadvantage factor – update to IMD 2007 • Success factor Championing Young People’s Learning

10. Provider Factor 2011/12Disadvantage Factor • For 2010/11 and earlier years used Index of Multiple Deprivation from 2004 (IMD 2004) • Updated to IMD 2007 for 2011/12 allocations • General principle to use most up to date data – but also keep track of developments in pre-16 schools funding and 19+ funding • Impact of changes likely to be offset by impact of policy changes (additional funding for disadvantage) Championing Young People’s Learning

11. Provider Factor 2011/12Success Factor • The only element of the provider factor based on 2008/09 rather than 2009/10 data • FE - stable methodology - main issues likely to be next year when we will be using 2009/10 data (earlier close) • Schools data is based on DfE matching process – hence recent detailed checking exercise with schools. Championing Young People’s Learning

12. Worked ExampleProvider Factor F05 from 2009/10, except success factor (2008/09) Summer census from 2009/10, except success factor (2008/09) Championing Young People’s Learning Championing Young People’s Learning Championing Young People’s Learning

13. National Rate • Policy implications for headline figures – subject to agreement • Final rate calculated towards the end of the process to balance the budget but strong expectation is that we base this on the current FE rate (£2920)… • Current timescale says final figure will be confirmed in February/March – will aim to make this as early as possible as long as we can minimise the resulting risk Championing Young People’s Learning

14. Worked ExampleAllocation All figures purely illustrative – national rate not yet confirmed Championing Young People’s Learning Championing Young People’s Learning Championing Young People’s Learning

15. Additional Learning Support - Low level (<£5500) • Maintain the current split between formula driven and ‘non-formula’ Additional Learning Support (ALS) • Use historical spend as the basis for allocating ‘non-formula’ low level ALS in 11/12 • Clearer separation between low and high level ALS in preparation for 12/13 • Additional funding as a result of overall policy changes Championing Young People’s Learning

16. Worked ExampleAdditional Learning Support (low cost) * Based on formula from 2010/11 Championing Young People’s Learning Championing Young People’s Learning Championing Young People’s Learning

17. Sequencing • Update to 2009/10 SLN/Learner ratios • Reduce ratios in line with reduced entitlement and cap • Prevent any increase above 80th percentile by provider type • Reduce ratios for top 20% by provider type 50% to 80th percentile • Update provider factors using 2008/09 success rates, IMD 2007, all other data • Calculate allocation using national rate • Calculate Transitional Protection • Calculate and add in high level ALS Championing Young People’s Learning

18. Transitional Protection • Based on funding/learner • Incorporate all change in one phase of protection: • Policy changes (programme size, disadvantage/ALS) • Changes in delivery (provider factor, ratio) • Capping top 20% • Convergence of national rates • Removal of teachers’ pension funding in schools • Calculate funding per learner in 10/11 and unadjusted 11/12 • Allow a maximum 3% decrease in funding/learner compared to 10/11 to get final 11/12 allocation Championing Young People’s Learning

19. Transitional ProtectionExamples – Stable Numbers Championing Young People’s Learning

20. Transitional ProtectionExamples – Increasing Numbers Championing Young People’s Learning

21. Transitional ProtectionExamples – Decreasing Numbers Championing Young People’s Learning

22. Data Sources (1)Further Education Championing Young People’s Learning

23. Data Sources (2)School Sixth Forms Championing Young People’s Learning

24. 16-18 Allocations in Academies • Lagged Learner Number basis for funding except where superseded by funding agreements • No in-year or end-year adjustment if grant-funded and on lagged learner numbers except in exceptional situations • Pupil adjustments if the academy is not funded on lagged learner numbers Championing Young People’s Learning

25. In Year and Year End Adjustments to Allocations • Grant funded providers must as a condition of funding operate within a regulatory framework which imposes certain restrictions on the use of public funds. • Funding is paid on profile and except where emergencies happen is not reconciled. • Commercial and charitable providers however are funded under a contract of services and Treasury guidelines require that the YPLA holds them to account for delivery. • During 2011/12 contract funded providers will be subject to one in year adjustment should they not be on trackto deliver their full year allocation at the mid year point. • Reconciliation will then take place at the end of the year and be complete by March 2013. Championing Young People’s Learning

26. Next Steps • Data collated for all colleges, schools and other providers • Infrastructure changes and data issues moderated • Produce first run of January allocations • Review overall and at detailed level • Allocations sent out by end of January • Outstanding issues resolved during February • Final allocations in March… Championing Young People’s Learning