Creative Learning and Teaching Seminar. The Policy outlook

1. Creative Learning and Teaching Seminar. The Policy outlook

2. Agenda • New political reality • New economic reality • What it means for the world of education

3. The new political reality • A new fixed term Parliament • A new policy making process • A new rap • A new set of aspirations • A new language • A new set of jingles

4. How policy is shifting 10 new trends • “A complete re-evaluation of the Government’s role in providing public services” • An emphasis on planning for the long-term • A desire to shift responsibility from the state to the citizen • A belief that the funding burden should be re-balanced • A belief that efficient delivery is possible without complex bureaucracy • A desire to open up the market to different forms of provider • A need to tighten the link between between input and output • A desire to release heat out of the system • A move to streamline regulation and accountability • A retreat from attempting to manage the curriculum

5. How the context is changing • Key words • Pinch, Nudge, choppy, sober, post-bureaucratic, de-centralised, re-balanced, socially mobile, green, sustainable • Key influences • Canada, USA, Singapore, Holland, Sweden, Finland • Reform, Policy Exchange • Key mechanisms • A series of top line Reviews: on Spending, Pensions, Efficiency, Quangos, Welfare • A pared down state system operating through simpler delivery chains • A careful balance between reform, cuts, growth

6. New economic reality: the CSR Background to the Review • A new Government faced with a fiscal debt of £156bn, a worry about our credit rating and an empty note in the drawer • A changing labour market, a static housing market, a competitive global market • A desire to cut the structural deficit to zero by 2015/16 • A commitment to reduce the bulk of the deficit through reductions in spending rather than tax rises • A belief that models had already been provided by Canada and NZ • A pledge to be more open and transparent • A recognition of the need to transform large parts of Gov activity and public service provision • An urgency to set revised DELs for each Dept for the next 4 years

7. How has Government gone about it? • Conducted initial review, identified initial £6.2bn cuts and set new ‘spending’ culture • Protection for Sure Start, schools, 16-19 participation • A new Efficiency and Reform Group set up to advise Depts • Identified further £10.5bn of savings • 12 programmes scrapped, 12 programmes suspended • Launched Emergency Budget • Set context for the economy and longer-term savings plan • Adopted the 4:1 ratio and shortened timescale • Set out procedures for the Spending Review • Established the criteria for review of government activity • Listed procedures for scrutiny and review of dept budgets • Launched Spending Challenge website

8. The Spending Challenge • 100,000 money savings ideas submitted, put to public vote in August • “A mix of the sensible, eccentric, Nimbyish and frothingly rightwing” (Guardian) • Recurring education themes: SATs, EMAs, Ofsted, initiatives, Deputy Heads, quangos, waste, HE entry • Taking the pulse: • “Take all photocopiers away from schools and teachers” • “Scrap Individual Learning Plans” • “Make students who fail courses pay back their EMA” • “Cut the number of places on courses that do not lead to jobs” • “Reduce most university courses by one year by extending each term by 2 weeks • “The head of every quango should submit a 2 page report every year on how effective/useful they are, then we should invite the Chief Execs of the FTSE 100 to review them and decide which should be eliminated,. This should be done each year until they are either all eliminated or useful”

9. The Gory Details in numbers • £702bn rising to £740bn • 490,000 • 66 • 7.1% • 40% • 25% • £250m pa • O.1% • £2.5bn • 2014/15

10. The Gory Details in words • A 4 year programme, “it’s a hard road but it leads to a better future” • 3 key principles • Focus on cutting waste and reforming welfare but supporting health care, education, security and infrastructure • Fairness to be balanced by growth • Public services to be transformed through a power shift • Structural deficit to be eliminated by 2014/15 • Dept admin budgets to be cut by a 1/3 • Permanent levy to be imposed on banks • Funding diverted to support key Coalition policies eg apprenticeships, pupil premium • Funding burden shifted away from the state eg HE, welfare

11. Good News £250m pa for adult apprenticeships by 21014/15 £200m pa by 2014/15 to support key sector growth with elite R/D centres Green Investment Bank and ‘green’ skills Additional £0.5m into Regional Growth Fund ‘Continued’ support for basic skills and ACL Simplification of funding system Potential introduction of new loans and fees system? Development of all age Careers Service Bad News FE budget cut by 25% over SR period Total BIS budget cut by 7.1% over period Savings to come from following ratio: reform of F/HE funding (65%,) efficiencies 25% and scrapping low-priority activities (10%) No funding entitlement for FFL2 for 25+ Fee system @L3 for those over 24 Funding uncertainty for ESOL Good or Bad News! Train to Gainreplaced Quangos cut from 57 to 33 Work Programme coming Adult skills and FE CSR

12. Good News Science and research budget ring fenced Creation of high-tech economic clusters Investment in key research areas inc: green, medical National £150m Scholarship Fund by 2014/15 to support students from poorer backgrounds Reform of HEIF to support knowledge transfer Bad News Teaching budget slashed by 40% over SR period Headline News! Reform of the fees system from taxpayer to graduate HE and the CSR

13. The Wider Context • But the SR is not just about cuts and savings, it’s the moment for Government to establish its priorities and develop its delivery structure for the next few years • So feeding into the SR are many other components: • Reform of the pension system • Review of Government efficiency • Review of the quango state • Reform of the welfare system • Reform of student financing in HE • Consultation on funding of the skills system • Reform of the school system • Review of public service provision

14. What it all means for the world of FE As defined by the BIS SRP • Develop new policy for key economic sectors (end Nov 2010) • Develop Government response to Dyson (end Dec 2010) • Develop further measures to get Britain working including Service Academies (end spring 2011) • Put in place a Regional Growth Fund to encourage private sector growth and enterprise (end April 2011) • Simplify funding and set colleges free by removing unnecessary controls (July 2010) and revised funding system (milestone Aug 2011) • Enhance apprenticeships programme by providing new places, improving info and guidance and building employer investment (by autumn 2011) • Empower and inform learners using improved careers service (current,) provider ‘scorecards’ (Nov 2010) and Learning Accounts (by Sept 2011) • Reform adult and community learning by encouraging more social enterprises, self-help groups and joint working (by autumn 2011) • Complete transfer of and manage out assets and commitments of RDAs (end April 2012)

15. New policy context Balancing cuts with growth Reduced role for the state Limited interventionism Strengthening capabilities, not picking winners Less regulation, more user accountability Ready use of private sector ‘Permeable membrane’ with HE Support for mutualism Committed to STEM, enterprise Different delivery system Darwinian model, locally responsive Pared back regional planning system, no RDAs, more public-private partnerships Greater freedom at institutional level to ensure responsiveness Restricted role for quangos Greater use of co-terminus contracting Data driven, output measured Adoption of course labelling, provider benchmarking Improved intelligence system for users New all through careers service Simplified skills system New funding model Total budget of £3.7bn for 2011/12 Reduction in rates of 4.3%, cuts in capital budget New fee loan system for adult L3+ learning State subsidies for 19-14 FFL2/3 learning Fully funded basic skills but restrictions on ESOL and literacy Simplified audit but sharper outcomes Greater institutional freedom over budget deployment Use of minimum contract level New OIP scheme Direct funding agency Revamped skills system Support for higher technician class Less central planning, more local determinism Network of new innovation and tech centres Voluntary levy and licence to practice systems New funded support for SME training Prioritisation through the QCF Recognition of priority sectors New performance measures Where does this leave things?

16. What it all means for the world of HE As defined by BIS SRP • Develop a White Paper on future strategy for HE (March 2011) • Introduce legislation to establish new HE arrangements (May 2012) • Reform the HEIF to support knowledge transactions (by April 2012) • Establish network of Advanced Technology Centres (by April 2012) • Develop scorecard model to inform prospective students about course quality and outcome potential initially through existing Unistats website (by Mar 2011) and for all universities (by summer 2012) • Protect funding mechanism for research (by March 2011) • Strengthen business links incorporating a updated impact assessment model (by Dec 2010)

17. Different policy climate Removal of 50% target but commitment to 10% growth Driven by need to improve social mobility Recognition of importance of global brand Opening up of provision to FE, private sector Keen to strengthen vocational route Support for STEM subjects and critical research Strengthened relationships with business Potential new structures Simpler, central agency Satellite validation model Flexible learning model through better deployment of technology Further debate on 2 yr degree Commitment to WP but different mechanisms Stronger ladder from FE Beefed up advice and guidance for prospective students Impact of employability statements New funding context Swingeing cuts to teaching budgets New graduate repayment system using a real term interest rate and new payment threshold Differential fee cap Impact on non subsidised courses Tapered maintenance loan Equal entitlement for p/t learners Employability, quality, affordability the new drivers Continued expectation on access Extended use of UCAS tariff HE. Where does this leave things?

18. Going forward • Oct/Nov. Major Papers on school curriculum, SEN, FE, skills investment, Growth and Localism • Nov. Dept business plans • Dec. New annual progress check measure for 7, 11, 16 year olds • Dec 2010-Mar 2012. National Curriculum Consultation • Spring 2011. 14-19 Review completes; social mobility strategy published; tendering process for new work programme • March 2011. Consultation on new fee loan system for FE. White Paper on future HE Strategy • April 2011. New spending settlement kicks in; latest Dept plans published • Autumn 2011. Higher Education Bill; Lifelong Learning Accounts in place; review of ACL complete • 2012/13. Implementation of new fees systems in HE; new flexible arrangements for teachers’ pay and conditions • 2013/14. Implementation of new fees system in FE; first teaching of new National Curriculum • 2014/15. Deficit eliminated, sighs of relief all round