Contents

2. Contents > 19+ learner-responsive > Employer-responsive > The demand-led formula > The fee element > Train to Gain instalments > New ways to fund support for employed and unemployed Don’t be afraid to snooze, but please first complete your postcard to ensure you get a copy of these slides

3. 19+ Learner-responsivein 2009/10 Funding decreases 2% 2008/09 2009/10 National rate rises 1.5% Funding £1735m £1700m Fee element rises from 42.5% to 47.5% of unweighted rate Learners decrease 10% 2008/09 2009/10 Skills Accounts to be pilotedin all regions Learners 1.626m 1.469m 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” The only learner reduction applies to developmental learning, falling 51% to 271k Adult Safeguarded Learningremains at £210m but learners fall from 630k to 605k Flexibilities have also be put into the 08/09 reconciliation process

4. 2008/09 2009/10 Appren’s £956m £1041m Train to Gain £797m £926m Total ER £1754m £1967m + £85m + 9% + £128m + 16% + £214m + 12% Appren’s+ 5% 477k33% Trainto Gain+ 5% 949k67% Employer-responsivein 2009/10 ER funding (all ages) • Apprenticeships • Train to Gain “Our two flagship programmes will continue to grow over the next year” “Apprenticeships are the Government’s preferred work-based route for all young people aged 16 to 24” 1.4m ER learners in 2009/10 Train to Gainfully-funded level 2, unlike 19+ Apprenticeships Train to Gainrate 6% higher than 19+ Apprenticeship rate

5. Standard Learner Numbers (SLN) Standard Learner Numbers (SLN) National Funding Rate Disadvantage uplift National Funding Rate Programme weighting Programme weighting Area Cost Uplift Area Cost Uplift Standard Learner Numbers (SLN) Funding Funding National Funding Rate (NFR) Provider Factor (PF) Additional Learning Support (ALS) Funding Train to Gain formula (ER) The funding formula X Demand-led funding is an enrolment based formula, which differs in LR and ER X x Learner-responsive formula (LR) = Apprenticeship formula (ER) X X X X + x = X =

6. 2009/10 In 2009/10 the fee element rises from 42.5% to 47.5% This means the fee element is at least £1,338 for a full time learner The fee element is the funding deducted based on an assumed fee The assumed fee is the basis on which the LSC set tuition fee targets Full time tuition fees LR fee element - example £2,817 x 0.475 = £1,338 £1,600 Lewisham College £1,400 £1,200 £1,000 £800 £600 LSC fee element £400 £200 £0 04/05 05/06 06/07 07/08 08/09 09/10 10/11 Fee element Learner-responsive fee element is unweighted whilst the employer-responsive is fully weighted LSC tuition fee element has been rising each year, from 25% in 04/05 and it will reach 50% in 10/11 TtG level 3 fee element - example 0.644 x £2,987 x 1.2 x 1.12 x 0.475 = £1,228 The LSC apply LR co-funded rate LR co-funded rate formula NFR – (NFR x 0.475 / PF)

7. 07/08 07/08 £500 09/10 09/10 £400 08/09 08/09 £300 £200 £100 £0 Jan Feb Mar Apr May Jun Jul £2,000 £1,600 £1,200 £800 £400 £0 Jan Feb Mar Apr May Jun Jul TtG Instalments The change E.g. construction NVQ in 9glh Planning and performance monitoring in 08/09 needed to take account of three funding methodologies: Monthly installments > Carry-in NVQs (FE) > Carry-in TtG (50:50) > New starts TtG (75:25) Remaining carry-in value can be calculated using data held in PFR spreadsheet Total funding The new starts require a careful approach to monthly installment profiles (75:25 with n + 1 where n = months)

8. New ways to support employed and unemployed • Train to Gain flexibilities New eligibility rules and approaches to existingfunding sources withqualification basedoutcomes • Train to Gain QCF units • Adult learner responsive QCF unit trials • Skills for Jobs New sources of fundingwith sustainable employment basedoutcomes • Six Month Training Offer • Response to Redundancy

9. TtG Flexibilities Trouble ahead? Fund at full rates some non-first full level 2 We have been warned that funding is now stretched Fund at co-funded rates some non-first full level 3 Much of the 09/10 fundingmay be to support 08/09starts. Achievement is key Fund Skills for Life at all levels (E1 – level 2) LSC already withdrawingsome flexibilities (suchas concurrent unit and non-unit delivery) Funding for QCF units/thinqualifications (list of 138) Increasing and simplifying the rates further for 09/10 Clearly now critical not to be over-reliant on TtG

10. Adult LR Unit Trials Skills for Jobs “test whether unit fundingcan incentivise thecompletion of full quals” New(ish) pre-employability programme funded by LSC Up to £1500 per learner “limited to QCF units and test Credit Success Rate” £750 to start a learner£350 if get a job in 6 weeks£350 if in job after 13 weeks “Trial restricted to specificsectors and units” Well established links withJCP and employer critical Only some awarding bodies included the trial Bespoke training tailoredto employer oftenmost successful 434 eligible units are onLSC website

11. Six month offer R2R New training package announced by Prime Minister in Jan ’09 £100m ESF and LSC funding Apr ’09- Dec ‘10 Specifications determined regionally Only eligible if unemployed for 6 or more months Funded like six month offer 75,000 additional training places for £83m Aimed at reskilling thoseat risk or recently maderedundant Only FE Colleges with LR and ER funding eligible Will it complete with JCPDay One provision? Up to £1500 per learner, of which £300 if progress into work and further training

12. And finally…. Oh, and the unofficial funding guide is proving popular with a wide range of FE staff This presentation and other resources are available online Complete and leave your card for access www.fundingguide.co.uk

13. Thank you Any questions?