PREPARING FOR Devolution of the ADULT EDUCATION BUDGET

PREPARING FOR Devolution of the ADULT EDUCATION BUDGET Provider Engagement Event 15 June 2018

Jacqui banks Adult Education Manager Tees Valley Combined Authority Introductions

Purpose of Today Start the conversation Raise awareness and provide information on the Devolution of the Adult Education Budget to Tees Valley Combined Authority Outline some of the potential considerations, intentions and implications

Shona Duncan Head of Education, Employment and Skills Tees Valley Combined Authority

Adult Education Budget (AEB) Devolution • TVCA Education, Employment and Skills Objectives • Devolution Opportunities • The Education, Employment and Skills Strategy; “Inspiring Our Future” • Skills for Business Growth

The Benefits of Devolution • The ability to align AEB to the needs of Tees Valley Residents by ensuring a delivery offer that addresses local challenges and improves outcomes for residents and employers • Development of a joined up skills system with a shared vision by all stakeholders • Delivery of flexible training and education to increase access to learning for adults • The ability to target skills gaps in priority areas and communities to benefit employers and the economy • The opportunity to develop sustainable and effective relationships with providers to maximise the impact of AEB across Tees Valley • Empower providers to benefit from a simpler system and respond to employer demand

Opportunities • Establish clear principles • Common approach across a wide labour market area • Co-Design approach with partners • Enhance flexibility and freedoms

Lesley Monaghan Head of Intervention Education and Skills Funding Agency The Role of the ESFA in Devolution

Which MCA’s will have devolved AEB from 2019/20* • Cambridge & Peterborough • Liverpool • Great Manchester • Tees Valley • West of England • West Midlands • Delegated to Greater London Authority *excludes 19-24 traineeships

Government also indicted support for future AEB devolution to*: • Sheffield City Region • North of Tyne Authorities *Subject to meeting statutory requirements and consents

What does this mean for training providers? • Depends on pattern of delivery and future plans • Possible multiple contracts and requirements What do you need to do? • Look at your current delivery patterns • Consider where you want to deliver in the future • Engage with the appropriate MCA’s/GLA

How will ESFA support this process with its providers? • Letter issued with 2018/2019 AEB allocations provided information on Devolution • Further communication to be issued today This will confirm: • how ESFA allocations will be calculated for 2019/2020 • historical % of delivery in non-devolved areas • process for funding continuing learners • When further information will be available

What have ESFA/MCA’s done to date? • ESFA have provided briefings on relevant Department for Education policy • Briefings on current ESFA approaches to: • Procurement • Contracting • Allocations • Payment process • Intervention • Minimum standards • Planning cycle • Anything else?

What have ESFA/MCA’s done to date? • Discussed MCA readiness • Confirmed ESFA will continue to lead on intervention • ESFA will continue to assess College financial plans • Need to continue to work in partnership to manage risk • Aim to align planning and allocation timelines

Any Questions?

Shona Duncan Preparing for Devolution of the Adult Education Budget Head of Education, Employment and Skills, TVCA

Devolution in the Tees Valley • Information on AEB delivery in Tees Valley • Current thinking and Intent • Work to date • Next steps and timescales: • Subject to funding availability • Subject to legal ability • Subject to Cabinet agreement

What does AEB currently fund? • Combines Community Learning and Adult Skills Training • Adult Basic Skills – English and Maths • First full Level 2 and Level 3 (19-23yr olds) • Retraining courses for the unemployed • Other full-time, part-time or distance learning courses – for those who meet eligibility criteria and/or who pay a co-funded course fee. • 2018/2019 pilot – AEB will fully fund learners, who are employed and in receipt of a low wage and cannot contribute towards the cost of co-funding fees

Adult Education Budget in the Tees Valley Indicative Allocation £30.5m p.a. 2016/2017 Data Set: • Contracted and Grant Funded to 177 local, regional and national providers – Funding Value £21.2m (excluding community learning) • 117 Grant Funded Providers • 60 Independent Training Providers

Adult Education Budget in the Tees Valley 2016/2017 data set: • Further Education Colleges £12.1m • Independent Training Providers £6.3m • Local Authority Providers £2.5m • Sixth Form Colleges £300k

Adult Education Budget in the Tees Valley • Significant proportion (up to 30% - £6.4m) of AEB provision was subcontracted - this equates to just over 7,000 (24%) learners • A total of 88 subcontractors were used by main providers in 2016/2017 to deliver AEB to Tees Valley residents • 62% of subcontracted starts were in Preparation for Life and Work to deliver employability skills and English and Maths qualifications

Principles • Retaining a focus on outreach and engagement • Emphasising the need to support individual progression • Connecting provision with local skills requirements • Developing a stronger focus on achieving agreed outcomes • Building a sustainable infrastructure that supports accessible learning and skills needs • Maximising the proportion of spend that ends up as investment in learners

Principles What are the issues we need to consider when putting a new approach in place? • Ensuring clarity on the outcomes we want to achieve • Creating a funding and contracting system that incentivises the achievement of these outcomes • Thinking through the unintended consequences of any new approach and mitigating these • Produce an adult skills plan for the Tees Valley

Current Thinking and Intent • Minimise disruption to funding and eligibility in 2019/2020 • Model change implications in 2019/2020 • For 2019/2020, align all allocation processes with current ESFA timescales to negate any negative impact on providers • To maintain the use of the ESFA ILR in 2019/2020 to collect data and outcomes from all providers • Monitor delivery performance, specifically focused on adult learner outcomes and positive progression, including subcontracted delivery

Intent • Creating strong working relationships with providers and drawing on their experience, skills and insights • Create a sustainable provider base appropriate to learner and business demand • To contract with grant funded providers with a base in the Tees Valley who deliver the skills required for Tees Valley residents • To commission contracted provision from ITP’s that will deliver skills training and education that positively contribute to the Tees Valley AEB Skills Plan • To contract with providers that deliver high quality provision and outcomes to Tees Valley residents

Current Thinking • Reducing the current grant provider delivery base • Procuring services and allocate funding based on priority sectors and local resident needs • Considering purpose and scale of subcontracting • Enabling longer contracting timescales • In year funding flexibilities build on reward, not penalty • In year reconciliation/reprofiling

Work To Date • Completion of AEB Readiness Assessment for Department for Education • Interrogating and Analysing data 2016/2017 and 2017/2018 • Currently reviewing and modelling all commissioning and procurement options • Developing policies including, funding rules, contracts and funding agreements • Reviewing existing TVCA processes to ensure fit for purpose for AEB • Developing TVCA website to house all provider updates, policies and notifications

Next Steps and Timescales • TVCA Cabinet have approved the laying of Parliamentary Order by the Secretary of State for the Department for Education • Local Authorities currently approving AEB Devolution Order to be laid in Parliament – July 2018 • Memorandum of Understanding currently being finalised • Communications plan to be finalised • Review of Governance Arrangements • By Autumn 2018, modelling and decisions made by TVCA Cabinet • By Spring 2019, allocation and contracting agreed with providers • Full devolution in August 2019

Next Steps • Continued dialogue with providers • We would welcome one to one conversations with providers as we continue to develop our policies and processes • Communication Plan once finalised will be available on the TVCA Website • Development of FAQ on the TVCA Website • On boarding activities will be scheduled for providers during 2018/2019 in preparation for delivery in 2019/2020

Table Discussions • Given the presentations today, what are the immediate questions? • How would you like the Tees Valley Combined Authority to continue lines of communication with you? • What are the 3 items you would wish to be continued under Devolution? • What are the 3 items you would wish to change under Devolution?

Thank you for your patience and understanding http://teesvalley-ca.gov.uk

PREPARING FOR Devolution of the ADULT EDUCATION BUDGET