Championing Young People’s Learning

Supporting Young People to Succeed - Challenges and Priorities for 2011/12 OnwardsPeter LauenerChief Executive, Young People’s Learning Agency15 OctoberTertiary Colleges Group Seminar Championing Young People’s Learning

Championing Young People’s Learning

Agenda today…… • YPLA Update • Young People’s Learning – what the facts tell us • Funding and Allocations for 2011/12 Championing Young People’s Learning

YPLA - three roles • Funding and supporting academies…… • Currently c 300 academies • Budget for 2010-11 is £1.7 billion • Financial support for young learners…… • Education Maintenance Allowances for around 600,000 young people, others get support for e.g. childcare and dance and drama awards. • The budget for 2010-11 is £663m • Funding learning opportunities for 16-19 year olds….. • and allocations to schools, colleges and other providers, including young offenders’ institutions. • Around 1.4 million places, costing £6.4 billion in 2010-11 • Our running costs are 5 pence for every £10 that we spend Championing Young People’s Learning

YPLA objectives To deliver efficient systems for learner support To enable independent autonomous institutions of all kinds to flourish To support rapid growth in the number of academies To develop a nationally consistent and transparent funding formula post 16 based on individual need and learning aims Publish, publish, publish…….to inform market provision and individual choice Championing Young People’s Learning

YPLA objectives (contd) To support local authorities in the exercise of their local strategic role To ensure budgetary control across all budgets and high standards of financial assurance To minimise the overhead that the YPLA takes in its own operating costs (currently 0.5%) To support equality of opportunity for the 2 million customers of our programmes and for our own staff Championing Young People’s Learning

YPLA - Progress to date • Accurate and timely payments to academies, colleges and all types of providers • Paying 800 colleges / third sector providers directly – a change implemented in three weeks • Paying 50% more academies than we were 2 months ago – with systems for paying new academies up and running from 1 September • EMA is running smoothly – applications processed quickly with no queues • Business Plan for 2010/11 agreed and on website • Board brings cross-sector influence, expertise and commitment Championing Young People’s Learning

Young people’s participation….Taking the long term view Championing Young People’s Learning

Changes in Young People’s Learning over a Generation (1) Championing Young People’s Learning Championing Young People’s Learning

Changes in Young People’s Learning over a Generation (2) Championing Young People’s Learning

Where 16-18 year olds study Championing Young People’s Learning

16-18 year olds studying at Level 3 Championing Young People’s Learning

How 16 year olds without Level 2achieve Level 2 by 19 Championing Young People’s Learning

While participation has increased, the number disengaged has edged down but is still stubbornly high…….. Championing Young People’s Learning

NEET Most young people are never NEET: most NEET episodes last fewer than six months Source: Audit Commission report: Against the Odds, July 2010

Long-term effects of being NEET on young men Source: Audit Commission report: Against the Odds, July 2009

Costs of disengagement A young person NEET in 2008 will cost an average of £56,000 in public finance costs before retirement age (for example, welfare payments, costs to health and criminal justice services, and loss of tax and national insurance revenue).Also £104,000 in opportunity costs (loss to the economy, welfare loss to individuals and their families, and the impact of these costs to the rest of society).The entire 2008 group of young people NEET could cost over £13 billion to the public purse and £22 billion in opportunity costs before they reach retirement age. Source: Audit Commission report: Against the Odds, July 2009

So how will we now approach the allocations round for 2011/12? Championing Young People’s Learning

2011/12: Principles • Funding follows learner choice • Independent providers • Local authority leadership role, exercising strategic influence, statutory duty to secure provision • Stream lined, simplified system, reduced bureaucracy Championing Young People’s Learning

2011/12: Key features • Lagged Learner Number basis for funding • YPLA determines formula-led allocations • Additional places for growth or gap filling • No in-year or end-year adjustment if grant-funded or equivalent (for example, schools, academies, colleges) except in exceptional circumstances • Light touch in-year contract adjustment for others (for example, independent training providers, ISPs) Championing Young People’s Learning

2011/12: Roles and Responsibilities • The Role of Local Authorities: • Statutory duty to secure enough suitable education and training for young people age 16-19 or up to age 25 if subject to learning difficulty assessment (ASCL duties remain unchanged) • Identifying gaps, enabling new provision, developing the market - working with YPLA to maintain control of the available budget • Local statement of priorities • Ministerial Advisory Group considering key strategic role of local authority in education and children’s services (ages 0 – 19) Championing Young People’s Learning

2011/12: Roles and Responsibilities • The role of YPLA: • Data analysis and funding calculations • Funding and financial assurance of colleges and other providers • Strategic analyses of performance and participation by providers and within area Championing Young People’s Learning

Allocations 2011/12: Draft Timeline Championing Young People’s Learning Championing Young People’s Learning Championing Young People’s Learning

Local Statement of Priorities • LAs lead – can be joint • Key points from strategic and local analyses and partnerships • Overall position and trends on participation; attainment and provider quality: 2-3 year horizon • Developed with 14-19 partnerships - but also a challenge to providers • Significant gaps in provision – evidence based • (If appropriate) proposals for specific structural changes eg • Adding a sixth form to a school • Opening/closing schools, colleges or other providers • Merger or de-merger of institutions • Developing new specialist provision Championing Young People’s Learning

2011/12: Funding and Contracting • The YPLA will fund directly academies, colleges, private and charitable providers, and will fund local authorities for schools with sixth forms and some other budgets (e.g. Education Business Partnerships and Young Apprenticeships) • Private Providers that deliver provision across YPLA regional borders will receive a single Contract for provision Championing Young People’s Learning

2011/12: How lagged funding works Championing Young People’s Learning

Worked ExampleLearner Numbers F05:F01 ratio – 2009/10 LR01 return – December 2010 School census – [November 2010] Lagged learner numbers Championing Young People’s Learning Championing Young People’s Learning Championing Young People’s Learning

Worked ExampleVolume of Provision Based on historical data Championing Young People’s Learning Championing Young People’s Learning Championing Young People’s Learning

Worked ExampleProvider Factor Based on historical data Championing Young People’s Learning Championing Young People’s Learning Championing Young People’s Learning

Worked ExampleTotal volumes (illustrative only – will use national figures) Total volume = SLN multiplied by provider factor Overall volume to be funded = 4400 Championing Young People’s Learning Championing Young People’s Learning Championing Young People’s Learning

Worked ExampleNational Rate (illustrative only – will use national figures) Note: all figures purely illustrative! Assumes a single rate for all provision – could vary Championing Young People’s Learning Championing Young People’s Learning Championing Young People’s Learning

Worked ExampleFinal Allocation All figures purely illustrative Assumes a single national rate for all provision Championing Young People’s Learning Championing Young People’s Learning Championing Young People’s Learning

Worked ExampleComments • Could have a single national base rate for all provision or different rates for schools and FE as currently - depending on government policy • Approach to convergence to national base rate to be agreed • Transitional protection may be required to reduce levels of turbulence Championing Young People’s Learning Championing Young People’s Learning Championing Young People’s Learning

19-24 LLDD • In 2011 / 12 YPLA will fund ISPs direct • Work in 201/11 to develop, model and test a new approach to bringing together the main streams of funding for learners with LDD – SEN block grant, additional learning support, funding for provision in independent specialist providers • Local authority duty to arrange learning needs assessment for young people with statement of special education needs Championing Young People’s Learning

2011/12 Allocations: Issues • Levers for local authorities • Responsiveness of the lagged approach • Addressing strategic gaps • Mergers and restructuring • Appeals Championing Young People’s Learning

And finally, the big picture…….. • October 20th Spending Review results! • Education White Paper late autumn – to include conclusions on LA role • Allocations guidance to be published for consultation post White Paper • Qualification pathways and the Wolf review of vocational education • Learners with learning difficulties and disabilities and the Sarah Teather review of special needs provision. • System challenges for all partners • Continue to improve the learning offer and raise participation • Narrow the gap in attainment • Challenges for YPLA: • Growing number of academies • Supporting local authorities leadership role for 16-19 • Simplifying funding for 16-19 Championing Young People’s Learning

Championing Young People’s Learning