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OCN London Access Conference Funding Update Julian Gravatt, Assistant Chief Executive, AoC

OCN London Access Conference Funding Update Julian Gravatt, Assistant Chief Executive, AoC 1 st October 2013. Spending review re-cap. Cabinet agreed £10 billion in spending cuts for 2015-16 George Osborne announcement on 26 th June 2013: 1% increase in Department for Education budget

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OCN London Access Conference Funding Update Julian Gravatt, Assistant Chief Executive, AoC

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  1. OCN London Access Conference Funding Update Julian Gravatt, Assistant Chief Executive, AoC 1st October 2013

  2. Spending review re-cap Cabinet agreed £10 billion in spending cuts for 2015-16 George Osborne announcement on 26th June 2013: 1% increase in Department for Education budget Protection for Schools budget for 5-16 year olds 4% cut in Department for Business budget No big change to the HE funding settlement More reform to 19+ FE/Skills

  3. Party conference update Liberal Democrats - raise income tax threshold - free meals for primary age children Labour - childcare for 3 and 4 year olds - fiscal discipline Conservatives - transferrable marriage tax allowance - freeze fuel duty - bring budget into surplus by 2020

  4. DFE spending choices School protection implies £700 mil (+1.7%) budget increase Implies a £300 mil (2.6% cut) to Non-Schools budget DFE will be cutting Admin, Education Services Grant (to Councils) DFE has options to cut other Non-School budgets (egtraining? Ofsted?) Risk of 16-18 budget cuts (either funding rates or participation) The Schools Budget £42 billion Pupil numbers rising Funding per pupil protected 16-18 budget £7.4 billion At risk The rest £5 billion DFE, Childcare Children at risk

  5. BIS 19+ FE spending choices Employer Ownership £340 mil No longer pilots Loans £400 mil No change (yet) Adult Skills Budget £1.5 bil 2013 27% less by 2016? ESF £170 mil LEPs take control Apprenticeships £1.5 bil Employer control 3 options

  6. The Adult skills budget £2.8 billion 2009-10 £2.0 billion 2013-14 £1.6 billion 2016-17

  7. AoC spending review scorecard Objectives set in consultation with Colleges and AoC Board We don’t yet know final outcomes. Are there areas we should shift position?

  8. OECD – skills after school

  9. Funding of access courses 19-23 year olds only Funding rate * Disadvantage * Area Cost = Money earnt Where Access Funding rate = £3,022 (A), £3384 (B), £3922 (C) or £4835 (D) Disadvantage is worth up to 32%, calculated using postcode Area cost is worth up to 20% (Central London) Achievement worth 20% of funding (ie funds held back)

  10. 24+ Advanced Learner Loans New and contentious Fees now cover all the costs of those over 24 taking Level 3+ courses Government handles cashflowand repayments A different relationship with students and apprentices Write-off of access loan on successful degree completion

  11. Marketing access courses 2013-14 is the year to find out what works Too much information can be a problem. Best to talk to the student. Positive messages (no credit scores, income-linked repayment). Honest about negative messages (education costs money). Refine messages on basis of experience with students. Be careful not to offer financial advice. Referral to other agencies (NCS, Citizens Advice, SLC microsite)

  12. Student Loan Company

  13. Processing issues SLC systems work well if all the data is complete Lots of errors in terms of missing information and signatures Plenty of walk-in enrolments don’t have documnts Valid UK Passport (same name) and NI number needed Clear rules needed about students starting courses Clear rules needed when students withdraw Best to start early Changes to Access courses now create risk of delay in 2014

  14. What’s next? . 16-18 Funding outline for 2014-15 Autumn 2013 (November?) Conclusions of 16-24 review December 2013 Data used to make allocations January 2014 2014-15 allocation March 2014 19+ Skills funding statement (2014-15) November 2013 LEP Economic plans/Skills strategies December 2013 Provisional funding allocation December 2013 2014-15 allocation March 2014

  15. Final thoughts UK economy due to recover while UK state will retrench to core Five years of spending cuts to come (ie 2013 to 2018) Next government may change tax/spending/welfare mix Loans are here to stay in 2010s as finance source Income reductions = job cuts + pay restraint + productivity College income depends on recruitment, retention & reputation Some positive signs in College enrolments in autumn 2013 Confidence is important Students will continue to search for good value

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