16-19 Funding 2013/14 Update

1. 16-19 Funding 2013/14 Update Princes Trust Delivery Partners June 2013

2. Raising Participation Age • The participation age will be raisedto: • For 16 year olds -end of the academic year in which they are 17 from Summer 2013 • For 17 year olds to their 18th birthday from Summer 2015 • Applies to all those resident in England • Enforcement deferred • What counts as participation?... • full time education (school, college or independent provider for at least 540 hours • home education • Apprenticeship • full-time work including at least 280 hours of education Raising Participation Age Study programmes Funding per student

3. Study Programmes • Applies to all 16-19 year olds • Students will take either academic programme or a substantial vocational qualification recognised by employers – these must help them secure skilled work or a university place • Where appropriate students will also take part in work preparation or work experience • Participate in value-added non-qualification activity • Students who don’t have GCSEs grade C in English and maths at 16 will continue to study these subjects • Students who aren’t able to study a substantial qualification will take a programme of work experience and continue to develop their numeracy and literacy skills Raising Participation Age Study programmes Funding per student

4. 16-19 education was funded… Qualification by qualification Funding is unfit to support RPA Wolf found there to be perverse incentives which didn’t help raise standards System is very complex and opaque 16-19 education will be funded… student by student Increased focus on providing the student with a holistic study programme which will get them into university or work All students receive same basic level of funding Enables and supports a simple and transparent funding system Subject to A level and GCSE reform Funding per student Raising Participation Age Study programmes Funding per student

5. What is changing for 14-19? Cohort decline Larger Provider Base Funding per student Public Spending Pressures NEET remains at 10% Study Programmes 14- 16 programme YC/ESF Traineeships RPA TechBacc Opportunities

6. The new 16-19 funding formula ( ) Student Numbers National Funding Rate per student Retention Factor Disadvantage Funding Area Cost Allowance Programme Cost Weighting Total Programme Funding

7. Student Numbers ( ) National Funding Rate per student Retention Factor Programme Cost Weighting DisadvantagFunding Area Cost Allowance Student numbers This is a count of students to be funded Must meet qualifying period of 2 weeks or 6 weeks- will not fund programmes under 2 weeks Based on autumn census or ILR return Either full time => 540 hours Or Part Time < 540 hours For 2013/14 and 2014/15 Band 4 = full time The bottom band treated as Full Time Equivalent (FTE), that is a proportion of 600 Age groups 16-18 and 19-24 for HNS are treated the same

8. National Funding Rate per student ( ) Student Numbers Retention Factor Programme Cost Weighting DisadvantagFunding Area Cost Allowance The National Funding Rate • Single National Full Time funding rate per student expressed in £ • All 16-19 year olds in sixth forms, colleges and independent providers are funded at the same national funding rate • Out of scope Youth Contract, Young Offenders, 16-18 Apprenticeships and European Social Fund (ESF) • This is the final element of the formula fixed by the EFA. It depends on how much learning is taking place across the country and the budget. • The rate used in the 2013/14 allocation is £4,000

9. National Funding Rate per student ( ) Student Numbers Retention Factor Programme Cost Weighting Disadvantage Funding Area Cost Allowance Part Time Funding rates • A full time rate based on circa 600 hours • Three part time rates for bands 2,3,4 • Each funded at mid-point of the band • For Band 4 (450-539 hours) for 13/14 and 14/15 we will fund at the full time rate • Band 1 (below 280 hours) funded as a proportion of 600 hours ie 150 hours gets 25% of the National Full Time funding Rate

10. ) ( Retention Factor Prog Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student What is Funded? Hours that are: • Directly relevant to the study programme • Planned, explicit in the Learning Plan or Timetable • Supervised and/or organised by the provider • Quality Assured by the provider • Within normal working pattern

11. ) ( Retention Factor Prog Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Qualification Hours Hours that are delivered towards qualifications that are approved for teaching to 16-19 year olds under section 96 of the LSC act 2000

12. ) ( Retention Factor Prog Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Non Qualification Hours • Not counted towards a qualification • Informal certificates • Non-qualification activity • Tutorial purposes • Work experience/Work related activity • Volunteering/Community activities • Enrichment activities

13. ) ( Retention Factor Prog Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Not Funded • Voluntary extra-curricular activities and clubs delivered during breaks or outside normal working pattern • Study that is homeworkor independent study/research that is not timetabled • Employment or Work Experience organised by anyone other than by or on behalf of the provider • Volunteering/Community activities that are not organised by or on behalf of the provider

14. ) ( Retention Factor Prog Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Compressed Delivery • In some cases, where this best meets the assessed needs of the students and/or is strictly necessary to prepare them for their progression outcome, institutions will plan compressed programmes to allow students to complete a significant number of hours in a short period of time. These programmes will be funded at the standard funding rates based on the planned hours.  • We would expect such compressed delivery to lead to excellent results, as demonstrated through qualification success rates and positive destinations.  We would not expect this to lead to a student being funded for more than one full-time programme in an academic year. We will monitor the delivery and value for money of compressed programmes during 2013/14 and will decide whether to apply a funding cap to such provision in future accordingly.

15. ) ( Retention Factor Prog Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Second study Programmes • Where a student progresses within an institution, the maximum of 600 hours funding is applied automatically and no student will be funded above this level. • Where a student moves onto a new institution, the level of funding depends on the number of hours the second institution will provide for the remainder of the academic year. In general, we would expect this second programme to be less than a full time full year programme. We would, therefore, expect to fund it in one of the part time bands.

16. Retention Factor ) ( Programme Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor • Success no longer used in funding, a retention factor is now used • Applied at student level, not qualification level • Retained means still studying a core aim on planned end date or leaves early and is recorded as completed the core aim • For academic programmes – still studying one of the academic aims • For vocational programmes still studying the core aim • Retention FACTOR = half way point between Retention RATE and 100% Number of students completed Number of students started

17. Programme Cost Weighting ) ( Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor Programme Cost Weighting • Recognition that some vocational subjects are more expensive to teach than others • Applied to the student’s whole programme • Determined by the student’s core aim ie A Levels or substantial vocational qualification • All academic programmes uplifted by one weight, which has been determined by merging the 2 current academic weightings and low cost vocational programmes and rebasing these as 1, • Vocational Programme Weighting categories are being reduced in number and re-set to make it simpler: applied at sector subject areas

18. DisadvantageFunding ) ( Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor Programme Cost Weighting Disadvantage Funding • Recognises that some students require additional support to participate and achieve if we are to achieve full participation and improve attainment • Principle is to create a single budget that institutions use as they see fit Disadvantage Funding Economic Deprivation Prior Attainment

19. Disadvantage Funding ) ( Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor Programme Cost Weighting Disadvantage Funding • Based on student’s home postcode • Deprivation is calculated using Index of Multiple Deprivation 2010. This examines the student’s home area based on: income; employment; health and disability; education, skills and training; housing and services; living environment; and crime • Uplift is between 8.4% and 33.6% of 27% most deprived super output areas Economic Deprivation Block one: • Care Leavers attract a standard uplift- rate £480

20. Disadvantage Funding ) ( Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor Programme Cost Weighting Disadvantage Funding • Acknowledges the additional cost of students who need extra learning support • Based on student’s achievement of GCSE English and maths at end of Year 11 • Funding rate for 13/14 = £480 • Flat rate for part time bands 2 and 3 = £292 • Pro rata as per programme costs for band 1 Prior Attainment Block two: • Used to be graduated payments based on student’s grades • Now only a flat rate based on non-achievement of grade C

21. Area Cost Allowance ) ( Student Numbers National Funding Rate per student Retention Factor Program Cost Weighting Disadvantage Funding Area Cost Allowance ) Area Cost Allowance Programme Cost Weighting • Reflects the cost of delivery in high cost local areas – remains unchanged • We will continue to calculate this using the same methodology as now • Applied to the whole participation formula (including all disadvantage)

22. Student Support Funding TP from 11/12 High Needs Students Formula Protection Funding ? ? ? Formula protection funding (FPF) • Will be paid for at least three academic yearsuntil and including 2015/16, where the move to a basic funding rate per student would otherwise result in a reduction in funding per student. • Calculated by comparing funding per student allocated for 2013/14 (excluding transitional protection) with funding per student for 2012/13 • The operation of formula protection funding for future years will depend on progress of Ministerial Working Group on the reforms for large programmes, A levels and GCSEs. • Enables you to move on with curriculum reforms and simplification while final details are resolved

23. Student Support Funding TP from 11/12 High Needs Students Formula Protection Funding ? ? ? Formula protection funding (FPF) For example: • Funding per student at Shakespeare College in 2012/13 is calculated at £4500 per student, • The new methodology for 2013/14 gives them £4060 per student, • FPF of £440 per student is included in the 2013/14 allocation

24. Student Support Funding TP from 11/12 High Needs Students Formula Protection Funding ? ? ? High Needs Students (HNS) • This is funding for students with learning difficulties and/or disabilities and/or special educational needs with support costs above £6,000 • There’s a system based on the same principles for all children and young people from ages 0 – 24 • It is called place plus – places are funded by the EFA and any additional top-up funding by the home local authority • There are three elements to High Needs Funding

25. Student Support Funding TP from 11/12 High Needs Students Formula Protection Funding ? ? ? High Needs Students (HNS) • The place – EFA Funded • Element 1 This is the standard 16-19 Funding Formula as we have described – it is based on lagged student numbers – this aspect rolls on from year to year. • Element 2This is the first £6,000 of additional support – numbers are calculated based on information provided by the local authority about the number of places it is going to commission from each institution and the EFA adds £6,000 for each place to the allocation – completing the place funding. • The Plus – Top up Funding – LA Funded • Element 3any funding the individual requires above the first two elements is negotiated and agreed with the student’s home LA

26. ) ( Retention Factor Prog Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Condition of Funding M&E • Any student 16-18 without a minimum grade C in English and/or maths must be working towards this level from 2014/15 Academic Year • Or that student WILL NOT be counted in lagged funding for 2015/16 • DfE will publish a list of what counts as having a grade C – watch the bulletin • These students must enrol on a GCSE, Functional Skills, Free standing maths or ESOL • Functional Skills are a stepping stone towards GCSE and not an end in itself – if the student already has a FS at level 2 then must enrol on GCSE • We are producing reports to show you how you are doing before the summer

27. ) ( Retention Factor Prog Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Key Data Implications (1) • Identify core aim • Record planned student-level hours: • Qualification hours • Non-qualification hours • Less emphasis on detail at aim level for funding purposes

28. TEAM Programme Example