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Funding Masterclass planningandfunding.co.uk

Employer-responsive (ER) funding (Apprenticeships and Train to Gain). Nick Linford. Funding Masterclass www.planningandfunding.co.uk. Contents. 10.05 Employer-responsive (ER) overview. 10.30 The demand-led funding formula. 11.15 Coffee and homemade biscuit break.

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Funding Masterclass planningandfunding.co.uk

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  1. Employer-responsive (ER) funding (Apprenticeships and Train to Gain) Nick Linford Funding Masterclasswww.planningandfunding.co.uk

  2. Contents 10.05 Employer-responsive (ER) overview 10.30 The demand-led funding formula 11.15 Coffee and homemade biscuit break 11.30 Apprenticeship funding 12.30 Lunch break 13.30 Apprenticeship funding 14.00 Train to Gain funding 15.00 Coffee and homemade pastry break 15.15 ER data, audit and future 16.00 End

  3. Introduction and ER overview

  4. ER Overview The Employer-responsive funding model was referred to as the WBL (excl. E2E) funding stream before 2008/09 There are four ER funding types, each with different rates 16-18 Apprenticeships 19-24 and 25+ Apprenticeships Train to Gain BIS DCSF Colleges, independent training providers, local authorities, charities etc

  5. 16-18 ER funding (England) Source: Statement of Priorities, LSC (November 2008) 16-18 Apprenticeships remain a high priority and a significant growth market (LSC have said funding will always be available)

  6. Local Authority £18m (3%) FE £210m (32%) Other public £30m (4%) Charities £90m (14%) Private £316m (47%) 16-18 ER landscape 2008/09 Maximum Contract Values (MCVs)Academic year (Aug 08 – Jul 09) • Number of MCVs: 1161 • Total MCV value: £664m • Average MCV value: £572k • Largest MCV value by provider type: • Charities: £41m (CITB) • Other public: £15m (MoD) • Private: £9m (Carillion Construction) • FE: £6m (City of Bristol College) • LA: £2m (Kingston Upon Hull City Council) Source: LSC provider Allocations Spreadsheet (Feb 2009), 16-18 ER Total

  7. 19+ ER funding (England) Source: Statement of Priorities, LSC (November 2008)

  8. FE £494m (46%) Local Authority £21m (2%) Other public £28m (3%) Charities £44m (4%) Private £479m (45%) 19+ ER landscape 2008/09 Maximum Contract Values (MCVs)Academic year (Aug 08 – Jul 09) • Number of MCVs: 2073 • Total MCV value: £1bn • Average MCV value: £515k • Largest MCV value by provider type: • Charities: £16m (CITB) • FE: £11m (West Nott College) • Other public: £11m (MoD) • Private: £6m (Economic Solutions Ltd) • LA: £1m (Lancashire County Council) Source: LSC provider Allocations Spreadsheet (Feb 2009), 19+ ER Total

  9. The demand-led funding formula

  10. Elements multiplied togetherequals maximumfunding for the enrolment The funding formula The ER demand-led funding formula is an enrolment based funding methodology Therefore, every enrolment has an individual value Elements in the ER demand-led funding formula: > Standard Learner Number (SLN) > National Funding Rate (NFR) > Programme Weighting (PW) > Disadvantage Uplift (DU)* > Area Cost Uplift (ACU) * Not included for Train to Gain

  11. Funding formula examples 16-18 Appren’ example Train to Gain example Key Skills in Communication NVQ 2 in Beauty 0.08 0.429 £2,920 £2,901 1.00 (A) 1.2 (L) 1.1234 1.0 1.00 £1,493 £262

  12. The funding sources > 16-18 Appren’ = £2920> 19-24 Appren’ = £2817> 25+ Appren’ = £2535*> Train to Gain = £2901

  13. The Learning Aim Database The LAD contains funding information for each qualification : http://providers.lsc.gov.uk/lad Every qualification will have an eight digit learning aim E.g. NVQ 2 in Beauty Therapy from Edexcel has the learning aim 50032690

  14. The Learning Aim Database ER funding tab Qualification Appren’ SLN TtG SLN Appren’ PW TtG PW

  15. Fee assumption All 19+ apprenticeship learners, and some TtG learners,are not eligible for full funding An Employer Contribution Percentage (ECP) is deducted from the total funding > The TtG percentage in 2009/10 is always 47.5% > The Apprenticeship percentage differs and is on the LAD This deduction assumes a fee will be charged tothe employer, but does not require it

  16. Funding formula examples 19-24 Appren’ example Train to Gain example Key Skills in Communication NVQ 3 in Beauty 0.08 0.644 £2,817 £2,901 1.00 (A) 1.2 (L) 1.0000 1.12 1.00 17.5% £1,318 £186

  17. ER minimum attendance This is commonly referred to as the definition of a start If an Apprenticeship or Train to Gain withdrawal is beforethe minimum attendance period no funding is generated Achievement and on-programme funding instalments will be covered shortly

  18. Apprenticeship funding

  19. EmploymentRights and ResponsibilitiesThis element is often covered as part of the NVQ or technical certificate Competence A National Vocational Qualification (NVQ) with assessment methods designed to test competence Knowledge Some frameworks have a technical certificate whilst others demonstrate knowledge within the NVQ element Apprenticeship Framework Transferable, or ‘key’, skills Frameworks include as a minimum, Key Skills in Communication and Application of Number The Framework

  20. The Framework on the LAD Framework tab This will enableyou to find therequired/eligibleframework qualifications

  21. Example Framework rate Level 2 Construction Apprenticeship (framework 116) Values from the LAD To calculate the maximum funding the remaining elements of the formula need to be applied

  22. Example Framework rate 16-18 Level 2 Construction Apprenticeship in central London £6,040 £4,811 £303 £303 £11,457 Remember: > 16-18 Appren’ NFR = £2,920> 19-24 Appren’ NFR = £2,817 and apply ECP> 25+ Appren’ = £2,535* and apply ECP * To achieve a 10% lower 25+ apprenticeship rate ILR field A51a needs to be used

  23. Achievement instalment Achievement is 25% of main qualification (NVQ) funding This is held back and only funded once full framework (all qualifications) have been achieved In this example 25% of £4,660 (£1,165) is for achievement £8,840

  24. On-programme instalments The on-programme funding is the total funding less the funding for achievement The LSC pay monthly on-programme funding instalments based on submitted ILR data The first month instalment will be worth twice as much as each of the remaining months (n+1 approach) So, if 12 month course then each month is worth total on-programme funding divided by 13 (with month 1 paid twice) e.g. £5,000 on-programme funding over 9 months would be in first month and for the remaining 8 months £500 £1,000 I agree – it’s confusing!

  25. Practice what you’ve learnt Three month Advanced Apprenticeship in Beauty for 22 year-old in Leeds delivered during 2009/10 (the learner DU is 1.0000) £2,817 1.00 1.0000 £3,331 £2,817 1.00 1.0000 £186 £2,817 £186 1.00 1.0000 £2,817 1.00 1.0000 £186 £3,889 £833 £1,528 £764 £3,889 £764

  26. Train to Gain funding

  27. Skills for Life Vocational ‘full’ quals “bite-sized chunks” Nearly always NVQs Announced 21/10/08 Train to Gain Range of qualifications – but no framework Train to Gain Train to Gain funding example NVQ 2 in Beauty in central London Monthly on-programme and achievement fundingworks in the same wayas for apprenticeships

  28. Train to Gain Instalments Four full calendar months of TtG NVQ 3 in Health in central London delivered during 2009/10 £2,901 1.20 47.5% £1,412 £424 £212 £353 £212 £1,412 £212

  29. 07/08 07/08 £500 E.g. for an NVQ in Construction 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 Train to Gain instalments The monthly TtG instalments was new in 2008/09 Monthly instalments Cumulative instalments

  30. Train to Gain in 2009/10 Rates that changed for 2009/10 Carry-in will have some months at 2008/09 rates and some months (including achievement) paid at 2009/10 rates

  31. Train to Gain Flexibilities For 2008/09 ‘flexibilities’ were introduced to stimulate both demand and supply. These included: > Skills for Life at Entry Level > Non-first full level 2s fully-funded (free) > Level 3 (incl.19-24 ‘first’ fully-funded) > Selection of thin and unitised QCF quals The policy worked > perhaps too well! The 3% TtG premium was scrapped for 2009/10 and we can expect more to be scrapped for 2010/11

  32. TtG funding history National roll-out from Aug 2007, and byAugust 2008 £100m under-spend went to HE FE Focus 08/08/08 and 29/08/08 TtG ‘flexibilities’ introduced from August 2008and before long demand outstripped supply FE Focus 03/07/09 and 04/09/09

  33. TtG problems for 2009/10 £925m 09-10 TtG budget in Grant Letter(more than last financial year but less than last academic year) Financial year Grant Letter (government budgets) Academic year provider contracts (MCVs) About half of 09-10 financial year spent on last four months of 08/09 academic year. The eight months (67%) left of 09-10 financial year only covers 47% of 09/10 academic year commitments. Will lead to cash-flow problems for some

  34. ER data, audit and future

  35. ILR W01 04/09/09 OLDC portaland AMPS Provider paid 14/09/09 Submit monthly on 4th working day LSC data collection and payment systems BACS payment on10th working day ER data and payment Providers submit monthly Individualised Learner Record (ILR) data online, which leads to an automatic payment Example for the first month (period one) payment for August Other related software and databases: > Learner Information Suite (LIS) > Learning Aims Database (LAD) > Data Self-assessment Toolkit (DSAT)

  36. ER data audit Data quality is now high on the agenda after Geoff Russell’s ‘data irregularity’ letter Three things particularly on the ILR audit radar: > Changes to planned end dates > Use of the fee remission field (A14) > Use of the discount field (A51a) Does anyone have experience of Train to Gain or Apprenticeship ILR audit that they wish to share?

  37. 16-18 Apprenticeship future Raising the Participation Age (RPA) and the Apprenticeship Entitlement “The ambition is that, by 2019/20, one in five young people will have started an Apprenticeship before the end of the academic year in which they reach their 18th birthday [from one in 15 at present]” Source: Statement of Priorities, LSC (November 2008) Role of the DCSF, YPLA, RPG, SRG, LAs, NAS and SFA in the planning, commissioning and payment processes from April 2010…..

  38. 19+ Apprenticeship future > Employer contribution (rate reduction) will rise further > Level 3 Apprenticeships prioritised over TtG for 19-30 > Questions will be asked about whether employers are making a financial contribution > 19-24 Apprenticeship rates reduced by 3% > 25+ reduced by a further 10% (so 20% less than 19-24) > Pressure will be on to find savings and prioritise the younger apprenticeships (particularly 16-24 year olds) > 25+ Apprenticeship may simply prove too expensive

  39. TtG future is uncertain > Lack of funding and cash-flow issues mean many providers will suffer > Government are scrapping some flexibilities (e.g. full-funding for non-first level 2) and reduce rates 6% > Uncertain impact of QCF and interim ‘fullness’ definitions > NAO report said poor value for money (21/07/09) > Conservatives say they would scrap TtG > Skills Funding Agency (SFA) will take it over from LSC from April 2010. Look out for the Single Account Management System (SAMS), and possibility of going to financial year contracts from April 2011)

  40. Official funding guidance LSC guidance 08/09 (six ‘booklets’ totalling 320 pages) Plus the 2009/10 update (currently version 4.2) Plus a number of Annex’s, such as use of A51a for 25+ Apprenticeships

  41. Unofficial funding guidance The hands-on guide to post-16 funding >www.fundingguide.co.uk > Now working in partnership with The Data Service on The hands-on guide to post-16 performance and data > Find out more at www.dataguide.co.uk Funding masterclasses and free resources > A variety of free online resources >www.planningandfunding.co.uk

  42. Thank you for attendingAny questions?

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