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Funding policy and the impact on ESOL

Explore the significant impact of funding policy changes on ESOL provision and the future outlook for English language learners. Discover the effects of rate reductions, transitions to co-funded models, and the implications for learners and providers. Join our myESOL Funding Practiclass on 21st July 2011 in London to delve deeper into these crucial topics.

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Funding policy and the impact on ESOL

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  1. Funding policy and the impact on ESOL 9th July 2011

  2. which includes 19+ Apprenticeship funding £2.85bn £700k £2.8bn £600k £2.75bn £500k £2.7bn £400k £2.65bn £2.6bn £300k 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 Financial year Financial year The 19+ spending for 2011/12 Skills Strategy published November 2010 * ~ FE resource budget reduced by 25% by 2014-15 ~ Significant growth in 19+ Apprenticeships ~ Introduction of OIPs and £500k Minimum Contract Levels (MCL) 19+ Adult Skills Budget 7% more 1.4% less 68% more 3.9% less * Looks like biggest ‘cuts’ kick in for 2013-14 and 2014-15 when L3+ loans introduced

  3. ESOL provision hit by a menu of cuts 1. Rate reduction (32%) 2. Fully-funded to co-funded (inactive benefits) 3. Co-funded to no funding (ESOL in workplace) 4. No more ESOL learner support funding (£4.6m) Surprised by Mr Cable’s actions? “Fairness means supporting those in need” Have BIS gone too far? Does BIS understand the impact?

  4. 1. Rate reductions ESOL co-funded learner-responsive rates * * And remember, ESOL is funded at half the level of Literacy and Num ** Will lead to a reduced 2011/12 Provider Factor

  5. 2. Fully-funded to co-funded* At present, people only on one or more these benefits are fully-funded ~ Council Tax Benefit~ Housing Benefit~ Income Support~ Working Tax Credit~ Pension Credit~ Contribution based ESA (unless in the Work Related Activity)~ Unwaged dependants (as defined by DWP) of those listed above From August 2011 new starts will be co-funded (funding halved) Government will expect learners to contribute £2.91 per hour in 2011/12 Worked out as National Funding Rate per SLN (£2,615) / 450 x 50% = £2.91 *All 19+ learner-responsive provision, not just ESOL

  6. £3,944 funding £3,279 funding £1,127weighting 1.4 £546weighting 1.2 60% public funding rate reduction £1,307 funding £2,732Fully-fundedrate £2,817Fully-fundedrate £0 for weighting 1.0 £1,307Co-fundedrate Up to 60% rate reduction for new co-funded Rate changes for ESOL learners on ‘inactive benefits’ for a 450 hour course* £4,000 £3,500 £3,000 £2,500 £2,000 £1,500 £1,000 £500 £0 2009/10 2011/12 2010/11 Academic year * Learner-responsive funding rates in England (excluding non-Programme weightings)

  7. 3. Co-funded to not being funded Funding will be “ineligible where ESOL is delivered in the workplace. Public funds should not be substituted for employer investment in this way.” (SFA GN6) Yet literacy will continue to be fully funded and therefore free to the employer Fair? In reality, little publically funded ESOL is delivered in the workplace, probably because the Train to Gain funding rate is already too low

  8. 4. End of ESOL Learner Support Funding Since Bill Rammell ended fully-funded ESOLin 08/09 there has been a £4.6m pot, distributed to providers to help cover tuition fees for ESOL learners in need of the most help This year 2010/12 there are 322 providers sharing the £4,574,432 ESOL Learner Support Funding pot, ranging from £22 to £119,799 (Westminster Kingsway College) This ESOL LSF funding is not being distributed in 2011/12

  9. BIS Equality Impact Assessment for Skills Strategy “whist we expect a reduction in the numbers eligible for fully funded ESOL, continued co-funding for other categories and freedom for providers to fully remit fees for vulnerable learners should result in a very small overall impact on protected groups.” Do you agree? Incredibly, this is all the 39 page document has to say about the impact of changes on ESOL

  10. Case study for one London College Female BMEs hit hardest by inactive policy And currently over £2.4m ESOL on inactive benefitsat this London College (based on free Lsect ILR Utility: http://www.lsect.co.uk/ilrutility.asp )

  11. We await the Government’s ESOL assessment Teresa Pearce: To ask the Secretary of State for Business, Innovation and Skills when he plans to publish the equality impact assessment on the Government's plans for the future funding of English for Speakers of Other Languages (ESOL) courses. [42995] Mr Hayes[holding answer 28 February 2011]: An assessment of how the changes outlined in Skills for Sustainable Growth (November, 2010) may affect ESOL learners is currently being carried out by the Department. I expect to be able to publish the assessment in due course. http://tinyurl.com/6ylnwho Will there be a rethink?Is it too late? Will the volume of literacy qualifications rise as a means of protecting fully-funded ESOL provision?

  12. Learn more about funding at myESOL Funding PracticlassThursday 21st July 2011 in LondonFind out more and book a placeat www.lsect.com Sign-up for free updates and resources at www.lsect.com

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