aoc student support conference politics, funding and student support 23 october 2014 julian gravatt,...
TRANSCRIPT
Aoc Student support conference
Politics, funding and student support
23 October 2014
Julian Gravatt, Assistant Chief Executive, AoC
@JulianGravatt
http://www.aoc.co.uk/term/funding-finance
Politics – where we are now
Uncertainty8 months before the 2015 general electionCoalition governing parties disagree on several issuesLabour better able to convert votes into seatsResult currently difficult to callThe Scotland vote is prompting discussions on the constitutionSchools, apprenticeships and university fees all big political issuesAoC manifesto designed to secure helpful but feasible proposals
Planning the next 12 months
Autumn 2014Party conferences, 21 September to 8 October 2014EFA Funding Letter, 16 October 2014 (hopefully)AoC annual conference, 18 to 20 November 2014Autumn statement, 3 December 2014Skills Funding Statement, December 2014 (hopefully)
Spring & Summer 2015Budget, mid March 20152014-15 allocations, by end of March 2015Easter, 7 April 2015General election, 7 May 2015Coalition negotiations, May 2015 Spending review, June to October 2015 (hopefully)
Politics and funding
Before the electionGeneral avoidance of boat-rockingDecisions on 2015-16 funding made before the electionAutumn statement may add to, subtract from or devolve budgets
After the electionPost-election 2015 spending review (budgets from 2016-17 onwards)Demography: More children now + more old people = post-16 squeezeCross-party agreement: closing deficit, cutting taxes & protecting NHSSpending likely to dip around 2018
Government plansVarious budgets get biggerPensions, interest, NHS etcDeficit reduction via RDEL cuts
Unprotected departments9.1% of GDP (2013-14)7.8% of GDP (2015-16)5.4% of GDP (2018-19)NATO 2% target for defenceSpending cuts c30-40% to comeLoans & fees a safe haven?
The bigger spending picture
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The DFE budget after 2015
DFE’s cash crunch: too many schools, pupils & promises80% of school income spent on staff; on-costs up 5% in 2015-16UTCs, free schools & studio schools enrol 1% of 16-18s2015 to 2020: 11-16 pupils +10%, 16-18 population -8%Pressure for devolution (councils, combined authorities or LEPs?)Core 16-18 funding system continues for now
BIS budget
BIS budget in 2015-16£14 bil Student Loans£13 bil DEL HEFCE + Grants + Science£8 bil
19+ FE/Skills budget £3.5 bil
Various contradictory options are in play1: Devolve skills & DWP budgets to local govt or LEPs2: Employer-routed funding for apprenticeships33: Expansion of FE loans to 19 year olds & Level 24: New earn-or-train options for under 21s on benefit5: New SFA funding approach borrowed from EFA?
What does this mean for 2015-16
EFAFunding based on student numbers, funding factors & a £4,000 rate16-18 bursary and 16-18 free meals likely to roll forwardILR data (R04 return) very important in setting free meal allocation
SFAFunding based on apprenticeships and other adult skillsColleges have two funding pots which aren’t mixed19+ financial support funds likely to roll forward (less cuts)24+ loans are the growth area in 2014-15 but this may slow
Student support
Support within the education system at different agesUniversal infant free school meals In-course support via pupil premium and for those with high needsTransport support but under pressure post-16Modest 16-18 sums for bursaries, free meals and care to learnModest sums for those in 19+ educationMaintenance grants and loans for full-time higher education
Support within the welfare system at different agesChild benefit plus income-related benefits for parentsDiscussion about withdrawing benefits for under 21s (earn or train)Treasury’s welfare cap will cause pressure on working-age benefitsLong delayed plan to merge benefits into universal credit
Some concluding thoughts
Thinking about your rolePublic spending trends will force changes in collegesBudgets pressure => review of management, admin & support rolesStudents cannot learn or train if they can’t afford to do soVital to manage student support budgets carefullyColleges have a clear role helping students off benefits into workData – how do you prove you’re making a difference?Education and skills matterQuality countsEvery crisis is an opportunity
Reminders
More information on funding and finance issues here
•http://www.aoc.co.uk/term/funding-finance