Apprenticeship funding update

May 12th 2010, 11.30-12.30, LEACAN Focus day on Apprenticeships

Nick LinfordHead of the Pearson Research Institute

Apprenticeship funding update

> The political divide

> Apprenticeship rates in 2010/11

> Allocations in England and direction of travel

> The National Commissioning Framework

> Apprenticeship demand, supply and priorities

> 16-18 Apprenticeship bedtime reading

> Big post-election questions

As of April 1st 2010 the data requirements and funding policy (eligibility,

rates and methodology) divide will widen further

? ?

Before last night!

New roles today?

16-18 LR (FE)

16-18 Appren

Adult LR(FE)

19+ ER (TtG and Appren)

Adult LR(FE)

19+ ER (TtG and Appren 16-18

LR (FE)

16-18 Appren

£7.5bn

BISDCSF

Funding Learners

4m

2010/11 demand-led funding (England)

Direction of travel for 2010/11

Funding+

6.6%

+ 12.2%

-11.5%

+0.1%

16-18 LR

(FE)

16-18Appren

Adult LR

(FE)

19+ ER(TtG and

Appren)

+ 1.1%

+ 10.4%

- 25.3%

+ 23.3%Learner

s

Apprenticeship rates in 2010/11*> No rate change (16-18 Appren)

> 50% assumed employer contribution (all 19+)

> 13% rate decrease (25+ Appren), now 20% less than 19-24 rate

> 3% rate decrease (19-24 Appren)

> And 25% reduction for large employers (all 19+)

So 19+ rate reductions mean many more learners for the same size of government budget

*Including carry-in monthly funding instalments

There were 7% more starts in 2008/09, but…

Without 25+ starts it was 7% fewer starts in 2008/09 compared with 2007/08 (and just 5% more than in 2005/06)

0

20,000

40,000

60,000

80,000

100,000

120,000

2005/06 2006/07 2007/08 2008/09

25+

19-24

16-18 - 7%

- 6%

+ 106%

Apprenticeship starts by age and year*

* Source : March 2010 Statistical First Release

No change since

2005/0613% increase

since 2005/06

So how is this year (2009/10) going?

* Source : March 2010 SFR, 2009/10 figures provisional

25+

19-24

16-18

Apprenticeship starts by age (01/08/09 – 31/01/10)*

-2%

+14%

-35%

Clearly concern is 16-18, with 7% fall in starts for 2008/09, and 2% less for first half of 2009/10*

7% decrease

since 2007/08

24% increase

since 2007/08

010,00020,00030,00040,00050,00060,00070,00080,000

2007/08 2008/09 2009/10

Summary of demand, supply and priorities16-18 starts struggling as we come out of a recession

19-25 picking up again as 25+ allocations are slashed

25+ now falling as allocations have switched to 19-24

Priority now 16-18 and 19-30, particularly at Level 3

Increasingly under 30 should do Apprenticeships as opposed to Train to Gain

New Industries, New Jobs (NIJI) and the Joint Investment Programme (sector priorities)

National Commissioning FrameworkPara 71 : As part of their local commissioning plan, localauthorities will identify the volume of Apprenticeships they need. To do this, they will work with the NAS and their 14–19 partnerships to identify the level of demand among learners and employers and the requirements of national target trajectories, and to ensure that suitable opportunities exist within each area.

Para 72 : The SFA, on behalf of the NAS, will conclude fundingagreements with providers and will monitor overallperformance. Where there are significant issues that affectthe quality and performance of Apprenticeship provision,these will be discussed with the local authorities concerned.

Bedtime reading for 16-18 Apprenticeships

Apprenticeship 2010/11 funding guidance due end of May

SoP NCF SFA GN 3 Earned Autonomy

Some big post-election questions1.Will the age of participation be raised to

18?

2.Could the school leaving age be lowered to 14?

3.Will there be a 14+ national funding regime or will local authorities want their own methods?

4. Will the 14-19 curriculum pathways survive?

5. In what shape would MoG survive?

6. A Liberal Democrat Education Minister?

(still possible as at 11.00 on 12/05/10)

Oh, and the second instalment!

www.fundingguide.co.uk

www.dataguide.co.uk

Please do let me know

what you think…..

Thankyou

Questions and discussion

Other events you or a colleague may be interested in

> Hot breakfast briefing (post-election special)

> Summer College Data conference

> Train to Gain and Apprenticeship Funding Masterclass

Find out more and book a place visit

www.pearsonresearchinstitute.com