EFA and SFA funding reform update for 2013/14

30 January 2013

Nick LinfordManaging Director of LsectManaging Editor of FE Week

The 16-19 Funding Formula (EFA)

http://www.education.gov.uk/aboutdfe/executiveagencies/efa/a00210682/funding-formula-review

Key 16-19 funding formula reforms

2012/13 (now) 2013/14 (next year)

Funding per qualification

Standard Learner Numbers on LARA

Funding per student (overtime per Study Programme)

Fixed £ rates with minimum learner glh thresholds

Success factor

Retention factor

Formula Protection Funding (FPF) to last at least until end of 2015/16 (true?)

Funding per student

Student statusHours

required per year

Hours funded at

Full time 540 + 600

Band 4 450-539 600 (interim)*

Band 3 360-449 405

Band 2 280-359 320

Band 1 up to 280 % of 600

*Student in 2013/14 recorded with 450-539 hours will attract part-time funding in 2015/16 allocations

EFA expecting full time learners to do an average of 600 hours per year over two years (eg 660 then 540)

The hours (glh) that count

From September 2013 a list of approved level 3 qualifications will be published for use in performance tables

• Qualification

• Non-qualification (eg tutorial and work-experience)

Full time (540+)

• Qualification

Part time (less than 540)

The new 16-19 funding formula

SN = Student NumbersNFR = National Funding Rate per student RF = Retention Factor PCW = Programme Cost WeightingDF = Disadvantage FundingACA = Area Cost Allowance

(SN x NFR x RF x PCW + DF) x ACA = £

EFA deadlines (assume last day of the month)January : 13/14 student number statements

Confirmation of programme weightings

Tomorrow?February : Funding statement 2013-14, including the national funding rate

March : Allocations finalised

First edition published in October

Second edition published February

Third edition published June

Implementation from Aug 2013

Final documents due tomorrow...

Lots of ‘modelling’ still to do

New 19+ ‘simple’ and ‘streamlined’ funding

Key change: a ‘learning aim rates matrix’

Final version with 2013/14 rates due out tomorrow (else late)

Return of bands, but funding by QCF credit

The bands based on pounds per QCF credit

Fundin

g p

er

credit

(fr

om

learn

ing r

ate

s m

atr

ix)

Average of £44 per credit

Example NCFE qualifications

Learning aim Qualification title

50029848Certificate in Working with People with Mental Health Issues

50083429 Certificate in Equality and Diversity (QCF)

10062269 Certificate in Safe Handling of Medicines

Next year

Increase

New matrix rate

£811 £30 4%

£724 £143 25%

£811 £30 4%

This year (19+ classroom)

SLN GLH SLN PWF PWF NFR 2012/13

120 0.27 B 1.12 £2,615 £781

100 0.22 A 1 £2,615 £581

120 0.27 B 1.12 £2,615 £781

Apprenticeships“Given the major change in the longer term, it as been decided not to proceed in 2013/14 AY with applying the simplified approach to setting Apprenticeships rates to existing frameworks that is being adopted for wider FE qualifications. This approach will, however, be applied for new Apprenticeship frameworks where these are developed. This will ensure that all new funding rates will in future link more transparently to the cost of the component qualifications, with account taken of the additional activities involved in Apprenticeship delivery. All other simplification changes to the system will continue to be made.”

Skills FundingStatement

Dec 2011

Q&A