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Page 1: For further information visit btec.co.uk/louder
Page 2: For further information visit btec.co.uk/louder

Going further for Further Education

‘Louder than Words’ is part of BTEC’s continuing commitment to Further Education; a series of activities designed to transform the way we support FE

colleges – because words are all very well, but actions show our dedicated support for FE providers and learners alike.

For further information visit

www.btec.co.uk/louder

Page 3: For further information visit btec.co.uk/louder

FE Policy Breakfast with Steve Besley

Steve Besley,

Head of Policy (UK and International)

November 2012

Page 4: For further information visit btec.co.uk/louder

Current Landscape

• 5 policy priorities, 4 growth ambitions, 3 current concerns, 2 ½ more years for the Coalition, 1 new Minister

• 5 policy priorities1. Reduce the deficit, strengthen the economy2. Develop conditions for growth3. Transform the qualification system4. Create a more responsive provider system 5. Reform funding systems, strip out waste, rebalance contributions

• 4 growth ambitions1. To create the most competitive tax system in the G202. To make the UK the best place in Europe to start/grow a business3. To support a more balanced economy4. To create a more educated workforce that is the most flexible in Europe

• 3 current concerns1. Lack of growth2. Future levels of investment3. Impact of reform

• 2 ½ more years for the Coalition• 1 new Minister

Page 5: For further information visit btec.co.uk/louder

Political and Economic Context

• Moment of truth outlined in Cameron’s 2012 Conference speech• Government struggling to meet its two set economic targets• Current picture:

– Global growth: 3.3% (2012) 3.6% (2013.) Source IMF Oct 2012– UK growth: 1.0% 3rd Quarter 2012 Source ONS Oct 2012– UK Inflation: 2.2% CPI. Source ONS Oct 2012– UK Unemployment: 2.53m. Source ONS Oct 2012

• Next key moments: post Olympic stats (Nov 2012,) latest OBR forecasts (Nov 2012,) Chancellor’s Autumn Statement (Dec 2012)

• Eurozone remaining a source of concern• Coalition sticking with Plan A but some talk of renewing marriage vows;

Opposition pushing 5 point plan for recovery and seeking to capture ‘One Nation’ rather than us and them

• Reshuffle over, main players in place for build up to election, narrative emerging

• Lines being drawn for forthcoming Spending Review, little room for any give, deficit plan rolling to at least 2018, welfare in the firing line

Page 6: For further information visit btec.co.uk/louder

Current policy priorities

1. Reduce the deficit, restore the economy to health

2. Develop conditions for growth

3. Transform the qualification system

4. Create a more responsive provider system

5. Reform funding systems, strip out waste, rebalance contributions

Page 7: For further information visit btec.co.uk/louder

2. Develop conditions for growth

• Rolling ‘Growth’ programme launched in Budget 2011, updated in Budget 2012, intended to run to 2015

• Over 130 measures, 11 for education and skills focusing on developments in: apprenticeships; employer ownership; literacy/numeracy; STEM; Youth Contract; work experience and qualification reform

• Major campaign to use Olympic bounce over the summer, long-term returns of £13bn targeted as part of GREAT Britain business programme

• Wave of activity running throughout autumn 2012 to help stimulate activity

• Recent developments– Fresh 5-point strategy (Planning, Housing, Employment, Infrastructure, Schools)

announced by David Cameron in Sept – New industrial Strategy announced by Vince Cable in Sept– New employee-owner scheme announced by George Osborne in October– New red tape reduction measures in Enterprise and Regulatory Reform Bill published in

Oct– Heseltine Industrial policy Review in Nov

Page 8: For further information visit btec.co.uk/louder

2. New Industrial Strategy

• Cross Government strategy, launched by Vince Cable, intended to reinforce Growth Plan

• Five main components: – creation of business bank

– support for essential sectors

– development of innovative technologies

– raising of skill levels

– improving procurement

• Three headline messages– Focus on supporting key sectors grouped into: advanced manufacturing; knowledge intensive traded

services; enabling industries. Other sectors to follow, progress updates in 2013

– Further expansion of Catapult Centres, innovation and research and foresight technology

– Devolution of skills system through EOPs, Round 2 testing out greater employer ownership of voc skills agenda

Page 9: For further information visit btec.co.uk/louder

3. Transformation of the qualification system

Big picture

• Two challenging dynamics– Concerns about standards, impact on learning, costs, international performance– Concerns about speed and extent of change

• Current architecture– An independent regulator but with a brief to maintain standards and ensure healthy

markets– A drive to simplify the qualification market but make it both more responsive and more

accountable– A commitment to a core programme of learning measured by exams at 16– A desire to ensure a better fit with user needs– A belief in more formal methods of testing knowledge

• Leading to – Retreat of the National Curriculum to essential knowledge requirements– Review of exams at age 16 around core requirements– A higher education endorsed model of exams at age 18– A post Wolf model of vocational qualifications– A surge of interest in Bacc variants– A new set of quality ‘controls’ for apprenticeship programmes

Page 10: For further information visit btec.co.uk/louder

3. Transformation of the qualification system

What to look out for1. GCSE reform• Consultation out on new EBacc model (Sept – Dec 2012) • Pronouncement on new format (spring 2013)• Post-16 impact (2016/17)

2. 16-19 changes• Consultation complete on design principles for A level reform (Sept 2012) possible

introduction from (Sept 2014,) moving towards IB model • New Wolf based 16-19 PoS backed by uniform funding system from (Sept 2013)• Focus on progression and transition to work

3. English and maths• Adoption of L2 benchmark for all programmes• Incentivised funding and inspection reporting (2012)• Dedicated LSIS support programme (2012)• Big focus on maths, National Numeracy Challenge (Oct 2012)

Page 11: For further information visit btec.co.uk/louder

3. Transformation of the qualification system

4. Apprenticeships• Holt Report published (Aug 2012,) Richard Report (Oct 2012)• New quality arrangements (August 2012)• Flexing up of AGE (Sept 2012)• GTA Inquiry Report (Sept 2012) • Higher Apprenticeship consultation (Sept 2012)• Miliband proposes employer owned model (Oct 2013)• Latest stats show overall increase in numbers but worrying drop at 16 – 19 (Oct

2012) • Traineeships (Spring 2013)

5. Other• Ofqual Consultation on ESOL (Sept 2012,) review of QCF, NOS, Healthy Market

Report (2013)• Review of impact of Innovation Code, continued trend towards deregulation

(2013)• Impact of CAVTL (spring 2013)

Page 12: For further information visit btec.co.uk/louder

3. Summary of framework developments • Gove model

– EBaccs: primarily aimed at 16 yr olds, long-term GCSE replacement, largely knowledge based, core academic subjects, offered through tendered exam process

– ABaccs: linear A levels but based on new design process, incorporation of IB approach with contrasting subject, dissertation, community work

• Tech Bacc– Labour alternative at 14-19

– Conditional on L2 Eng/maths, an accredited L3 qual, ‘quality’ work experience

– Builds on Adonis thinking informed through Husbands’ Review

• Adonis models– A-Bacc: based on IB, create greater challenge at A level, incorporate a contrasting

subject, project, theory of knowledge, community service

– Tech Bacc: 2 levels, Eng/maths, a sector qual, formal work experience

• Wolf model– 14-16: emphasis on core learning, streamlined voc offer, revised performance measures,

greater mobility of staff and students, diversity of providers

– 16-19: coherent programme of substantial qual; L2 Eng/ma; work placement

– WBL: clarity of employer role; minimum frameworks; traineeship scheme

• Other qual frameworks– IB, Welsh Bacc, Birmingham Bacc, BTECs, apprenticeships

Page 13: For further information visit btec.co.uk/louder

4. Create a more responsive system

• Range of system reforms as Government seeks to streamline systems, free up provider side, encourage innovation and responsiveness

• Current approach set out in latest reform programme• Mechanisms include:

– Shifting from grants to increased purchaser power– Developing a new breed of informed consumers through the application of

new intelligence sources and comparative data– Enabling progression through a stronger ladder of vocational qualifications– Granting employers greater ownership of aspects of the skills system– Raising the quality of teaching and learning through stronger inspection,

performance and accountability measures– Reconfiguring institutional business planning around local market needs– Liberalising providers to enable them to develop new structures and

partnerships– Removing funding barriers where possible

Page 14: For further information visit btec.co.uk/louder

4. Create a more responsive provider system

What to look out for1. Transformation of the skills system • Shift of funding through Employer Pilots, results of bids (Sept/Oct 2012,) Round 2 (autumn

2012,) fuller evaluation (April 2013)• Direct funding models developed though apprenticeships, key sectors, City Deals• Launch of new Industrial Strategy to support Growth Plan (Sept 2012)• Development of LEP Regional Skill Commissions (autumn 2012)

2. Programmes for the unemployed• Ofsted Skills for Employment Report (July 2012)• DWP Select Committee Report on Youth Contract (Sept 2012) • Further developments expected around the Youth Contract, the Work Programme, (autumn

2012)• Battle around welfare reform and lead up to Universal Credit (2013)

3. Reform of governance • New flexibilities following 2011 Education Act and New Challenges, New Chances programme• Considerable re-thinking of new opportunities and partnerships• New procedures for dealing with underperformance• Ofsted’s ‘How Colleges improve’ Report (Sept 2012)

Page 15: For further information visit btec.co.uk/louder

4. Create a more responsive provider system5. HE developments• Current position

– Short to medium direction set out in official Response to White Paper (June 12)

– Emerging data about trends and uptake under new fee system (Sept 2012)

– Maximum fee level remaining for 2013/14, maintenance grants uprated in line with inflation (April 2012)

– New institutional fee levels for 2013/14 signed off by OFFA (July 2012)

– Financial health of the sector considered strong but some unease about how a future market might operate and about some course provision

– Tariff policy liberalised to ABB and 5,000 added to margin places for 2013 entry

• Key issues– So-called ‘squeezed middle;’ growing debt burden; potential lifting of the cap; impact on

recruitment; emergence of high – table; nature of regulation; global market; widening participation; latest HEPI analysis of fee regime

• What to look out for– Introduction of KIS, NSP, Unistats (Sept 2012)

– Adoption of HEAR (2012/13 )

– Milburn Report (Oct 2012)

– Update on new QA system (Nov 2012)

– Impact Reports from HEFCE and Independent Commission (spring 2013)

– Confirmation of funding for 2013/14 (spring 2013)

Page 16: For further information visit btec.co.uk/louder

4. Create a more responsive provider system

5. Elsewhere

• Reform of the exam system (Autumn 2012)

• Enhancing learner support through new careers system, FE Choices, Learning Accounts, CIS, Learner View (Sept 2012)

• Diversification of 14 -19 providers and local structures (ongoing)

• Preparation for RPA (2012 – 2015)

• Piloting of Community Learning Trusts (2012-2013)

• Emergence of executive style Funding Agency (2012 on)

• Development of FE global brand (ongoing)

• Review of teaching qualifications (Oct – Nov 2012)

• Potential post Lingfield developments (2012/13)

Page 17: For further information visit btec.co.uk/louder

5. Reform of funding systems

• Government looking to maximise efficiencies and outcomes as a way of counter balancing effects of cuts

• Re-balancing funding burden on the state by adopting co-investment and introducing new fee regime

• Streamlining support funding and targeting it at the most disadvantaged

• Slashing capital budgets• Adopting flat budgets for schools but long-term reduction in FE

and HE budgets• HE fee system already introduced, reform of school funding

postponed beyond SR, reform of 16-19 and FE funding coming in from 2013

• Some funding protections being maintained during reforms• Pay, performance and pension issues rumbling on

Page 18: For further information visit btec.co.uk/louder

FE Policy Breakfast Funding – what’s coming up in 2013/14?

Siân Owen Head of AB Stakeholder Engagement (Funding)

Page 19: For further information visit btec.co.uk/louder

Funding – what’s coming up in 2013/14?

1) Changes to 16-18 funding.2) Changes to 19+ and Apprenticeship funding.3) Introduction of 24+ Advanced Learning Loans.

Page 20: For further information visit btec.co.uk/louder

1) Changes to 16-18 funding

Page 21: For further information visit btec.co.uk/louder

Study programmes and funding formula reviewSummary

• Study programmes.

• Move from funding qualifications to funding learners.

• Single rate based on 600glh – part-time in four bands.

• Based on 600 learning hours.

• ‘Substantial’ qualification.

• Retention, but no success.

• (Higher rate for large programmes?)

• Formula protection funding – three years.

• Performance tables, inspection, and minimum standards.

• English and maths – will become a condition of funding – phased implementation.

Page 22: For further information visit btec.co.uk/louder

What could the changes mean?

Transitional protection

No funding per student lost for 3 years.

Stop thinking in terms of adding up glh.

Change will be around maths and English, and access to work experience.

Psychological change Level 3

Large programmes

Uplift still being considered.

Lower levels Flexibility?

Maths and English

Part of every programme.

Evidence requirements

December. Levers KS5 performance tables, Ofsted.

Page 23: For further information visit btec.co.uk/louder

2) Changes to 19+ and Apprenticeship funding

Page 24: For further information visit btec.co.uk/louder

Streamlined adult funding systemSummary

• Credit

• Rates matrix

• Funding formula

• Achievement

• Cap in £

• Payments

• Tracking – or rather – lack of

• Unit funding

Page 25: For further information visit btec.co.uk/louder

The funding rate matrix

Programme Weighting Factor (PWF)

Learning aim type (credits) 1.0 1.12 1.3 1.6 1.72

Award (1-4) (1-6) £148 £166 £193 £237 £255

Award (5-12) (old 7-12) £336 £376 £437 £537 £578

Certificate (13-24) £724 £811 £941 £1,159 £1,246

Certificate (25-36) £1,265 £1,417 £1,645 £2,025 £2,176

Diploma (37-48) £1,987 £2,225 £2,583 £3,179 £3,417

Diploma (49-72) £2,573 £2,882 £3,345 £4,117 £4,425

Diploma (73-132) £4,170 £4,670 £5,421 £6,671 £7,172

Diploma (133+) £6,602 £7,395 £8,583 £10,564 £11,356

Page 26: For further information visit btec.co.uk/louder

What could the changes mean?

24+ studying level 3+ – no

funding

Further details in loans section to follow.

Funding cut/increased, hours cut/increased – balanced out, or implemented course by course.

Cut more sharply than other areas.Turbulence Basic skills

Less simpleOriginally simplified’ now ‘streamlined’

Impact on other students

Unknown.

QCF Based on QCF qualifications.

Qualification based

Unlike 16-18, funding will still be based on qualifications. Two systems 16-18 and 19+.

Page 27: For further information visit btec.co.uk/louder

3) 24+ Advanced Learning Loans

Page 28: For further information visit btec.co.uk/louder

24+ Advanced learning loansSummary

• Does what it says on the tin

• All fees – but loans to help

• Priorities, but protection

• Terms

• Access to HE

• Fees

• Allocations (facilities)

• Apprenticeships

• Timetable

• Learners with existing student loans

• Four advanced learning loans

Page 29: For further information visit btec.co.uk/louder

Advanced learning loans in number

£129m

14/15 budget

13/14 budget £300

£11,356

204,000

£398m

Maximum a learner can borrow (equivalent to

published rate)

Number of 24+ learners in 14/15 if total is drawn

Minimum a learner can borrow

50% % of published rate an Apprentice can borrow

24+

Level of qualification eligible for loan funding

Age at which a learner can apply for a loan

£50m

0

4

3+

Level of attention paid to prior attainment

Number of loans any one learner can draw from

Bursary fund

£21,000 Salary threshold

Page 30: For further information visit btec.co.uk/louder

What could the changes mean?

Reduction in demand

There is debate over the quantity of the decrease, but there is a broad assumption that demand will fall.

Loans could be an enabler

Learners who were formerly ineligible for public funding, are likely to be eligible for loans – how will they respond?

Mixed possibilities

for Apps

Providers charging less

than the maximum

Will providers continue to do what they’ve done with the employer fee in apprenticeships and overlook a proportion of the fee?

New concept, might employers be persuaded to absorb the cost? Might apprentices want to take the full cost themselves?

Change in incentives for

providers

Previous incentive to maximise the number and size of qualifications learners take – could there now be an opposite incentive?

Learners becoming

more demanding

Government assumption that learners have a vested interest in demanding greater quality and quantity of content.

Debates point to UK HE where demand is around prestige, and US HE where demand focuses on grades.

Page 31: For further information visit btec.co.uk/louder

Simplifying the system

• ‘Simplifying’ or now ‘streamlining’ a theme of all funding consultations on change.

• Simplifying one funding system in two directions – two new ‘simple’ systems…

Page 32: For further information visit btec.co.uk/louder

Key issues facing the sector

• Building a strong vocational route• Responding to changing quality assurance requirements • Raising the quality of T/L across the board• Developing new forms of professionalism and governance• Establishing effective performance management systems• Strengthening position in local supply chain• Understanding local market economy and learner trends• Adapting to the growth of social media• Winning in the new funding system• Elevating the brand

Page 33: For further information visit btec.co.uk/louder

Thank You

We would like your feedback…

Q&A