SFA funding reform update for 2013/14

1 March 2013

Nick LinfordManaging Director of LsectEditor of FE Week

First edition published in October

Second edition published February

Third edition published June

Implementation from Aug 2013

‘Funding Handbook’ due soon…

Funding rules published end of Jan

New 19+ ‘simple’ and ‘streamlined’ funding

SFA funding formula

Current (since 08/09)

New (from 13/14)

Learner responsive

(LR)

Employerresponsive

(ER)

Single Adult Skills Budget and formula

Achievement value 20% (half available for Job Outcome

Payment)

Achievement 25% (of main

qual for apprenticeships)

Monthly in-yearfunding

Monthly in-year funding

Standard Learner Numbers (SLNs)

SLN Guided Learning Hours

(SLN GLH)National funding

rate

Cash qualification rates based on a ‘QCF matrix’

National funding rate

Unweighted co-funding

Weighted co-funding

Provider factor

Retention and achievement in success factor

Disadvantage and area cost uplift

05-02-13

2013/14 ‘Simplified’ Funding Rates

No change from June 2012 doc

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

‘Simple’ funding formula for 2013/14

QCF Rate from

matrixx

Disadvantage uplfit x

Area cost uplift = £

Note:

Achievement worth 20%

Apprenticeship qual rates unchanged

Job outcome payment only for eligible learners, who withdraw by get a job, minimum of 16 hours per week for 4 weeks, worth 10% (ie 50% of achievement)Monthly in-year funding, with double payment in month one

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