three in one published 18/11/08 whilst the funding guidance is now published in 6 documents, this...
TRANSCRIPT
Three in one
Published 18/11/08
Whilst the funding guidance is now published in 6 documents, this publication combines three.
1. Government Investment Strategy 2009-10
2. LSC Grant Letter
3. LSC Statement of PrioritiesAlthough more than 60 pagesthe priorities and targets remain relatively unchanged
This presentation focuses onthe impact to funding and learner distribution
Total funding £12.2bna rise of 4.5% from 08/09
Total learners 4.7ma reduction of 2.5% from 08/09
DIUS37%
+ 5.9%
DCSF63%
+ 3.7%
This includes:• School Sixth Forms• 16-18 FE and E2E• Apprenticeships (16-18 and 19+)• Specialist LLDD (16-18 and 19+)• Adult Learner Responsive• Adult Safeguarded Learning• Employer-responsive (TtG)• Offender Learning• Learner Support and Development• Capital Grants• LSC Administration
DIUS69%
- 3.6%
DCSF31%
- 0.1%
This excludes 69% growth ofacademies from 16k to 27k learners (not funded by LSC)
There is also £250m ESF (rise of 3.9%) match-funding 117k learners (reduction of 5.6%)
Funding by model
16-18 FE (incl E2E)
EmployerResponsive
(all ages)
19+ Learner Responsive
+ 7%
- 2%
+ 12%
£3.7bn50%
16-18 FE(incl. E2E)
£2bn27%
ER(all ages)
£1.7bn 23%ALR
16-18 FE (incl E2E)
EmployerResponsive
(all ages)
19+ Learner Responsive0%
- 10%
Shift from 08/09 to 09/10+ 5%
Learners by modelShift from 08/09 to 09/10
861k23%
16-18 FE(incl. E2E)
1.4m38%
ER (all ages)
1.5m39%
ALR
2009/10 funding2009/10 learners
16-18 FE (incl. E2E)
SLN rate rises 2.1% to £2,920
Transitional protection infunding per SLN of +/-2.1%in real terms remains
Learners unchanged
861k861k
2009/102008/09
Funding increases 7%
£3.7m£3.46mFE (incl. E2E)
2009/102008/09
This increase in costs relatesto more full time learners, higher success rates and introduction of 14-19 diplomas.
However, the LSC intend to “control unit costs and improve value for money”
FE (incl. E2E)
Funding rate gap with schoolsremains unchanged at 5.61%
Annually fixed allocations are to be reconsidered to ensure funding follows the learner
“Additional qualifications mustbe aligned to the needs of thelearner and be affordable”
Additional Learning Support to rise by approximately 3%
19+ Learner-responsive
SLN rate rises 1.5% to £2,817
No more transitional protection
Learners decrease 10%
1.469m1.626mLearners
2009/102008/09
Funding decreases 2%
£1700m£1735mFunding
2009/102008/09
Fee element rises from 42.5% to 47.5% of unweighted rate
Skills Accounts to be pilotedin all regions
Adult Safeguarded Learningremains at £210m but learners fall from 630k to 605k
Pre-Level 2 flexibilities to deliver“more or less Skills for Life, Foundation Learning Tier or developmental learning than the indicative figures agreed during the allocation process”
Flexibilities will also be built into the 08/09 reconciliation process
The only learner reduction applies to developmental learning, falling 51% to 271k
Employer-responsive
“Our two flagship programmes will continue to grow over the next year”
• Apprenticeships
• Train to Gain
“Apprenticeships are the Government’s preferred work-based route for all young people aged 16 to 24”
Train to Gain rate 6% higher than 19+ Apprenticeship rate
£1967m£1754mTotal ER
£926m£797mTrain to Gain
£1041m£956mAppren’s
2009/102008/09
Appren’s
Train to Gain
Total ER
+ £85m
+ 16%
+ 12%
+ 9%
+ £128m
+ £214m
ER funding (all ages)
1.4m ER learners in 2009/10
Trainto Gain
+ 5%949k67%
Appren’s+ 5%
477k33%
Train to Gain fully-funded level 2, unlike 19+ Apprenticeships
Apprenticeships
Minimum wage rise from £80 to £95 per week
Increase from 1 in 15 to 1 in 5 young people starting and apprenticeship by 2019/20
National Apprenticeship Service (NAS) launched April ‘09
Apprenticeship funding
£1042m£956mTotal
£367m£328m19+
£675m£628m16-18
2009/102008/09
16-18
19+
Total
+ £47m
+ £38m
+ £85m
+ 12%
+ 9%
+ 7%
477k learners in 2009/10
254k53%
223k47%
19++ 5%
16-18+ 5%
Co-funding for 19+ remains and fee element rises to near 47.5%
16-18 rate rises 2.1% to £2,920
19+ rate rises 1.5% to £2,817
So 16-18 rate 3.7% more than 19+
Train to Gain
Extra £30m to support the provider capacity building
SLN rate rises 4.5% to £2,987
Co-funding for ESOL and some level 3 learners, with fee element rising to 47.5% of total funding
Learners increase 5%
949k900kLearners
2009/102008/09
Funding increases 16%
£926m£797mFunding
2009/102008/09
Uncertain what impact newflexibilities such as introductionof ‘bite-sized’ learning will haveon learner growth – could bemuch greater than planned
Learner growth looks modest!
£926m in 2009/10, which includes £37m for brokerage costs and £8m for level 4
Flexibilities for ‘bite-sized’ learning introduced in 2008/09 (starting Jan ’09)
