1. Welcome Single Line Flexibilities and Fees Presented to: ALP / Training Organisations

2. Overview 01

3. Skills Funding Agency funding system undergoing a number of significant changes Freedoms and flexibilities announced in 2010/11 Move to greater simplification – including use of on-line procurement system (ACTOR) Wider reform of the funding system due in 2012/13 2011/12 is therefore a transitional year Reduced eligibility in 2011/12 – more to come in 2012/13 (e.g. change to L2 entitlement) These slides set out the impact and opportunities for training organisations in 2011/12 for 19+ provision Still lots of questions to work through / resolve…opportunity to flag and identify any issues Introduction

4. Provider Procurement 02

5. Procurement and the use of ACTOR(1) Skills Funding Agency introduced a simplified approach to procurement in 2010 All provision – including that funded by ESF – will be procured through ACTOR This will be done centrally, and will use evidence of capability and capacity to deliver to inform decisions There will be NO regionally-run / separate ESF rounds as in previous years

6. Providers need to complete all relevant sections to register their interest and/or experience in delivering in the following areas: 1. Adult Skills Budget –Apprenticeships –Workplace delivery –Classroom delivery –Provision aimed at unemployed (including response to redundancy) 2. Adult and Community Learning 3. Provision for Learners with Learning Difficulties and/or Disabilities for Independent Specialist Providers (on behalf of the YPLA). Please note, ESF has to complement government policy so ESF funding will be used to support additional adult skills delivery Procurement and the use of ACTOR(2)

7. Procurement and the use of ACTOR Any additional procurement needed in year, not covered by existing ITTs, will be subject to a mini-competition or requests for information that will not be subject to scoring –This includes activity procured for the Joint Investment Programme

8. Single Adult Skills Budget 03

9. Adult Skills Budget (1) In 2011/12 the move to a single Adult Skills Budget means there are no longer separate budgets for Adult Learner Responsive (ALR) and Employer Responsive (ER) The Adult Skills Budget is intended to respond to the needs of learners, communities and employers, with a particular focus on driving up the number of Apprenticeships and supporting the unemployed to help them move into work. The Adult Skills Budget can be delivered in the classroom/workshop or the workplace….this means there is the potential for training organisations to deliver provision previously known as ALR

10. Adult Skills Budget (2) For Training Organisations this will be paid for through the ER route, and will be performance managed in line with the existing approach. This includes the delivery of eligible QCF units, on a full funded (fee remitted) basis for those who are on active benefits (JSA and ESA Work Related Activity Group (WRAG)) to gain skills to get into work from August 2011

11. What can classroom based provision be used for? The new flexibilities mean that training organisations can now deliver a broader range of provision, to a wider group of learners. This includes: -Broader QCF vocational qualifications which support development of knowledge and skills and support employability and progression, not currently eligible through Employer Responsive -Non-vocational qualifications -Units of QCF qualifications for unemployed learners Please note, you must ensure that the needs of the learner remain paramount.

12. What do you need to do? If you choose to deliver classroom based provision including that for the unemployed you need to: –Have registered on ACTOR and completed the Adult Skills Budget ITT, signalling intention to deliver ALR The next ACTOR freezes are 15 th April 2011 and 13th May 2011. Where this is new delivery for you: Skills Funding Agency will assess your capacity and capability to deliver provision of this kind, and may make reference to other information provided in your ITT. This may include visiting premises and/or asking for further information You must be approved by an AO to offer broader qualifications

13. Payment and Data The Skills Funding Agency’s systems still distinguish between ER and ALR. Whilst this will change in 2012/13, 2011/12 will be a transitional year. We have therefore developed a ‘workaround’ which will enable training organisations to deliver and report classroom based activity through the ER route : –The ALR aims will be added into the current ER aims section of the LAD –ILR coding will be required to identify classroom based activity - this is likely to be via the learning and delivery funding and monitoring code.

14. How is this paid? All training organisations will report all provision, including classroom based aims, through the Single Restructured ILR Data will be coded so that the funding earned is calculated using the ER funding calculation Payments will be made as part of the normal ER payment timetable. This ensures a simple and single route for data collection and payment.

15. Performance Management Any classroom-based activity will be subject to the usual quarterly performance management process Units are not currently included in the qualification success rate We are investigating whether we could introduce a process to exclude learners who achieve a successful job outcome before they complete and achieve their qualification from qualification success rates. Consideration also being given to a Qualification and Credit Success Rate moving forward. MLP policy is under review to consider the implications of the single Adult Skills Budget and the measurements required.

16. Training organisations currently delivering ALR 04

17. Current ALR deliverer? There are currently 40 training organisations delivering ALR type provision. These are currently paid on profile and return data through the Adult Learner Responsive route. They are not performance managed in-year on this element of their provision and are reconciled at year end. If you are one of these organisations the Agency will give you the choice of deciding whether to maintain payment and data returns in this way for 2011/12 or whether you wish to move to the model set out previously.

18. Next Steps You should discuss the options with your Single Account Manager…. Ensure you are registered on ACTOR for all areas you are interested in delivering Further detailed information will be issued through a Technical Briefing Note.

19. QUESTIONS??