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Skills Funding Statement – 2013-2016. Introduction The Skills Funding Statement was launched by the Minister Matthew Hancock on the 10th February 2014.

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Presentation on theme: "Skills Funding Statement – 2013-2016. Introduction The Skills Funding Statement was launched by the Minister Matthew Hancock on the 10th February 2014."— Presentation transcript:

1 Skills Funding Statement – 2013-2016

2 Introduction The Skills Funding Statement was launched by the Minister Matthew Hancock on the 10th February 2014. This presentation is intended to provide an overview of the key points contained in the Statement however it does not cover everything included in the document. It is recommended that you read the document in full.

3 Context to Statement Tough fiscal times Skills system in reform OECD report on English and maths Richard Review of Apprenticeships More radical approach to the use of available educational technologies

4 Funding Traineeships Apprenticeships Standards (higher) Qualifications (better) But also: -supporting the unemployed -innovation -future reforms Main Themes - TASQ

5 SFS Funding table Supporting notes are included in the Skills Funding Statement (page 26) Baseline 2013- 14 £ 000s Funding 2014- 15 £ 000s Indicative funding 2015- 16 £ 000s Adult Skills Budget2,467,8752,258,3112,004,547 Employer Ownership46,00073,400 24+ Advanced Learning Loans129,000398,000498,000 Offender Learning and Skills Service130,400128,900 Community Learning210,747 European Social Fund171,000173,000170,000 TOTAL: Teaching and Learning3,155,0223,242,3583,085,594 Learner Support176,800205,507174,342 National Careers Service87,86890,878 TOTAL: Student /Learner Support264,668296,385265,220 Skills Infrastructure55,16158,90023,675 Funding to Support the FE and Skills Sector156,706125,00481,983 Capital Grants449,871414,857410,000 GRAND TOTAL4,081,4284,137,5043,866,472

6 Budget – Adult Skills and Loans Recap: Spending Review headlines (2010-11 to 2014-15): Adult Skills Budget: 25% real terms reduction (18% cash terms) Adult Skills Budget and 24+ Loans: 12% real terms reduction (4% cash terms) Adult Skills changes to 2014-15 Additional £30m for ESOL (£45m in 2015-16) Additional £10m for Higher Apprenticeships (£30m in 2015-16) Overall budget £4.1bn (1.4% increase from 2013-14) Indicative 2015-16 budget - headlines Baseline Adult Skills reduction of £250m Overall budget £3.9bn (6.5% decrease from 2014-15)

7 Key priority: Maintaining focus on ‘high quality’ delivery Continued expansion in future years Ofsted Grades remain a gateway criterion Reforms for 2014/15: Widened access to include 24 year olds Removal of 16 hour rule Reform for 2015/16: Unified funding system, focussing on incentivising positive outcomes Traineeships

8 Apprenticeships Key Priority: Implementation Plan for the Reform Programme published in October 2013 which confirmed need to be more rigorous and responsive to the needs of employers by putting them in the driving seat Apprenticeship funding to be routed through employers to spend with providers - consultation on technical detail in Spring Must support employers and learners on current Apprenticeships and start streamlining and standardising delivery of funding to be ready for new standards Reaffirmed as top government priority

9 Apprenticeships Reforms for 2014/15: Additional £40m for 20,000 Higher Apprenticeships Advanced level and Higher Apprenticeships removed from 24+ Advanced Learning Loans and returned to grant funding Apprenticeship Grant for employers continues subject to affordability English and maths - Level 1 learners will be required to take up offer of Level 2 training Employer Ownership Pilot has now closed and the Large Employer Outcome Pilot will close to new starts from August 2014 Trailblazers will test new funding models and develop new standards and assessments to pave the way for full implementation of reforms by 2017/18

10 Higher Standards Key priorities for English, maths and ESOL: GCSE A* to C to be the benchmark with continued full funding Embedding of English and maths across all major programmes including Apprenticeships and Traineeships Reforms for 2014/15: Pilot for young people aged 18 to 21 with below Level 2 English and maths a requirement to undertake predominantly online English and maths provision All offenders to be assessed for English and maths on entry to prison ESOL - increased conditionality for below entry level 2, extra £30m for 2014-15 (£45m for 2015-16). (Start in April 2014)

11 Key priorities for Practitioner Development: Raising standards in teaching and learning is critical Reforms in 2013/14 and for 2014/15: New Education and Training Foundation supporting the drive for high standards in teaching and learning New bursaries of up to £20,000 for talented graduates wanting to become maths, English, or LLDD teachers (available in 2013/14) Support for CPD for up to 2,000 teachers who want to teach maths with other programmes Support for the new Core Maths teachers and lecturers to teach new maths qualifications for students aged between16 to 18 Higher Standards

12 Key priorities for Accountability and Autonomy: Autonomy will only be successful when coupled with 3 accountability tools: - access to high quality information - new tough minimum standards - strong intervention regime Exploring how new providers can enter the system to bring greater diversity and innovation Encourage all recipients of Adult Skills Budget to make annual accounts available via their website

13 Higher Standards Key priorities for Intervention: Where performance is poor we will take swift action New FE Commissioner appointed who will ensure consistently high-quality offer. He will review providers that have failed inspection and/or failed to reach minimum standards, financial health or financial control and will advise Ministers and the Chief Executives of funding agencies on the action that needs to be taken to secure improvement Contracts to be terminated if standards are not maintained

14 Higher Standards Key Priorities for National Careers Service: Committed to improving the quality of careers information, advice and guidance. New Statutory guidance for schools and equivalent requirements on colleges to help deliver this as well as a reformed service focussed on delivery that meets local and individual need National Careers Service to be flexible, responsive and agile organisation Reforms for 2014/15: 95% of the delivery budget earned for one or more of three outcomes: Customer satisfaction, Career management, Jobs and learning remaining 5% will support the inspiration agenda for young people, facilitating relationships between schools and employers Refreshed website to engage and enthuse users of all ages and circumstances with improved labour market information and a greater local focus

15 Qualifications Key Priorities: Rigorous, relevant and recognised vocational qualifications Build on design principles for Adult Vocational Qualifications contained in ‘Whitehead Review’ Align with DfE requirements for vocational qualifications at Level 3 for 16 to 19 year olds (and Level 2) Reforms for 2013/14: New business rules for qualifications to enter and stay in public funding focussing on size, purpose, employer recognition, proven track record and outcomes. A streamlined and more focussed publicly funded qualifications offer In 2014/15 the Agency make clear the categories of non-regulated provision it will fund

16 Support for the unemployed Key Priorities: Those mandated to training by the Jobcentre will continue to access fully- funded learning to help them into work Stronger requirement for those fully funded because they are unemployed but not on unemployment benefit – provision must be linked to gaining employment Reform for 2014/15: Continue to fund certain qualifications in first aid, food hygiene, health and safety, use of fork lift trucks and also to include security industry Pilot for claimants on JSA after 6 months who will be required to participate in work experience, Traineeship or other relevant skills provision or community work

17 Responsiveness to local need LEPs have articulated skills needs through their strategic Economic Plans (SEPs). They are currently discussing Growth Deals with Government, to support the specific asks in their SEP. These are due for final agreement by 31 March, City Deals testing how LEPs and providers can together deliver skills LEPs have submitted strategies for use of European Structural and Investment funds 2014-2020. This will lever in £170m ASB in areas where LEPs have opted in to the Agency’s ESF service. More local accountability by giving LEPs allocations of ESF for 2014 to 2020 and FE Capital from 2015-16 Skills Funding Incentive pilots – from July 2013 in North East, West of England, Stoke & Staffordshire to test models of skills provision aligned to need.

18 Innovation Key Priorities As a way of improving teaching, driving efficiency, value for money and responsiveness Reforms for 2014/15: To work with providers and awarding organisations to identify qualifications in scope for online delivery and to look at how this may be funded Pilots highlighted for young people aged 18 to 21 with below Level 2 English and maths. Mandation to provision that will be predominantly online English and maths

19 Other changes in 2014/15 Mechanisms in place to capture destinations on the ILR which providers are expected to complete Strengthen the annual per-learner funding cap by introducing a new monthly limit

20 Longer term reform Build stronger focus on outcome funding with focus on unemployed learners, Traineeships and English and maths provision New outcome focused success measures intended to inform learner and provider choice: - destinations (into further learning or in/within employment) - progression (through learning) - earnings change (following completion of learning) Develop methods of capturing distance travelled Trial and implement a means of capturing data on learner progress

21 Skills Funding Statement 2013-2016 Any questions

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