Presentation on theme: "16-19 Funding Formula for 2013/14 Shadow Allocations 2012/13"— Presentation transcript:
116-19 Funding Formula for 2013/14 Shadow Allocations 2012/13 VenueDate 2012
2Today’s agenda Introduction Shadow Allocations and the toolkit – WelcomeSupporting Government PoliciesShadow Allocations and the toolkit –Programme FundingDisadvantageProtecting FundingHigh Needs FundingStudent SupportNext Steps
3Objectives By the end of the session you will : understand the recent developments in government policy and how these are supported by funding reformunderstand how the shadow allocation has been calculated and the supporting toolkithave the opportunity to ask questions and provide feedback around the changes to the formula
4Autonomous Professional Education Institutions What is changing?Autonomous Professional Education InstitutionsFunding per studentStudyprogrammesRaising Participation Age
5Raising Participation Age The participation age will be raised to:For 16 year olds -end of the academic year in which they are 17 from Summer 2013For 17 year olds to their 18th birthday from Summer 2015Applies to all those resident in EnglandEnforcement deferredWhat counts as participation?...full time education (school, college or independent provider for at least 540 hours)home educationApprenticeshipfull-time work including at least 280 hours of educationFunding per studentStudyprogrammesRaising Participation Age
6Raising Participation Age StudyProgrammesWhat are Study Programmes?...Applies to all year oldsStudents will take either academic programme or a substantial vocational qualification recognised by employers – these must help them secure skilled work or a university placeWhere appropriate students will also take part in work experienceStudents who don’t have GCSEs grade C in English and maths at 16 will continue to study these subjectsStudents who aren’t able to study a substantial qualification will take a programme of work experience and continue to develop their numeracy and literacy skillsFunding per studentStudyprogrammesRaising Participation Age
7Raising Participation Age 16-19 education was funded…Qualification by qualificationFunding is unfit to support RPAWolf found there to be perverse incentives which didn’t help raise standardsSystem is very complex and opaque16-19 education will be funded…student by studentIncreased focus on providing the student with a holistic study programme which will get them into university or workAll students receive same basic level of fundingEnables and supports a simple and transparent funding systemSubject to A level and GSE reformFundingper studentFunding per studentStudyprogrammesRaising Participation Age
8What isChanging?Independent Specialist Providers, Special Schools, Non-Maintained Special Schools will now be funded through the National Funding Formula programme funding
9What hasn’t changed?Academies, colleges, and providers will still get their funding from the Education Funding AgencyMaintained schools – funding via the Local AuthorityFunding system that is based on the data returned in census for schools/academies or Individualised Learner Record (ILR) for colleges and other FE providersWe still have a lagged student system……what is delivered in the current year, is the basis for funding in the next year
11Shadow AllocationShows how the funding formula is calculated against data used in the 2012/13 allocationEach education institution gets a toolkit:a shadow allocation statement and technical notea shadow allocation spread sheet and Field GuideGives an opportunity to ask questions or comment on the new formulaHelps you to plan for any change resulting from the new funding formulaAllows for feedback and then the arrangements to be confirmed for 2013/14Allows us all to prepare for accurate allocations for 2013/14ISPs will get their shadow allocation statement later for illustrative purposes based on averages
12Programme Cost Weighting National Funding Rate per student The new funding formulaProgramme Cost WeightingDisadvantage FundingAreaCost AllowanceStudent NumbersNational Funding Rate per studentRetention Factor()Total Programme Funding
13Program Cost Weighting National Funding Rate per student Student numbersProgram Cost WeightingDisadvantagFundingArea Cost AllowanceNational Funding Rate per studentRetention Factor()Student NumbersThis is a count of students to be fundedMust meet qualifying period of 2 weeks or 6 weeks- will not fund programmes under 2 weeksBased on autumn census or ILR returnEither full time => 540 hoursOr Part Time < 540 hoursFor shadow allocs and 2013/14 Band 4 = full timeThe bottom band treated as Full Time Equivalent (FTE), that is a proportion of 600Age groups and are shown separately on the statement but treated the sameStudent statusHours required per yearFull time540 +Band 4Band 3Band 2Band 1up to 280
14Program Cost Weighting National Funding Rate per student The National Funding RateProgram Cost WeightingDisadvantagFundingArea Cost AllowanceStudent NumbersRetention Factor()National Funding Rate per studentSingle National Full Time funding rate per student expressed in £All year olds in sixth forms, colleges and independent providers are funded at the same national funding rateOut of scope Youth Contract, Young Offenders, Apprenticeships and European Social Fund (ESF)This is the final element of the formula fixed by the EFA. It depends on how much learning is taking place across the country and the budget.The rate used in the shadow allocation is £3,900The National Funding Rate for 2013/14 will be confirmed as part of the Spending Review decisions yet to be made
15Program Cost Weighting National Funding Rate per student Part Time Funding ratesProgram Cost WeightingDisadvantagFundingArea Cost AllowanceStudent NumbersRetention Factor()National Funding Rate per studentA FT rate based on circa 600 hoursThree part time rates for bands 2,3,4Each funded at mid-point of the bandFor Band 4 ( hours) we will for 13/14 fund at the FT rateBand 1 (below 280 hours) funded as a proportion of 600 hours ie 150 hours gets 25% of the National Full Time funding RateStudent Number statusHours funded at…Part time RateFull time600£3,900Band 4Band 3405£2633Band 2320£2080Band 1% of 600% of £3,900
16Program Cost Weighting National Funding Rate per student Retention FactorProgram Cost WeightingDisadvantagFundingArea Cost AllowanceStudent NumbersNational Funding Rate per student()Retention FactorSuccess no longer used in funding, a retention factor is now usedApplied at student level, not qualification levelRetained means still studying a core aim on planned end date or leaves early and is recorded as completed the core aimFor academic programmes – still studying one of the academic aimsFor vocational programmes still studying the core aimRetention FACTOR =half way point between Retention RATE and 100%Number of students completedNumber of students startedStudent Retention and fundingFundingLeaves before qualifying periodLeaves before planned end and not recorded as completed50%Retained to planned end date and recorded as completed100%Leaves before planned end date and recorded as completed
17National Funding Rate per student Programme Cost Weighting DisadvantagFundingArea Cost AllowanceStudent NumbersNational Funding Rate per studentRetention Factor()Programme Cost WeightingRecognition that some vocational subjects are more expensive to teach than othersApplied to the student’s whole programmeDetermined by the student’s core aim ie A Levels or substantial vocational qualificationAll academic programmes uplifted by one weight, which has been determined by merging the 2 current academic weightings and low cost vocational programmes and rebasing these as 1,Vocational Programme Weighting categories are being reduced in number and re-set to make it simpler: applied at sector subject areasStill under review- potential to change for 13/14Cost Weighting Category2012/13 averageProposed 2013/14Base1.081.0Medium1.281.2High1.601.5Specialist1.721.6
18National Funding Rate per student Disadvantage FundingProgramCost WeightingArea Cost AllowanceStudent NumbersNational Funding Rate per studentRetention Factor()Disadvantage FundingRecognises that some students require additional support to participate and achieve if we are to achieve full participation and improve attainmentPrinciple is to create a single budget that institutions use as they see fitDisadvantage FundingEconomicDeprivationPrior Attainment
19National Funding Rate per student Disadvantage FundingProgramCost WeightingArea Cost AllowanceStudent NumbersNational Funding Rate per studentRetention Factor()Disadvantage FundingEconomicDeprivationBlock one:Based on student’s home postcodeDeprivation is calculated using Index of Multiple Deprivation This examines the student’s home area based on: income; employment; health and disability; education, skills and training; housing and services; living environment; and crimeUplift is between 8.4% and 33.6%Additional categories are no longer eligibleCare Leavers attract a standard uplift- rate
20National Funding Rate per student Disadvantage FundingProgramCost WeightingArea Cost AllowanceStudent NumbersNational Funding Rate per studentRetention Factor()Disadvantage FundingPrior AttainmentBlock two:Acknowledges the additional cost of students who need extra learning supportBased on student’s achievement of GCSE English and maths at end of Year 11Funding rate for shadow allocations =£450Flat rate for part time bands 2 and 3 = £274Pro rata as per programme costs for band 1Should not assume these rates for 13/14Used to be graduated payments based on student’s gradesNow only a flat rate based on non-achievement of grade CExampleMaths below grade CEnglish below grade CFunding attracted per student (£)Student 1yes*Rate x1Student 2Student 3*Rate x2
21( ) ( ) Area Cost Allowance Program Cost WeightingDisadvantagFundingStudent NumbersNational Funding Rate per studentRetention Factor()Area Cost AllowanceProgram Cost WeightingDisadvantagFundingStudent NumbersNational Funding Rate per studentRetention Factor()Area Cost AllowanceReflects the cost of delivery in high cost local areas – remains unchangedWe will continue to calculate this using the same methodology as nowApplied to the whole participation formula (including all disadvantage)AreaUpliftOxfordshire7%Essex (London fringe)6%Kent (London fringe)Bedfordshire3%Hertfordshire (non-London fringe)Cambridgeshire2%Hampshire and Isle of WightWest Sussex non-fringe1%AreaUpliftInner London20%Outer London12%BerkshireCrawleySurreyBuckingham (London fringe)10%Hertfordshire (London fringe)Buckinghamshire (non fringe)7%
22Program Cost Weighting National Funding Rate per student TP from 11/12The new funding formula…plus extras (if applicable)Program Cost WeightingDisadvantagFundingStudent NumbersNational Funding Rate per studentRetention Factor()Area Cost Allowance?Formula Protection FundingTotal Programme Funding?High Needs Students?Student Support FundingStudent Support Funding???
23? ? ? 11/12 Transitional Protection For Shadow allocations the transitional protection amount is the same as that included in the 12/13 allocationFor 2013/14 we will remove the next tranche of transitional protection resulting from the funding changes introduced in 2011/12 as previously advisedTP from 11/12Formula Protection FundingHigh Needs StudentsStudent Support Funding???
24? ? ? Formula protection funding (FPF) Will be paid for at least three academic years until and including 2015/16, where the move to a basic funding rate per student would otherwise result in a reduction in funding per student.For shadow allocation calculated by comparing funding per student allocated for 2012/13 (excluding transitional protection) with funding per student for 2012/13The operation of formula protection funding for future years will depend on progress of Ministerial Working Group on the reforms for large programmes, A levels and GCSEs.Enables you to move on with curriculum reforms and simplification while final details are resolvedFor shadow allocations a 10% cap has been applied- no institution would gain by more than 10% funding per studentTP from 11/12Formula Protection FundingHigh Needs StudentsStudent Support Funding???
25? ? ? Formula protection funding (FPF) For example: Funding per student at St Nowhere College is calculated at £4500 per student in 2012/13, the new methodology gives them £4000 per studentFPF of £500/student is included in the 2012/13 shadow allocationFor 2013/14 a similar calculation will be carried out using updated data, amount will vary with both volumes and dataTP from 11/12Formula Protection FundingHigh Needs StudentsStudent Support Funding???
26? ? ? High Needs Students (HNS) This is funding for students with learning difficulties and/or disabilities and/or special educational needs with support costs above £6,000There’s a system based on the same principles for all children and young people from ages 0 – 24It is called place plus – places are funded by the EFA and any additional top-up funding by the home local authorityThere are three elements to High Needs FundingTP from 11/12Formula Protection FundingHigh Needs StudentsStudent Support Funding???
27? ? ? High Needs Students (HNS) The place – EFA Funded Element 1 This is the standard Funding Formula as we have described – it is based on lagged student numbers – this aspect rolls on from year to year.Element 2 This is the first £6,000 of additional support – numbers are calculated based on information provided by the local authority about the number of places it is going to commission from each institution and the EFA adds £6,000 for each place to the allocation – completing the place funding.The Plus – Top up Funding – LA FundedElement 3 any funding the individual requires above the first two elements is negotiated and agreed with the student’s home LA.TP from 11/12Formula Protection FundingHigh Needs StudentsStudent Support Funding???
28HNS TimelineEnd Sept LAs confirm 2012/13 HNS student numbers and forecast 2013/14 High Needs places.End of Oct EFA complete data collection and checks, including clarification of forecasts which will impact on individual institutions. LAs will confirm amended forecasts where applicable.End Nov/early Dec EFA will share 13/14 HNS forecasts with LAs and institutions.End January , learner number statements will be issued to all institutions.End of March, institutions have received their funding allocation for 2013/14. This will include Element 1 funding for HNS on a lagged basis, and Element 2 on the basis of LA commissioning.LAs will have completed the negotiations for Element 3 with institutions prior to the start of the academic year.TTP from 11/12Formula Protection FundingHigh Needs StudentsStudent Support Funding???
29? ? ? Student Support Funding Which includes Bursaries to support participation and attainmentResidential Bursary FundsNot included in the shadow allocationCare to LearnDance and Drama AwardsTP from 11/12Formula Protection FundingHigh Needs StudentsStudent Support Funding???
30? ? ? Residential Care Standards Funding Care Standards Funding Funding to contribute to the costs of the standards required for residential provision to meet the care standards legislationThis is included in the shadow allocation and will be payable on exactly the same basis as now but shown in cash not a factor£12,252 per institution plus£817 per studentTP from 11/12Formula Protection FundingHigh Needs StudentsStudent Support Funding???
31What is availableSupport and guidance on our website:Powerpoint presentationWritten guidanceWe welcome your questions and comments on the shadow allocation to inform 2013/14 allocations where appropriate(CUSTOMISE)-
32Where are the documents Shadow Allocation and Technical NoteShadow Allocation Calculation Toolkit and Field Guidewill be available for you to download from the Information Management Portal at:https://gateway.imservices.org.ukWe will send schools and FE institutions an alert to tell them when Shadow Allocations are availableAcademies will be notified via the EFA Academies Bulletin
33Next stepsEnd October 12/13 Shadow Allocation documents ready to download4th October School Census date (deadline 31st October)16th November 12/13 Shadow Allocations questions and comments deadline16th November ILR 11/12 deadline6th December ILR R04 12/13 deadlineJanuary 13/14 Student Number Statement issued to providers31st March 13/14 Allocations finalised and EFA annual statement published