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Delivering World-class Skills in a Demand-led System The Vision and the Detail Mick Fletcher 26 th April 2007.

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Presentation on theme: "Delivering World-class Skills in a Demand-led System The Vision and the Detail Mick Fletcher 26 th April 2007."— Presentation transcript:

1 Delivering World-class Skills in a Demand-led System The Vision and the Detail Mick Fletcher 26 th April 2007

2 Overview Demand-led is a distraction Key change is from market-led to programme-led Proposals seem to diminish the significance of existing brands An agenda for the 50% outside higher education?

3 Two Documents in One Strategic Reform – following the Leitch proposals closely Technical Changes - carrying forward important detail eg closing the funding gap Lots not said

4 The Zeitgeist 1 TECs and FEFC used price or Rates LSC used planning or Allocations Leitch proposes to use Eligibility

5 Qualifications and Curriculum Reform

6 The Zeitgeist 2 DfES/LSC prioritise Programmes over providers Competition over collaboration Responsiveness over stability Employers over individuals Sectors over regions

7 Funding Models A common funding model Two models for adult funding –Learner Responsive Provision –Employer Responsive Provision New arrangements for ALS/SEN/ALN/ASN

8 Balance of Funding

9 Timetables 2007/08 –Trials of Learner Accounts –Simplified planning –Poor quality provision removed 2008/09 –First 5 specialist diplomas –New Common Funding Approach –QCF becomes operational –SSCs prioritise shortlist of qualifications

10 Timetables 2010 –all adult vocational skills (apart from community learning) through learner accounts or Train to Gain –Full set of progression pathways implemented across the FLT –Fee assumption to increase to 50% –100 extra institutions offer the IB

11 Timetables 2012 –Sector becomes self regulating 2013 –14 specialised diplomas –Leaving age raised to –Leaving age raised to 18

12 14-19 provision Some important detail on the FE system Some important developments Strategic changes not highlighted but nevertheless there

13 Common Model FE & 6 th form Colleges Mainstream School 6 th forms Foundation Learning Tier Possibly apprenticeships But not Academies!

14 Common Model Option 1 Strategic Commissioning Option 2 Strategic Commissioning plus reconciliation Both options have new common rates methodology and no change (yet) in eligibility

15 Key Changes are for Schools Individual school success rates Disadvantage based on IMD 3% top sliced for ALS Use of October census data And discussions/competitions about growth

16 Specialist Diplomas could use LSC method could also but –Group sizes different –Disadvantage based on cohort –Success rates based on cohort –Area costs may differ

17 Schools Funding Consultation Accepts a funding model like the LSCs is needed Accepts the case for a national base rate for vocational options Offers 3 models for distributing funds –LEA purchaser model –Hybrid model –School purchaser model

18 Indicative Sums 1 AWPU for is around £3,000 per pupil per year Assumes 1 day per week on voc options will cost £1,200 per pupil per year Assumes school will find savings on average of £300 per participating pupil Therefore DfES will add £900 per participating pupil

19 Indicative Sums 2 6 hours X 40 weeks is 240 GLH Load-banded provision at 240 GLH earns –£1233 at PWF A –£1603 at PWF C –£2121 at PWF E

20 Funding Adult Learning More radical changes than Less generous funding All through two new approaches by 2010 except for PCDL and Offender Learning Balance to shift towards employers over time

21 Balance of Funding

22 Who said this? Heres a paragraph from Funding body As current consultation on funding, which ends in March/April Nevertheless we are committed to providing institutions with stability in funding.. and to allowing time for managed periods of transition when we do alter funding levels… We therefore propose that the old and historic buildings premium should be turned into a fixed allocation based on its current cash value

23 And who said that? And heres a paragraph from Funding body Bs current consultation in funding, which ends in March/April Competition will be supported. Providers demonstrating high-quality provision will be able to expand. New entrants to the market will be encouraged and unwarranted barriers to entry removed. Suppliers of unwanted or lower-quality provision will not be protected from the resulting loss of income

24 Learner Responsive Provision Indicative allocations (but no guarantee) Competitions for new provision Costed at new standard rates In year and post year reconciliation against actuals

25 Learner Responsive Provision All funding through Learner Accounts by 2010 Trials at level 3 from September 2007 The accounts offer Access to Guidance A choice of providers An information pack Registration A statement Personalised support

26 Think JCP New Deal for over 50s New Deal for Lone Parents Leitchs proposals for a Skills Development Fund

27 Skills Development Fund The SDF will resemble the Adviser Discretion Fund (ADF) operated by Job Centre Plus. Under the ADF, Job Centre Plus Advisers can grant jobseekers up to £100 to tackle immediate barriers…..Similarly the SDF will be used by advisers in the new careers service…

28 Learner Responsive Provision Level 3 pilot accounts –Full level 3 –2000 learners –EM and SE regions –Link to JCP and T2G –Providers bid for indicative allocation

29 Employer Responsive Provision Covers –Train to Gain –NES provision –FE delivery on employers premises –Adult apprenticeships –Possibly apprenticeships –Possibly CoVEs Skills academies

30 Employer Responsive Provision within light touch planning 80% commissioned 20% regional responsive fund Indicative maximum allocations Payment linked to recruitment Rates based on common methodology Eligibility increasingly restricted

31 Turning off funding Impact assessment for learners, employers and providers of withdrawing funding from provision not prioritised by SSCs

32 Intermediaries Sector Skills Councils will speak authoritatively on behalf of employers…Learners will have the absolute certainty that the qualifications they study are those that are valued by employers..

33 Additional Needs Single system Discrete provision via rates Up to £5.5K (95%) via formula Over £5.5K via 1:1 equivalent hrs

34 The ALS Formula Y = x e X

35 Proposed ALS Formula

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