1. LSC Funding 2008/09 Methodology and formula Nick Linford Head of Planning, Funding and Projects 12 February 2008 "The move to a demand-led funding system in 2008/09 signifies a wholesale step change for the learning and skills sector." LSC 27 November 2007

2. The LSC bedtime reading Key reading material 1. National Statement of Priorities 2008/09 - 2010/11 150 Page count 100 0 50 2. National Policy Summaries for 2008/09 (more than 80) 200 250 3. Funding Models and formula for 2008/09 Complex landscape! 4. Funding Rates for 2008/09 (SLN per qualification) 5. National Funding Rates for 2008/09 (£ per SLN)

3. New funding models 2007/082008/09 Further Education 16-18 model Adult learner responsive model Employer responsive model Apprenticeships Entry to Employment Train to Gain * 16-18 apprenticeships planned and budgeted in 16-18 model (DCSF) School 6th Forms *

4. The new funding formula New ‘demand-led funding formula’ for all three models Introduction of: Standard Learner Numbers (SLN) National Funding Rates (NFR) Provider Factor (PF) this x this = £* There will be winners and losers, as shown in this LSC graph for 16-18 funding Will get 2.1% real terms protection 4.2% in cash terms * Additional Learning Support can be added

5. Standard Learner Numbers Full Time (1 FTE and 1 SLN) Guided Learning Hours Part Time (0.5 FTE and 0.5 SLN) Full Time (1 FTE and 1.22 SLN) SLNs (divisor) 08/09 NBR (loadbands) 07/08 SLNs replace the National Base Rate and will either be listed in the Learning Aims Database, or unlisted and based on guided learning hours in the ILR SLN GLH / 450 = SLN with a learner cap of 1.75 SLN per year SLN x NFR x PF = £ £

6. Examples of learner SLNs The LSC will continue to review rates, and will annually change some listed rates and make others unlisted (and visa versa) Four AS levels (listed 150 SLN GLH each) = 1.33 SLN One AS General Studies (listed 36 SLN GLH)= 0.08 SLN One Key Skill (listed 36 SLN GLH) = 0.08 SLN Entitlement (listed 114 SLN GLH) = 0.25 SLN = 1.75 SLN One BTEC National Diploma (listed 1080 SLN GLH)= 1.2 SLN* One 90 glh Certificate in Literacy (unlisted) = 0.2 SLN Entitlement (listed 114 SLN GLH) = 0.25 SLN = 1.65 SLN One full time NVQ (listed 520 SLN GLH)= 1.16 SLN Two Key Skills(listed 36 SLN GLH each) = 0.16 SLN Entitlement (listed 114 SLN GLH) = 0.25 SLN = 1.57 SLN * Per year in proportion to days in each year between start and end dates SLN x NFR x PF = £

7. The National Funding Rate per SLN The LSC set fully-funded £ per SLN each year, and in 08/09 they are: School Sixth Forms£2,945 16-18 FE £2,860 16-18 Apprenticeships £2,860 Adult Learner Responsive £2,775 Employer Responsive £2,775 For a 16-18 year old using previous example programmes: AS level programme: 1.75 x £2,860 = £5,005 BTEC Nat Dip programme:1.65 x £2,860 = £4,719 NVQ programme:1.57 x £2,860 = £4,490 These are used unless the provider has been set a transitional rate Finally, the funding must be multiplied by a Provider Factor SLN x NFR x PF = £

8. The Provider Factor Each funding model has its own Provider Factor and for 16-18 and adult model in 08/09 is based on averages from delivery in 06/07 e.g. 16-18 Model Lewisham College PF = 1.334 Success factor (e.g. 0.846) Area Cost (e.g. 1.200) Programme weighting (e.g. 1.217) Disadvantage (e.g. 1.079) Short-programme modifier (e.g. 1.001) x x x x AS level programme: 1.75 x £2,860 x 1.334 = £6,677 BTEC Nat Dip programme:1.65 x £2,860 x 1.334 = £6,295 NVQ programme:1.57 x £2,860 x 1.334 = £5,990 SLN x NFR x PF = £

9. The funding earned per SLN 1 SLN x £2,860 NFR x 1.334 PF = £3,815 16-18 year old1 SLN x £2,775 NFR x 1.411 PF = £3,916 Adult (19+) fee remitted Adult (19+) fee paying 1 SLN x £1,939 CFR x 1.411 PF = £2,736 1 SLN x £2,775 NFR x 42.5% = £1,179Assumed tuition fee = £3,916 Total income to provider The formula is the same within the Employer Responsive Model, but with fewer Provider Factor elements (based on actuals) as well as a 75:25 funding split between monthly on-programme payments and achievement (full framework) SLN x NFR x PF = £

10. Other things to note: When SLNs count The three funding census dates (e.g. 1 st October) have been scrapped Instead there are minimum attendance measures, based on duration DurationMinimum attendance 24 weeks or more6 weeks 2 to 24 weeks2 weeks Less than 2 weeksOnce If an enrolment meets the minimum attendance criteria the SLN value assigned in the given academic year will be counted This is commonly referred to as the ‘definition of a start’ Fewer full timers and more part timers now being counted?

11. Other things to note: The SLN per learner ratio Learners SLNs 2004/052005/062006/07 0 500 1000 1500 2000 2500 Part time adults This ratio is likely to be important to the LSC, but what does it imply? SLNs are a new volume measure that are not the same as FTEs. Caution recommended when used for non-funding purposes. 0.25 0.34 0.55

12. Find out more and access free resources at www.lewisham.ac.uk/pf