Presentation to Heads of School Sixth Form 3/12/08 16-18 Learner Responsive Presentation to Heads of School Sixth Form 3/12/08

Objectives Understand the 16-18 model Outline key funding methodology Understand key stages of business cycle

16-18 model for schools (1) Funding formula: Standard Learner Number (SLN) X Rate X Provider Factor SLN value 450 glh capped at 1.75 (787 hrs) Rate for SSF - £3,007/SLN or transitional rate Elements of Provider Factor: Programme weighting, Area Costs, Disadvantage, Success Factor Rate: £2,945 X 2.1% + £3,007 For SSF delivering non SSF provision e.g. E2E, they will be paid at the non SSF rate - £2,920. Success factor will be calculated from Y13 level 3 data. To get round AS levels which are not cashed in in Y12. Issue at the minute is that success rate is calculated from matching two different sets of data: census and awarding body. This may change once changes to the census are introduced i.e. inputting Aim, Level and Achievement. Level 3 used as this is verified by schools unlike Level 2. Individual success factor will be used instead on national average (87%) – Success factor is calculated as retention rate X achievement rate e.g. if you have 100 pupils, 90 are retained and 80 achieve then retention rate is 90/100 x 100 = 90%, achievement rate is 80/90 X 100 = 89%; success rate is 90% X 89% = 80%. Success factor is worked out as follows: 50% + success rate/2 – in other words schools are give 50% of funding whether student achieves or not

16-18 model for schools (2) Additional learning support – Calculated on formula based on GCSE score for English and Maths. ALS is any activity that provides direct support for learning to individual learners, over and above that which is normally provided in a standard learning programme that leads to their learning goal. The need for ALS may arise from a learning difficulty and/or disability, or from literacy, numeracy or language support requirements. ALS formula – 1 grade G £506, 2 grade As £16

16-18 model for schools (3) Additional items paid to schools: Teachers pension Teachers pay Grant Special Educational Needs (latter two go through LA)

Policy Direction Increased investment in diplomas £39m to £262m Emphasis on NEET reduction/increased participation Emphasis on L3 at 19 Foundation learning tier – 30% to be progression pathways – QCF Diplomas, more streams coming on board next year – This is not extra money, simply that a larger chunk of the 16-18 budget is ring-fenced for diplomas. Increased participation – measured as a percentage of the cohort. In real terms, depending on current level of participation and cohort projections, it may mean less learners. For this year cohort projections will not be a factor in negotiations due to degree on variation nationally, but it will be a factor in next years negotiations for 2010/11. Details though of how this will work have yet to be worked through. LSC funded an additional 20,000 learners this year but the budget has not increased. Therefore, future growth will need to be balanced by reduction of numbers elsewhere. This applies to academies and presumptions. The assumption for 20009/10 is that all 16-18 providers will be funded at their 2008/09 level. Cases for growth outlined later. Progression pathways – there are currently 4 progression pathways including to independent living, apprenticeship and employment.

Unit costs must be controlled For 2009/10 the unit cost increase is 5%. 2.1% is the uplift due to inflation. 2.9% has to come from: Success rates Increased proportion of Full time learners Higher programme weighting e.g. IB and Diplomas It cannot come from increased breadth. Base line for SLN is 2007/08.

Cases for growth of Breadth (1) Should have a sound educational rationale based on initial assessment of aspirations Be directly related or relevant to the learners main programme Prioritise the development of maths and English to level2 Directly support the development of recognised key skills/ functional skills or independent living or thinking skills Principles for allowing breadth Directly support progression to employment Enhance the learners UCAS points score where they aspire to HE Not duplicate any other learning funded through any other source Not duplicate any learning funded by entitlement Up to the schools to apply these principles

Cases for growth of Breadth (2) Directly support progression to employment Enhance the learners UCAS points score where they aspire to HE Not duplicate any other learning funded through any other source Not duplicate any learning funded by entitlement Up to the schools to apply these principles

Managing numbers Consolidation Reductions for academies, presumptions and other infrastructure developments Priority growth – capital developments, movement of provision from closing SSF, significant diploma development, extensive restructuring of provision.

Time line LSC to get DCSF Census data middle of December Consolidated allocation to schools 9/1/09 Final allocation 13/3/09 Schools should be able to calculate funding now as all data is available i.e. provider factor used last year and the new base rate.