Apprenticeship funding update May 12th 2010, 11.30-12.30, LEACAN Focus day on Apprenticeships Nick Linford Head of the Pearson Research Institute

Apprenticeship funding update > The political divide > Allocations in England and direction of travel > Apprenticeship rates in 2010/11 > Apprenticeship demand, supply and priorities > The National Commissioning Framework > 16-18 Apprenticeship bedtime reading > Big post-election questions

Before last night! ? ? As of April 1st 2010 the data requirements and funding policy (eligibility, rates and methodology) divide will widen further New roles today?

2010/11 demand-led funding (England) Learners 19+ ER (TtG and Appren 16-18 LR (FE) 16-18 LR (FE) 19+ ER (TtG and Appren) 4m £7.5bn Adult LR (FE) 16-18 Appren 16-18 Appren Adult LR (FE) DCSF BIS

Direction of travel for 2010/11 16-18 LR (FE) 16-18 Appren Adult LR (FE) 19+ ER (TtG and Appren) Funding + 12.2% + 6.6% +0.1% -11.5% + 23.3% Learners + 10.4% + 1.1% - 25.3%

Apprenticeship rates in 2010/11* > No rate change (16-18 Appren) > 3% rate decrease (19-24 Appren) > 13% rate decrease (25+ Appren), now 20% less than 19-24 rate > 50% assumed employer contribution (all 19+) > And 25% reduction for large employers (all 19+) So 19+ rate reductions mean many more learners for the same size of government budget *Including carry-in monthly funding instalments

There were 7% more starts in 2008/09, but… Apprenticeship starts by age and year* No change since 2005/06 120,000 16-18 - 7% 100,000 13% increase since 2005/06 80,000 - 6% 19-24 60,000 40,000 + 106% 25+ 20,000 2005/06 2006/07 2007/08 2008/09 Without 25+ starts it was 7% fewer starts in 2008/09 compared with 2007/08 (and just 5% more than in 2005/06) * Source : March 2010 Statistical First Release

So how is this year (2009/10) going? Apprenticeship starts by age (01/08/09 – 31/01/10)* 16-18 80,000 -2% 7% decrease since 2007/08 70,000 60,000 19-24 24% increase since 2007/08 50,000 +14% 40,000 30,000 20,000 25+ -35% 10,000 2007/08 2008/09 2009/10 Clearly concern is 16-18, with 7% fall in starts for 2008/09, and 2% less for first half of 2009/10* * Source : March 2010 SFR, 2009/10 figures provisional

Summary of demand, supply and priorities 16-18 starts struggling as we come out of a recession 19-25 picking up again as 25+ allocations are slashed 25+ now falling as allocations have switched to 19-24 Priority now 16-18 and 19-30, particularly at Level 3 Increasingly under 30 should do Apprenticeships as opposed to Train to Gain New Industries, New Jobs (NIJI) and the Joint Investment Programme (sector priorities)

National Commissioning Framework Para 71 : As part of their local commissioning plan, local authorities will identify the volume of Apprenticeships they need. To do this, they will work with the NAS and their 14–19 partnerships to identify the level of demand among learners and employers and the requirements of national target trajectories, and to ensure that suitable opportunities exist within each area. Para 72 : The SFA, on behalf of the NAS, will conclude funding agreements with providers and will monitor overall performance. Where there are significant issues that affect the quality and performance of Apprenticeship provision, these will be discussed with the local authorities concerned.

Bedtime reading for 16-18 Apprenticeships SoP NCF Earned Autonomy SFA GN 3 Apprenticeship 2010/11 funding guidance due end of May

Some big post-election questions Will the age of participation be raised to 18? Could the school leaving age be lowered to 14? Will there be a 14+ national funding regime or will local authorities want their own methods? Will the 14-19 curriculum pathways survive? In what shape would MoG survive? A Liberal Democrat Education Minister? (still possible as at 11.00 on 12/05/10)

Oh, and the second instalment! Please do let me know what you think….. Thank you www.fundingguide.co.uk www.dataguide.co.uk

Questions and discussion Other events you or a colleague may be interested in > Hot breakfast briefing (post-election special) > Summer College Data conference > Train to Gain and Apprenticeship Funding Masterclass Find out more and book a place visit www.pearsonresearchinstitute.com