Championing Young People’s Learning Supporting Young People to Succeed - Challenges and Priorities for 2011/12 Onwards Peter Lauener Chief Executive, Young People’s Learning Agency 15 October Tertiary Colleges Group Seminar Championing Young People’s Learning

Agenda today…… YPLA Update Young People’s Learning – what the facts tell us Funding and Allocations for 2011/12

Championing Young People’s Learning Funding and supporting academies…… Currently c 300 academies Budget for is £1.7 billion Financial support for young learners…… Education Maintenance Allowances for around 600,000 young people, others get support for e.g. childcare and dance and drama awards. The budget for is £663m Funding learning opportunities for year olds….. and allocations to schools, colleges and other providers, including young offenders’ institutions. Around 1.4 million places, costing £6.4 billion in Our running costs are 5 pence for every £10 that we spend YPLA - three roles

Championing Young People’s Learning YPLA objectives To deliver efficient systems for learner support To enable independent autonomous institutions of all kinds to flourish To support rapid growth in the number of academies To develop a nationally consistent and transparent funding formula post 16 based on individual need and learning aims Publish, publish, publish…….to inform market provision and individual choice

Championing Young People’s Learning YPLA objectives (contd) To support local authorities in the exercise of their local strategic role To ensure budgetary control across all budgets and high standards of financial assurance To minimise the overhead that the YPLA takes in its own operating costs (currently 0.5%) To support equality of opportunity for the 2 million customers of our programmes and for our own staff

Championing Young People’s Learning YPLA - Progress to date Accurate and timely payments to academies, colleges and all types of providers Paying 800 colleges / third sector providers directly – a change implemented in three weeks Paying 50% more academies than we were 2 months ago – with systems for paying new academies up and running from 1 September EMA is running smoothly – applications processed quickly with no queues Business Plan for 2010/11 agreed and on website Board brings cross-sector influence, expertise and commitment

Championing Young People’s Learning Young people’s participation….Taking the long term view

Championing Young People’s Learning Changes in Young People’s Learning over a Generation (1)

Championing Young People’s Learning Changes in Young People’s Learning over a Generation (2)

Championing Young People’s Learning Changes in Young People’s Learning over a Generation (3)

Championing Young People’s Learning Changes in Young People’s Learning over a Generation (4)

Championing Young People’s Learning Where year olds study

Championing Young People’s Learning year olds studying at Level 3

Championing Young People’s Learning How 16 year olds without Level 2 achieve Level 2 by 19

Championing Young People’s Learning While participation has increased, the number disengaged has edged down but is still stubbornly high……..

Championing Young People’s Learning Source: Audit Commission report: Against the Odds, July 2010 NEET Most young people are never NEET: most NEET episodes last fewer than six months

Championing Young People’s Learning Source: Audit Commission report: Against the Odds, July 2009 Long-term effects of being NEET on young men

Championing Young People’s Learning A young person NEET in 2008 will cost an average of £56,000 in public finance costs before retirement age (for example, welfare payments, costs to health and criminal justice services, and loss of tax and national insurance revenue). Also £104,000 in opportunity costs (loss to the economy, welfare loss to individuals and their families, and the impact of these costs to the rest of society). The entire 2008 group of young people NEET could cost over £13 billion to the public purse and £22 billion in opportunity costs before they reach retirement age. Source: Audit Commission report: Against the Odds, July 2009 Costs of disengagement

Championing Young People’s Learning So how will we now approach the allocations round for 2011/12?

Championing Young People’s Learning Funding follows learner choice Independent providers Local authority leadership role, exercising strategic influence, statutory duty to secure provision Stream lined, simplified system, reduced bureaucracy 2011/12: Principles

Championing Young People’s Learning Lagged Learner Number basis for funding YPLA determines formula-led allocations Additional places for growth or gap filling No in-year or end-year adjustment if grant-funded or equivalent (for example, schools, academies, colleges) except in exceptional circumstances Light touch in-year contract adjustment for others (for example, independent training providers, ISPs) 2011/12: Key features

Championing Young People’s Learning 2011/12: Roles and Responsibilities The Role of Local Authorities: Statutory duty to secure enough suitable education and training for young people age or up to age 25 if subject to learning difficulty assessment (ASCL duties remain unchanged) Identifying gaps, enabling new provision, developing the market - working with YPLA to maintain control of the available budget Local statement of priorities Ministerial Advisory Group considering key strategic role of local authority in education and children’s services (ages 0 – 19)

Championing Young People’s Learning 2011/12: Roles and Responsibilities The role of YPLA: Data analysis and funding calculations Funding and financial assurance of colleges and other providers Strategic analyses of performance and participation by providers and within area

Championing Young People’s Learning Allocations 2011/12: Draft Timeline November/December 2010 DfE issues grant letter confirming budget and key messages November 2010Local authorities advise YPLA of strategic priorities for their local area January 2011YPLA confirm to existing providers the volume of activity to be funded in 2011/12 [NB: not cash at this stage] February 2011YPLA provides information to local authorities on aggregated provisional allocations (volumes) and confirms any additional numbers to be funded outside the lagged approach Mid March 2011YPLA sets national base rate based on total volume of provision to be funded End March 2011Final allocations confirmed to all providers May 2011 onwardsYPLA issues funding agreements to providers for signature

Championing Young People’s Learning Local Statement of Priorities LAs lead – can be joint Key points from strategic and local analyses and partnerships Overall position and trends on participation; attainment and provider quality: 2-3 year horizon Developed with partnerships - but also a challenge to providers Significant gaps in provision – evidence based (If appropriate) proposals for specific structural changes eg Adding a sixth form to a school Opening/closing schools, colleges or other providers Merger or de-merger of institutions Developing new specialist provision

Championing Young People’s Learning 2011/12: Funding and Contracting The YPLA will fund directly academies, colleges, private and charitable providers, and will fund local authorities for schools with sixth forms and some other budgets (e.g. Education Business Partnerships and Young Apprenticeships) Private Providers that deliver provision across YPLA regional borders will receive a single Contract for provision

Championing Young People’s Learning 2011/12: How lagged funding works

Championing Young People’s Learning Worked Example Learner Numbers Data returned RatioLearner Numbers (2010/11) A – FE College B – School sixth form400n/a400 LR01 return – December 2010 School census – [November 2010] F05:F01 ratio – 2009/10 Lagged learner numbers

Championing Young People’s Learning Worked Example Volume of Provision Learner Numbers SLN/learner ratio SLN to be funded A – FE College B – School sixth form Based on historical data

Championing Young People’s Learning Worked Example Provider Factor SLN to be funded Provider factor SLN weighted by provider factor A – FE College B – School sixth form Based on historical data

Championing Young People’s Learning Worked Example Total volumes (illustrative only – will use national figures) Total volume of learning Lagged dataNew provision College A2898 School B624 Academy C470 Provider D238 New Provider X65 New Provider Y105 Total Overall volume to be funded = 4400 Total volume = SLN multiplied by provider factor

Championing Young People’s Learning Worked Example National Rate (illustrative only – will use national figures) Total funding available for participation (F)£12,980,000 Total volume of provision (V)4400 National Rate (F/V)£2950/SLN Note: all figures purely illustrative! Assumes a single rate for all provision – could vary

Championing Young People’s Learning Worked Example Final Allocation SLN weighted by provider factor National Rate Allocation A – FE College2898£2950£8,549,100 B – School sixth form624£2950£1,840,800 All figures purely illustrative Assumes a single national rate for all provision

Championing Young People’s Learning Worked Example Comments Could have a single national base rate for all provision or different rates for schools and FE as currently - depending on government policy Approach to convergence to national base rate to be agreed Transitional protection may be required to reduce levels of turbulence

Championing Young People’s Learning LLDD In 2011 / 12 YPLA will fund ISPs direct Work in 201/11 to develop, model and test a new approach to bringing together the main streams of funding for learners with LDD – SEN block grant, additional learning support, funding for provision in independent specialist providers Local authority duty to arrange learning needs assessment for young people with statement of special education needs

Championing Young People’s Learning 2011/12 Allocations: Issues Levers for local authorities Responsiveness of the lagged approach Addressing strategic gaps Mergers and restructuring Appeals

Championing Young People’s Learning And finally, the big picture…….. October 20 th Spending Review results! Education White Paper late autumn – to include conclusions on LA role Allocations guidance to be published for consultation post White Paper Qualification pathways and the Wolf review of vocational education Learners with learning difficulties and disabilities and the Sarah Teather review of special needs provision. System challenges for all partners  Continue to improve the learning offer and raise participation  Narrow the gap in attainment Challenges for YPLA:  Growing number of academies  Supporting local authorities leadership role for  Simplifying funding for 16-19