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

2. 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
> Apprenticeship bedtime reading
> Big post-election questions

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

4. 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

5. 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%

6. 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 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

7. 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

8. 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

9. 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 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)

10. 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.

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

12. 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 curriculum pathways survive?
In what shape would MoG survive?
A Liberal Democrat Education Minister?
(still possible as at on 12/05/10)

13. Oh, and the second instalment!
Please do let me know what you think….. Thank you

14. 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