1. 16-19 Funding Formula for 2013/14 Application to Special Schools and Academies for Academic Year 2013/14

2. Objective  To outline the 16-19 Funding formula as it will apply to Special Schools and Academies for academic year 2013/14  To give an example of how it would apply to a special school/academy

3. Independent Specialist Providers, Special Schools, Special Academies and Non-Maintained Special Schools will all now be funded through the 16-19 National Funding Formula for programme funding plus £6,000 for each High Needs student – with any further funds being allocated by the students home Local Authority What is Changing?

4. The new 16-19 funding formula Total Programme Funding Programme Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor ()

5. Each student is counted once for the year All high needs students treated as full time Programmes should be planned to be around 600 hours or more – on average Students must participate for 540 hours to be deemed full time in future years Students must meet qualifying period of 6 weeks We will not fund programmes under 2 weeks Programme Cost Weighting Disadvantag Funding Area Cost Allowance National Funding Rate per student Retention Factor () Student Numbers Student numbers

6.  Single National Full Time funding rate per student expressed in £  This is the final element of the formula fixed by the EFA. It depends on how much learning is taking place across the country and the budget.  The rate used in this presentation for illustration only is £3,900  The National Funding Rate for 2013/14 will be confirmed as part of the Spending Review decisions yet to be made Programme Cost Weighting Disadvantag Funding Area Cost Allowance Student Numbers Retention Factor ( ) National Funding Rate per student The National Funding Rate

7.  Success no longer used in funding, a retention factor is now used  Applied at student level, not qualification level  Retained means still studying a core aim on planned end date or leaves early and is recorded as completed the core aim  For academic programmes – still studying one of the academic aims  For vocational programmes still studying the core aim  Retention FACTOR =half way point between Retention RATE and 100% Student Retention and funding Funding Leaves before qualifying period 0 Leaves before planned end and not recorded as completed 50% Retained to planned end date and recorded as completed 100% Leaves before planned end date and recorded as completed 100% Programme Cost Weighting Disadvantag Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Number of students completed Number of students started

8.  Recognition that some vocational subjects are more expensive to teach than others  Applied to the student’s whole programme  Determined by the student’s core aim ie A Levels or substantial vocational qualification  All academic programmes attract just the base rate Cost Weighting Category 2012/13 average Proposed 2013/14 Base1.081.0 Medium1.281.2 High1.601.5 Specialist1.721.6 Disadvantag Funding Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor ( ) Programme Cost Weighting Still under review- potential to change for 2013/14

9.  Recognises that some students require additional support to participate and achieve if we are to achieve full participation and improve attainment  Principle is to create a single budget that institutions use as they see fit Disadvantage Funding Economic Deprivation Prior Attainment Programme Cost Weighting Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor ( ) Disadvantage Funding

10. Based on student’s home postcode Deprivation is calculated using Index of Multiple Deprivation 2010. This examines the student’s home area based on: income; employment; health and disability; education, skills and training; housing and services; living environment; and crime Uplift is between 8.4% and 33.6% Care Leavers attract a standard uplift- rate Block one: Disadvantage Funding Economic Deprivation Programme Cost Weighting Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor ( ) Disadvantage Funding

11. Prior Attainment Acknowledges the additional cost of students who need extra learning support Based on student’s achievement of GCSE English and maths at end of Year 11 Funding rate used here for illustrative purposes is =£450 Should not assume these rates for 2013/14 Block two: Programme Cost Weighting Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor ( ) Disadvantage Funding Example Maths below grade C English below grade C Funding attracted per student (£) Student 1yes*Rate x1 Student 2yes*Rate x1 Student 3yes *Rate x2

12. Area Cost Allowance  Reflects the cost of delivery in high cost local areas – remains unchanged  We will continue to calculate this using the original post 16 methodology  Applied to the whole participation formula (including all disadvantage) Programme Cost Weighting Disadvantag Funding Student Numbers National Funding Rate per student Retention Factor ( ) Area Cost Allowance AreaUplift Inner London20% Outer London12% Berkshire12% Crawley12% Surrey12% Buckingham (London fringe)10% Hertfordshire (London fringe)10% Buckinghamshire (non fringe)7% AreaUplift Oxfordshire7% Essex (London fringe)6% Kent (London fringe)6% Bedfordshire3% Hertfordshire (non-London fringe)3% Cambridgeshire2% Hampshire and Isle of Wight2% West Sussex non-fringe1% Disadvantag Funding Student Numbers National Funding Rate per student Retention Factor

13. High Needs Students (HNS) This is funding for students with learning difficulties and/or disabilities and/or special educational needs with support costs above £6,000 There’s a system based on the same principles for all children and young people from ages 0 – 24 It is called place plus – places are funded by the EFA and any additional top-up funding by the home local authority There are three elements to High Needs Funding m 11/12 High Needs Students Student Support Funding Formula

14. High Needs Students (HNS) The place – EFA Funded Element 1 This is the standard 16-19 Funding Formula as we have described – it is based on lagged student numbers – this aspect rolls on from year to year. Element 2 This is the first £6,000 of additional support – numbers are calculated based on information provided by the local authority about the number of places it is going to commission from each institution and the EFA adds £6,000 for each place to the allocation – completing the place funding. The Plus – Top up Funding – LA Funded Element 3 any funding the individual requires above the first two elements is negotiated and agreed with the student’s home LA m 11/12 High Needs Students Student Support Funding Formula

15. Example using 10 High Needs Students m 11/12 High Needs Students Student Support Funding Formula Formula ElementExampleShown in formula as Student Numbers10 X Full Time Students10 Students National Funding Rate per Student Figure used for illustration is £3,900£3,900 RetentionAverage retention factor for SSFs is used which implies 98% of students are retained 0.99 Programme WeightingAverage programme weighting for SSFs is1.036 Disadvantage Funding (Block 1 EdF) Average Disadvantage Factor for SSF isPlus 3.60% Disadvantage Funding (Block 2 Prior Attainment) We have assumed all High Needs Students require this uplift for maths and English 2 x £450 = £900 per student Area Cost UpliftAssume none applies£0 Funding for bursariesIf applicable – included here£0 High Needs Element 2£6,000 per student

16. Example m 11/12 High Needs Students Student Support Funding Formula Formula ElementFormulaWorked example Student Numbers10 X Full Time StudentsBased on 10 Students National Funding Rate per Student £3,900£39,000 RetentionX 0.996 = £3,861 per student£38,610 Programme WeightingX 1.036 = £4,000 per student£40,000 Disadvantage Funding (Block 1 EdF) £40,000 X 3.60% = £41,440£41,440 Disadvantage Funding (Block 2 Prior Attainment) 1 X £450 per student£9,000 Area Cost UpliftX0£0 Bursary FundsIf applicable£0 Element 2 for High Needs 10 X £6,000£60,000 Total £110,440

17. Further Information m 11/12 High Needs Students Student Support Funding Formula In October 2012, we consulted with institutions and other stakeholders on options for significant changes to the way 16-19 education and training is funded. It is now confirmed that for 2013/14 a new fairer, simpler and more transparent funding system will be introduced to support the raising of the participation age. You can download the 16-19 funding formula review document at this link: http://www.education.gov.uk/aboutdfe/executiveagencies/efa/fundingallocations/a00210682/funding-formula-review Or Email YPNorthern@education.gsi.gov.uk YPSouthern@education.gsi.gov.uk YPEastern@education.gsi.gov.uk YPWestern@education.gsi.gov.uk

18. Next Steps Jan/FebWork with LAs to place and agree funding for students End of JanEFA issues Student Number Statements Feb/MarEFA Confirms funding rates End of MarEFA issues Final allocations for 2013/14 m 11/12 High Needs Students Student Support Funding Formula