2. Welcome LSC As Market Makers Presented to: National Council Date: December 2006 By: Rob Wye

3. The learning and skills market The whole market – whether employer, individual and state funded Different markets for 14-19, adults and employers Demand–led – driven by individual and employer choice Driven by college and provider excellence, innovation, responsiveness and relevance Greater non-LSC income

4. The LSC role Understanding demand, need and supply Understanding the gaps Raising awareness of benefits – building a “hunger for learning and skills” Information, advice, guidance and brokerage Provider-neutral Eliminating poor quality Encouraging new providers to enter (inc competitions) Regulating the market (eg monopolies)

5. Where the market will not provide... Ensuring a full 14-19 offer in each area Reaching hard to reach employers (eg Train to Gain) Reaching hard to reach/vulnerable learners (eg Skills for Life, LLDD) Reaching out to disadvantaged communities Supporting selective capital investment and capacity building

6. STRATEGIC COMMISSIONING Presented to: National Council Date: December 2006 By: David Cragg

7. Principles Alignment with national/regional priorities Greater employer and learner choice Increased responsiveness Greater competition in the system Improved quality Minimum performance levels Common performance management criteria Provider neutral

8. Policy Context/Rationale Funding decisions linked to priorities and standards “No inadequate provision by 2008” - Introduction of “notice to improve” New economic mission for the FE system Greater market principles applied Meeting Leitch priorities, esp. integration of employment and skills Free up and create learning and skills markets Choice – through government supported and full cost learning

9. Commissioning Framework National - Annual Statement of Priorities Setting out clear set of ‘rules for investment’ for colleges and providers - % adult budget committed to Adult Level 2, Skills for Life - Priority qualifications through SSAs - Protect priority areas (eg LLDD; PCDL) - Allow those who respond to work within the broad blocks, intervene in the market where they do not Regional -Sector/occupational priorities through RSP Determining mix and balance and growth priorities Priority learners Local – 14-19 plans with Local Authorities

10. Light Touch Planning – Differentiated Intervention in inverse proportion to success Simplified system, removes need for micro-management Development of strategic relationships Encouraging collaboration between providers Excellent providers only agree headline numbers Deal robustly with poor quality and underperforming provision Developing the market through demand-led system Rewards for playing to strengths

11. Opening Up the Market New procurement strategy Transparent yet sophisticated Tendering for provision below minimum levels and to meet gaps Intelligent use of tendering - Open - Restricted - Negotiated Reflective of legal status – grants, grant in aid, contracts