1. An update on 16-19 funding for the 2014 to 2015 academic year

2. Agenda Welcome and introduction
Session 1 - Areas where funding policy is changing
Session 2 - Funding per student update
Session Allocations for 2014 to 2015
Session 4 - High needs funding

3. ( ) The funding formula Programme Cost Weighting Area Cost Allowance
Disadvantage Funding
Area
Cost Allowance
Student Numbers
National Funding Rate per student
Retention Factor ( )
Total Programme Funding

4. ……plus extras (if applicable)
Programme Cost Weighting
Disadvantage
Funding
Student Numbers
National Funding Rate per student
Retention Factor ( )
Area Cost Allowance
Total Programme Funding
TP from 11/12
Formula Protection Funding
High Needs Students
Student Support Funding

5. Program Cost Weighting National Funding Rate per student
Student numbers
Program Cost Weighting
DisadvantagFunding
Area Cost Allowance
National Funding Rate per student
Retention Factor ( )
Student Numbers
This is a count of students to be funded
Must meet qualifying period of 2 weeks or 6 weeks- will not fund programmes under 2 weeks
Based on autumn census or ILR return
Either full time => 540 hours
Or Part Time < 540 hours
Student status
Hours required per year
Full time
540 +
Band 4
Band 3
Band 2
Band 1
up to 280

6. Program Cost Weighting National Funding Rate per student
The National Funding Rate
Program Cost Weighting
DisadvantagFunding
Area Cost Allowance
Student Numbers
Retention Factor ( )
National Funding Rate per student
Single National Full Time funding rate per student expressed in £
All year olds in English sixth forms, colleges and independent providers are funded at the same national funding rate (except Youth Contract, Young Offenders, Apprenticeships and European Social Fund (ESF))
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.

7. Program Cost Weighting National Funding Rate per student
Retention Factor
Program Cost Weighting
DisadvantagFunding
Area Cost Allowance
Student Numbers
National Funding Rate per student ( )
Retention Factor
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%
Number of students completed
Number of students started
Student Retention and funding
Funding
Leaves before qualifying period
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

8. National Funding Rate per student Programme Cost Weighting
DisadvantagFunding
Area Cost Allowance
Student Numbers
National Funding Rate per student
Retention Factor ( )
Programme Cost Weighting
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 uplifted by one weight, which has been determined by merging the 2 current academic weightings and rebasing as 1,
Vocational Programme Weighting categories are being reduced in number and re-based to make it simpler: applied at sector subject areas
Cost Weighting Category
2012/13 equivalent
Proposed 2013/14
Academic
1.06
1.00
Low
1.10
1.04
Medium
1.28
1.21
High
1.60
1.51
Specialist
1.72
1.62

9. National Funding Rate per student Programme Cost Weighting
DisadvantagFunding
Area Cost Allowance
Student Numbers
National Funding Rate per student
Retention Factor ( )
Programme Cost Weighting
Shadow Allocations
Based on whole-year 2010/11 data – same data source as for full-time/part-time
No major issues with data – but inevitably some turbulence due to reduced number of categories
Doesn’t take account of any business cases or protection of programme weighting in 2012/13 allocation, so may be some reductions
Detailed list of sector subject areas and weightings will be given in [Field Guide]

10. National Funding Rate per student
Disadvantage Funding
Program
Cost Weighting
Area Cost Allowance
Student Numbers
National Funding Rate per student
Retention Factor ( )
Disadvantage Funding
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
Funds not ring-fenced
Simple and transparent
Calculated in two blocks, shown separately within the funding formula and paid as a single budget on profile
Flat rate minimum amount, allocated to institutions in receipt/below a threshold, of either disadvantage or ALS from the formula

11. National Funding Rate per student
Disadvantage Funding
Program
Cost Weighting
Area Cost Allowance
Student Numbers
National Funding Rate per student
Retention Factor ( )
Disadvantage Funding
Economic
Deprivation
Block one:
Based on students’ home postcode
Deprivation is calculated using Index of Multiple Deprivation This examines the students’ 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%
Additional categories are no longer eligible
Care Leavers attract a standard uplift- rate
IMD is used to measure 27% most deprived lower super output areas (LSOA) within England
Additional categories
Basic skills learners
Those living in hostels and residential centres.
Those with mental health problems.
Travellers.
Those whose statutory education has been interrupted.
Those in care or who have recently left care.
Asylum seekers eligible for YPLA funding according to the Funding Regulations guidance.
Refugees.
Ex-offenders.
Offenders serving their sentence in the community.
Full time carers.
Those recovering from alcohol or drug dependency.
Learners funded by the Single Regeneration Budget.
Learners funded under the Offender Learning and Skills Service (OLASS) arrangements.
People living in supported accommodation provided by a registered social landlord (RSL) or housing association (HA) registered with the Housing Corporation, or provided by another non-profit-making organisation in a building owned by an RSL or HA.
People living in supported accommodation provided by a registered charity.
People living in supported accommodation registered with the local authority or National Housing Federation.

12. National Funding Rate per student
Disadvantage Funding
Program
Cost Weighting
Area Cost Allowance
Student Numbers
National Funding Rate per student
Retention Factor ( )
Disadvantage Funding
Prior Attainment
Block two:
Acknowledges the additional cost of students who need extra learning support
Based on students’ achievement of GCSE English and maths at end of Year 11
Funding rate for shadow allocations =£450
Reduced flat rate for part time = £274- pro rata as per programme costs
Used to be graduated payments based on student’s grades
Now only a flat rate based on non-achievement of grade C
Shadow Allocations
Block 1 - Same index as for 2012/13 allocations so relatively little turbulence as a result
Some change due to exclusion of additional categories for FE
Block 2 – uses matched database from 2009/10, total numbers shown on statement and in ShACT but not in background ShACT spreadsheets
Flat rate so likely to result in some turbulence
Also no historical element in FE so will result in changes as a result
Example
Maths below grade C
English below grade C
Funding attracted per student (£)
Student 1
yes
*Rate x1
Student 2
Student 3
*Rate x2

13. ( ) ( ) Area Cost Allowance
Program Cost Weighting
DisadvantagFunding
Student Numbers
National Funding Rate per student
Retention Factor ( )
Area Cost Allowance
Program Cost Weighting
DisadvantagFunding
Student Numbers
National Funding Rate per student
Retention Factor ( )
Area Cost Allowance
Reflects the cost of delivery in high cost local areas
We will continue to calculate this using the same methodology as now
Applied to the whole participation formula (including all disadvantage)
Area
Uplift
Oxfordshire 7%
Essex (London fringe) 6%
Kent (London fringe)
Bedfordshire 3%
Hertfordshire (non-London fringe)
Cambridgeshire 2%
Hampshire and Isle of Wight
West Sussex non-fringe 1%
Area
Uplift
Inner London
20%
Outer London
12%
Berkshire
Crawley
Surrey
Buckingham (London fringe)
10%
Hertfordshire (London fringe)
Buckinghamshire (non fringe) 7%

14. 2014 to 2015 Areas where funding policy is changing

15. Funding of 18 year olds New for 2014/15 Band
Study programme hours and ages 5
Full time 16/17 year olds doing 540 hours or more 4
Full time for 18 year olds and 16/17 year olds doing between 450 and 539 hours 3
Between 360 and 449 hours 2
Between 280 and 359 hours 1
Less than 280 hours
Students who are 18 or over at 31st August preceding the start of the academic year
New for 2014/15

16. Formula protection funding (FPF)
FPF was introduced for 2013 to 14 to be paid for at least three academic years, until and including 2015/16
For 2014 to 15 it will:
Reduce from any gains in the formula – e.g. where the value of the formula increases due to improved retention, more students attracting disadvantage, increased programme size, for example FPF will reduce
Stay the same if the value of the formula reduces
Should the value of the formula exceed the funding per student paid in 2012 to 13 then the formula, net of FPF, is paid in full
For those institutions with additional TP for short courses in 2013 to 14, in 2014 to 15 this additional amount will be half the amount it was in 2013 to 14
New for 2014/15

17. Formula Protection Funding
£4,500
£4,300
£3,800
12/ / /15
Formula down
FPF the same
Funding per student reduces
£500
£4700
£4,500
£4,000
12/ / /15
£4,700 per student from the formula
£500
£500

18. Free meals for 16-19 year olds
Programme cost weightings
Extends eligibility for free meals to disadvantaged students in further education and sixth form colleges
Currently only eligible students in school sixth forms have an entitlement to free meals.
Further details in January 2014.
The review of Programme Cost Weighting is now completed and has been considered by Ministers
There will be no changes to these weightings for 2014 to15
We will keep the weightings under review

19. Planned hours eligible for funding
Relevant
Directly relevant to the study programme
Planned
Explicit in the Learning Plan or Timetable
Supervised
Hours that are supervised and/or organised by the institution
Quality Assured
Hours that are quality assured by the institution
Normal Working Pattern
Hours that are within an institution’s normal working pattern
Study Leave
Where it meets the criteria set out above, is time limited and the weekly hours do not exceed the student’s planned weekly hours for the overall study programme

20. Hours that do not count for funding
Voluntary
Voluntary extra-curricular activities and clubs delivered during breaks or outside normal working pattern
Homework
Study that is homework or independent study/research that is not timetabled
Employment
Employment or work experience organised by anyone other than by or on behalf of the provider
Volunteering
Volunteering or community activities that are not organised by or on behalf of the provider

21. Recording planned hours for funding purposes
Qualification Hours
Hours that are delivered towards qualifications that are approved for teaching to year olds under section 96 of the Learning and Skills Act 2000
Non Qualification Hours
Do not count towards a qualification on section 96
Informal Certificates
Non-qualification activity
Tutorial activity
Work experience/Work related activity
Volunteering/Community activities
Enrichment activities

22. Planned hours: Schools and academies with sixth forms
You need to capture planned qualification hours and non-qualification hours separately in readiness for recording.
Fields
Census
Planned hours for qualifications
Planned hours for non-qualifications
Autumn 2014
Students in 2013/14
Students in 2014/15
Autumn 2015
Students in 2015/16
Autumn 2016
Students in 2016/17

23. Work experience-developments
From 2014 to15 the way non-qualification activity is recorded will change
Work Experience will need to have taken place within an EXTERNAL employers’ workplace
Simulated work environments should be separately recorded as non-qualification activity
Institutions/providers need to put arrangements in place to achieve this during 2013 to14
Activity in, for example, a college crèche or restaurant would not count as external work experience

24. English and Maths condition of funding
From September 2013, students who did not hold an A*-C in English or maths needed to continue to study towards:
GCSE/iGCSE, or
Functional Skills, Free Standing Maths or ESOL qualifications as stepping stones to GCSE.
This becomes a condition of funds from the beginning of the 14 to15 academic year.
This means any student recruited from 1 August 2014 without at least a GCSE grade C in these subjects and not registered to work towards this level will not be counted for your funding allocation for 2016 to17
ACTION FOR 2014/15

25. 16-19 Allocations: 2014 to 2015

26. Timeline Key Dates for 2014 to 2015 allocations (schools / academies):
Event
October 2013
School census return date
January 2014
Send out school funding factors based on 2012 to13 data and lagged numbers based on 2013 to14 recruitment
February
Deadline for business cases to be with EFA
March
EFA confirms national rate
EFA send out school funding allocations

27. Lagged Student Numbers
Schools/Academies
2013 to 14 student numbers based on autumn 2013 census

28. Data Sources (Schools/Academies)
Autumn Census 2013 – autumn 2013 data for:
Lagged student numbers – i.e. how many students will be funded
Autumn Census 2013 – end-year 2012 to 13 data for:
Programme Size (Full-time/part-time)
Funding factors – retention, programme cost weighting, disadvantage block 1 (economic disadvantage)
These factors determine the level of funding per student
YP Matched Administrative Data, 2011to12 for:
Disadvantage block 2 (GCSE English and maths grades) (DN: may also be used for bursaries)
Affects the level of funding per student

29. Useful Documents
Funding formula review -
Funding guidance -

30. High needs funding in 2014 to 2015

31. From 2015 to 2016 academic year
A lagged system for most places based on the latest available data
Flags already included in ILR
Flags will be included in the school census from 2014 to 15
There will still be an opportunity for local authorities and institutions to discuss any expected substantial changes to the pattern of provision.

32. 2013 to 2014 academic year
We changed the high needs funding system in preparation for the Children & Families Bill and the significant reforms to the SEN system which will come into force from September 2014.
Institutions need more stability in place funding and we have clarified that it is not specific to an individual student or local authority.
In some cases, placement decisions and contracts have been finalised much later than envisaged.
We have played, and continue to play, a supportive role to aid discussions between local authorities and institutions.

33. HNS 2014 to 2015 place funding Place Plus
Element 3
Element 2
Element 1
Place
Plus
Accurate place funding gives security to institutions, and gives LAs greater control over top-up funding
Intention to base place funding for 2015 to 2016 onwards on prior year data
For 2014 to 2015, therefore, expect place numbers to be closely based on the actual numbers of placements commissioned in institutions for current year (2013 to 2014)

34. 2014 to 2015 key changes
We will be taking a step towards a lagged system and have designed the process to provide more stability in place funding for institutions.
We have encouraged dialogue between local authorities and institutions since we launched the 2014 to15 place review process in July 2013.
We have shared 2012 to 13 R14 ILR data with local authorities and requested they take this into account when planning for 2014 to15.
We know that 2013 to14 allocated volumes are not robust in many cases have asked local authorities to declare post to 2014 actuals on their high needs template (HNT)
We only expect 2014 to15 numbers to deviate from 2013 to 14 actuals where there are significant changes that LAs know will happen.

35. 2014 to 2015 Timetable
On-going dialogue between institutions and local authority regarding place numbers for 2014 to15
November: Update to HNTs (high needs templates) for local authorities, including 2012 to13 ILR data
December 23rd: Local authorities return HNTs and submissions
January 17th: Share 2014 to 15 high needs places with FE, CCPs, NMSS and ISPs
January 31st: FE, CCPs, NMSS and ISPs return exceptional submissions
February: Confirmation of outcome of local authority and institution submissions
March: Final high needs allocations issued to local authorities and institutions

36. Website
We have created a new high needs webpage, bringing together information for local authorities and institutions into a single place to improve access