1. Skills Funding Agency’s new approach to funding 29 November 2012 Gaynor Field Head of Funding Systems

2. Topics New approach to the wider system 2013/14 funding 2012/13 changes

3. A new streamlined funding system for adult skills 2013/14

5. How are we simplifying? Simplification that works and not just for the sake of it. A reduced number of rates (£ only!). A credit based rates process. A simple funding formula. A single earnings methodology covering all provision. Streamlined support funding – ALS/Learner Support. New funding rules and associated evidence requirements in one place.

6. How are we simplifying? No historic provider factor No SLN No National Rate No Employer Responsive or Adult Learner Responsive

7. Simplification – Rates table

8. Simple funding formula Funding = rate [x disadvantage x area cost]

9. Single earnings methodology Qualifying threshold for funding starts (as now). On-programme instalments. Achievement element. Uses in-year delivery to calculate earnings.

10. Simplified funding - What we know Funding rate based on start date Proportion of Funding remaining affects all funding Achievement based on Learning Actual End Date and Outcome Funding cap based on unweighted value per learner per year

11. Simplified funding – Still to finalise Apprenticeship funding Learner support Learning support Transitional arrangements

12. The timeline for change (1) December 2012 BIS Skills Funding Statement January 2013 Refreshed qualification offer 2013/14 January 2013 Funding Rates 2013/14 January 2013 Funding Rules 2013/14 January 2013New funding system descriptor

13. The timeline for change (2) April 2013 24+ Advanced Learning Loans applications open August 2013 New funding system operational

14. Changes in 2012/13

16. Amendments Date of achievement of an Apprenticeship TUC Awards now available to Trade Union reps ALS for classroom learning delivered by training organisations ALN now available to learners below Level 2 in English and Maths ASN eligibility extended Rates changes for Functional Skills in English and maths in Apprenticeships and standalone learning

17. 1.The large employer discount will be applied as applicable 2.This is the co-funded rate with an assumed employer contribution of 17.5 per cent. The fully funded rate is £209. 3.This is the co-funded rate with an assumed employer contribution of 50 per cent in line with the 2013/14 funding methodology. The fully funded rate is £724. Current Rate New Rate 16 -18 Apprenticeships – Functional Skills£224£471 19-24 Apprenticeships – Functional Skills 1 £173 2 £362 3 25+ Apprenticeships – Functional Skills 1 £138 2 £290 3 19+ Standalone Functional Skills delivered through Funding Model 45 1 £314£724 Functional Skills

18. Questions?