1. Hot breakfast briefing 28 th June 2010, One90 Restaurant 16-18 funding update Brought to you by www.pearsonresearchinstitute.com Nick Linford Head of the Pearson Research Institute

2. Do you think FIFA should introduce goal-line technology? 1.Yes 2.No 3.Football? I don’t care 81% 3% 15%

3. Let’s find out a bit more about you. Please select who you work for 1.Edexcel/Pearson 2.FE college 3.Sixth form school or college 4.Independent training provider 5.Third sector organisation 6.Central or local government/authority 7.Consultancy 8.Other

4. On a scale of 1 to 10, with 1 being no knowledge and 10 being expert, how much do you already know about 16-18 funding? 1.1 2.2 3.3 4.4 5.5 6.6 7.7 8.8 9.9 10.10 1 2 3 4 5 6 7 8 9 10

5. Timeline and briefing contents March 31 st :2010/11 16-18 allocations April 1 st :RIP LSC & YPLA launched May 6 th :General election June 15 th : YPLA Funding Guidance June 22 nd : Emergency budget June 24 th :Freedoms announced

6. 16-18 population predicted to fall* 2.02 1.98 1.94 1.90 1.88 1.87 1.86 1.83 1.79 1.75 1.73 1.74 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 From 2.02m in 08/09 to 1.74m by 19/20 (-14%) Academic year

7. Yet 16-18 recruitment continues to rise 0 0.2m 0.4m 0.6m 0.8m 1m 1.2m 1.4m 1.6m 1.8m 07/0808/0909/1010/11 Other (incl. LLDD 16-24) Schools Apprenticeships Further Education +70k (+4.3%)

8. Overall 16-18 participation budget will rise £439m (+6.2%) for 2010/11 to £7.5bn, 2008-092009-102010-11 £7.5bn £7bn £6.4bn but national rate unchanged (£3,007 for school sixth forms and £2,920 for colleges and other providers)

9. In 2003/04 the average cost of an FE 16-18 year-old learner was £4,519. How much do you think it is planned to be in 2010/11? 1. £5,050 (+12%) 2. £5,150 (+14%) 3. £5,350 (+18%) 4. £5,550 (+23%) 5. £5,650 (+25%)

10. Impact: percentage change in college 16-18 allocations, 2010/11 (including Additional Learning Support, E2E and Growth) -60% -40% -20% 0% 20% 40% 60% 050100150200250300350 Colleges % Change in funding

11. 16-18 allocations in summary Treasury planning for ‘declining cohort’, but > Recruitment still rising in reality > Average funding per learner still rising So pressure to: > Maintain or reduce national funding rates > Challenge some large learning programmes And impact varies from provider to provider

12. As of 1 st April there were two new funding agencies What next? > Create Schools Funding Agency? > Create FE Funding Agency? > Create FE and HE Funding Agency? > Role of local authorities & National Commissioning Framework? And by mid-May there were two parties in a new Coalition Government

13. YPLA Funding Guidance and e-bulletin 1 st edition June 15 th > Learner eligibility > Additional Learning Support > Rates and formula > Regulations > Guide to Foundation Learning and Includes links to the following docs:

14. End of Entry to Employment QCF & functional skill rates SfL weighting remains 1.4 Still: SLN x NFR x PF + ALS = £ Limited change from 2009/10 16-18 rates and formula FL weekly rates just 12glh

15. Non-certificated still possible Some entry level 1 unlisted Unlisting other quals possible Functional skills unlisted (LR) Mostly catalogue & listed rates Foundation Learning (LR) Entitlement funding as LR now

16. DfE’s £630m contribution to £6.2bn departmental cuts for 2010-11 14-19 efficiencies and stopping lower priority projects£4.1m Savings from lower than planned take up of 14-19 Diploma£9m Scaling back support for delivery of the 14-19 Diploma£13.2m Stop funding for development of 14-19 Diploma£9m Reducing central 14-19 workforce development activity£14m Ending role of 14-19 Regional Advisers from September£0.9m Scaling back plans for roll out of Framework for Excellence£1.2m EMA efficiencies and lower take-up£15m Unallocated post-16 participation funding£20m £86.4m ‘Front-line protected’ but this includes:

17. Emergency budget All departments (excl. Health and International Development) will see cut of 25% over four years Maybe your idea will contribute to the Comprehensive Spending Review (20 th Oct 2010). 18k ideas so far! Consultation with public sector first: In 500 words, ‘how can we rethink services to deliver more for less?’ http:// spendingchallenge.hm-treasury.gov.uk/

18. Freedoms from ‘direct state control’ > Freedom to choose which and how many 14-19 Diplomas to do Nick Gibb MP, Minster of State for Schools John Hayes MP, Minister of State for FE, Skills and Lifelong Learning > Plans for ‘in-year’ funding adjustments dropped BIS announced college freedoms on 17 th June 2010, with more detail in SFA GN 4 on 25 th June DfE announced his schools and colleges freedoms on 24 th June 2010 > Routine Ofsted inspection stopped for the ‘outstanding’ > Development of 14-19 Extended Diploma scrapped

19. Do you think Andy Murray will win Wimbledon this year? 1.Yes 2.No 3.Tennis? I don’t care

20. Thank you and questions We hope this morning proved useful Please return your evaluation forms and enjoy the rest of your day and week Brought to you by the Pearson Research Institute