2. Contents > 19+ learner-responsive > Employer-responsive > The demand-led formula > Train to Gain instalments > New ways to fund support for employed and unemployed Don’t be afraid to snooze, but please first complete your postcard to ensure you get a copy of these slides > The fee element

3. 19+ Learner-responsive in 2009/10 National rate rises 1.5% Learners decrease 10% 1.469m1.626mLearners 2009/102008/09 Funding decreases 2% £1700m£1735mFunding 2009/102008/09 Fee element rises from 42.5% to 47.5% of unweighted rate Skills Accounts to be piloted in all regions Adult Safeguarded Learning remains at £210m but learners fall from 630k to 605k Pre-Level 2 flexibilities to deliver “more or less Skills for Life, Foundation Learning Tier or developmental learning than the indicative figures agreed during the allocation process” Flexibilities have also be put into the 08/09 reconciliation process The only learner reduction applies to developmental learning, falling 51% to 271k

4. Employer-responsive in 2009/10 “Our two flagship programmes will continue to grow over the next year” Apprenticeships Train to Gain “Apprenticeships are the Government’s preferred work-based route for all young people aged 16 to 24” Train to Gain rate 6% higher than 19+ Apprenticeship rate £1967m£1754mTotal ER £926m£797mTrain to Gain £1041m£956mAppren’s 2009/102008/09 Appren’s + £85m + 9% + 16% + £128m + 12% + £214m ER funding (all ages) 1.4m ER learners in 2009/10 Train to Gain + 5% 949k 67% Appren’s + 5% 477k 33% Train to Gain fully-funded level 2, unlike 19+ Apprenticeships Train to Gain Total ER

5. The funding formula Standard Learner Numbers (SLN) X National Funding Rate (NFR) Provider Factor (PF) Additional Learning Support (ALS) Funding X + = Demand-led funding is an enrolment based formula, which differs in LR and ER Train to Gain formula (ER) Standard Learner Numbers (SLN) X National Funding Rate Programme weighting Area Cost Uplift Funding X x = Apprenticeship formula (ER) Standard Learner Numbers (SLN) X National Funding Rate Programme weighting Area Cost Uplift Funding X x = Disadvantage uplift X Learner-responsive formula (LR)

6. Fee element 04/05 £0 £200 £400 £600 £800 £1,000 £1,200 £1,400 £1,600 05/0606/0707/0808/0909/1010/11 Full time tuition fees Lewisham College LSC fee element LSC tuition fee element has been rising each year, from 25% in 04/05 and it will reach 50% in 10/11 The fee element is the funding deducted based on an assumed fee The assumed fee is the basis on which the LSC set tuition fee targets In 2009/10 the fee element rises from 42.5% to 47.5% This means the fee element is at least £1,338 for a full time learner 2009/10 Learner-responsive fee element is unweighted whilst the employer- responsive is fully weighted NFR – (NFR x 0.475 / PF) LR co-funded rate formula £2,817 x 0.475 = £1,338 LR fee element - example 0.644 x £2,987 x 1.2 x 1.12 x 0.475 = £1,228 TtG level 3 fee element - example The LSC apply LR co-funded rate

7. £100 £200 £300 £400 £500 £0 JanFebMarAprMayJunJul TtG Instalments Planning and performance monitoring in 08/09 needed to take account of three funding methodologies: Monthly installments Total funding 07/08 09/10 08/09 > Carry-in NVQs (FE) > Carry-in TtG (50:50) > New starts TtG (75:25) Remaining carry-in value can be calculated using data held in PFR spreadsheet The new starts require a careful approach to monthly installment profiles (75:25 with n + 1 where n = months) The change E.g. construction NVQ in 9glh 07/08 09/10 08/09 £0 £400 £800 £1,200 £1,600 £2,000 JanFebMarAprMayJunJul

8. New ways to support Train to Gain flexibilities Adult learner responsive QCF unit trials Skills for Jobs Train to Gain QCF units Six Month Training Offer Response to Redundancy New eligibility rules and approaches to existing funding sources with qualification based outcomes New sources of funding with sustainable employment based outcomes employed and unemployed

9. TtG Flexibilities Fund at full rates some non-first full level 2 Fund at co-funded rates some non-first full level 3 Fund Skills for Life at all levels (E1 – level 2) Increasing and simplifying the rates further for 09/10 Funding for QCF units/thin qualifications (list of 138) Trouble ahead? We have been warned that funding is now stretched Much of the 09/10 funding may be to support 08/09 starts. Achievement is key LSC already withdrawing some flexibilities (such as concurrent unit and non-unit delivery) Clearly now critical not to be over-reliant on TtG

10. Adult LR Unit Trials “test whether unit funding can incentivise the completion of full quals” “limited to QCF units and test Credit Success Rate” “Trial restricted to specific sectors and units” Only some awarding bodies included the trial 434 eligible units are on LSC website Skills for Jobs New(ish) pre-employability programme funded by LSC Up to £1500 per learner £750 to start a learner £350 if get a job in 6 weeks £350 if in job after 13 weeks Well established links with JCP and employer critical Bespoke training tailored to employer often most successful

11. Six month offer New training package announced by Prime Minister in Jan ’09 R2R £100m ESF and LSC funding Apr ’09- Dec ‘10 75,000 additional training places for £83m Up to £1500 per learner, of which £300 if progress into work and further training Only eligible if unemployed for 6 or more months Only FE Colleges with LR and ER funding eligible Specifications determined regionally Aimed at reskilling those at risk or recently made redundant Will it complete with JCP Day One provision? Funded like six month offer

12. And finally…. This presentation and other resources are available online Complete and leave your card for access Oh, and the unofficial funding guide is proving popular with a wide range of FE staff www.fundingguide.co.uk

13. Thank you Any questions?