1. AQUA ANNUAL CONFERENCE 2010 June 30 th 2010, ICC Birmingham Nick Linford Head of the Pearson Research Institute Hints and tips: Post-16 funding, Train to Gain and data

2. Presentation contents > Summary of commissioning landscape > Brief headline funding update > ILR data quality, audit and ‘standards’ > Train to Gain – changes for 2010/11 and future Note: These slides will be circulated by AQUA after the conference

3. ? What next? Retain/cut existing agencies? Create Schools Funding Agency? Create FE Funding Agency? Create FE and HE Funding Agency?

4. 16-18 LR (FE) 16-18 Appren Adult LR (FE) 19+ ER Adult LR (FE) 19+ ER 16-18 LR (FE) 16-18 Appren £7.5bn BIS DCSF FundingLearners 4m 2010/11 demand-led funding (England)

5. Direction of travel for 2010/11 Funding + 6.6% + 12.2% -11.5% +0.1% 16-18 LR (FE) 16-18 Appren Adult LR (FE) 19+ ER + 1.1% + 10.4% - 25.3% + 23.3% Learners

6. £0 £200m £400m £600m £800m £1bn £1.2bn Appren 16-18Appren 19+Train to Gain Original 2010-11 budget Post-election changes + £150m (+38%) - £200m (-20%) Post-election budget changes * Financial year Apr-Mar (England) £50m for FE capital

7. Investment for 2010-11 compared to 2009-10 * Financial year Apr-Mar (England) £0 £200m £400m £600m £800m £1bn £1.2bn Appren 16-18Appren 19+Train to Gain + 16% + 50% - 15% 2009-10 2010-11

8. Other Train to Gain changes for 2010/11 6% national funding rate reduction Co-funded non-first full Level 2 25% rate reduction large employers Assumed employer contribution up from 47.5% to 50% SfL weighting reduced from 1.4 to 1.2 (excl. entry level numeracy) SLN rates for QCF quals yet to be published on LAD All changes apply to carry-in instalments

9. Train to Gain future AprMayJunJulAugSepOctNovDecJanFebMar 2010/11 financial year (government budgets) 2010/11 academic year (contracts) AugSepOctNovDecJanFebMarAprMayJunJul 2011/12 ?????? AprMayJunJul > More funding switched to Apprenticeships? > Funding rate reduction during academic year? Hint: Keep and eye on last four months of 2010/11 > CSR on 20 th October will be critical information > New funding methodology and brand for 2011/12?

10. Hence a two month deadline to record start & three months to record achievement is being introduced. Skills Funding Agency and data timeliness Remember these headlines? A big part of the problem was training was occurring, but not being reported: Less than a year later “In 2009/10, based on data received, it was not until month 4 that the greater part of month 1’s data was reported”

11. Tip: Review unique learner number collection processes The information authority and data validity Validity checks will increasingly be applied (eg for Unique Learner Number (ULN) Learner Data Strategy is completely reliant on the ULN In 2009/10 ILR W10 462k (29%) learners do not have a ULN Under pre-election plans a new validation rule for 2010/11 will be built into the Learner Information Suite (LIS). September starts must have ULN by F02, else LIS errors If SFA can afford it, the OLDC will also audit for duplicates

12. TtG funding audit continues Three things particularly on the ILR audit radar: Data quality is also high on the agenda after Geoff Russell’s ‘data irregularity’ letter > Changes to planned end dates > Use of the fee remission field (A14) > Use of the discount field (A51a) Tip: Ensure you are using DSATs at least once per month, and where possible employer internal auditors

13. Summary and questions to take away > Data is funding, and as funding gets squeezed perhaps data will be scrutinised like never before > Increasingly ‘data standards’ will be referred to, & are likely to feature in contracts & performance frameworks > How well do you perform against ILR Spec Annex P? > What are the cost implications of improving data quality, at a time of cuts and ‘efficiencies’? > Do know if you need help, and if so in what form? Staff, processes, software?

14. Bedtime reading Look-out for our data conferences and funding masterclasses on www.pearsonresearchinstitute.com SFA Guidance Notes 1-4 SFA and YPLA weekly updates www.fundingguide.co.uk www.dataguide.co.uk

15. Thank you To find out more about the Pearson Research Institute visit www.pearsonresearchinstitute.com