1. 2 nd December 2009 Maple House - Birmingham Nick Linford Special Adviser on Funding and Performance Adult Learner-Responsive Funding Funding Supportclass

2. Adult funding in 2010/11

3. Skills for Growth and SIS Published 11/11/09 Published 18/11/09

4. “Show me the money” Budget line (£000’s) 2010-11 (financial year) £ shift from 09-10 % shift from 09-10 ALR£1,604,150- £81,395- 5% SMO & YPG£157,400+ £109,400+ 128% 19+ Apprentice£398,410+ £8,496+ 2% Train to Gain£983,371+ £57,710+ 6% ASL£210,000£00% OLASS£134,828+ £2,198+ 2% Total£3,488,159+ £96,409+ 2.8%

5. Skills Investment Strategy Reductions (contribute to £240m efficiency savings): Prioritisation > 3% cut in Adult Learner-Responsive funding rates (excl. YPG and SMO) > 3% cut in 19-24 Apprenticeship rates > 6% cut in Train to Gain (T2G) funding rates > 12.7% cut in funding rates for 25+ apprenticeships > Skills for Life weighting down from 1.4 to 1.2 (excl. entry numeracy) > Developmental learning cut 44% funding (£144m) & 63% (370k) learners > Scrap TtG units, co-fund repeat TtG L2s & lower rate for large employers > Co-funding reduced from 52.5% to 50% > Focus on Entry 3 numeracy (incl. new tenders for up to three providers) > £266m for four types of adult employability programmes (up 178%) > Apprenticeships at Level 3 for 16-30 year-olds (75% target incl. HE) > Priority sectors (incl. advanced manufacturing, digital and low carbon) > Prioritise training, as opposed to delivery models with assessment only

6. Skills Investment Strategy Also: > Strengthen role of SSCs and RDAs (SFA will ‘deliver’ RDA strategy) > 1000 “golden hello” up to £1000 for best apprentices going to HE > Fees review commissioned (mandatory minimum fees for 2011/12?) > Total participation due to fall 80k, which would be more without 280k TtG increase, reliant on significant delivery of co-funding > “greater autonomy for FE colleges that demonstrate excellence”…… > Priority QCF quals to be L2 or L3 certs or diplomas (not awards nor units) > Skills Accounts offered in 10/11 to use in 11/12 “trebling the number of places a learner can attend” (ending college monopoly of ALR?) > Adult advancement and careers service (aacs) launched in August 2010 > Another new name for FLT? Was changed to FL, now FLC? > New definition of developmental learning that excludes Level 4? > Participation budget for 10-11 includes anticipated but unconfirmed £118m > Employment White Paper due – change fee remission rules for unemployed? > Last small print:“where tendering is required allocation may be after April”

7. Oh, and… Do the numbers in the investment strategy add up? > 2010/11 Employability and Skills Programme is £58.9m on page 10 and £67m on page 19 > 2010/11 ALR funding components are £21m less than total > TtG £983m financial (page 10) & academic (page 18) year > Wishful thinking that TtG participation will rise by significant co-funded non-target bearing L2s being delivered? > Many TtG starts from Aug ’10 if tap turned on in Apr ’10? > What’s the £117.6m unallocated and unconfirmed?