a funding update for apprenticeships may 27 th 2010, btec apprenticeship launch event nick linford...
DESCRIPTION
£0 £200m £400m £600m £800m £1bn £1.2bn Appren 16-18Appren 19+Train to Gain Original budget Announced this week + £150m (+38%) - £200m (-20%) Investment for and changes this week* * Financial year Apr-Mar (England) £50m for FE capitalTRANSCRIPT
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A funding update for ApprenticeshipsMay 27th 2010, BTEC Apprenticeship launch event
Nick LinfordHead of the Pearson Research Institute
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Content of the presentation> Investment for 2010-11 and changes this week> Investment for 2010-11 compared to 2009-10> Apprenticeship national funding rates> Further reductions to 19+ apprenticeship rates> Apprenticeship demand and ‘the 16-18 problem’> Summary and what next> Bedtime reading
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£0£200m
£400m
£600m
£800m£1bn
£1.2bn
Appren 16-18 Appren 19+ Train to Gain
Original 2010-11 budgetAnnounced this week
+ £150m(+38%)
- £200m(-20%)
Investment for 2010-11 and changes this week*
* Financial year Apr-Mar (England)
£50m forFE capital
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Investment for 2010-11 compared to 2009-10
* Financial year Apr-Mar (England)
£0£200m
£400m
£600m
£800m£1bn
£1.2bn
Appren 16-18 Appren 19+ Train to Gain
+ 16%
+ 50%
- 15%
2009-102010-11
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Apprenticeship national funding rates
£1,000
£1,500
£2,000
£2,500
£3,000
£3,500
16-18 19-24 25+
2009/102010/11
£2,8
17
£2,5
35
£2,9
20No change
£2,9
20
£2,7
32
- 3%
£2,1
86
- 14%
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Further reductions to 19+ Appren rates*> All 19+ Appren co-funded, so funding halved> Additional 25% reduction for large employers
> 2010/11 rates will apply to all payments from Aug ’10, even if employee started in 2009/10
Comparing rates (extreme example):
16-18 25+ large employer
£2,920
£82072% lower rate
Expected that employer contributions plug much of this funding gap
* See Skills Funding Agency guidance note 3
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Apprenticeship demand and ‘16-18 problem’
25+
19-24
16-18 - 7%
- 6%
+ 106%
0
20,000
40,000
60,000
80,000
100,000
120,000
2005/06 2006/07 2007/08 2008/09
Apprenticeship starts by age and year*
* Source : March 2010 Statistical First Release
No change since
2005/0613% increase
since 2005/06
“Apprenticeship starts have increased to a record 240,000 in 2008/09”….but……
Gov. planned
29k and got 56k
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So how is this year (2009/10) going?
* Source : March 2010 SFR, 2009/10 figures provisional
25+
19-24
16-18Apprenticeship starts by age (01/08/09 – 31/01/10)*
-2%
+14%
-35%
Clearly concern is 16-18, with 7% fall in starts for 2008/09, and 2% less for first half of 2009/10*
010,00020,00030,00040,00050,00060,00070,00080,000
2007/08 2008/09 2009/10
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Summary and what next
> Rate reductions for 19-24, 25+ and large employers
> Too little demand for 16-18 and too much (?) for 25+
> SFA meeting UKCES today to discuss:
• Timetable for publishing QCF and framework rates
> New Gov. increasing 2010/11 Appren allocations for SMEs
> Rate reductions from Aug ’10 include carry-in learners
• Timetable for SASE compliant frameworks
• Rate setting arrangements to avoid bottleneck
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Bedtime reading for Apprenticeships
“Full Delivery Plan will be published in July, and will incorporate any changes that the new government intend to make to policy for academic year 2010/11”
SFA Guidance
Note 3
Earned Autonomy
SFA weekly update 8
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Oh, and my hands-on guides!
www.fundingguide.co.uk
www.dataguide.co.uk
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Thank you
Find out more about the Pearson Research Institute visitwww.pearsonresearchinstitute.com
P.S. Visit www.pearsonresearchinstitute.com to sign-up for the Train to Gain and Apprenticeship Funding Masterclasson 29th June 2010 in London