demand-led funding the fe funding methodology 2008-09 presenter: edward drake april 2008...
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DEMAND-LED FUNDING
THE FE FUNDING METHODOLOGY 2008-09
Presenter: Edward Drake
April 2008
_______________________________________________________ Drake Lane Associates Ltd. www.drakelane.co.uk Tel: 01756 797211 Email: [email protected]
DEMAND-LED FUNDING - CONCEPTS
Activity is quantified in terms of “Standard Learner Numbers” (SLN’s)
Activity is funded within 3 discrete categories:
• 16-18 provision
• Adult learner-responsive provision
• Adult employer-responsive provision
LSC funding is increasingly directed toward ‘priority areas’
Each provider has “Provider Factors” which represent their individual profile and characteristics and are used to ‘weight’ SLN’s and therefore enhance funding
DEMAND-LED FUNDING - CONCEPTS (continued)
Additional Learning Support (ALS) funding remains separate from all other LSC funding
Therefore ...
LSC Funding = ( SLN’s x Provider Factor x Funding Rate ) + ALS
Important note:Different Provider Factors and Funding Rates will apply for each of the 3 funding categories for each provider
SLN’s are subject to “Funding Rates” in order to convert them into actual funding
KEY LSC FUNDING PRIORITY GROUPS
Adult learners with basic skills needs (Skills for Life)
Adult learners without a full level 2 qualification
16-18 year old learners on general FE programmes
Adult learners without a full level 3 qualification
Adult learners with skills needs at level 1 or below (Foundation Learning Tier)
Learners of all ages on Apprenticeships and Work Based Learning
Adult learners on employer-based NVQ programmes
Adult learners on Train to Gain programmes
LSC FUNDING ‘BLOCKS’
3 discrete funding categories exist within Demand-Led Funding
16-18Adult
Employer-responsiveAdult
Learner-responsive
FE
E2E
FE
Apprenticeships
Train to Gain
FE
UfI/Learndirect
Note:The arrows above indicate projected movement (ie. increase or decrease) in funding between 2008-09 and 2010-11
STANDARD LEARNER NUMBERS (SLNs)
SLN’s are calculated as follows:
SLN = annual GLH / 450
SLN calculations are capped at 1.75 SLN’s per learner
Most learning aims have a fixed (‘listed’) GLH
Where no such fixed (‘listed’) GLH exist then SLN’s are calculated based on planned GLH
‘Starts’ are defined as follows:
24+ weeks 6 week minimum retention period
2+ and < 24 weeks 2 week minimum retention period
< 2 weeks one attendance required
EXAMPLES OF LISTED AIMS
Qualification Listed GLH
Key Skills qualifications (Communications, ICT, Number) 36 Functional skills qualifications (English, ICT, Maths) 36 NVQ (delivered entirely at the provider in 450+ glh) 520 Each additional NVQ unit 30 International Baccalaureate (Diploma) 1350 Access to HE (studied in 450+ glh) 520 EDEXCEL National Diploma (18 units) 1080 EDEXCEL National Certificate (12 units) 900 EDEXCEL National Award (6 units) 450 EDEXCEL level 1 Introductory Diploma (6 units) 450 EDEXCEL level 2 First Diploma (6 units) 450 OCR level 3 National Extended Diploma (18 units) 1080 OCR level 3 National Diploma (12 units) 900 OCR level 1, level 2 & level 3 National Certificate (6 units) 450
Note: The above values apply to the 16-18 and Adult LearnerResponsive models only
FUNDING FOR NEW DIPLOMAS
Level 3 Advanced Diploma:
Diploma component ‘Listed’ GLH SLN
Principal learning 540 1.200 Extended project 120 0.267 Additional & specialist learning 360 0.800 Personal learning & thinking skills 60 0.133 Costs of collaboration 54 0.120
1134 2.520
FUNDING FOR NEW DIPLOMAS (continued)
Level 3 Progression Diploma:
Diploma component ‘Listed’ GLH SLN
Principal learning 540 1.200 Extended project 120 0.267 Personal learning & thinking skills 60 0.133 Costs of collaboration 36 0.080
756 1.680
FUNDING FOR NEW DIPLOMAS (continued)
Level 2 Higher Diploma:
Diploma component ‘Listed’ GLH SLN
Principal learning 420 0.933 Project 60 0.133 Functional skills - English 36 0.080 Functional skills - Maths 36 0.080 Additional & specialist learning 180 0.400 Personal learning & thinking skills 60 0.133 Costs of collaboration/work experience 40 0.089
832 1.849
Note: This example assumes that the learner has already attained Functional skills in ICT
FUNDING FOR NEW DIPLOMAS (continued)
Level 1 Foundation Diploma:
Diploma component ‘Listed’ GLH SLN
Principal learning 240 0.533 Project 60 0.133 Functional skills - English 36 0.080 Functional skills - Maths 36 0.080 Functional skills - ICT 36 0.080 Additional & specialist learning 120 0.267 Personal learning & thinking skills 60 0.133 Costs of collaboration/work experience 30 0.067
618 1.373
FUNDING FOR NEW DIPLOMAS (continued)
Programme weightings for the new Diplomas will be as follows:
Diploma line Programme Weighting Level 1 Level 2/3
Construction & the built environment 1.3 1.3 Creative & media 1.3 1.3 Engineering 1.3 1.3 Information technology 1.12 1.3 Society, health & development 1.12 1.12
PROVIDER FACTOR
Five elements dictate the “Provider Factor” as follows:1. Average programme weighting - each provider has a single (annual) programme weighting (rather
than having this variable operating at individual aim level)
2. Average disadvantage weighting - each provider has a single (annual) disadvantage weighting (rather
than having this variable operating at individual learner level)
3. Area costs weighting - London (and surrounding area) providers continue to receive a
provider level uplift
4. Short programme modifier - each provider has a single (annual) short course modifier (rather
than having this variable operating at individual aim level)
5. Success factor - each provider has as a single (annual) success rate (rather than
having this variable operating at individual enrolment level)
PROVIDER FACTOR (continued)
Different Provider Factors apply to each of the 3 funding categories (ie. 16-18, adult learner-responsive, adult employer-responsive)
Generally, Provider Factors are recalculated annually to reflect the most recent full-year’s data - however, the Provider Factor for the adult employer-responsive funding category is recalculated in-year based on actual data
FUNDING RATES
The SLN Funding Rates for 2008-09 are:
School Sixth Forms £2,945
16-18 FE £2,860
16-18 Apprenticeships £2,860
Adult Learner Responsive £2,775
Employer Responsive (except 16-18 Apprenticeships) £2,775
Note: Actual Funding Rates applicable in 2008-09 will be subject to ‘Transitional Arrangements’
FUNDING RATES (continued)
Provision which is (and learners who are) eligible for tuition fee remission is/are “Fully-funded” (ie. assuming that running costs are fully covered by LSC funding)
The Co-funded Rate is a function of the Fully funded Rate:
Co-funded rate = fully funded rate - fee element
Fee element = (fully funded rate x fee percentage) / provider
factor
Fee percentage = 42.5% (in 2008-09)
Provision which is (and learners who are) not eligible for tuition fee remission is/are “Co-funded” (ie. assuming that running costs are
covered by a balance of LSC funding and tuition fee income)
The difference between “Fully-funded” and “Co-funded” is reflected in the respective Funding Rate to be applied
DEMAND-LED FUNDING - FRAMEWORK
LearningAimsidentifies
Learning Aims Database
LSC Fundingconvert to
SLN’s
quantifiedin terms of
SLN’s - standard learner numbers
via Provider Factor
_______________________________________________________ Drake Lane Associates Ltd. www.drakelane.co.uk Tel: 01756 797211 Email: [email protected]
SUMMARY OF KEY CHANGES
SUMMARY OF KEY CHANGES
Planned and actual activity is measured in SLN’s rather than £’s
‘Starts’ are based on fixed minimum retention periods rather than ‘census dates’
Most provision (more than previously) is funded via fixed (‘listed’) GLH / SLN values
New Diplomas would generally appear to meet LSC criteria for being ‘high priority’ provision
New Diplomas will be funded via ‘Learner Responsive’ funding (whether within the ’16-18’ or ‘Adult’ funding ‘blocks’)
Capping (at 1.75 SLN’s per learner) replaces ‘tapering’
SUMMARY OF KEY CHANGES (continued)
The Provider Factor replaces a number of independent variables within the previous funding system
Removal of the ‘census dates’ means that SLN out-turn can never decrease over the course of a funding year
Key skills and the ’16-18 FT Entitlement’ (no longer funded together) are not exempt from capping calculations
Funding differentials will operate across the 3 discrete funding blocks (reflected in different Provider Factors and Funding Rates)
New Diplomas are funded based on the individual elements being delivered by a provider
_______________________________________________________ Drake Lane Associates Ltd. www.drakelane.co.uk Tel: 01756 797211 Email: [email protected]
DEMAND-LED FUNDING 2008-09
KEY REFERENCE DOCUMENTS
KEY REFERENCE DOCUMENTS 2008-09
• Delivering World-class Skills in a Demand-led System (LSC, January 2007)
• LSC Grant Letter: 2008-09 (DCSF & DIUS, November 2007)
• Our Statement of Priorities - Better skills, Better jobs, Better lives (plus associated Addendum - LSC, November / December 2007)
• The 16-18, Adult Learner & Employer-responsive Funding Models (LSC, November 2007)
• Funding Guidance for 2008-09 (LSC) - Funding Rates for 2008-09 (December 2007 and February 2008 version 2) - Funding Formula for 2008-09 (pending) - Funding Principles, Rules and Regulations for 2008-09 (April 2008) - ILR Funding Compliance Advice & Audit Guidance for 08-09 (April 2008) - ILR Funding Claims & Audit Returns 2008-09 (pending)
Note: All above documents are available via the LSC website (www.lsc.gov.uk)
_______________________________________________________ Drake Lane Associates Ltd. www.drakelane.co.uk Tel: 01756 797211 Email: [email protected]
DEMAND-LED FUNDING 2008-09
APPENDICES
APPENDIX A - FUNDING CATEGORIES
Scope and coverage of 16-18 funding model
16-18 year old learners enrolled to the following programmes:
• Provision in school sixth forms• FE provision• New Diplomas• Programme-led Apprenticeships (not full framework)• Entry to Employment (E2E)• Foundation Learning Tier (FLT)
Additional notes:
• Includes 16-18s enrolled to NVQ programmes (which are currently funded as FE)• Includes 16-18 Apprenticeships for planning and budgeting purposes only (but which will be funded via the Employer Responsive model)
APPENDIX A - FUNDING CATEGORIES (continued)
Scope and coverage of Adult Employer Responsive funding model
Adults (19+ year old) learners enrolled to the following programmes:
• Apprenticeships (all types covering full framework)• Train to Gain (including associated Skills for Life)• NVQs delivered wholly or partially in the workplace (and funded as FE in 2007-08)
Additional note:
• Includes 16-18 Apprenticeships for funding purposes (although such provision will have a separate allocation within the Employer Responsive model)
APPENDIX A - FUNDING CATEGORIES (continued)
Scope and coverage of Adult Learner Responsive funding model
All LSC funded provision and learners not covered by either the16-18 or Adult Learner Responsive funding models
Additional note:
• Also excludes Adult Safeguarded Learning funding