A New Streamlined Funding System for Adult Skills. John Perks Head of Funding Systems
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1 A New Streamlined Funding System for Adult Skills John Perks Head of Funding Systems
2 Introduction Skills Funding Statement Freedoms, Flexibilities and Innovation 24+ Advanced Learning Loans A Simplified Funding System
3 Joint document with BIS Confirms Agency role Confirms or revises policy Introduces new initiatives Key headlines: Implementation of simplified funding system confirmed Additional investment in capital ( 270m) No further efficiency savings required
4 Funding 000s Total Adult Skills Funding Baseline (12-13) Funding (13-14) Indicative funding (14-15) 3,988,778 4,099,429 4,069,504 ASB 2,711,252 2,467,875 2,218,311 Community Learning 210, , ,747 ESF 175, ,00 173,000 Learner support 163, , ,507 Employer Ownership 7,300 46,000 73, Advanced Learning Loans 0 129, ,000
5 Priorities and Policies Overarching policy: Prioritised public investment Increasing level of investment by employers and individuals Employer involvement in, and ownership of skills Local responsiveness and accountability Priorities: High quality Apprenticeships Skills to help learners get and retain employment A qualification framework that is fit for purpose Raising standards
6 Freedoms, flexibilities and innovation Removal of planning controls - freedom to respond to the specific needs of your communities Simplification of the system Clear funding rules musts and evidence requirements Innovation Code meeting the needs of your labour market Emphasis on collaboration with employers, other providers, other stakeholders City deals and community budgets
7 24+ Advanced Learning Loans Loans applications can be made from April for courses starting from August 2013 Student Loans Company decide learner eligibility and makes payment to provider Skills Funding Agency controls loans facilities and Bursary and manages the budgets Can fund A-levels, Access to HE, QCF Certificates/ Diplomas L3/4, Advanced and Higher Apprenticeships Loan value up the funding rate in LARA you can charge less Up to 4 loans per learner, but rules of combination apply Repayment rules as for HE - 21,000 threshold
8 Simplification Not just about funding formulas rules new approach to the wider system based on freedoms to meet the needs of learners and employers.
9 Simplification New levels of cooperation: Openness Transparency Sector led thinking External Chairs for Technical and Qualifications work Clearer communication Plain English Crystal Mark
10 How are we simplifying? A single Adult Skills Budget Work in pounds ( ) as set out in the rates matrix Rates based on funding bands of credit, which is regulated A simple funding formula
11 How are we simplifying? A single earnings method consistent across all provision Streamlined learning and learner support funding Funding rules and associated evidence requirements in one place Data requirements reduced
12 Rates Determined by funding band and Sector Subject Area (SSA) QCF credit value NQF recommended glh Other previous delivery patterns Rates for units, generic and class codes to follow
13 Funding Rates 2013/14 Rates Matrix fully funded rates Programme Weighting (PW) Funding Band (Credits) Base (unweighted rate) Low Medium High Specialist * Certificate (13-24) ,159 1,246 Certificate (25-36) 1,265 1,417 1,645 2,025 2,176 Diploma (37-48) 1,987 2,225 2,583 3,179 3,417 Diploma (49-72) 2,573 2,882 3,345 4,117 4,425 Diploma (73-132) 4,170 4,670 5,421 6,671 7,172 Diploma (133+) 6,602 7,395 8,583 10,564 11,356 * Some specialist provision delivered by certain providers using specialist facilities attracts a higher programme weighting
14 Funding Rates Funding Awards (small qualifications): Separately fund Awards by their individual credit value 50 per credit before programme weightings Fund only qualifications at 3, 6, 9 and 12 credits Protect some 1 and 2 credit qualifications, including QCF English and maths qualifications; and other certain types of provision.
15 Funding Rates Funding Awards (small qualifications): * Some specialist provision delivered by certain providers using specialist facilities attracts a higher programme weighting
16 Funding Rates Funding Awards (small qualifications): As a interim measure in 2013/14 we will fund qualifications delivered to new learners with credit values of: 4 or 5 at the 3 credit rate 7 or 8 at the 6 credit rate 10 or 11 at the 9 credit rate Until 31 July 2014
17 Funding Formula Disadvantage Uplift Index of Multiple Deprivation Based on learner s home postcode Area Cost Uplift No changes from 2012/13 for areas and rates Based on Delivery Location postcode
18 Single earnings method A single earnings method based on in-year delivery On-programme instalments Retention and achievement are part of the earnings process Achievement element of funding (qualifications and job outcomes for eligible learners) Consistent definition of achievement
19 Apprenticeships Richard s Review of Apprenticeships Proposals for major change in the long term Retain rates for existing frameworks New frameworks use new simplified rate setting approach Achievement payment for the framework based on 20% of the rate of the competency and knowledge qualifications
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