GUIDE TO EFA FUNDING FORMULA

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1 GUIDE TO EFA FUNDING FORMULA THE GUIDE PROVIDES INFORMATION AND GUIDANCE ON THE NEW FUNDING FORMULA FOR YEARS OLDS IN THE NEW SYSTEM FOCUSES ON FUNDING PER LEARNER ALLOWING CENTRES TO MAKE DECISIONS AROUND PROGRAMMES OF STUDY RATHER THAN BY QUALIFICATION. APPRENTICESHIPS ARE NOT INCLUDED AS THEY ARE COVERED BY THE SKILLS FUNDING AGENCY. KEY CHANGES: Single Funding Rate -The key change relates to the one single rate of funding for all full-time students which will be expressed in cash terms, this aspect will be similar to the adult funding methodology once they both come into force. The single rate will fund a programme of 600glh, which is a marked difference from the current funding methodology. However in line with the requirements under Raising the Participation Age (RPA) providers will probably look for programmes of 540glh (gaining 60glh of funding without delivery requirements). Programmes of study - Providers will look to build programmes of study of c540 hours for full time learners. The hours are not guided learning hours (glh) but planned hours so could (and probably will) include work experience. Though further advice is expected on how much work experience might be included, the rules for what counts are that: the activities should be relevant to the overall programme; to have been planned and monitored by the provider; should take place during the normal working day (which could be an evening). If a learner already has a part-time job, it probably won t count.

2 CONDITIONS OF FUNDING To support the requirement for students who have not achieved an A* - C GCSE in maths and/ or English by the age of 16 the EFA will introduce this as a condition of funding. Other suitable qualifications that support the progression to Level 2 like Functional Skills can also be taken. Learners with the most complex learning difficulties or disabilities might be better served by other English and maths teaching that supports progression to higher levels in subjects that prepare them for employment. City & Guilds new English and Maths skills qualifications would be suitable as these can be tailored to areas of need. From September 2012, apprentices who have not achieved a level 2 English and maths will have the opportunity to study these subjects to this level, through GCSE s or Functional Skills. Note: There will be a phased implementation of conditions of funding to allow colleges/ providers to phase in the new English and maths requirements. THE NEW FUNDING FORMULA Student Numbers National Funding Rate per student Retention Factor Prog Cost Weighting Disadvantage Funding Area Cost Allowance Total Programme Funding

3 KEY ASPECTS OF THE NEW FORMULA A number of factors are different; the following explains the changes in more detail. Student Numbers This is the count of learners to be funded, they must meet a qualifying period of two weeks for programmes of less than 24 weeks or six weeks for longer programmes therefore there will no longer be funding below two weeks this will impact short unemployed programmes sometimes seen under FL or summer schools. Full time is a minimum 540glh with part time in four bands, for Band 4 will also be classed as fulltime ( glh) therefore providers could retain some of their existing course to meet the requirements for programmes of study. The part time bands are treated as a proportion of the full time equivalent, that is 600glh Band 1 (below 280 hours) funded as a proportion of 600 hours i.e. 150 hours gets 25% of the National Full Time funding Rate. Example 3,900*600x450 = 2633 Example 3,900*600x150 = 975 Part Time Banding Student status Hours required per year Full time Band Band Band Band 1 up to 280 National Funding Rate per learner This will be a single rate per full time student which is quite a difference from the current system which is calculated by multiplying the SLN X the national funding rate the total yearly rate divided by 450. The shadow funding rate is currently calculated at 3,900 down from a current average rate of The final rate to be confirmed as part of spending review conditions. Retention Factor No longer a success factor and applied at learner level not qualification level. It only applies to the core aim and is calculated by the number of students who started to those that completed. Programme Cost Weighting this represents the additional costs of delivery, for instance the difference between classrooms to one with high resource/equipment requirements like agriculture. Programme costs will now be applied at programme rather than qualification level and will be decided by the largest element of the learner programme. The number of weighting factors has been reduced and re-set to make it simpler and applied as now at sector areas.

4 DISADVANTAGE FUNDING UPLIFTS Under the new system current uplifts will be amalgamated, Disadvantage funding Although a single rate, it will be calculated using two criteria: Economic Deprivation Prior Attainment Economic Deprivation - The disadvantage uplift will continue to use the Index of Multiple Deprivation (IMD) for the economically disadvantaged young people. This covers the additional costs of engaging, recruiting and retaining young in high areas of unemployment. The other relates to Additional Learning Support (ALS) where people have learning difficulties or disabilities where the student has not yet achieved a GCSE grade C in maths or English. Prior Attainment in English and maths. From the EFA will be allocating funding for ALS, as a flat rate of allocation based on prior attainment in GSCE in English and maths. Note: The EFA will be introducing a condition to ensure colleges act quickly to deliver English and maths to students who have not gained a GCSE Grade C. This means if the condition is not met students will not be counted in funding calculation (lagged numbers) of the following year. High Needs Students (ALS in excess of 6,000) Those requiring more than 6,000 of additional support will be treated as high needs learners applicable over and above the core programme costs. Area Cost Allowance - previously called area cost uplift, is associated where it is recognised that s cost are higher, namely London and the South East this is no change to current funding. For simplicity the uplift will apply to all elements of the formula, including ALS (this was not the case before).

5 CURRICULUM PLANNING Centres will also need to consider local employment needs, levels of unemployment and deprivation, infrastructure and staffing issues when creating their programme of study. A study programme must include the following compenents: one substantial size qualification (which offers progression into higher levels or skilled employment Substantial = should be at least half of a learners study programme (c glh)in most cases the qualification should be at a level above the students prior achievement (although study at the same level in a different subject area is acceptable if can be justified where it s required for the student to access a particular career path) English & Maths in future all learners must take or work towards GCSE A* - C as part of their study programme (it should be higher than a students prior attainment) Apprentices as of Sept 2012 learners will have the opportunity to study for a L2 English or Maths through GCSE or FS if not at this level. Work experience Should to be a substantial element of a programme of study below L2 although learners on a standard L2 or L3 programme including A level students might also benefit. Work experience programmes are likely to follow these types of pattern: Focus on a particular vocational area and be purposeful Substantial, regular time in the workplace One or two short periods of work experience to test vocational ideas (connected to future study) Non Vocational Activity (Entitlement) - the aim is to improve the learners employability skills and/or progress Should be based on assessment of students needs and abilities and can include the following: Tutorial Coaching and/or mentoring Additionality In reality this is additional qualifications to make an appropriate full time programme of study to make up the glh. Theses are also important where the individual doe not have to complete a Functional Skills SUMMARY OF A PROGRAMME OF STUDY: One substantial vocational qualification Include - non qualification activity (entitlement) and where appropriate work experience Include English and Maths if below GCSE A* - C

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