2nd December 2009Maple House - Birmingham

Nick LinfordSpecial Adviser on Funding and Performance

Adult Learner-Responsive FundingFunding Supportclass

Adult funding in 2010/11

Skills for Growth and SIS

Published 11/11/09

Published 18/11/09

“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 £0 0%

OLASS £134,828 + £2,198 + 2%

Total £3,488,159 + £96,409 + 2.8%

Skills Investment StrategyReductions (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

Skills Investment StrategyAlso:

> 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”

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?