Contents> Funding formula in brief

> Learner-responsive age split

> SLN per learner ratios

> 16-18 National Rate

> Provider factor

> Success factor

> Value for money

> 14-19 targets and future

Don’t be afraid to snooze, butplease first complete yourpostcard to ensure youget a copy of these slides

Learner-responsive formula in brief

Standard Learner Numbers (SLN)

X

National Funding Rate (NFR)

Provider Factor (PF)

Additional Learning Support (ALS)

Funding

X

+

=

LR funding is an enrolmentbased formula, although it isapplied the same way forallocations

Example funding for an AS level qualification in 09/10

150 SLN GLH / 450 = 0.3333 SLN X

£2,920 NFR

1.123 PF

£0 ALS

£1,093

X

+

=

Example for an allocation 3,123 SLNs

X£2,920 NFR

1.123 PF

£500,000 ALS

£10,740,817

X

+

=

LR age splitOne funding

stream

Adult LR (DIUS)

16-18 LR (DCSF)

FE mainstream

Two funding models

Has become

* Could be higher with entitlement funding

> Plan-led ‘v’ reconciliation> Different funding rates> Different provider factors> Different enrolment patterns> 2nd year 19 year-old complexity

We revised our Planning Fileto apply the new fundingmethodology, and set age andfee related sub-targets

This separation requires carefulmanagement of both planning and performance

Planning for mixed groups

of which (sub-targets)

16-18 19+ FF 19+ CF

Learners in the group

18 10 6 2

SLN per learner 1.2 1.2* 1.2 1.2

Total SLN 21.6 12 7.2 2.4

Funding rate n/a £2,920 £2,81

7 £1,804

Provider Factor n/a 1.123 1.321 1.321

Total £72k £39k £27k £6k

SLN per learner

SLN per learner ratio represents average funding size of a learnerprogramme (before weightings)

2200

2600

3000

3400

2007/08 2008/09 2009/10

Learners down yet SLNs up?

SLNs

Understand the FT/PT mix, evenif the LSC have stopped asking

Learners

The LSC have used this ratio toset 2009/10 allocations based on ratios in 07/08 and 08/09 F01

Do you know why and whenyour SLN ratio changes?

Shifts in learner type and/orchanges to the curriculum?

The SLN is LSC currency, theFR x PF is the exchange rate

Example above 07/08 08/09 09/1016-18 learners 2,500 2,450 2,400Total SLNs 3,000 3,030 3,060FT learners 2,000 2,050 2,100

FT SLN ratio 1.4 1.4 1.4

PT learners 500 400 300

PT SLN ratio 0.4 0.4 0.4

Total SLN ratio 1.20 1.24 1.28

Provider factorCalculated for 09/10 based onyour full-year 07/08 data (ILR)

Programme weighting

X

Disadvantage uplift

Area costs uplift

Short programme modifier

X

x

Success Factor

Provider Factor

x

=

16-18 national rate2008/09 = £2,8602009/10 = £2,920

2.1% increase but still 3%less than school sixth formsSome colleges will have atransitional rate calculatedby the LSC. This is to prevent any significant LRwinners or losers

High transitional rate = loserLow transitional rate = winner

Did you know?

TtG rate (£2,987) is 2.3%greater than 16-18 rate

Success factorsimplifies and terrifiesReplaced 3 funding census dates and achievement factor

0.5 +Success

Factor=Weighted average

success rate

2

0.5 + 0.9=80% for College X

2

0.5 + 0.5=0% for College Y

2

Although historical, think of this as 50% lost if a learner does not finish and achieve

LearnersIncome

lostSuccess

rate

Target group size of 16 at £5k each (£80k income budget)

Do your staff know the impact class size, retention and achievement have on income?

Budget missed by 31%!Next allocation cut by 31%?

14 start£10k2 leave within first 6 weeks

79% retention£7.5k3 more do

not finish

57%£25k8 succeed

73% achieve£7.5k3 finish but

don’t pass

Value for MoneyThe LSC, YPLA and/or LAs maytry to compare provider SLNratios to judge VfM

A provider with a low SLN ratiomay look more attractive tothe relevant funding agency

But…..

The SLN ratio says nothingabout the curriculum mix (e.g. number of functional skills)

It is also only part of the storywhen it comes to the actualaverage cost per learner

College A1000 learners1300 SLNsSLN ratio of 1.31300 x £2,920 = £3.8m

College B1000 learners1400 SLNsSLN ratio of 1.41400 x £2,920 = £4m

Success factor = 0.91300 x £2,920 x 0.9 = £3.4m

Success factor = 0.81400 x £2,920 x 0.8 = £3.3m

14-19 national targets

• Achieving Level 2 at age 19 (from 71% to 82% by 2010)

• Achieving Level 3 at age 19 (from 47% to 54% by 2010)

• Reducing the NEETs (by two percentage points)

DCSF

Curriculum reform:

• GCSEs A-Levels

• Diplomas

• Apprenticeships

• Foundation Learning Tier (Progression pathways)

• Limited stand-alone qualifications

14-19 ‘next steps’Legislation:2010: LAs have all 14-19 funding2013: All 16 year-olds in training2014: All 17 year-olds in training

With phased introduction of guarantees and entitlements

• 1 in 15 to 1 in 5 on an Apprenticeship

Ed Balls is the current

Minister – so far this week!

And finally….This presentation and otherresources are available online

Complete and leave your card for access

Oh, and the unofficial funding guide is proving popular with a wide range of FE staff

www.fundingguide.co.uk

Thank you

Any questions?