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LSC Funding 2008/09 Methodology and formula

LSC Funding 2008/09 Methodology and formula. "The move to a demand-led funding system in 2008/09 signifies a wholesale step change for the learning and skills sector.". LSC 27 November 2007. Nick Linford Head of Planning, Funding and Projects 12 February 2008. 250. 200. 150. 50. 0.

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LSC Funding 2008/09 Methodology and formula

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  1. LSC Funding 2008/09Methodology and formula "The move to a demand-led funding system in 2008/09 signifies a wholesale step change for the learning and skills sector." LSC 27 November 2007 Nick Linford Head of Planning, Funding and Projects 12 February 2008

  2. 250 200 150 50 0 1. National Statement of Priorities 2008/09 - 2010/11 2. National Policy Summaries for 2008/09 (more than 80) 4. Funding Rates for 2008/09 (SLN per qualification) Key reading material Page count The LSC bedtime reading Complex landscape! 100 3. Funding Models and formula for 2008/09 5. National Funding Rates for 2008/09 (£ per SLN)

  3. School 6th Forms 16-18 model Entry to Employment Adult learner responsive model Further Education Apprenticeships Employer responsive model Train to Gain New funding models 2007/08 2008/09 * * 16-18 apprenticeships planned and budgeted in 16-18 model (DCSF)

  4. this x this = £* x this Will get 2.1% real terms protection 4.2% in cash terms Will get 2.1% real terms protection The new funding formula New ‘demand-led funding formula’ for all three models Introduction of: Standard Learner Numbers (SLN) National Funding Rates (NFR) Provider Factor (PF) There will be winners and losers, as shown in this LSC graph for 16-18 funding * Additional Learning Support can be added

  5. Full Time (1 FTE and 1.22 SLN) £ Full Time (1 FTE and 1 SLN) Part Time (0.5 FTE and 0.5 SLN) Guided Learning Hours Standard Learner Numbers SLN x NFR x PF = £ SLNs replace the National Base Rateand will either be listed in the Learning Aims Database, or unlisted and based on guided learning hours in the ILR SLNs (divisor)08/09 NBR (loadbands)07/08 SLN GLH / 450 = SLN with a learner cap of1.75 SLN per year

  6. Four AS levels (listed 150 SLN GLH each) = 1.33 SLN One AS General Studies (listed 36 SLN GLH) = 0.08 SLN One Key Skill (listed 36 SLN GLH) = 0.08 SLN Entitlement (listed 114 SLN GLH) = 0.25 SLN = 1.75 SLN One BTEC National Diploma (listed 1080 SLN GLH) = 1.2 SLN* One 90 glh Certificate in Literacy (unlisted) = 0.2 SLN Entitlement (listed 114 SLN GLH) = 0.25 SLN = 1.65 SLN One full time NVQ (listed 520 SLN GLH) = 1.16 SLN Two Key Skills (listed 36 SLN GLH each) = 0.16 SLN Entitlement (listed 114 SLN GLH) = 0.25 SLN = 1.57 SLN Examples of learner SLNs SLN x NFR x PF = £ * Per year in proportion to days in each year between start and end dates The LSC will continue to review rates, and will annually change some listed rates and make others unlisted (and visa versa)

  7. The National Funding Rate per SLN SLN x NFR x PF = £ The LSC set fully-funded £ per SLN each year, and in 08/09 they are: • School Sixth Forms £2,945 • 16-18 FE £2,860 • 16-18 Apprenticeships £2,860 • Adult Learner Responsive £2,775 • Employer Responsive £2,775 These are used unless the provider has been set a transitional rate For a 16-18 year old using previous example programmes: AS level programme: 1.75 x £2,860 = £5,005 BTEC Nat Dip programme: 1.65 x £2,860 = £4,719 NVQ programme: 1.57 x £2,860 = £4,490 Finally, the funding must be multiplied by a Provider Factor

  8. The Provider Factor SLN x NFR x PF = £ Each funding model has its own Provider Factor and for 16-18 and adult model in 08/09 is based on averages from delivery in 06/07 Area Cost (e.g. 1.200) x Disadvantage (e.g. 1.079) x e.g. 16-18 Model Lewisham College PF = 1.334 Programme weighting (e.g. 1.217) x Short-programme modifier (e.g. 1.001) x Success factor (e.g. 0.846) AS level programme: 1.75 x £2,860 x 1.334 = £6,677 BTEC Nat Dip programme: 1.65 x £2,860 x 1.334 = £6,295 NVQ programme: 1.57 x £2,860 x 1.334 = £5,990

  9. 1 SLN x £2,860 NFR x 1.334 PF = £3,815 16-18 year old 1 SLN x £2,775 NFR x 1.411 PF = £3,916 Adult (19+) fee remitted 1 SLN x £1,939 CFR x 1.411 PF = £2,736 Adult (19+) fee paying Assumed tuition fee 1 SLN x £2,775 NFR x 42.5% = £1,179 = £3,916 Total income to provider The funding earned per SLN SLN x NFR x PF = £ The formula is the same within the Employer Responsive Model, but with fewer Provider Factor elements (based on actuals) as well as a 75:25 funding split between monthly on-programme payments and achievement (full framework)

  10. Other things to note: When SLNs count This is commonly referred to as the ‘definition of a start’ The three funding census dates (e.g. 1st October) have been scrapped Instead there are minimum attendance measures, based on duration If an enrolment meets the minimum attendance criteria the SLN value assigned in the given academic year will be counted Fewer full timers and more part timers now being counted?

  11. 2500 2000 Learners Part time adults 1500 1000 SLNs 500 0 2004/05 2005/06 2006/07 Other things to note: The SLN per learner ratio This ratio is likely to be important to the LSC, but what does it imply? 0.25 0.34 0.55 SLNs are a new volume measure that are not the same as FTEs.Caution recommended when used for non-funding purposes.

  12. Find out more and access free resources at www.lewisham.ac.uk/pf

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