Basic Funding for Colleges and Private Training Providers

1. Basic Funding for Colleges and Private Training Providers Using the published information available for 2013-14 academic year. March 2013

2. Some of the agencies that Providers receives Funding from. • Skills Funding Agency (SFA) = 19+ • *Education Funding Agency (EFA) = 16-19 year old • Student Loan Company = 24+ Advanced Student Loans in FE and Higher Education • Higher Education Funding Council= HE provision • Job Centre Plus= Programmes for the unemployed • European Social Fund= Programmes for community development and jobs Note * colleges’ receive EFA funding via their SFA contract.

3. Skills Funding Agency(1) Adult Skills Budget; Is a single allocation of funding to an organisation, to deliver training leading to Job outcomes and/or qualifications and Apprenticeships. There are no targets but the SFA does have priorities for the use of its funding including; 19-23 learners -low skilled and unemployed, low skill defined as upto level 2. Prioritise fully funded learners including - Job Seekers, and Adults wishing to enter the workplace Workplace learning focus for SMEs--- identified as having less than 250 employees Adults without English and Maths at GCSE A*-C

4. Skills Funding Agency(2) Other Fully Funded Learners; 19-23 year old learning studying their first full level 2 or 3( in some case level 4 if jumping from level 2). 19-23 Entry and level 1 without a full level 2 qualification

5. Skills Funding Agency(3) For learners outside the priority groups the SFA will normally fund 50% of the rate as identified on LARA or within the Funding rates matrix. • Excluded from SFA funding from August 2013 is anyone 24 and over studying a level 3 qualification at Certificate or Diploma level when a student loan needs to be taken out by the student or full fees paid. • Level 3 award level will be Co-funded for 24+ learners, providing it is identified as eligible for classroom delivery , awards are not funded in the workplace. • Level 2 qualification delivered via classroom learning or for a learner employed in an SME in workplace learning • The SFA only funds individual units for certain priority groups, in all other cases no funding is available • The SFA will also fund employers directly to either deliver the training themselves or via a sub-contract agreement. • To receive funding either directly or via a sub-contract arrangement, organisations need to register on the SFA’s register of approved training providers, without this registration organisations cannot receive direct funding.

6. Skills Funding Agency(4) Apprenticeships funding arrangements by SFA; 19-23 All levels Co- Funded with a 50% contributions coming from employers in either cash or identified apprenticeship support activity 24+ level 2 Apprenticeship Co-funded with a 50% contribution coming from the employer in either cash or identified apprenticeship support activity. 24+ level 3,4 and 5 Apprenticeships will be via a student loan with an expected 50% contribution from the loan and 50% via employers contributions. 16-18 apprentices are planned by the SFA but funded via the EFA’s total funding budget

7. Adult Skills Budget Innovation Code

8. New Formula Funding £ = Rate £ X Disadvantage Uplift X Area Cost Uplift

9. Funding Rates Matrix (QCF)

10. Single earnings methodology • Funding earned by a college or training provider will consist of ‘on programme’ and ‘achievement ‘ elements – 80%/20% • Use the current ER methodology across whole of Adult Skills Budget • Payment of allocation on profile to colleges with year-end reconciliation • Payment of allocation on actuals to training providers, with balancing payments in month after data received • Funding cap per learner at £4,400 (unweighted) will be piloted in 2012/13

11. Single earnings methodology • On-programme funding = funding rate x 0.8 • 20% of funding rate is then earned on achievement

12. Education Funding Agency EFA 16-19 funding is available to; • Colleges • Sixth Form School’s and Colleges, including Academies, Free School and UTC’s • Private Training Providers– with an EFA contract • Independent Specialist Colleges and School’s The formula uses one system and a National Funding Formula to fund all organisations. The funding is based on two clear principles • Engagement/Participation • Retention

14. Key Funding Elements • Maximum funding based on 600 planned hours of learning will generate £3,900( subject to confirmation) • Funding is based on a learners study programme NOT qualifications. • Retention NOT Achievement is a measure of determining the funding in future years. • A Programme Cost Weighting to cover the additional cost of different learning activities and subjects. • From 14-15 it is a condition of funding that learners without A*-C in English and Maths must have them included in their programme.

15. Retention Factor Applies at learner level NOT qualification level Performance tables will still need to reflect performance at qualification level Non retention after day 42 (without achievement) means 50% reduction in funding

16. Retention Factor

17. Programme Cost Weighting Applied to whole of the learner’s programme Based on learner’s substantial learning aim(s) For vocational programmes based on SSA classification

18. Proposed Cost Weightings

19. Full and Part Time

20. National Funding Rates(shadow calculations)

21. Other Aspects of the Funding Guidance 13-14

22. 24+Advanced Learning Loans- a quick overview • Government drive to increase private investment in learning –’shared responsibility’ • Loans for Level 3 and 4 for classroom or workplace delivery. • Loans for apprenticeships at levels 3,4 and 5. • Loan maybe available to adults who have previously undertaken a university qualification. • Applies to QCF qualifications at certificate and diploma size, Access to HE , A levels, Advanced and Higher apprenticeships • Tuition fees are at the discretion of the provider, but cannot exceed the LARA listed rate. • Funding is paid equally each month against the length of the course.

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