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OLASS Funding Event 31 st March 2010 Developing the Future Model Laura Armit. Welcome. Aim. To seek your comments on the best funding methodology to achieve Value for Money in OLASS. Objectives. By the end of the session you will:

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OLASS Funding Event

31st March 2010

Developing the Future Model

Laura Armit


  • To seek your comments on the best funding methodology to achieve Value for Money in OLASS
  • By the end of the session you will:
  • Be reminded of the principles of the Demand-led Funding methodology used for mainstream provision
  • Be informed about initial work carried out re developing the future funding methodology for OLASS adult provision and the associated issues
  • Have had an opportunity to comment and raise issues via group discussion
demand led funding dlf
Demand-led Funding (DLF)
  • Introduced in 2008/09 to the majority of LSC funded provision
  • Three new funding models:
    • 16-18 Learner Responsive Model
    • Adult Learner Responsive Model
    • Employer Responsive Model
  • New funding formula
  • DLF did not apply to PCDL or OLASS
  • However, intention remained to apply DLF to all LSC provision in the future, taking into account particular characteristics of certain programmes
funding formula
Funding Formula

Standard learner number (SLN)


National Funding Rate


Provider Factor


Additional Learning Support (ALS)



standard learner numbers
Standard Learner Numbers
  • Based on nominal guided learning hours for the qualifications each learner studies (“listed rates”)
  • SLN = glh/450
  • A learner is deemed to have started a learning aim once they have remained on that learning aim for the period of time defined below:
provider factor
Provider Factor

Provider Factor =

x Area Cost

x Programme weighting

x Disadvantage

x Success factor

x Short programme modifier

reasons for change
Reasons for change
  • Intention always was to bring other funding streams into DLF or at least introduce some of the elements where appropriate for certain provision
  • To achieve value for money making the most efficient use of available funds
  • To address the concerns of the National Audit Office
developments so far
Developments so far
  • Invitations to Tender (ITTs) indicated that:

‘the LSC will reform the planning, funding and performance

management of OLASS provision in line with the changes towards a demand-led system, which are being introduced within the mainstream learning and skills environment’

  • A sum equivalent to 5% of the overall contract value for the geographical unit of procurement has been held back
  • Paid only if the provider can demonstrate they have met the required achievement rate across that unit of procurement
work in progress
Work in Progress
  • Analysis is being carried out using data from Strode College
  • Information received on:
        • Learning Aims
        • Average & Maximum Class Sizes
        • Numbers of classes delivered
        • Duration of classes
  • Has enabled us to start looking at:
        • Programme Weighting Factors
        • Issues with Learning Aims
data issues
Data Issues
  • To make changes to any funding methodology, the impact on all providers has to be assessed
  • No complete ILR data-set for 2009/10 for all providers
  • Inappropriate to use 2008/09 data due to dramatic changes in the curriculum since then
next steps
Next Steps
  • No change will apply to funding methodology for 2010/11
  • Holdback of 5% will continue to apply
  • Further data analysis to be carried out later this year when F05 return is received
  • Provider Meetings to give detailed proposals for 2011/12
  • Suggested methodologies for achieving Value for Money in OLASS
  • For example:
  • Learner Hours
  • Classroom Efficiency
  • Demand-led Funding
        • SLN
        • Definition of a start
        • Provider Factor Elements
        • Any other factors for OLASS provision?