ESFA funding for 16 to 19 year olds – 2019 to 2020

1. ESFA funding for 16 to 19 year olds – 2019 to 2020 Colin Stronach January 2019

2. Presentation Outline This presentation will summarise four key areas that affect funding allocations for 2019 to 2020: • Allocations timeline • Funding formula for 2019 to 2020 • Data sources • Business cases and infrastructure changes

3. 16-19 Allocations Timeline (1)

4. 16-19 Allocations Timeline (2)

5. Funding formula for 2019 to 2020 Our funding letter published in December 2018 confirmed the 16 to 19 funding arrangements for 2019 to 2020 There are very few changes – in particular, the following remain the same: • The base funding rates are being maintained – this is the final year of allocations under the 2015 Spending Review • Most elements of the formula, including formula protection funding and the condition of funding continue to apply in a similar way to previous years The main changes/points to note for 2019 to 2020 allocations are: • The advanced maths premium will be paid for the first time • The industry placement capacity and delivery fund continues and is extended to additional institutions

6. Maths and English condition of funding The Condition of Funding adjustment continues for 2019 to 2020 allocations and will be based on data from 2017 to 2018 As in previous years, funding reductions will apply to institutions where more than 5% of students (by value) without grades 9 to 4 or A* to C GCSE in English and/or maths did not enrol on an approved qualification Funding reductions will be applied at half the national funding rate above the 5% tolerance Information on students not meeting the condition of funding is shown in your Allocation Calculation Toolkit and the financial impact will be included in your 16-19 funding allocation

7. Industry Placement Capacity and Delivery Fund • 16-19 allocations for 2019 to 2020 will again include funding for the capacity and delivery fund (CDF) • Institutions in scope are those with 2018 to 2019 CDF allocations (subject to monitoring returns) plus those who have an approved plan for delivery in 2019 to 2020 • Most institutions receiving this funding will have it shown in their allocation in February/March • Institutions will need to make monitoring returns three times each year • Full details of the funding for both existing and new institutions are on GOV.UK

8. Advanced Maths Premium The Advanced Maths Premium will apply for the first time in 2019 to 2020 allocations The premium will provide additional funding of £600 per year for each additional student taking a level 3 maths qualification in comparison to a baseline Baseline data was sent out in July 2018 and the allocation itself will be based on in-year delivery in 2018 to 2019 – the number of eligible students will be shown in your allocation in February/March More details are available on GOV.UK

9. Student Support • Free meals allocations will be based on data from 2017 to 2018 ILR returns • We will continue to make an adjustment to allow for the amount of double funding for meals funded from the 16 to 19 Bursary Fund - the resulting deduction will be subtracted from discretionary bursary allocations • We will allocate additional bursary funding for institutions in receipt of the industry placement capacity and delivery fund (CDF) • No other changes in the approach to discretionary bursary allocations • Bursaries for vulnerable groups and Care to Learn will continue to be managed via the student bursary support service (SBSS). SBSS processes will be updated as a new supplier is taking over the running of that service – more information on this will be published later in the year • Residential bursary allocations will continue to be made to eligible (specialist) institutions

10. Data Sources (schools/academies) Autumn Census 2018 – autumn 2018 data for: • Lagged student numbers – how many students will be funded • Advanced Maths Premium Autumn Census 2018 – end-year 2017 to 2018 data for: • Programme Size (full-time/part-time) • Funding factors – retention, programme cost weighting, disadvantage (blocks 1 and 2) • Condition of Funding in maths and English • Industry Placement Capacity and Delivery Fund YP Matched Administrative Data, 2016 to 2017 for: • Large programmes Local authority data will be used to determine high needs element 2 place funding for mainstream academies. Maintained schools will need to agree place funding directly with their home local authority.

11. Data Sources (FE Institutions) ILR R04 December 2018 and/or R06 February 2019 for: • Lagged student numbers – how many students will be funded • Advanced Maths Premium ILR R14 for 2017 to 2018 - October 2018 for: • Programme Size (full-time/part-time) • Funding factors – retention, programme cost weighting, disadvantage (blocks 1 and 2) • Condition of Funding in maths and English • Industry Placement Capacity and Delivery Fund YP Matched Administrative Data, 2016 to 2017 for: • Large programmes Local authority data will be used to determine high needs element 2 place funding for FE institutions and ILPs.

12. Data Sources (Special post 16 institutions) For 2019 to 2020: • We continue to fund SPIs on the basis of programme funding (element 1) and high needs funding of £6000 per place (element 2) • We will calculate place numbers for both elements using ILR R04 from December 2018 and/or R06 from February 2019 in conjunction with 2017 to 2018 data on the profile of recruitment • We will fund SPIs on the basis of average funding factors and we will use ILR R14 data for 2017 to 2018 to monitor the Condition of Funding in maths and English

13. Business Cases • Business cases can be made for cases of major data error • Cases are made post-allocations and need to be sent in by 30 April – we will then review them in May, with decisions communicated by the end of June • Cases are only considered if the following thresholds are met: • for cases affecting lagged student numbers, full time/part time split, funding factors and for the condition of funding an overall impact of 5% on total funding or £100,000, whichever is lower • case by case for any other factors • Late cases or those with missing information will be considered at ESFA discretion and will not be processed until after the start of the academic year • Separate arrangements for any cases on high needs place funding are published on GOV.UK

14. Infrastructure – Summary The lagged approach does not apply to academies funded on estimates or to institutions where there is a material change in the number of students eligible for funding: • New provision • Closing provision • No funding if provision ceases • Reduced funding if numbers winding down • Transfers of provision, including sub-contracting – ESFA may choose to remove institutions from the lagged approach • Exceptional in-year growth – subject to high thresholds and affordability Institutions must inform ESFA of any material changes that may affect their allocation

15. Infrastructure – New sixth forms New school/academy sixth forms • Quality threshold – only good or outstanding schools eligible, minimum size (200 students), more details in guidance on GOV.UK • Some new institutions are funded on estimates with pupil number adjustments. In other cases, there is a standard calculation for funded numbers: • Year 1 – one third of capacity • Year 2 – double actual recruitment in year 1 • Year 3 – lagged numbers • …but we will consider evidenced cases for a different profile by exception • Funding factors for the first two years will be based on average values

16. Subcontracting • The prime institution is ultimately responsible for any subcontracted provision as if it was their own • No whole-programme subcontracting in schools or academies – students must attend the school/academy at least once a week • Distance subcontracting by any institution should only take place on an exceptional basis • Updated process being developed for informing ESFA of subcontracting arrangements • ESFA will review cases where institutions end subcontracting arrangements and may remove that provision from the lagged approach and reduce student numbers

17. ESFA funding for 16 to 19 year olds – 2019 to 2020 Colin Stronach January 2019