Nick Linford's slides on FE funding

1. 16-19 Funding Formula Reform – an update
6th July 2012
Nick Linford
New 16-19 funding formula – the decision…
Consultation ended 4 Jan 2012
Published 2 July (180 days or 4320 hours later)
Main decision – funding per learner
Around 600 hours for FT & BS rules
Funding protection for 3 years
PT banding and more to confirm
www.lsect.co.uk 1

2. The new funding formula
National
Student Funding Retention Programme Disadvantage Area Cost
Numbers Rate per Factor Cost Funding allowance
student Weighting
Total
Programme
Funding
NFR – determined in December
RF – 50% if not retained after 42 days (6 weeks)
PWF – Plan for 5 of 6 for main voc qual (TBC)
DF – to incorporate data from IMD and ALS
AC – South East weighting unchanged from now
DfE: What will 600 hours fund?
“A basic entitlement of around 600 hours in each of years
12 and 13 will fund a significant programme of study – for
example, the equivalent of 4 AS levels and 3 A2s plus
around 150 hours of enrichment or tutorial activity.”
And part-time?…
“We expect the pattern of part time learning to change in
line with the requirements for full participation. We will
keep this area under review; initially part time students will
be funded based on four bands depending on the number of
teaching hours for which they enrol” (band values TBC)
“As now, the qualifying period will be set at six weeks for
programmes of more than 24 weeks and two weeks for all
part time students whose programme is due to take less
than 24 weeks.”
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3. What the DfE say about English and maths
“phased implementation of conditions of funding”
- In future all students will be expected to take or work towards GCSE A*-C in English
and/or maths as part of their Study Programme if they have not already achieved this.
It should be a level higher than a student’s prior attainment.
- Funding conditions will enforce the inclusion of English and maths in Study
Programmes.
- Where GCSE A*-C is not attainable within the time of the Study Programme, students
can initially take other English or maths qualifications that would help them achieve
GCSE over a longer period of time e.g. Functional Skills and Free Standing Maths
Qualifications (FSMQs).
- Students with the most complex learning difficulties or disabilities might be better
served by other types of English and maths teaching that support progression to
higher levels in these subjects and prepare them for employment.
- From September 2012, apprentices who have not yet achieved level 2 English and
maths will have the opportunity to study these subjects to this level, through GCSE or
Functional Skills.
Three year transitional protection
Where applicable the current transitional protection (from 2008/09
reform) will overlap with a new three academic year transitional
protection (‘Formula Protection Funding’) that starts from 2013/14
But
“It should be noted that the Formula Protection Funding will protect
against losses in funding per student caused by the changes set out
in this document but it will not protect changes caused by other
factors e.g. declines in retention rates, shifts in the mix and balance
of provision away from programmes attracting a high programme
weight and reductions in the numbers of students attracting ALS.”
Sounds complicated to calculate?....
www.lsect.co.uk 3

4. The DfE say the benefits of the changes are..
The DfE say: “This will free up institutions to provide more demanding programmes
which meet the individual needs of young people currently not well-served –
especially those on low level vocational courses which are not well-regarded by
employers and do not lead anywhere.
The current formula is opaque and complex – Alison Wolf commented that
this ‘is the only country, to the best of my knowledge, where institutions
routinely spend money attending workshops which explain the latest
wrinkles in the funding formula and how best to exploit these.’ The new
system will be significantly simpler and will remove some of the data and
audit systems required to feed the formula, including, for full-time
students, the detailed recording of hours..
Funding reform will free up schools, colleges and other providers so that
they can deliver innovative and flexible programmes of study, including
non-qualification bearing activities such as work experience. Tying funding
to activities that only lead to qualifications prevents this.
By removing success rates from the formula, we are removing perverse
incentives and freeing schools and colleges up to put students on courses that
will stretch them to their full potential.”
The EFA say the benefits of a revised
funding formula are…
• Funding to underpin RPA is fair, simple, transparent
• Allows us to implement the full package of reforms as
planned from 2013/14
• Support institutions to deliver innovative provision, including
work experience to attract those students not currently
participating
• Encourage institutions to start changing their offer by
developing coherent programmes of study
• Introduce simplicity for all institutions
• Facilitate data simplification on the same timescale as the
review of the ILR
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5. But 80% of respondents do not agree
Q7 (a) Do you agree that a single rate for all full time learners based upon
historical average delivery is appropriate?
“Almost 80% of respondents were opposed to the
introduction of a single rate of funding per student.”
Source: http://media.education.gov.uk/assets/files/pdf/f/ffr%20analysis%20of%20responses%20to%20consultation.pdf
Lots to be determined in short space of time
Michael Gove: “I am establishing a Ministerial working
group to assist us in ensuring that these reforms work in
the best interests of all young people.
I will be inviting representatives from Further Education
Colleges, Sixth Form Colleges, schools (including grammar
schools) and other providers of post-16 education to
consider the best way to implement the reforms to the
programmes of study and associated funding changes.
Implementation from August 2013
(potential for further delay?)
www.lsect.co.uk 5

6. Q&A
Monday 9th July at Central Westminster Hall
New Ofsted CIF and related ‘issues’ (am)
Funding rules for 2012/13 (am)
Summer Lecture (eve)
Friday 13th July at Morley College (central London)
Apprenticeship funding
Visit www.lsect.com to book a place
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