Funding Outlook and Opportunities by Safaraz Ali February 2016

1. Funding Outlook
&
Opportunities
By Safaraz Ali
February 2016

2. SFA Letter of priorities: 2015/16 to 2020:
 It was stated in Nov 2015 spending review that the core skills budget is to be
protected
 SFA ASB cut 2014 - 16 will be replaced by AEB. Apprenticeship funding
arrangements for 2016/17 onwards will be announced Spring 2016
 The apprenticeship funding is to be protected. £3,000,000 in this parliament.
Large company Levy is being introduced, 0.5% of payroll in excess of £3,000,000
 Government funding focus for FE - Apprenticeships, Traineeships, English and
Maths, Effectiveness/Simplicity/Localisation
Funding Outlook

3. Apprenticeships Under Reform: Full Imp 2017/18 onwards
(no fixed date):
 Employers to be at the centre of reform
 Trailblazers – Employers leading development of new standards. First
standard based app’s delivered from 2014/15.
 Consultation to move funding to employer – “Apprenticeship Voucher”
 Compulsory cash contribution possibly replaced by Levy
 AGE Grant changed to <49 employees, extended to July 2017
 End point assessment – new regulated assessment organisations
 Digital Apprenticeship Service – vacancies and process management
 Institute for Apprenticeships from April 2017 – governance and standards
approval
Funding Outlook

4. Traineeships:
 Work preparation/placement, English/Maths, plus flexibility to
deliver vocational qualification.
 Changes since start –
• Extended to 16-24, min/max work placement time removed
• pre level 3 harmonised for 16-18/19-24
• further JCP flexibilities to ease delivery/benefit conflict,
combined work prep/placement from 8/15, Grade 3 providers
can deliver from 8/16
• 19-24 funding growth more challenging
Advance Learning Loans:
For Level 3 and 4 stand alone qualifications. Extended to
19+ and L5 and 6 from August 2016
Growth area and further opportunities here – 2019/20
£480 million budget – budget always underspent

5. RPA: Raising Participation Age:
Must remain in education to age 18 (currently 17) from
August 2015 (includes school 6th
form, FE College
courses, apprenticeships, traineeships)
LEP’s (Local Economic Partnerships)
Increasing in importance, responding to local needs.
City Deals, Devolution, Combined Authorities
AGE/ESF/SFA (AEB) contractual requirement to have dialogue
Qualification reform:
Government VQ reform plan published March 2014 – improving
quality and standard of qualifications
QCF being phased out by Ofqual, replaced by RQF
Functional Skills review by Education and Training Foundation

6. SFA changes:
 Further restructuring of agency with large staff reductions.
 PFA audits increasing in importance and rigour.
 Grade 2 Ofsted is the minimum level of expectation
 New Outcome Based Success Measures being introduced
 RTO requirement
 SFA possibly to disappear in March 2018

7. Area Reviews of post 16 Education and Training Institutions
Area-based reviews of post-16 education and training will examine
economic and educational needs in local areas and how current
provision must change to meet these needs, involving Local
Enterprise Partnerships. Following these reviews and the introduction
of the levy funding, we expect to see fewer, larger and higher
quality colleges
By 2020, we will expect to see further education colleges taking a
greater share of the apprenticeship training market (including Institutes
of Technology and National Colleges), alongside employers
offering apprenticeship training directly, universities providing higher
and degree apprenticeships, and independent providers
We will streamline processes to reduce barriers to new providers
entering the market and getting on the RTO.
The arrangements for subcontracting between providers to be reviewed

8. Future Opportunities
New ESF Rounds –
 Bidding Dec 2015 to July 2016 £650m
Delivery period of 18 months
 Growth case opportunities with SFA for
Apprenticeships and Traineeship
 LEP linked opportunities ie: Big Lottery Fund, Communities
 Increase of contracted providers for apprenticeship from
985 to 3,000 – how will SFA and OFSTED cope?