Funding outlook for training providers, skills funding, funding opportunities for training providers, training providers funding strategy, funding for training providers, government funding for training providers, funding opportunities for training providers

1. Funding Outlook &
Opportunities Update
Safaraz Ali
Updated April 2015

2. Skills Funding Statement: 2015/16:
•SFA budget reducing 25% per annum.
•Government funding focus for FE - Traineeships, Apprenticeships,
Higher Standards, Better Qualifications, English and Maths.
Apprenticeships Under Reform: Full IMP 2017/18:
•Employers at centre of reform.
•Trailblazers – Employers leading development of frameworks being
replaced by standards. Aim is for first standard based app’s to be
delivered in 2014/15. 8 phase 1, 29 phase 2. English and maths
being further strengthened.
•Consultation to move funding to employer.
•Plans for compulsory cash contribution.
•AGE Grant changed however still available.
Funding Outlook

3. Traineeships:
•Work preparation, english/maths, work placement plus flex
to deliver vocational qualification.
•Not many starts so far!
•16hr JSA rule exemption.
•Extended to 16-24, min/max work placement time removed,
8 week consecutive placements agreed with JCP from August
2014.
24+ Loans:
•For Level 3 and 4 stand alone qualifications.
•Apprenticeships were removed March 2014.
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).

4. EFA:
•Study Programmes (A levels or vocational qualification,
English/maths (GCSE’s preferred), non qualification activity
including work placement).
•17.5% Lower funding for 18 year olds from August 2014 (not
applied to apprenticeships).
LEP’s (Local Economic Partnerships)
•Increasing in importance, responding to local needs.
Employer Ownership Fund
•Phase 2 now closed. More opportunities soon on the horizon.
Qualification reform:
•14-19 vocational qualifications, technical baccalaureate being
introduced, many qualifications lose funding from August 2014.

5. SFA changes:
•MCV (Minimum Contract Value) was set at £500k, but does not
seem to now be applied.
•Restructuring of agency with large staff reductions.
•Providers > £10m contract get Coventry performance management
support.
•Providers <£10m contract get contact centre support.
•Ofsted Grade 2 becoming the minimum standard.
•PFA audits increasing in importance and rigour.

6. Current Opportunities
New Enterprise Allowance Scheme (NEA):
•The NEA Mentoring scheme is designed to support the move into
self-employment for those people who want to start their own
business.
•From January 2015 to 31st
March 2016 NEA Mentoring will be
delivered via contracted provision across Great Britain in up to
fifteen Contract Package Areas.
National Careers Service Provision: IAG for customers 18 years +:
•Local digital channels including maintaining local website pages.
•Community based face-to-face services.

7. FE Colleges:
•We continue to seek opportunities to work in
partnership with FE Colleges and other providers in the
Local Area and across the UK.

8. Learndirect:
We are considering the opportunities that are available with
Learndirect in a number of different areas:
•New Enterprise Allowance Scheme
•24+ Advanced Learning Loans
•National Careers Service IAG
Community Work Placements:
•Community Work Placements is a mandatory scheme designed for
those JSA claimants returning from the Work Programme whose
key barrier to work is a lack of work experience, motivation or both,
and offers them a significant period of full-time activity.