Slide 1the Funding Opportunities for Your
Students and Organisation
Government Drivers
• Programmes for the Unemployed – unit and part time routes
• NEET provision – DWP work programme/Youth contract – engagement with the longer term unemployed
New initiatives
• 19+ Streamlined funding system - matrix
• Advanced 24+ Loans
• Innovation code - employer driven (but limitations due to size of business case)
• Note: all the above create opportunities but are also a threat to the business if they are not looked at
with a fresh mind?
Where to focus actions
New adult
16-19 New Funding Method
• Apprenticeships
• 16-19 education will be funded…
• Based on £4,000 per student
• Increased focus on providing the student with a holistic study programme which will get them into university or work
• All students receive same basic level of funding base on 600glh
Study Programmes
• Applies to all 16-19 year olds
• Students will take either academic programme or a substantial vocational qualification recognised by employers – these must help them secure skilled work or a university place
• Where appropriate students will also take part in work experience
• Students who don’t have GCSEs grade C in English and maths at 16 will continue to study these subjects
• Students who arent able to study a substantial qualification will take a programme of work experience
Funding
per
student
Study
programmes
Raising
Participation
Age
Programme build
• Programmes will range from 540hrs - 600hrs. Its the level of flexibility that will
determine programme choices. Many providers will still deliver 600+ programmes to
deliver bigger financially viable programmes.
The Drivers
• Local business needs – responding to employer requirements + LEPs
• Strong brand in sector– i.e. Hospitality, Engineering and IT
• Popular choice – IT, Construction, Hair & Beauty, Business Admin and
Plumbing
business setting up in the area (traineeships)
Recognising and dealing with the changes
Adult Provision – Adult Skills Budget (ASB)
Conditions and opportunities
Adult Skills delivery
• Consider „small provision thresholds for cost efficiencies where possible
• Consider „boundary impacts for larger qualifications to gain efficiencies - but
„fit for purpose must always rule.
• New business rules (November 2013) for qualification approval
Focus
New Version -April 2013
Award (3-5 credits) £150 £168
£195
£240
£780 £960 £1,032
t)
Note: These rates are only applicable until July 2014 when intermediate awards will cease to be funded
Traineeships
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Vocational Taster (could be ICTqualification)
Core
priority
Developing a programme
• It should be noted as a „matter of principle programmes should be designed to move into
work – not back into FE, so this can/should influence size (this is one reason why the
size is likely to be above the mid point 300 hours)
• The programme must be built around the „work experience element – central to the
programme
Programme
• First – providers complete an initial assessment to establish work ready needs of
individual.
• Develop work programme with individual and employer (could lead to apprenticeship or
work offer)
• Develop work preparation scheme – job search, CV writing, interview preparation etc.
• Develop English and Maths support based on assessment and prior learning
• High quality vocational element based on work placement employer needs or relevant
work experience taster i.e. ICT, customer service.
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Important considerations
• If a young unemployed person age 19-24 has a Level 2 consider using the adult skills
budget, they will not be suitable for
• Must have achieved a grade 1 or 2 Ofsted report – can sub-contract grade 3
• No relaxation of DWP benefit restrictions – the rules state that work placements must be a
minimum of 6 weeks and a maximum of eight weeks and must be consecutive.
• Note: the minimum work placement for SFA funding is 100hours
• Funding arrangements are the same for 19+ funding under traineeships, there will still be a
20% achievement factor – including work placement funding.
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Traineeship Programmes
Conditions (Rules)
Activity Funding
Work Preparation Element:
Entry Level unit Preparing for an Interview L1 Award in CV
writing (3-5 credits)
credits
£724
Traineeship Programmes
Example of SFA Traineeship Funding
• The traineeships programme should fit with the individuals learners needs and
circumstance (including any fit with the benefit system)
• The 16 hour benefit rule is for skills training only, work placement time is in addition to
this.
hrs
weeks (starts week 2)
weeks (starts week 4)
Work Placement – avg 20 hours for 16 weeks 320 hours
Total hours (This would be Band 3 @ £2,700) 431 hours
Program
Cost
Weighting
Disadvantage
uplift
Student
Numbers
National
Funding
• Priorities for Adult funding – Apprenticeships, Traineeships (pre–apprenticeships route)
• Micro businesses (less than 10 employees) can use two additional units
• Level 5 & L6 provision can be funded under Loans if within an apprenticeship (NOT standalone) – they
must have completed a L4 first to be eligible
• New draft Deregulation Bill - The Bill proposes abolishing the current Specification of Apprenticeship
Standards (SASE) and the accompanying system of frameworks and issuing authorities, the Bill reflects
the findings of the Richards review by reducing regulation around apprenticeships with the
Governments hope more employers will get involved in both the development and delivery.
DELIVERY
• New Streamlined Funding system for adult provision starts from 1 August 2013 - only „new frameworks
will be funded under the new matrix system
• Apprenticeship contracts protected under funding allocations but now a separate funding line – this
means funding cannot be shifted to other priorities
• Apprenticeships must last for 366 days - Completion in fewer than 366 days will mean the achievement
element of the apprenticeship funding will not be paid to the provider.
• Funded frameworks for Loans can be found on:
http://readingroom.lsc.gov.uk/SFA/24+_Advanced_Learning_Loans_Maximum_Amounts_20130218.xls
Retain current SLN rates
Large Employer and 25+
funding methodology
• Richards Review – covered later
• Students holding GCSE grades D-G generally struggle to get into apprenticeships. This is one reason
why the new QCF English and Maths qualifications are suitable stepping stones helping to achieve
Functional Skills and therefore increasing their chances of an apprenticeship place.
• In recent years, there is also evidence to suggest employers have been recruiting young people from
Eastern Europe with the required employability skills and work ethic, which might partly explain why the
16-18 apprenticeship numbers have been lower than Government ambitions.
Useful Links
Employer Grant (AGE 16 to 24)
• If you are a business employing up to 1000 employees and interested in recruiting a young apprentice
you could be eligible to receive the £1,500 grant.
• http://www.apprenticeships.org.uk/Employers.aspx
Parents
Preparing the individual
• Affordability vs benefits
• What/Where will this course lead too
• Does Industry/employer value the course
• Where will the student get help – is it clear?
Meeting student needs
• Viability of course if numbers drop
• Sectors that employ more 25+ candidates could be affected more than others (i.e. Health & Social Care, Child Care, education)
• HE provision – decision planned in advance, will this be the same for FE
• Progression from Level 2 – will this now be a natural step for some?
• Government already looking at L2 provision as the next step
Impact on participation
• Debt adverse students + Debt accumulation if progression takes place
• Loans are not available if completed already completed learning at the same level (only exception progression form subsidiary diploma through to extended diploma)
• Learners will become „active consumers
• Apprentices could be on minimum wage and be reluctant to take out a loan – but repayments are „future based
Implications for providers
Attitudes to Further Education Loans
Possible reasons for taking on a Loan:
• Moving into a new career - choose to re-skill,
motivated to move into a job or personal
interest. Includes full-time mothers.
in career or current job, or from full-time education.
Potential route to HE
• A route into the labour market - re-skill or skill
up in order to get a job after being out of work
(long- term or youth unemployment)
• Consolidation to increase job security -
recently redundant or acting defensively to shore
up skills and proof of capabilities in face of
competition.
reason for any student taking out a
24+ Loan
plans and IAG against this criteria
Learners do not always understand
the wider benefits of their learning and
that the loan is a route to achieving
their aims (normally progression into
work and beyond)
24+ Advanced Learning Loans
• Progression from Level 2 to Level 3 for the learner – plan ahead
• Actual cost of provision – debt for vocational progression much lower then HE loans
• Selection choices for individuals – could be unit route
• Loans written off after 30 years
• Previous educational study will not effect entitlement to a loan - graduates will be entitled
for an apprenticeship
• Market progression to HE
• The Student Loan Company website remains the most comprehensive and up-to-date
resource for 24+ Loans information. http://www.24plusmicrosite.com/
Opportunities and considerations
Opportunities and considerations
Consider the future…………….
Ofqual
• A regular feature of the qualification system is the pervading sense of constant change
and its impact on performance, systems and people.
Academic routes:
• In the next few years we will see further revisions to the national curriculum, reforms to
GCSE and A levels It should be noted we have already seen the impact on HE with
increased fees.
Consider how different it will be for a typical 16-19 by 2016
• more challenging specifications,
• requirements to improve levels of English and math's
• programmes of study leading to employment or HE – learner focused
• review of vocational qualifications – impact on offer
• changes to apprenticeship frameworks – Richard review
Love it or loathe it the GOVE revolution and spending review has certainly had an impact -
Based on Ofqual’s plans up to 2016
Future Changes in the Funding Environment
• Government does not set the price of training: The government agree they should fund a
proportion of this price – up to a maximum per apprentice, - which they believe will
provide incentives for employers to „shop around for training which represents strong
value for money.
• Therefore, under the reformed system, the employer and provider would negotiate the
content and price of eligible Apprenticeship training.
• Some government funding would be withheld until the learner completes their
Apprenticeship and achieves the industry standard (similar to the current achievement
element)
• After a minimum duration, the employer – together with the learner and training
providers – will decide when the Apprentice is ready for any final assessment to
demonstrate full mastery of the occupation. – a move towards a more synoptic model of
end-point assessment.
• The government feel it is vital that assessment is trusted by employers, so all assessment
bodies should be independent from those delivering the training and from those
employing the Apprentice, with fees paid directly to them.
Richards Review - recommendations
Richards Review
• At the heart of Doug Richards recommendations is that control of Apprenticeships should
be placed more firmly in the hands of employers and that all Apprenticeships should be
rigorous and responsive to their needs.
• Employers are the best judge of which training is worth investing in. Therefore in the
proposal the government will provide funding in proportion to the investment employers
are willing to make themselves. This means that training providers will compete for
business – both on quality and on price.
• Apprentices will then be assessed by approved organisations to determine whether they
have reached the standard, and thus achieved their Apprenticeship.
• At the heart of the reformed system is that employers agree with training providers the
content and price of training which helps their Apprentice to reach the industry standard.
The government will fund a proportion of this, but only after employers have paid
their share
Summary
Proposals
Matthew Hancock, has asked Nigel Whitehead, BAE Systems Group Managing Director, and a UKCES
Commissioner to review adult vocational qualifications in England. The aim of the review is „to create a
simple, accessible and consistent adult vocational qualifications system that's valued by employers and
individuals in England.
The review will ascertain the extent to which current adult vocational qualifications:
• Are deliverable in a wide range of contexts.
• Have a recognised identity.
• Are attractive as investments for employers and individuals.
• Are broad in content.
• Safeguard niche sectors whilst allowing unused or under-used qualifications to be removed
• Are trusted and respected by employers and individuals.
What does this mean?
• Its likely over the next few years other than a fundamental shift in apprenticeship funding we could see
a cull of existing qualifications but also a return to when qualifications were built with industry and less
external interference like the QCF
• Some ask whats future for the Skills Funding Agency?
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Whitehead Review
Future changes
Technical Baccalaureate • A new structure for vocational education was announced by Michael Gove during April with the positive
remark they will be on par with A-levels, aimed at the 50% of English school leavers who do not go on
to university.
• The DfE has stressed it is not a qualification but a performance measure marking achievement by
young people aged 16-19. It is expected that those taking the techbacc would have already achieved
GSCE Maths and English at Grade C or above.
The Government’s Performance Measure will focus on three core areas of study:
• A high-quality Level 3 vocational qualification – the Government has previously announced that only the
best courses, recognised either by a professional association or five employers registered with
Companies House, will continue to count in league tables. A list of these courses, called Tech Levels,
will be published towards the end of the year.
• A Level 3 “core maths” qualification, including AS level maths. Further information about core maths
courses for post-16 students will be published by the Department for Education (DfE) in due course.
• The extended project. This will develop and test students skills in extended writing, communication,
research, self-discipline and self-motivation.
from Government measures
qualification
Includes:
and maths embedded at the appropriate
level
Government’s Technical Baccalaureate
16-19 year olds
Includes:
Qualification
• Extended Project
Training: The Art of Differentiation
• 13.00 – 14.00: Conference Lunch in the Exhibit
Hall