Hot breakfast briefing28th June 2010, One90 Restaurant

16-18 funding update

Brought to you bywww.pearsonresearchinstitute.com

Nick Linford

Head of the Pearson Research Institute

Do you think FIFA should introduce

goal-line technology?

Do you think FIFA should introduce goal-line technology?1.Yes

2.No

3.Football? I don’t care

81%

3%

15%

Let’s find out a bit more about you. Please select who you work

for

Let’s find out a bit more about you. Please select who you work for1. Edexcel/Pearson

2. FE college

3. Sixth form school or college

4. Independent training provider

5. Third sector organisation

6. Central or local government/authority

7. Consultancy

8. Other

3%33%

3%3%11%20%

11%15%

On a scale of 1 to 10, with 1 being no knowledge and 10 being expert, how much do you already

know about 16-18 funding?

On a scale of 1 to 10, with 1 being no knowledge and 10 being expert, how much do you already know about 16-18 funding?1.1

2.23.34.45.56.67.78.89.910.10

12345678910

3%7%

5%10%

12%12%

25%22%

5%0%

Timeline and briefing contents

March 31st: 2010/11 16-18

allocations

April 1st: RIP LSC & YPLA

launched

May 6th: General election

June 15th: YPLA Funding Guidance

June 22nd: Emergency budget

June 24th: Freedoms announced

16-18 population predicted to fall*

2.021.98

1.941.90

1.881.87

1.861.83

1.79

1.751.73 1.74

08/0909/10

10/1111/12

12/1313/14

14/1515/16

16/1717/18

18/1919/20

From 2.02m in 08/09 to 1.74m by 19/20 (-14%)

Academic year

Yet 16-18 recruitment continues to rise

0

0.2m

0.4m

0.6m

0.8m

1m

1.2m

1.4m

1.6m

1.8m

07/08 08/09 09/10 10/11

Other (incl. LLDD 16-24)

Schools

Apprenticeships

Further Education

+70k (+4.3%)

Overall 16-18 participation budget will rise £439m (+6.2%) for 2010/11 to £7.5bn,

2008-09 2009-10 2010-11

£7.5bn

£7bn

£6.4bn

but national rate unchanged (£3,007 for school sixth forms and £2,920 for colleges and other providers)

In 2003/04 the average cost of an FE 16-18 year-old learner was

£4,519. How much do you think it is planned to be in 2010/11?

In 2003/04 the average cost of an FE 16-18 year-old learner was £4,519. How much do you think it is planned to be in 2010/11?1. £5,050 (+12%)

2. £5,150 (+14%)

3. £5,350 (+18%)

4. £5,550 (+23%)

5. £5,650 (+25%)

18%23%

26%15%

19%

Impact: percentage change in college 16-18 allocations, 2010/11

(including Additional Learning Support, E2E and Growth)

-60%

-40%

-20%

0%

20%

40%

60%

0 50 100 150 200 250 300 350

Colleges

% C

han

ge in

fu

nd

ing

16-18 allocations in summary

Treasury planning for ‘declining cohort’, but> Recruitment still rising in reality

> Average funding per learner still risingSo pressure to:> Maintain or reduce national funding rates> Challenge some large learning programmes

And impact varies from provider to provider

As of 1st April there were

two new funding agencies

What next?

> Create Schools Funding Agency?> Create FE Funding Agency?

> Create FE and HE Funding Agency?> Role of local authorities & National

Commissioning Framework?

And by mid-May there were two parties in a

new Coalition Government

YPLA Funding Guidance and e-bulletin 1st edition June 15th

> Learner eligibility

> Additional Learning Support

> Rates and formula

> Regulations

> Guide to Foundation Learning

and

Includes links to the following docs:

End of Entry to Employment

QCF & functional skill ratesSfL weighting remains 1.4

Still: SLN x NFR x PF + ALS = £

Limited change from 2009/10

16-18 rates and formula

FL weekly rates just 12glh

Non-certificated still possible

Some entry level 1 unlistedUnlisting other quals possible

Functional skills unlisted (LR)

Mostly catalogue & listed rates

Foundation Learning (LR)

Entitlement funding as LR now

DfE’s £630m contribution to £6.2bn departmental cuts for 2010-11• 14-19 efficiencies and stopping lower priority projects£4.1m• Savings from lower than planned take up of 14-19 Diploma

£9m• Scaling back support for delivery of the 14-19 Diploma£13.2m• Stop funding for development of 14-19 Diploma £9m• Reducing central 14-19 workforce development activity£14m• Ending role of 14-19 Regional Advisers from September

£0.9m• Scaling back plans for roll out of Framework for Excellence

£1.2m• EMA efficiencies and lower take-up£15m• Unallocated post-16 participation funding£20m

£86.4m

‘Front-line protected’ but this includes:

Emergency budgetAll departments (excl. Health and International Development) will see cut of 25% over four years

Maybe your idea will contribute to the Comprehensive Spending Review (20th Oct 2010). 18k ideas so far!

Consultation with public sector first: In 500 words, ‘how can we rethink services to deliver more for less?’

http://spendingchallenge.hm-treasury.gov.uk/

Freedoms from ‘direct state control’

> Freedom to choose which and how many 14-19 Diplomas to do

Nick Gibb MP, Minster of State for Schools

John Hayes MP, Minister of State for FE, Skills and Lifelong Learning

> Plans for ‘in-year’ funding adjustments dropped

BIS announced college freedoms on 17th June 2010, with more detail in SFA GN 4 on 25th June

DfE announced his schools and colleges freedoms on 24th June 2010

> Routine Ofsted inspection stopped for the ‘outstanding’

> Development of 14-19 Extended Diploma scrapped

Do you think Andy Murray will win Wimbledon this year?

Do you think Andy Murray will win Wimbledon this year?

1.Yes

2.No

3.Tennis? I don’t

care

44%

36%

20%

Thank you and questionsWe hope this morning proved usefulPlease return your evaluation forms and enjoy the rest of your day and weekBrought to you by the Pearson Research Institute