The future of LSC funding arrangements

Where are we now?

John BoltLSC National Office

What I’m covering

2005/06 FE funding

2006/07 Agenda for change– What’s it about?– Simplification

FE funding 2005/06

Funding guidance published on web 27 April(an addendum to 2004/05)

Fee element increased to 27.5% Fee remission for all first full level 2 learners Redefinition of franchises & partnerships

Otherwise minimal change

Agenda for Change

Six themes Funding Skills and employers Quality Data Business excellence (efficiency) Reputation

Regional events starting this June

Funding Theme

Initial report submitted to SoS in March 2005

DfES yet to formally respond

Builds on ideas within plan led funding

Funding Theme

Better planning

College planningFunding Outturn v April Estimate 2003/04

80%

90%

100%

110%

120%

130%

1 51 101 151 201 251 301 351

Colleges

% V

aria

tio

n

Funding Theme

Better planning

Funding follows the plan

Simplified formula Based on learner numbers and provider factor

Common system across funding streams

Funding Theme

Year end reconciliation of the plan (learner numbers)

Budget allocation based on review of plan

Core and commissioned elements of allocation

Better and more timely management information

Ideas for simplificationHow to count learner numbers?

Some people think we should fund using FTEs

Are FTEs easy to calculate?

Let’s look at several issues

How to define a FTE?

Full time learners count as 1 FTE

Should this apply to learners on large full time programmes or should the FTE be higher than 1?

How to calculate FTEs for part-time learners?• Should we divide glh by a standard divisor (e.g. by 450)?• Reintroduce the load bands?

When to countlearners?• Start?• Mid-point?• Completion?• Achievement?

Or a combination of these?

The future of LSC funding arrangements

Where are we now?

John BoltLSC National Office