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Transcript of Further Education – New Horizon Investing in Skills for Sustainable Growth David Hughes National...
Further Education – New HorizonInvesting in Skills for Sustainable Growth
David Hughes National Director of College & Provider ServicesSkills Funding Agency
17 November 2010AoC Conference
Coalition Approach
• Investment strategy for truly lifelong learning, nurturing sustainable economic growth & social renewal
• Based on:– Fairness– Shared responsibility– Greater freedom
• And in context of Skills for Sustainable Growth strategy
Reform Programme:Confirm, restate and communicate the need for a skilled nation
Provide a prestigious suite of qualifications that are well regarded by employers and portable
Deregulating the sector, simplifying the funding system and reducing the number of organisations involved in the skills delivery landscape
Work with employers over the need to train and where appropriate introduce levies and licences to practice
Through the development of Life Long Learning Accounts financially support the most vulnerable in society by fully subsidising programmes:• For those with poor basic skills, Young adults (19-24) who didn’t complete their secondary education (level 2 qualification) and who could progress and gain level 3.
Rebalance Government investment by introducing co-funding and loans for full time adults (over 24) programmes leading to a recognised Level 3 QCF qualification.
Empower the prospective student by providing a career service that gives impartial advice
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Headlines• FE resource budget reduced by 25% to 2014-15
• Savings through:
– Efficiencies
– Policy changes
– Unit cost reductions
– Changes to statutory entitlements
– Re-balancing who pays
– More freedoms for colleges
Funding andInvestment
3,6073,734 Total Skills Funding Agency
172179337 Funding not routed through the Skills Funding Agency
278305 Capital Grants
5156137 Skills Infrastructure (including LSIS)
848182 Information Advice and Guidance
163151144 Learner Support
210,210210 Adult Safeguarded Learning
131133134 OLASS
648605360 of which Apprenticeships
2,6852,7952,835 Adult Skills Budget
Indicative Budget
2012-13
Budget
2011-12
SR baseline
2010-11
(£000s)
• Expand Adult Apprenticeships– Over 200,000 starts per year– 75,000 increase by 2014/15– Reshape programme so Level 3 becomes the level to aspire to
• Employers– New Growth and Innovation Fund– Financial support to SMEs to co-fund the costs of training up to
and including a Level 2
• Unemployed– State subsidy for targeted provision for people on active
benefits to help them obtain work
Skills Strategy sets out key commitments
• Individuals– Government backed loans to help finance intermediate and
higher level qualifications from 2013/14– Lifelong Learning Accounts for all adults– All Age Careers Service
• The Funding System– Simplified systems and processes– Greater alignment across pre- and post-19 systems– Remove regulations to free colleges to deliver to their local
communities
Skills Strategy sets out key commitments (2)
Who is eligible for funding?
From 2011/12:
• More flexible delivery for unemployed / offenders through funding units and full qualifications
• Greater focus on those on active benefits
• Consequent narrowing of fee remission category
• Continued full funding for literacy and numeracy (uplift removed)
• ESOL fully-funded for unemployed / offenders (as above); co-funded for those settled here.
• ESOL in the workplace will no longer be eligible for funding
• Skills for Life uplift (1.2) removed from literacy and ESOL
• Rates reduce by 4.3% - new and existing learners
Reform of Funding
Reform of Funding
What is eligible for funding?
From 2011/12:
• Growth in Adult Apprenticeships
• Adult Apprenticeships continue to be co-funded; expectation that employer contributions will increase
• Co-funding at Level 2 for workplace learning outside of Apprenticeships will only be available to SMEs (fewer than 250 employees)
• Level 3 and above delivery in the workplace (outside of Apprenticeships and current entitlement) will no longer be eligible for funding
• Adult Safeguarded Learning protected
From 2012/13, proposed changes to statutory entitlement:
• Full funding for first full Level 2 and 3 focused on young people (19 to up to 24, ie 23)
From 2013/14
• FE Fee Loans introduced for Level 3 or higher qualifications where public funding is no longer available (24 and over)
Reform of Funding (2)
For 2011/12• Single Adult Skills Budget• Rationalisation of Adult Safeguard lines• Minimum Contract Level (£500k)• Introduction of Outcome Payments
– For jobs from 2011/12– Wider consultation on approach for 2012/13
From 2012/13• Simplified rates system• Removal of provider factor (except area costs)• Simplification of data returns • Simplification of learner support / hardship fund• Disadvantage uplift incorporated into Learning Support
Simplification of funding system
• Single Adult Skills Budget• Indicative for 12/13….• Need to ensure growth of Apprenticeships….• ….and reflect end of Train to Gain / reduced work-based learning
offer• Transparent methodology will be set out in Skills Funding Agency
Guidance Note • Expect to get indicative Adult Skills allocations out before
Christmas• Additional Learning Support Budget (ALS) to be aligned • Offender Learning and Skills Service (OLASS); European Social
Fund (ESF) and Adult Safeguard will be separate
Final Allocations in March 2011
• Reflect impact of MLP • Update for mid-year estimates/Quarter 2 changes• Reflect outcome of discussions for those providers falling below
MCL
2011/12 Allocations
Alignment with YPLA
• Joint briefings for sector – with AOC, ALP and UKCES – in January 2011
• Agreement over LLDD
• Entitlement funding for 16–18 year olds turning 19 (sixth form colleges especially)
• 16-18 funding for colleges and providers routed through Agency
• 16-18 Apprenticeship budget available in December?
Questions?