OCN London Access Conference Funding Update Julian Gravatt, Assistant Chief Executive, AoC
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Title of the slide Second line of the slide OCN London Access Conference Funding Update Julian Gravatt, Assistant Chief Executive, AoC 1 st October 2013
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OCN London Access Conference Funding Update Julian Gravatt, Assistant Chief Executive, AoC 1 st October 2013. Spending review re-cap. Cabinet agreed £10 billion in spending cuts for 2015-16 George Osborne announcement on 26 th June 2013: 1% increase in Department for Education budget - PowerPoint PPT Presentation
Transcript of OCN London Access Conference Funding Update Julian Gravatt, Assistant Chief Executive, AoC
Title of the slideSecond line of the slide
OCN LondonAccess Conference
Funding Update
Julian Gravatt, Assistant Chief Executive, AoC
1st October 2013
Title of the slideSecond line of the slideSpending review re-cap
Cabinet agreed £10 billion in spending cuts for 2015-16
George Osborne announcement on 26th June 2013:
1% increase in Department for Education budgetProtection for Schools budget for 5-16 year olds
4% cut in Department for Business budget No big change to the HE funding settlement More reform to 19+ FE/Skills
Title of the slideSecond line of the slideParty conference update
Liberal Democrats - raise income tax threshold- free meals for primary age children
Labour - childcare for 3 and 4 year olds- fiscal discipline
Conservatives - transferrable marriage tax allowance - freeze fuel duty
- bring budget into surplus by 2020
Title of the slideSecond line of the slideDFE spending choices
School protection implies £700 mil (+1.7%) budget increaseImplies a £300 mil (2.6% cut) to Non-Schools budget
DFE will be cutting Admin, Education Services Grant (to Councils)DFE has options to cut other Non-School budgets (eg training? Ofsted?)Risk of 16-18 budget cuts (either funding rates or participation)
The Schools Budget
£42 billionPupil numbers rising
Funding per pupil protected
16-18 budget
£7.4 billionAt risk
The rest
£5 billionDFE, Childcare Children at risk
Title of the slideSecond line of the slideBIS 19+ FE spending choices
Employer Ownership
£340 milNo longer pilots
Loans £400 milNo change (yet)
Adult Skills Budget
£1.5 bil 201327% less by
2016?
ESF £170 milLEPs take
control
Apprenticeships£1.5 bil
Employer control3 options
Title of the slideSecond line of the slideThe Adult skills budget
£2.8 billion
2009-10
£2.0 billion2013-14
£1.6 billion2016-17
Title of the slideSecond line of the slideAoC spending review scorecard
Tackle the 22% funding dip at 16 Argument won. Outcome uncertain
Remove 16-19 funding distortions(eg VAT, Free meals, Capital
Progress on Free Meals (worth £40 mil)
Use 19+ funds better. Don’t reorganise Not winning this one. ASB carve-up
Capital funding after 2015 Yes but money going via LEPs
Objectives set in consultation with Colleges and AoC BoardWe don’t yet know final outcomes. Are there areas we should shift position?
Title of the slideSecond line of the slideOECD – skills after school
What works well in England What needs attention
Lots of choice Too few higher vocational students
Flexibility of Colleges Overlapping qualifications
Demanding quality assurance Too little work experience
Higher apprenticeship opportunity Lecturer training regulations
Good data and research
Title of the slideSecond line of the slideFunding of access courses
19-23 year olds only
Funding rate * Disadvantage * Area Cost = Money earnt
Where
Access Funding rate = £3,022 (A), £3384 (B), £3922 (C) or £4835 (D)Disadvantage is worth up to 32%, calculated using postcodeArea cost is worth up to 20% (Central London)Achievement worth 20% of funding (ie funds held back)
Title of the slideSecond line of the slide24+ Advanced Learner Loans
New and contentious
Fees now cover all the costs of those over 24 taking Level 3+ courses
Government handles cashflow and repayments
A different relationship with students and apprentices
Write-off of access loan on successful degree completion
Title of the slideSecond line of the slideMarketing access courses
2013-14 is the year to find out what works
Too much information can be a problem. Best to talk to the student.Positive messages (no credit scores, income-linked repayment).Honest about negative messages (education costs money).Refine messages on basis of experience with students.
Be careful not to offer financial advice.Referral to other agencies (NCS, Citizens Advice, SLC microsite)
Title of the slideSecond line of the slideStudent Loan Company
Title of the slideSecond line of the slideProcessing issues
SLC systems work well if all the data is completeLots of errors in terms of missing information and signaturesPlenty of walk-in enrolments don’t have documntsValid UK Passport (same name) and NI number neededClear rules needed about students starting coursesClear rules needed when students withdraw
Best to start earlyChanges to Access courses now create risk of delay in 2014
Title of the slideSecond line of the slideWhat’s next?
.
16-18
Funding outline for 2014-15 Autumn 2013 (November?)
Conclusions of 16-24 review December 2013
Data used to make allocations January 2014
2014-15 allocation March 2014
19+
Skills funding statement (2014-15) November 2013
LEP Economic plans/Skills strategies December 2013
Provisional funding allocation December 2013
2014-15 allocation March 2014
Title of the slideSecond line of the slideFinal thoughts
UK economy due to recover while UK state will retrench to core
Five years of spending cuts to come (ie 2013 to 2018)Next government may change tax/spending/welfare mixLoans are here to stay in 2010s as finance sourceIncome reductions = job cuts + pay restraint + productivity
College income depends on recruitment, retention & reputationSome positive signs in College enrolments in autumn 2013Confidence is importantStudents will continue to search for good value
