Contents> Funding formula in brief
> Learner-responsive age split
> SLN per learner ratios
> 16-18 National Rate
> Provider factor
> Success factor
> Value for money
> 14-19 targets and future
Don’t be afraid to snooze, butplease first complete yourpostcard to ensure youget a copy of these slides
Learner-responsive formula in brief
Standard Learner Numbers (SLN)
X
National Funding Rate (NFR)
Provider Factor (PF)
Additional Learning Support (ALS)
Funding
X
+
=
LR funding is an enrolmentbased formula, although it isapplied the same way forallocations
Example funding for an AS level qualification in 09/10
150 SLN GLH / 450 = 0.3333 SLN X
£2,920 NFR
1.123 PF
£0 ALS
£1,093
X
+
=
Example for an allocation 3,123 SLNs
X£2,920 NFR
1.123 PF
£500,000 ALS
£10,740,817
X
+
=
LR age splitOne funding
stream
Adult LR (DIUS)
16-18 LR (DCSF)
FE mainstream
Two funding models
Has become
* Could be higher with entitlement funding
> Plan-led ‘v’ reconciliation> Different funding rates> Different provider factors> Different enrolment patterns> 2nd year 19 year-old complexity
We revised our Planning Fileto apply the new fundingmethodology, and set age andfee related sub-targets
This separation requires carefulmanagement of both planning and performance
Planning for mixed groups
of which (sub-targets)
16-18 19+ FF 19+ CF
Learners in the group
18 10 6 2
SLN per learner 1.2 1.2* 1.2 1.2
Total SLN 21.6 12 7.2 2.4
Funding rate n/a £2,920 £2,81
7 £1,804
Provider Factor n/a 1.123 1.321 1.321
Total £72k £39k £27k £6k
SLN per learner
SLN per learner ratio represents average funding size of a learnerprogramme (before weightings)
2200
2600
3000
3400
2007/08 2008/09 2009/10
Learners down yet SLNs up?
SLNs
Understand the FT/PT mix, evenif the LSC have stopped asking
Learners
The LSC have used this ratio toset 2009/10 allocations based on ratios in 07/08 and 08/09 F01
Do you know why and whenyour SLN ratio changes?
Shifts in learner type and/orchanges to the curriculum?
The SLN is LSC currency, theFR x PF is the exchange rate
Example above 07/08 08/09 09/1016-18 learners 2,500 2,450 2,400Total SLNs 3,000 3,030 3,060FT learners 2,000 2,050 2,100
FT SLN ratio 1.4 1.4 1.4
PT learners 500 400 300
PT SLN ratio 0.4 0.4 0.4
Total SLN ratio 1.20 1.24 1.28
Provider factorCalculated for 09/10 based onyour full-year 07/08 data (ILR)
Programme weighting
X
Disadvantage uplift
Area costs uplift
Short programme modifier
X
x
Success Factor
Provider Factor
x
=
16-18 national rate2008/09 = £2,8602009/10 = £2,920
2.1% increase but still 3%less than school sixth formsSome colleges will have atransitional rate calculatedby the LSC. This is to prevent any significant LRwinners or losers
High transitional rate = loserLow transitional rate = winner
Did you know?
TtG rate (£2,987) is 2.3%greater than 16-18 rate
Success factorsimplifies and terrifiesReplaced 3 funding census dates and achievement factor
0.5 +Success
Factor=Weighted average
success rate
2
0.5 + 0.9=80% for College X
2
0.5 + 0.5=0% for College Y
2
Although historical, think of this as 50% lost if a learner does not finish and achieve
LearnersIncome
lostSuccess
rate
Target group size of 16 at £5k each (£80k income budget)
Do your staff know the impact class size, retention and achievement have on income?
Budget missed by 31%!Next allocation cut by 31%?
14 start£10k2 leave within first 6 weeks
79% retention£7.5k3 more do
not finish
57%£25k8 succeed
73% achieve£7.5k3 finish but
don’t pass
Value for MoneyThe LSC, YPLA and/or LAs maytry to compare provider SLNratios to judge VfM
A provider with a low SLN ratiomay look more attractive tothe relevant funding agency
But…..
The SLN ratio says nothingabout the curriculum mix (e.g. number of functional skills)
It is also only part of the storywhen it comes to the actualaverage cost per learner
College A1000 learners1300 SLNsSLN ratio of 1.31300 x £2,920 = £3.8m
College B1000 learners1400 SLNsSLN ratio of 1.41400 x £2,920 = £4m
Success factor = 0.91300 x £2,920 x 0.9 = £3.4m
Success factor = 0.81400 x £2,920 x 0.8 = £3.3m
14-19 national targets
• Achieving Level 2 at age 19 (from 71% to 82% by 2010)
• Achieving Level 3 at age 19 (from 47% to 54% by 2010)
• Reducing the NEETs (by two percentage points)
DCSF
Curriculum reform:
• GCSEs A-Levels
• Diplomas
• Apprenticeships
• Foundation Learning Tier (Progression pathways)
• Limited stand-alone qualifications
14-19 ‘next steps’Legislation:2010: LAs have all 14-19 funding2013: All 16 year-olds in training2014: All 17 year-olds in training
With phased introduction of guarantees and entitlements
• 1 in 15 to 1 in 5 on an Apprenticeship
Ed Balls is the current
Minister – so far this week!
And finally….This presentation and otherresources are available online
Complete and leave your card for access
Oh, and the unofficial funding guide is proving popular with a wide range of FE staff
www.fundingguide.co.uk
Thank you
Any questions?
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