16-19 Funding 2013/14 Update Princes Trust Delivery Partners June 2013.

16-19 Funding 2013/14

Update

Princes Trust Delivery Partners

June 2013

The participation age will be raised to:•For 16 year olds -end of the academic year in which they are 17 from Summer 2013•For 17 year olds to their 18th birthday from Summer 2015

•Applies to all those resident in England

•Enforcement deferred

What counts as participation?...

•full time education (school, college or independent provider for at least 540 hours

•home education

•Apprenticeship

•full-time work including at least 280 hours of education

Raising Participation Age

Funding per

student

Studyprogrammes

Raising Participation

Age

• Applies to all 16-19 year olds

• Students will take either academic programme or a substantial vocational qualification recognised by employers – these must help them secure skilled work or a university place

• Where appropriate students will also take part in work preparation or work experience

• Participate in value-added non-qualification activity

• Students who don’t have GCSEs grade C in English and maths at 16 will continue to study these subjects

• Students who aren’t able to study a substantial qualification will take a programme of work experience and continue to develop their numeracy and literacy skills

StudyProgrammes

Funding per

student

Studyprogrammes


Age

Funding per student

16-19 education was funded…Qualification by qualification•Funding is unfit to support RPA•Wolf found there to be perverse incentives which didn’t help raise standards•System is very complex and opaque

16-19 education will be funded…student by student•Increased focus on providing the student with a holistic study programme which will get them into university or work•All students receive same basic level of funding•Enables and supports a simple and transparent funding system•Subject to A level and GCSE reform

Funding per

student

Studyprogrammes


Age

What is changing for 14-19?

Opportunities

NEET remains at

10%

Public Spending Pressures

Cohort declineCohort decline

Larger Provider

Base

Funding per student

The new 16-19 funding formula

Total Programme

Funding

Programme Cost

Weighting

Disadvantage Funding

Area Cost

Allowance

Student Numbers

National Funding Rate per student

Retention Factor( )

• This is a count of students to be funded

• Must meet qualifying period of 2 weeks or 6 weeks- will not fund programmes under 2 weeks

• Based on autumn census or ILR return

• Either full time => 540 hours

• Or Part Time < 540 hours

• For 2013/14 and 2014/15 Band 4 = full time

• The bottom band treated as Full Time Equivalent (FTE), that is a proportion of 600

• Age groups 16-18 and 19-24 for HNS are treated the same

Programme Cost

Weighting

DisadvantagFunding

Area Cost Allowanc

e


Retention Factor

( )Student

Numbers

Student numbers

Student statusHours required

per year

Full time 540 +

Band 4 450-539

Band 3 360-449

Band 2 280-359

Band 1 up to 280

Single National Full Time funding rate per student expressed in £

All 16-19 year olds in sixth forms, colleges and independent providers are funded at the same national funding rate

Out of scope Youth Contract, Young Offenders, 16-18 Apprenticeships and European Social Fund (ESF)

This is the final element of the formula fixed by the EFA. It depends on how much learning is taking place across the country and the budget.

The rate used in the 2013/14 allocation is £4,000

Programme Cost

Weighting

DisadvantagFunding

Area Cost Allowance

Student Numbers

Retention Factor( )


The National Funding Rate

A full time rate based on circa 600 hours

Three part time rates for bands 2,3,4

Each funded at mid-point of the band

For Band 4 (450-539 hours) for 13/14 and 14/15 we will fund at the full time rate

Band 1 (below 280 hours) funded as a proportion of 600 hours ie 150 hours gets 25% of the National Full Time funding Rate

Programme Cost

Weighting


Area Cost Allowance

Student Numbers

Retention Factor( )


Part Time Funding rates

Student Number

status

Hours funded at…

FundingRate (13/14 allocations)

Full time 600 £4,000

Band 4 600 £4,000

Band 3 405 £2700

Band 2 320 £2133

Band 1 % of 600 % of £4,000

Hours that are:Directly relevant to the study programmePlanned, explicit in the Learning Plan or TimetableSupervised and/or organised by the provider Quality Assured by the providerWithin normal working pattern

Prog Cost

Weighting


Area Cost Allowance

Student Numbers

National Funding Rate per student ( )

Retention Factor

What is Funded?

Hours that are delivered towards qualifications that are approved for teaching to 16-19 year olds

under section 96 of the LSC act 2000

Prog Cost

Weighting


Area Cost Allowance

Student Numbers


Retention Factor

Qualification Hours

Not counted towards a qualification Informal certificates Non-qualification activity Tutorial purposes Work experience/Work related activity Volunteering/Community activities Enrichment activities

Prog Cost

Weighting


Area Cost Allowance

Student Numbers


Retention Factor

Non Qualification Hours

Voluntary extra-curricular activities and clubs delivered during breaks or outside normal working pattern

Study that is homework or independent study/research that is not timetabled Employment or Work Experience organised by anyone other than by or on

behalf of the provider Volunteering/Community activities that are not organised by or on behalf of the

provider

Prog Cost

Weighting


Area Cost Allowance

Student Numbers


Retention Factor

Not Funded

In some cases, where this best meets the assessed needs of the students and/or is strictly necessary to prepare them for their progression outcome, institutions will plan compressed programmes to allow students to complete a significant number of hours in a short period of time. These programmes will be funded at the standard funding rates based on the planned hours.

We would expect such compressed delivery to lead to excellent results, as demonstrated through qualification success rates and positive destinations. We would not expect this to lead to a student being funded for more than one full-time programme in an academic year. We will monitor the delivery and value for money of compressed programmes during 2013/14 and will decide whether to apply a funding cap to such provision in future accordingly.

Prog Cost

Weighting


Area Cost Allowance

Student Numbers


Retention Factor

Compressed Delivery

Where a student progresses within an institution, the maximum of 600 hours funding is applied automatically and no student will be funded above this level.

Where a student moves onto a new institution, the level of funding depends on the number of hours the second institution will provide for the remainder of the academic year. In general, we would expect this second programme to be less than a full time full year programme. We would, therefore, expect to fund it in one of the part time bands.

Prog Cost

Weighting


Area Cost Allowance

Student Numbers


Retention Factor

Second study Programmes

Success no longer used in funding, a retention factor is now used

Applied at student level, not qualification level

Retained means still studying a core aim on planned end date or leaves early and is recorded as completed the core aim

For academic programmes – still studying one of the academic aims

For vocational programmes still studying the core aim

Retention FACTOR = half way point between Retention RATE and 100%

Student retention and funding

Funding

Leaves before qualifying period

0

Leaves before planned end and not recorded as completed

50%

Retained to planned end date and recorded as completed

100%

Leaves before planned end date and recorded as completed

100%

Programme Cost

Weighting


Area Cost Allowance

Student Numbers


Retention Factor

Retention Factor

Number of students completed

Number of students started

Recognition that some vocational subjects are more expensive to teach than others

Applied to the student’s whole programme Determined by the student’s core aim ie A Levels or substantial vocational

qualification All academic programmes uplifted by one weight, which has been

determined by merging the 2 current academic weightings and low cost vocational programmes and rebasing these as 1,

Vocational Programme Weighting categories are being reduced in number and re-set to make it simpler: applied at sector subject areas

Cost Weighting Category

Agreed for 2013/14

Base 1.0Medium 1.2

High 1.3Specialist 1.6


Area Cost Allowance

Student Numbers


Retention Factor

( )Programme

Cost Weighting

Programme Cost Weighting

Recognises that some students require additional support to participate and achieve if we are to achieve full participation and improve attainment

Principle is to create a single budget that institutions use as they see fit



EconomicDeprivation

Prior Attainment

ProgrammeCost

Weighting

Area Cost Allowance

Student Numbers


Retention Factor

( )Disadvantage

Funding

• Based on student’s home postcode

• Deprivation is calculated using Index of Multiple Deprivation 2010. This examines the student’s home area based on: income; employment; health and disability; education, skills and training; housing and services; living environment; and crime

• Uplift is between 8.4% and 33.6% of 27% most deprived super output areas

Block one:


EconomicDeprivation

• Care Leavers attract a standard uplift- rate £480

ProgrammeCost

Weighting

Area Cost Allowance

Student Numbers


Retention Factor

( )Disadvantage Funding

Prior Attainment

• Acknowledges the additional cost of students who need extra learning support

• Based on student’s achievement of GCSE English and maths at end of Year 11

• Funding rate for 13/14 = £480

• Flat rate for part time bands 2 and 3 = £292

• Pro rata as per programme costs for band 1

Block two:

ProgrammeCost

Weighting

Area Cost Allowance

Student Numbers


Retention Factor

( )Disadvantage

Funding


ExampleMaths below

grade CEnglish below

grade CFunding attracted

per student (£)

Student 1 yes £480 x1

Student 2 yes £480 x1

Student 3 yes yes £480 x2

• Used to be graduated payments based on student’s grades

• Now only a flat rate based on non-achievement of grade C

Area Cost Allowance

Reflects the cost of delivery in high cost local areas – remains unchanged

We will continue to calculate this using the same methodology as now

Applied to the whole participation formula (including all disadvantage)

Program Cost

Weighting


Student Numbers

National

Funding Rate

per student

Retention Factor

( )Area Cost Allowanc

e

Area Cost Allowance

Area Uplift

Inner London 20%

Outer London 12%

Berkshire 12%

Crawley 12%

Surrey 12%

Buckingham (London fringe) 10%

Hertfordshire (London fringe) 10%

Buckinghamshire (non fringe) 7%

Area Uplift

Oxfordshire 7%

Essex (London fringe) 6%

Kent (London fringe) 6%

Bedfordshire 3%

Hertfordshire (non-London fringe) 3%

Cambridgeshire 2%

Hampshire and Isle of Wight 2%

West Sussex non-fringe 1%

Programme Cost

Weighting )

Formula protection funding (FPF)

• Will be paid for at least three academic years until and including 2015/16, where the move to a basic funding rate per student would otherwise result in a reduction in funding per student.

• Calculated by comparing funding per student allocated for 2013/14 (excluding transitional protection) with funding per student for 2012/13

• The operation of formula protection funding for future years will depend on progress of Ministerial Working Group on the reforms for large programmes, A levels and GCSEs.

• Enables you to move on with curriculum reforms and simplification while final details are resolved

? ? ?Student Support Funding

Formula protection funding (FPF)

For example:

Funding per student at Shakespeare College in 2012/13 is calculated at £4500 per student,

The new methodology for 2013/14 gives them £4060 per student,

FPF of £440 per student is included in the 2013/14 allocation


High Needs Students (HNS)

• This is funding for students with learning difficulties and/or disabilities and/or special educational needs with support costs above £6,000

• There’s a system based on the same principles for all children and young people from ages 0 – 24

• It is called place plus – places are funded by the EFA and any additional top-up funding by the home local authority

• There are three elements to High Needs Funding


High Needs Students (HNS)

The place – EFA Funded•Element 1 This is the standard 16-19 Funding Formula as we have described – it is based on lagged student numbers – this aspect rolls on from year to year.•Element 2 This is the first £6,000 of additional support – numbers are calculated based on information provided by the local authority about the number of places it is going to commission from each institution and the EFA adds £6,000 for each place to the allocation – completing the place funding.The Plus – Top up Funding – LA Funded•Element 3 any funding the individual requires above the first two elements is negotiated and agreed with the student’s home LA


Any student 16-18 without a minimum grade C in English and/or maths must be working towards this level from 2014/15 Academic Year

Or that student WILL NOT be counted in lagged funding for 2015/16

DfE will publish a list of what counts as having a grade C – watch the bulletin These students must enrol on a GCSE, Functional Skills, Free standing maths

or ESOL Functional Skills are a stepping stone towards GCSE and not an end in itself –

if the student already has a FS at level 2 then must enrol on GCSE We are producing reports to show you how you are doing before the summer

Prog Cost

Weighting


Area Cost Allowance

Student Numbers


Retention Factor

Condition of Funding M&E

Identify core aim

Record planned student-level hours:

– Qualification hours

– Non-qualification hours

Less emphasis on detail at aim level for funding purposes

Prog Cost

Weighting


Area Cost Allowance

Student Numbers


Retention Factor

Key Data Implications (1)

TEAM Programme Example

Activity Funding

Participation of 420 hours therefore part time band 3 370 to 449 hours

£2,700

Retention factor assuming 90% retention is -0.95 -£135

Programme cost weighting is 1.0 £0

Disadvantage Block 1 (IMD) Could be anywhere between 8.4% (£227) and 33.6% (£907) per student

£382(up to £612)

Disadvantage Block 2 (Prior attainment) assumes below grade C in both English and maths – pro rata

£548 (2x£274)

Total funding over the 12 weeks (Area Cost Allowance of 0)

£3,495

16-19 Funding 2013/14 Update Princes Trust Delivery Partners June 2013.

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