18th November 2009AoC Annual Conference

Nick LinfordSpecial Adviser on Funding and Performance(formally Director of Planning and Performance at Lewisham College)

Adult funding opportunities in a recession

Overview of presentationAdult funding opportunities in a recession

> Example of college funding pie now

> Skills for Growth

> Skills Investment Strategy

> Pre-employment programmes

> Strategic implications

> Example of college funding pie in 2011

J JI IH HG GF F

E

E

D

D

CC

B

B

A A

College now – by funding source

B. 16-18 LR incl E2E

C. 19+ LR

D. Apprenticeships

E. Train to Gain

F. HE Direct

G. HE Indirect

H. Skills for jobs

I. Six month offer

J. Response to Redun’

£34m

Government funding Funded learners

BIS funding (19+)DCSF funding (14-18)

15k

A. 14-15 year olds (WRL)

College now – by funding type

A. 14-15 year olds (WRL)

B. 16-18 LR incl E2E

C. 19+ LR

D. Apprenticeships

E. Train to Gain

F. HE Direct

G. HE Indirect

H. Skills for jobs

I. Six month offer

J. Response to Redun’

CC

B

B

D

D

E

E

FGHIJ A

FGH I J A

£34m 15k

Government funding Funded learners

LR model ER model

Pre-employment HEFCE or University

Schools

College now – by funding currency

A. 14-15 year olds (WRL)

B. 16-18 LR incl E2E

C. 19+ LR

D. Apprenticeships

E. Train to Gain

F. HE Direct

G. HE Indirect

H. Skills for jobs

I. Six month offer

J. Response to Redun’

CC

B

B

D

D

E

E

FGHIJ A

FGH I J A

£34m 15k

Government funding Funded learners

SLNs and quals FTEs

Enrolment, sustainable job outcomes and progression

Groups

BIS National Skills Strategy

“We must ensure that we support people who are on out-of-work benefits to get the skills they need to get a job and stay and progress in work, continuing to help them as a priority within the skills system”

“The goal of this strategy is a skills system defined not simply by targets on achieved qualifications but by ‘real world’ outcomes”

Published 11/11/09

BIS Skills Investment Strategy

Published 18/11/09

+5%+2%

£1.6bn£1.64bn£1.68bn£1.72bn£1.76bn£1.8bn

2008-09 2009-10 2010-11

Financial year

Adult Learner Responsive

But, this includes pre-employment programmes: 2008-09 2009-10 2010-11Young Person’sGuarantee (18-

24) £0 £21.5m £100.9mEmployment and

skills programme* £35.8m £47.7m £58.9m

Six month offer £0 £26.5m £56.5m

*Or £67m in 10-11 as per page 19?

BIS Skills Investment Strategy

Adult Learner Responsive (excl. pre-employment programmes)

£1.52bn

£1.56bn

£1.6bn

£1.64bn

£1.68bn +2%

-5%

And “with the exception of the unemployment training packages, funding rates will reduce by 3%”

“The skills system has a critical role to play during a downturn and it has been at the heart of our response to the recession”Published 18/11/09

New funding opportunities

Employability and Skills Programme (LSC)

2010-11 financial year

£59m (23% up)

Six month offer (LSC) £57m (113% up)

Young Person’s Guarantee (LSC and DWP) £843m (new)

Response to Redundancy (ESF and LSC) £50m (no increase)

Flexible New Deal (DWP) > £1bn over next five years (new)

Employability and Skills Programme

ESP is the LSCs main programme delivering basic literacy, language, numeracy and employability skills qualifications to JCP customers (will subsume Skills for Jobs)Unique to ESP, the funding is allocated via adult learner-responsive whilst payment is via employer-responsive monthly returnsFour funding elements:

1. On Programme (appox. £585)2. Achievement (approx. £195)3. Job Outcome (£120)

4. Non-starter fee (£50)

or

Sixth Month Offer

£83m allocated to colleges (£57m for 10-11)as only for those with ALR and ER allocations

“tailored support for those who have been claiming JSA for six months or more and skills levels have proved to be a barrier to quick entry to employment”

£270 - £1200 dependent on duration (glh)

£300 for job start AND progression to Train to Gain or Apprenticeship

Response to Redundancy£100m from April 2009 to Dec’ 2010 (half ESF, half TtG)

£270 to £1200 dependent on duration (glh)

£300 for job start AND progression to Train to Gain or Apprenticeship

College and training providers tendered for contractsFor: > those under notice to redundancy

> the newly unemployed> the longer-term unemployed who are

job ready

Young Person’s GuaranteeA suite of programmes for JSA claimants aged from 18 to 24 with referral around 10 months

Pre-employment courses, similar to the Skills for Jobs programmes. Tendering via LSC's Qualified Provider Framework

4. Sector Routeways – LSC funded

2. Future Jobs Fund (FJF) – DWP funded

Government-funded 'jobs' of 6 months duration, paying going rate for the job. LAs and large third sector organisations have contracts to create the first 47k jobs.

3. Community Task Force (CTF) – DWP funded

Similar to FJF , but not paying going rate for the job.

Claimants to take existing, vocational training courses such as at colleges

1. Work-focused training – LSC funded

There are four YPG options totalling £843m (£101m LSC) for 2010-11:

Flexible New Deal

Funded by the DWP, who expect to spend £1.2bn over the next five years. Phase 1 Started October 2009.Final stage in four stage Jobseekers Regime and FND process

Stage 1Stage 2 Stage 3

Stage 4

0 months3 months

6 monthsFast Track

NewCustomerDiagnosis

SelfManagedJob Search

DirectedJobSearch

SupportedJobSearch

FlexibleNewDeal

Jobcentre Plus Supplier

12 months

Big contracts with very few main contractors, but expected to be many subcontractors

Source: FND Preferred Bidder Presentation, DWP (June 2009)

Funding for service fee, short job outcome and sustainable job outcome

Strategic implications

Traditional adult learner responsive funding is cut overall(developmental learning by £144m) New pre-employment programmes present significant opportunities for growth, particularly via DWPColleges have used Train to Gain to engage with new employers, many of whom now work together to identify vacancies and train the unemployed to fill them

Relationships with JCP, SFA and DWP will also be critical

Finally, working with a range of providers important as much will need to be subcontracted

College 2011? – by funding source

B. 16-18 LR incl E2E

C. 19+ LR

D. Apprenticeships

E. Train to Gain

F. HE Direct

G. HE Indirect

H. ESP and R2R

I. Six month offer

J. YPG

K. FND

Government funding Funded learners

BIS funding (19+)DCSF funding (14-18)

A. 14-15 year olds (WRL)

DWP funding (18+)

A A

B

B

C

C DD

E

E

F

F

G

G

H

H

I

IJ

J

K K

£37m 19k

College 2011? – by funding type

B. 16-18 LR incl E2E

C. 19+ LR

D. Apprenticeships

E. Train to Gain

F. HE Direct

G. HE Indirect

H. ESP and R2R

I. Six month offer

J. YPG

K. FND

Government funding Funded learners A. 14-15 year olds (WRL)

A A

B

B

C

C DD

E

E

F

F

G

G

H

H

I

IJ

J

K K

LR model ER model

Pre-employment HEFCE or University

Schools

19k£37m

College 2011? – by funding currency

B. 16-18 LR incl E2E

C. 19+ LR

D. Apprenticeships

E. Train to Gain

F. HE Direct

G. HE Indirect

H. ESP and R2R

I. Six month offer

J. YPG

K. FND

Government funding Funded learners A. 14-15 year olds (WRL)

A A

B

B

C

C DD

E

E

F

F

G

G

H

H

I

IJ

J

K K

SLNs and quals FTEs

Enrolment, sustainable job outcomes and progression

Groups

£37m 19k

Any questions?

Finally

> 2009/10 edition with new chapters (160 pages)

> Find out more at www.fundingguide.co.uk

> Now working in partnership with The Data Service

on The hands-on guide to post-16 performance and data

> Find out more at www.dataguide.co.uk

The hands-on guide to post-16 funding

Funding masterclasses and free resources

> Training events around the country

> Sign-up online for access to a variety of free resources

> Find out more at www.planningandfunding.co.uk

Thank you