FE & Skills Reform - SMT Presentation 29 November 2010

8/8/2019 FE & Skills Reform - SMT Presentation 29 November 2010

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The effects of the Comprehensive Spending review

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E

DfE current educationDfE current educationspendspend

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The schools budget will increase in realterms in each year of the Spending Reviewperiod.

But economies in other areas mean thatthere will be a total real reduction inDepartmental resource spending of 3% by2014-15.

YPLA spending reviewYPLA spending review

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YPLA YPLA Spending reviewSpending review

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Following on from the decision to haltBuilding Schools for the Future (BSF),capital spending will be reduced by 60% inreal terms by 2014-15.

The average annual capital budget over theperiod will be higher than the averageannual capital budget in the 1997-98 to

2004-05 period.

YPLA spending reviewYPLA spending review

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November 2010 Local authorities advise YPLA of strategic priorities for their local

area

December Joint DfE/YPLA 16-19 Funding Statement published

January 2011 YPLA confirm to existing providers the volume of activity to befunded in 2011/12 [NB: not cash at this stage]

February 2011 YPLA provides information to local authorities on aggregatedprovisional allocations (volumes) and confirms any additionalnumbers to be funded outside the lagged approach (see below)

March 2011 YPLA sets national base rate based on total volume of provision tobe funded

March 2011 Final allocations confirmed to all providers

May 2011onwards

YPLA issues funding agreements to providers for signature

YPLA funding allocationYPLA funding allocationtimetabletimetable


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2010 initialenrolment

numbers oflearners

X Increase inlearners

from start toend of year(2009-10)

X Standardlearner

number tolearner ratio(2009-10)

X Providerfactor

+ AdditionalLearning

Support

Funding allocation laggedFunding allocation laggedfundingfunding

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Rate for funding determined by nationalvolume of learners

No negotiation/planning of learner numbers

No reduction/increase for displacement orcohort change

Providers expected to respond to learner

needs, funding follows the learner

Lagged funding someLagged funding someproblemsproblems

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BIS current spendBIS current spend

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Protection for science

80% cut in higher education teaching grantsphased over several years

Student loans to cover higher education feesof up to 9,000 a year

Changes to student loans and grants tomake them progressive

25% cut in further education and skills (a 1billion cut)

BIS top level changesBIS top level changes

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national base rate will be reduced by 4.3%

Skills for Life literacy and ICT will have theweighting of 1.2 removed

Fee remission will apply only to learners inreceipt of active benefits (eg JSA)

SFA - main changes for 2011-SFA - main changes for 2011-20122012

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national base rate will be further reduced

the provider factor will be removed from thefunding formula

Fee remission for level 2 and 3 qualificationswill only apply to learners aged 19 to 23years old.


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No funding will be given in respect of level 3qualifications

A student loan system will be introduced for

level 3 learners who dont qualify for grantfunding (ie aged 24 years and over).


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Level 3 non-apprenticeship provision notfunded

Level 2 non-apprenticeship provision only

funded for employers with less than 250staff and to be co-funded (at 50%)

No ESOL funding (in the workplace)

Employer responsive mainEmployer responsive mainchangeschanges

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19+ apprenticeships19+ apprenticeships

2010-11 2011-12 2012-13

Financial year

68% more7% more

300k

400k

500k

600k

700k

19+ Apprenticeship funding

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Minimum contract level of 500k

Pilot of outcome incentive payments

Employer contributions for adult

apprenticeships to increase

Growth in adult apprentices

Employer responsive mainEmployer responsive mainchangeschanges

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Going forwardGoing forward

What does this mean for us?

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Scores of MidKent College staff are facing thechop as bosses attempt to plug a 4.3m blackhole in its finances.

The further education college plans to cut 67full-time jobs across its sites by September.

About 12 per cent of the workforce is expectedto go

College bosses are tightening its purse stringsas they bid to save 2.5m this academic yearto stem a predicted 4.3m deficit by 2014.

Staff to be cut in budgetStaff to be cut in budgetsqueeze at MidKentsqueeze at MidKentCollegeCollege

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We have been expecting these cuts forsome time

We have no plans to reduce our workforce tocompensate for the cuts

The good newsThe good news

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We did not plan for poor recruitment in 2010

We havent done enough to recover

Any numbers that we make up now will onlybe reflected in 2012-2013

We look set to lose funding of up to1,228,000 next year in respect of 16-18

year olds

The bad newsThe bad news

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Up to now we have only closed coursesbased on academic performance

We now need to consider courses based on

their financial viability We will be less able to support a broad

range of separate academic departments

We will need to carefully consider any nonfrontline expenditure (staff and resources)

For us going forwardFor us going forward

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FE & Skills Reform - SMT Presentation 29 November 2010

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Transcript of FE & Skills Reform - SMT Presentation 29 November 2010