LSC Funding 2008/09

Methodology and formula

Nick LinfordHead of Planning, Funding and Projects12 February 2008

"The move to a demand-led funding system in 2008/09 signifies a wholesale step change for the learning and skills sector."

LSC 27 November 2007

The LSC bedtime reading

Key reading material

1. National Statement of Priorities 2008/09 - 2010/11

150

Page count

100

0

50

2. National Policy Summaries for 2008/09 (more than 80)

200

250

3. Funding Models and formula for 2008/09

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lex land

scape!

4. Funding Rates for 2008/09 (SLN per qualification)

5. National Funding Rates for 2008/09 (£ per SLN)

New funding models

2007/08 2008/09

Further Education

16-18 model

Adult learner responsive model

Employer responsive model

Apprenticeships

Entry to Employment

Train to Gain

* 16-18 apprenticeships planned and budgeted in 16-18 model (DCSF)

School 6th Forms

*

The new funding formula

New ‘demand-led funding formula’ for all three models

Introduction of: Standard Learner Numbers (SLN)

National Funding Rates (NFR)

Provider Factor (PF)

this

x this

x this

= £*

There will be winnersand losers, as shown in this LSC graph for 16-18 funding

Will get 2.1% real terms protection

Will get 2.1% real terms protection

4.2% in cash terms

* Additional Learning Support can be added

Standard Learner Numbers

Full Time (1 FTE and 1 SLN)

Guided Learning Hours

Part Time (0.5 FTE and 0.5 SLN)

Full Time (1 FTE and 1.22 SLN)

SLNs (divisor)08/09

NBR (loadbands)07/08

SLNs replace the National Base Rateand will either be listed in the Learning Aims Database, or unlisted and based on guided learning hours in the ILR

SLN GLH / 450 = SLN with a learner cap of1.75 SLN per year

SLN x NFR x PF = £

£

Examples of learner SLNs

Four AS levels (listed 150 SLN GLH each) = 1.33 SLNOne AS General Studies (listed 36 SLN GLH) = 0.08 SLNOne Key Skill (listed 36 SLN GLH) = 0.08 SLN Entitlement (listed 114 SLN GLH) = 0.25 SLN

= 1.75 SLN

One BTEC National Diploma (listed 1080 SLN GLH) = 1.2 SLN*One 90 glh Certificate in Literacy (unlisted) = 0.2 SLN Entitlement (listed 114 SLN GLH) = 0.25 SLN

= 1.65 SLN

One full time NVQ (listed 520 SLN GLH) = 1.16 SLNTwo Key Skills (listed 36 SLN GLH each) = 0.16 SLN Entitlement (listed 114 SLN GLH) = 0.25 SLN

= 1.57 SLN

* Per year in proportion to days in each year between start and end dates

SLN x NFR x PF = £

The National Funding Rate per SLN

The LSC set fully-funded £ per SLN each year, and in 08/09 they are:

• School Sixth Forms £2,945• 16-18 FE £2,860• 16-18 Apprenticeships £2,860• Adult Learner Responsive £2,775• Employer Responsive £2,775

For a 16-18 year old using previous example programmes:

AS level programme: 1.75 x £2,860 = £5,005BTEC Nat Dip programme: 1.65 x £2,860 = £4,719NVQ programme: 1.57 x £2,860 = £4,490

These are used unless the provider has been set a transitional rate

Finally, the funding must be multiplied by a Provider Factor

SLN x NFR x PF = £

The Provider Factor

Each funding model has its own Provider Factor and for 16-18 and adult model in 08/09 is based on averages from delivery in 06/07

e.g. 16-18 Model Lewisham College PF = 1.334

Success factor (e.g. 0.846)

Area Cost (e.g. 1.200)

Programme weighting (e.g. 1.217)

Disadvantage (e.g. 1.079)

Short-programme modifier (e.g. 1.001)

x

x

x

x

AS level programme: 1.75 x £2,860 x 1.334 = £6,677BTEC Nat Dip programme: 1.65 x £2,860 x 1.334 = £6,295NVQ programme: 1.57 x £2,860 x 1.334 = £5,990

SLN x NFR x PF = £

The funding earned per SLN

1 SLN x £2,860 NFR x 1.334 PF = £3,81516-18 year old

1 SLN x £2,775 NFR x 1.411 PF = £3,916Adult (19+) fee remitted

Adult (19+) fee paying 1 SLN x £1,939 CFR x 1.411 PF = £2,736

1 SLN x £2,775 NFR x 42.5% = £1,179Assumed tuition fee

= £3,916Total income to provider

The formula is the same within the Employer Responsive Model,but with fewer Provider Factor elements (based on actuals) as well as a 75:25 funding split between monthly on-programme payments and achievement (full framework)

SLN x NFR x PF = £

Other things to note: When SLNs count

The three funding census dates (e.g. 1st October) have been scrapped

Instead there are minimum attendance measures, based on duration

Duration Minimum attendance

24 weeks or more 6 weeks

2 to 24 weeks 2 weeks

Less than 2 weeks Once

If an enrolment meets the minimum attendance criteria the SLN value assigned in the given academic year will be counted

This is commonly referred to as the ‘definition of a start’

Fewer full timers and more part timers now being counted?

Other things to note: The SLN per learner ratio

Learners

SLNs

2004/05 2005/06 2006/07

0

500

1000

1500

2000

2500

Pa

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ime

ad

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This ratio is likely to be important to the LSC, but what does it imply?

SLNs are a new volume measure that are not the same as FTEs.Caution recommended when used for non-funding purposes.

0.25 0.34

0.55

Find out more and access free resources at

www.lewisham.ac.uk/pf