September 2010

Skills Funding Agency

Delivery Plan 2010/11

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Skills Funding Agency Delivery Plan

Introduction

1. In November 2009, the Department for Business, Innovation and Skills (BIS) published theSkills Investment Strategy and Skills for Growth which set out the priorities for adult skillsin 2010/11. Since then, the Skills Funding Agency (the Agency) has been established anda new coalition Government has been elected.

2. This Delivery Plan sets out the way in which the Agency has responded to the priorities setout in the Skills Investment Strategy and Skills for Growth, as well as policy commitmentsoutlined in The Coalition: Our Programme for Government (May 2010). The Delivery Plansets out the work of the Agency in delivering funding allocations for 2010/11, how we aresupporting the other priorities in departmental documents, the wider services that we willdeliver to support the sector and how we are developing the system to support the aims ofthe new Government.

3. On 17 June 2010, the Secretary of State for Business, Innovation and Skills set out thenew Government’s key goals and ambitions for FE in a revised Funding Letter to the SkillsFunding Agency for 2010-11. On the same day the Minister of State for Further Education,Skills and Lifelong Learning set out a range of freedoms and flexibilities for FE sector forthe academic year 2010/11. The Delivery Plan has been cast in the context of these newarrangements, reflecting the relationship the Agency will have with college and othertraining organisations. Guidance Notes 4 and 5 provide further detail on these freedomsand flexibilities.

4. The first section of the Delivery Plan sets out both the high level operational functions thatthe Agency has in terms of funding, allocations and performance managements as well asthe key policies and reforms that the Agency is responsible for taking forward. Many ofthese policies and reforms are subject to separate guidance and so this section providesan overview of key milestones with references to further information where applicable.There are a number of links to a Policy Summaries document which has been madeavailable alongside the Guidance Notes published by the Agency.

5. The second section of the Plan shows final budgets for 2010-11 (financial year) and2010/11 (academic year).

6. Guidance Note 5, published in July, sets out performance management arrangements forcolleges, training organisations and employers in 2010/11. The Agency is also developingthe specification for the performance data it will publish on the performance of the sector.In September 2010, the Agency will publish 2010/11 allocations data at college andtraining organisation level on its website.

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Skills Funding Agency Operational Responsibilities

Funding, Allocations and Performance Management

Nov 09 – Mar 10 Apr 10 – July 10 Aug 10 – Nov 10 Dec 10 – Mar 11 AdditionalInfo

Funding Policy Changes Skills InvestmentStrategy set out plansto introduce a lowerrate for largeemployers (EmployerResponsive), reducefunding rates, changeSkills for Lifeprogramme weightingand re-introduce co-funding for non-firstLevel 2 qualifications inTrain to Gain.

Guidance Note 3published in Marchincludes details of thefunding changes madefor 2010/11.

Skills Funding Agencypublishes their Train toGain and Apprenticeship2010/11 FundingRequirements (July2010) that includes all ofthe funding changesmade for 2010/11.

A Simplified FurtherEducation and SkillsFunding System andMethodology publishedon 22 July. Thisconsultation asks thesector for views onfunding simplification for2011/12.

End of consultation with thesector on fundingsimplification and outcomesannounced in autumnalongside the publication ofthe planned investment inFurther Education (FE) for2011/12 which will follow theSpending Review in October2010.

Adult Learner Responsive(ALR) 2010/11 FundingRequirements (September2010) – rewritten to takeaccount of new flexibilitiesand freedoms detailed inGuidance Note 4.

Proposed changes tofunding methodology for2011/12 and possibly longerterm set out.

Adult LearnerResponsiveFundingRequirements2010/11

Apprenticeship2010/11FundingRequirements

GuidanceNotes

Train to Gain2010/11FundingRequirements

Funding Allocations /Maximum ContractValues

Skills InvestmentStrategy sets outoverall 2010/11budgets.

Guidance Note 1issued in December on

Assessment of overallimpact on colleges andtraining organisations.

On 17 June it wasannounced that collegeswould have a single

Following the fundingsimplification consultation weexpect to announce detailsin October on how thefunding allocations processwill operate for 2011/12.

Funding allocationsprocess for 2011/12completed before the endof March 2011 in line withoutcomes of thesimplification consultation.

GuidanceNotes

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allocations process.

Initial ALR allocationsin January followed byinitial Train to Gain andApprenticeshipsallocations.

Guidance Note 2issued to confirmallocations andmoderation processwith final allocationsand maximum contractvalues issued by theend of March.

budget for ALR and 19+Employer Responsive.Other training providersand employers wouldreceive a single budgetfor 19+ EmployerResponsive. Thesechanges were detailed inGuidance Note 4 andsuperseded previousGovernment policyregarding EarnedAutonomy.

The funding allocationsmethodology is part ofthe funding simplificationconsultation that will takeplace over the summer.

Contracting/Procurement

Guidance Notes 2, 3, 4and 5 include details ofplans to introduce aminimum contractlevel.

Contract templatesrevised to reflectfreedoms and flexibilitiesannounced on 17 June.

All contracts issued tocolleges and trainingorganisation by 30 June(with variation issued byend of July in line withGuidance Note 4).

Minimum contract leveland future procurementarrangements to formpart of fundingsimplificationconsultation.

Guidance note 5 sets out

Minimum contract level for2011/12 announced inautumn as part of outcomesof funding consultation.

New Approved College andTraining OrganisationRegister (ACTOR) launchedin October to streamlineprocurement and newprovider processes.

No contracts agreed for2011/12 that are less thanthe minimum contract levelannounced.

Only those on ACTOR tobe considered for any newcontracts.

GuidanceNotes

5

approach to sub-contracting in light ofposition in minimumcontract level.

PerformanceManagement

Announcements on 17June to move to a light-touch performancemanagement relationshipwith colleges andreduced performancemanagement for trainingorganisations andemployers.

Announcement alsoremoved the summarystatement of activity.

Performancemanagementarrangements for2010/11 set out as partof Guidance Note 5 withfuture arrangementsforming part ofsimplificationconsultation.

Performance managementarrangements for 2010/11proceed as set out inGuidance note 5.

Outcomes of simplificationconsultation in the autumninclude performancemanagement arrangementsfor 2011/12.

Performance managementarrangements for 2010/11continue as set out inGuidance Note 5.

Allocations for 2011/12 seton the basis of futureperformance managementarrangements.

GuidanceNotes

Fees and co-funding Announcement ofreview of FE fees andco-payment by ChrisBanks.

Final report of feesreview published.

Simplificationconsultation to takeaccount ofrecommendations of feesreview.

Outcomes of consultationsets out proposed approachto fees and co-payment for2011/12.

Allocations for 2011/12 areset on the basis of anynew policy agreedfollowing outcome of feesreview and consultation.

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Specific Policy/Delivery Areas

£150m re-investmentfrom Train toGain toApprenticeship.

As part of a package ofsavings outlined by thenew Government, £150mof Train to Gain fundsare to be reinvested inApprenticeships. TheAgency will work with thesector to ensure thatthose colleges andtraining organisationsthat deliver both Train toGain andApprenticeships willenable this shift tohappen on a voluntarybasis, using newfreedoms and flexibilitiesgranted.

These funds areexpected to deliver anadditional 50,000Apprenticeship places.

In July 2010, the Agencyreallocated £54 million ofexisting funds to supportpost-19 Apprenticeshipdelivery.

These funds have beenreleased throughunderspend on Train to Gaindelivery in 2009/10 andunallocated Apprenticeshipfunds in 2010/11.

This reallocation will enableadditional resource to begiven to those trainingorganisations that deliverApprenticeships only, asthey have not been able todraw on Train to Gain fundsto expand Apprenticeshipdelivery. Trainingorganisations withApprenticeship onlycontracts have beenawarded twice as much asthose with contracts for bothApprenticeships and Train toGain.

Guidance Note4 and 5

App

rent

ices

hip

NewApprenticeshipframeworksthat are

The Apprenticeships,Skills, Children andLearning (ASCL) Actsets out requirement

Sector Skills Councilsare working ondeveloping newframeworks that are

Revised activity costingtemplate and guidancepublished along with processflowchart and timetable (mid

All new Apprenticeshipstarts must be on a newSASE compliantframework from 1 April

GuidanceNotes 2 and 3

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compliant withtheSpecificationofApprenticeshipStandards forEngland(SASE)

for frameworks to becompliant with SASE.

SASE compliant.

Activity costing modelrevised and updated, andpiloted with number ofSSCs with SASEcompliant frameworks.

September 2010)

Issuing Authorities submitSASE compliant frameworksfor rate setting (startingOctober 2010).

2011.

NewApprenticeshipcertificationservice

The ASCL Actdescribes the NationalApprenticeshipService (NAS) ashaving theresponsibility for thecertification processfor England.

Tender processinitiated to procure thedevelopment anddelivery of the service.

Notice of theintroduction of the newservice included inGuidance Note 1.

Procurement processcontinues.

Notice of the introductionof the new serviceincluded in GuidanceNote 3.

Supplier appointed.

Detail of changes included inthe final published fundingguidance for 2010/11.

New service scheduled tocommence from 1December 2010.

GuidanceNotes 2 and 3

European Social Fund(ESF)

Arrangements tonovate existing ESFcontracts to theAgency from 1 April.

Development of regionalco-financing plans for2011-13.

The Agency will act as ashared service for the14-19 co-financing planswhich will be developedby the Young People’sLearning Agency (YPLA)and local authorities.

Continued development ofco-financing plans to supportadults in line with the SkillsInvestment Strategy,supporting and adding valueto mainstream participationfunding.

The new co-financingplans will commence fromJanuary 2011.

PolicySummary 7.4

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Joint InvestmentProgramme

Plans for a joint fundbetween governmentand employers forskills to supportgrowth and innovation.

Prospectus publishedon 17 March invitingexpressions of interestfor the fund.

14 May deadline forreceipt of Expressions ofInterest (EOI). Selectionof EOIs throughappraisal and scoring ofbids.

Detailed plans submittedfor initial selectionand approval by aselection panel.

On 17 September, theAgency gives finalagreement to fully worked upimplementation and deliveryplans.

Delivery begins in line withfunding and outcomesagreed in successful bids.

Initial evaluation of theperformance andeffectiveness of the fundongoing from September.

Furtherinformationabout the JointInvestmentProgramme

Qualify with a Business(QwaB) (working title)

Pathfinder announcedto support learners inFE colleges to developkey business skillsalongside theirvocational training sothat they are bothqualified in avocational area andready to run abusiness.

Develop the offer(units andqualifications in theQualifications andCredit Framework)and funding approachto support the deliveryof Qualify with aBusiness within ALR.

The Agency andRegional DevelopmentAgencies (RDA) toidentify about fivecolleges per pathfinderregion; Yorkshire and theHumber, East Midlands,North West and NorthEast to be involved.

Colleges in other regionsmay participate with theagreement of the Agencyand RDA, subject tothere being thenecessary regionalcapacity to deliver theQualify with a Businessoffer.

Confirm colleges

Pathfinder delivery startsSeptember 2010 for 12month period leading tomainstream offer.

Guidance for participatingcolleges circulated.

Ongoing evaluation andsharing of good practice.

Wider participation soughtfrom colleges interested inbecoming pathfinders.

Ongoing work with SectorSkills Councils, awardingorganisations and SmallFirms EnterpriseDevelopment Initiative(SFEDI) to offer a widerselection of enterprise units

Ongoing work with SectorSkills Councils, awardingorganisations and SmallFirms EnterpriseDevelopment Initiative tooffer a wider selection ofsectors suitable for QwaB.

PolicySummary 5.8

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involved.

First tranche of sectororganisations confirmedand initial guidance onqualification offer in unitfunding trials andintegrated QwaB andvocational qualificationsconfirmed and published.

and qualifications.

Functional Skills Ongoing FunctionalSkills pilots to informdecisions on whethercurrent adult basicskills qualifications inliteracy and numeracyshould be replaced.

Functional skills areintroduced intoApprenticeshipframeworks.

Analysis from pilots inMarch to inform decision.

Ministerial agreement tocontinue dual running odKey Skills and FunctionalSkills in Apprenticeshipsuntil March 2011.

Key skills no longer fundedin ALR provision.

Functional skills willreplace key skills within allApprenticeship frameworksfrom April 2011.

PolicySummary 5.4

Learners with LearningDifficulties andDisabilities (LLDD)

Continuedcommitment tomaintain provision forLLDD.

Confirmation ofprovision for 19-24year-olds with highcost AdditionalLearning Support(ALS) needstransferring toYPLA/local authorities.

Funds allocated as partof 2010/11 allocationsround.

Funding to be paid fromYPLA for 19-24confirmed in final fundingstatements.

22 November 2010 deadlinefor submission ofExceptional AdditionalLearning Support Claims for2009/10 .

PolicySummary 5.6

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Capital £50m of Train to Gainfunds have now been re-invested in FE capital.

PolicySummary 7.6

Adult SafeguardedLearning

Continuedcommitment tomaintain the AdultSafeguard budget tosupport Informal AdultLearning.

Coalition Governmentannounces its intentionto champion adult andcommunity learning andto develop lifelonglearning accounts tosupport this area oflearning.

Development of policy toclarify and support thefunding and delivery of(Informal) Adult andCommunity Learning in2011/12 continues. Steadystate for 10/11 of the existingAdult Safeguard budget anddelivery expectations in linewith policy summary.

Communication with sectoron the arrangements andguidance for Adult andCommunity Learning from2011/12.

PolicySummary 2.1to 2.5

Offender Learning andSkills Service (OLASS)

Development of theOLASS fundingmethodology for2011/12.

Further Development ofIndividualised LearnerUpload (INU) analysistool and consultation withproviders.

Establish referral andpartnershiparrangements betweenNextStep and ProbationArea Trusts.

Plan work for OLASS insecure accommodation.

Consultation on the OLASSfunding methodology for2011/12 with partners andstakeholders.

Undertake work to prepareProbation Trusts to aligntheir work fully with Agencymainstream activities.

Commence pilot work insecure accommodation.

Offender Learning Reviewcall for evidence publishedAugust 2010.

Results of review will bepublished in November2010 in line with theMinistry of Justice GreenPapers on therehabilitation revolutionand sentencing reform.

PolicySummary 2.9

Programmes for theunemployed

The confirmed that it willnot be providing WorkFocused Training in the

The Agency expects to beable to share furtherinformation with the sector

Expected wind up of manyof the current Programmesfor the Unemployed

PolicySummary 3.1

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Flexible New Deal Phase2 districts, and stoppedthe procurementexercise. The Agencyalso confirmed thecontinuation ofProgrammes for theUnemployed activitythrough to March 2011,along with continueddiscrete managementarrangements.

regarding the fit of the skillsoffer with the Department forWork and Pensions (DWP)contracted WorkProgramme.

activities. to 3.5

Learner Support Final preparationsmade to establish thelearner support teamwithin the YPLA anddraft the sharedservices agreement(SSA) with theAgency.

Working and monitoringarrangementsestablished betweenYPLA and the Agencyaround the SSA.

COI report published onways of increasing theuptake of the FreeChildcare for Trainingand Learning for Work(FCTLW) childcarescheme. Department forEducation (DfE) Ministermakes decision (13 July)to close FCTLW fromAugust 2010 but withcommitment to fundreturning learners untilJuly 2011.

Minister confirms AdultLearning Grant remainsin place for the nextacademic year (2010/11)and application

The Agency will contribute tosubmissions to ministers onthe future policy direction ofadult learner supportprogrammes.

Back office administrationand IT support systemstransferred to Capita inrelation to the Personal andCommunity DevelopmentLearning (P&CDL) scheme.

The next phase of thelearning applicationprocessing (LAPS2)development is scheduledfor implementation inJanuary 2011. This willenable online applicationprocessing and creates asingle learner database.

PolicySummary 4.1to 4.7

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processing commences.

Next Step – theIntegrated Adult CareersService

Existing servicecontinues – BISpublish the coreoperating model forthe new, integratedservice and the LSCresponds with aServiceImplementation Modelthat will deliver, fromAugust 2010, the core,operating model.

Existing contracts for theprovision of the CareersAdvice Service callcentre and the nextstepface-to-face service endon July 31 2010.Preparations continue forthe introduction of thenew, integrated NextStep service from 1August. Governmentconfirms its support forthe new adult service butalso signals its intentionto explore theintroduction of an all-agecareers service in thefuture.

New Next Step face-to-faceand call centre contractscommence on 1 August.Deployment of Next Stepweb site to follow later; in theinterim existing CareersAdvice Service and SkillsAccounts websites remainoperational with link to aNext Step website landingpage. New Course Directorydeployed and available viaexisting web sites.Additional functionality tosupport the delivery of theintegrated serviceintroduced. Work continueson the final phase of the coreoperating model due to beintroduced by March 2011.

Final functionality for coreoperating modelintroduced.

PolicySummary 6.2

National SkillsAcademies (NSA)

NSA Round 5Prospectus issuedwith 4 successfulExpressions ofInterest; Rail,EnvironmentalTechnologies,Logistics andEmergingTechnologies invitedto produce BusinessPlans.

Round 5 AssessmentPanels.

NSA Round 1 ClosureProcess.

Application for NSATrademark and newlicensing arrangements.

Round 2 Closure Process. PolicySummary 1.5

Wider System Reform

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Qualification and CreditFramework(QCF)

Definitions for full Level2 and Level 3vocationalqualifications in theQCF for Train to Gainand ALR.

The Agency fundingconfirmation processbegins from 1 April 2010.

From 1 April – list of QCFqualifications confirmedfor public funding andexpected to be deliveredfrom 1 August across allprogrammes available onthe Agency website andupdated every twoweeks.

Technical fundingparameters for QCFprovision within Train toGain, ALR, OffenderLearning and SkillsService, Programmes forthe Unemployedpublished.

List of NationalQualification Framework(NQF) provision wherefunding for new starts(outside of existingApprenticeshipframeworks) will ceasefrom 31 July 2010published.

Critical mass of QCFprovision accredited,confirmed for publicfunding and available fordelivery from 1 August2010.

Focus of funding on QCFprovision where it isaccredited and confirmed forfunding.

NQF provision funded whereQCF offer not yet available.

List of NQF provision wherefunding for new starts(outside of existingApprenticeship frameworks)will cease from 31 December2010 published.

Further development of QCFsuccess measures.

Proposals for supportingmore flexible delivery andgreater credit accumulationand transfer completed inearly autumn Review offunding confirmationprocess.

Ongoing unit funding trials inALR and OLASS and QwaB.

List of any remaining NQFprovision where funding fornew starts will cease from31 March 2011 publishedas part of Agency annualreview of qualification offerin January 2011.

PolicySummary 5.7and Appendix

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Refresh of unit fundingtrials in OLASS, Qualifywith a Business andALR.

Further development ofQCF Success Measures.

Supporting growthsectors: RegionalDevelopment Agencies(RDA)/UK Commissionfor Employment andSkills (UKCES)/LocalEnterprise Partnerships

Publication of Skills forGrowth and SkillsInvestment Strategyset out information onkey growth areas for2010/11.

Regional DevelopmentAgencies produce theirRegional Skills PriorityStatements 2010/11.

Colleges, trainingorganisations andemployers take accountof the national andregional informationsources in developingtheir offer to employersand learners.

Colleges and trainingorganisations beginengaging with LocalEnterprise Partnerships toensure their offer meets localneeds.

Migration Skills for Growthannounced that we willensure that there isless need to fill skillsgaps throughmigration.

At a national level, theMigration AdvisoryCommittee (MAC)reports at six monthlyintervals on theoccupations whereskills gaps (at Level 3and above) need to be

Colleges and trainingorganisations takeaccount of the MACshortage occupation listin developing their offerto ensure it supportsupskilling relevant to thisagenda and the needs intheir locality.

Policysummary 7.4

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filled by migrants.Their latest report waspublished in April 2010.

Quality AssuranceSystem Guidance issued in

December on theapproach taken forMinimum Levels ofPerformance (MLP)and the wider range ofquality assurance andinterventionmechanisms.

Application of MLP toprovision, includingTrain to Gain for thefirst time.

Outcomes of MLPapplication moderatedand taken into accountas part of allocationsprocess.

Review of MLP and theIdentifying andManagingUnderperformancepolicy.

Guidance issued onannual performanceassessment, MLP,causes for concern, caseconferences, statutoryreorganisations.

Revision of StatutoryIntervention Policy to simplifyand clarify roles andresponsibilities of theAgency.

Testing of strategic solutionsto aid recovery – to identifyissues and overcomebarriers.

Evaluation anddissemination of strategicsolutions to aid recovery.

Guidance Note5

National EmployerService simplificationproposal

Work begins to simplifycontractual,procurement, fundingand data requirementsfor National EmployerService employers.

The National Employer

PolicySummary 1.4

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Service will maintain anongoing dialogue withtheir employers abouthow these simplificationarrangements will beimplemented.

Data Services The Data Servicemakes available a suiteof complementaryproducts to helpcolleges and trainingorganisations improveand maintain thequality of their data.

Findings from theLearner Data Strategythat will inform theIndividual LearnerRecord (ILR),settlement system andManaging Informationacross Partners (MIAP)development.

Importance of accurateand timely data,particularly on firstnessand through employerresponsive set out (inGuidance Note 3).

“Contact the Provider”support process starts.

Appendix 2

Guidance Note3

Shared Services Collaboration andinnovation projects(shared procurement).

Transfer ofProcurementImprovement Team to

Establish joint ProjectBoard with AoC tooversee -

Sector-wide IT andMIS solutions

Implementation of strands. Identification of furtheropportunities for sharedservices efficiencies.

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Association of Colleges(AoC).

Collaborativeprocurement

Releasingefficiencies related toexam costs

Benchmarking toidentify efficiencies

Small-scale efficiencyinnovation fund.

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Skills Funding Agency Budgets and 16-18Apprenticeship Volumes1

Participation Funding

2010-11 FY Budget

£000s

Workplace learning 757,471

Apprenticeships – total all ages 1,336,410

16-18 788,0002

Adult Apprenticeships 548,410

Adult Leaner Responsive 1,583,095

Adult Safeguarded Learning 210,000

Offender Learning and Skills Service 146,113

Programmes for the Unemployed 216,284

TOTAL PARTICIPATION 4,249,373

11 See explanatory notes in the Grant Letter to the Skills Funding Agency (17June 2010)

2 Includes £8m non-participation

Learner Support, Capital and Wider Investment

2010-11 FY Budget

£000s

Learner Support 155,998

FE Development, Capacity and Quality 228,503

Total Capital Grants 558,650

TOTAL GRANT 943,151

European Social Funding (including 14-19 NEET funds)

2010-11 FY Budget £000s3 476,923

2011-2013 ESF allocation4 636,928

16-18 Apprenticeship volumes 2010/11

Total learners16-18 Apprenticeships 141,826

13 Co-Financing Plans allocation 2007-10 less the amount earned by providersuntil March 2010

4 A proportion of this budget will fall in the 2010-11 financial year

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Appendix

Data Quality, Shared Services and Data Issues1.The Data Service, working with the information authority, will continue to supportcolleges and training organisation in 2010/11 to improve the quality of the IndividualLearner Record (ILR) return data. Such data will be validated in accordance with theILR validation rules, improved guidance and best practice as set by the informationauthority.

2. To improve the accuracy and completeness of data collections and MI, the DataService will continue to offer a suite of complementary products alongside e-learningmodules to help college and training organisations improve and maintain the qualityof their ILR data:

Learner Information Suite (LIS software )to assist with checking pre-returns, andwhether these will pass the information authority validation

Data Self-assessment Toolkit ( DSAT software )(provided by the LSC) aimed atsupporting the funding profile

Credibility Reports for data submissions by providers to provide key summaries ofthe data submitted. Credibility reports are being updated for 2009/10 to includeRed Amber Green (RAG) colour-coding on key ILR learner fields to indicate thecompleteness of these fields based on information authority data standards (ILRAppendix P: Data quality, standards and field ownership).

Known issues provides detail on the errors or problems which affect the ILRdatasets

Quality assessments on field completeness, based on information authoritystandards

MI Credibility Reports, these are produced for the information authority tohighlight the performance of providers across information authority standards,and will be used to guide the joint information authority and Data Service ‘Contactthe Provider’ support process aimed at improving provider data, staring Spring2010

Pre and post rule violation reports Data Quality reports for providers as part of the data quality verification process Provider Training, the Data Service will aim to deliver two e-learning modules and

a range of workshops to support providers in delivering better quality data as wellas reviewing all existing training materials and developing new support materialsin 2010/11

3. The information authority will continue to lead on a number of initiatives in2010/11, these include:

The Learner Data Strategy - The information authority has commissioned and willdevelop recommendations from the Learner Data Strategy, which will outlinewhat data is required for FE and training for the foreseeable future and how itmight be delivered over a period of time.

ILR Specification - The information authority will continue to develop and managethe ILR specification through a controlled process, which carefully considers theimpact of changes including policy drivers and costs. The ILR collects informationon 4 million learners annually and the data is core to the calculations anddecisions for distribution of £11bn of FE and Skills funding; the measurement ofall publicly funded FE and Skills providers’ performance; and tracking of PublicService Agreement (PSA) targets and policy initiatives such as Apprenticeshipsand Train to Gain.

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FE data issues - The information authority will continue to lead on behalf of theSkills Funding Agency/ BIS, YPLA and the sector a number of task and finishgroups on specific FE data issues such as improving timeliness of achievementreporting, and the quality of data affecting FE success rates following a criticalexternal report in autumn 2009.

4. Data Standardisation - The information authority will continue to lead on work toimprove data standardisation across FE and Skills e.g. success rate methodologies,and enabling comparisons to / tracking through other phases of education and intoemployment.

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Appendix

Managing the Transition from funding theNational Qualifications Framework to fundingthe Qualifications and Credit Framework1. Since 1 April 2010, the Skills Funding Agency has been responsible for confirmingprovision for public funding for post 19 learners in England. From August 2010 it isthe Agency’s expectation that the focus of funding will be on provision from theQualifications and Credit Framework (QCF) where the provision has been accreditedand confirmed for public funding. From January 2011 we expect a comprehensiverange of provision to be available and to be funded and will only continue to fundNational Qualification Framework (NQF) provision in a minority of cases where anappropriate QCF does not yet exist. The Agency will continue to focus funding onqualifications in the QCF and manage down the volume of NQF in receipt of publicfunding where a successor or replacement QCF qualification exists and is availablefor delivery and encourage providers to switch to QCF provision as it becomesavailable.

2. In June the Agency published the first list of those NQF qualifications wherefunding for new starts will be withdrawn from 31 July 2010 as an appropriate QCFoffers exists, is confirmed for funding and available for delivery. Following a period forchallenges, the final list of NQF qualifications where funding for new starts will ceasefrom 31 July 2010 was confirmed and published on 14 July 2010. A further list ofNQF qualifications will be published at the end of September where it is intended towithdraw funding for new starts from 31 December 2010 as an appropriate QCF offerexists, has been confirmed for funding and is available for delivery. Going forward,the Agency will each January annually publish a list of those qualifications wherefunding for new starts will be withdrawn in advance of the commencement of the newdelivery year. The first annual list published in January 2011 will include anyoutstanding NQF qualifications that will continue to be funded for an interim period asan appropriate QCF offer is not available. Given that it is expected that the QCF willcontain more than 95% of all vocational qualifications by the end of 2010, the Agencywould not expect to continue to fund large volumes of NQF provision beyond the endof December.

3. In managing the transition from funding the NQF to funding the QCF it is importantto point out that funding decisions are independent of and taken separately fromregulatory decisions made by the independent regulator, Ofqual. Although Ofqualhave recently published information relating to the regulatory arrangementssurrounding the transition to the QCF (May 2010) these are separate from fundingarrangements. It remains the case that the Agency is committed to supporting thetransition to the QCF and ensuring that the QCF can support greater flexibility both inthe delivery of provision and in the way in which learner’s achieve. With the exceptionof NQF provision within existing Apprenticeship frameworks, and acknowledging thedifferent timescales for the transition to the Specification of Apprenticeship Standardsfor England (England), the Agency will continue to prioritise QCF provision.

4. The QCF has been designed to be more responsive to learner and employer need,and to support incremental learning and achievement through credit accumulationand transfer. Throughout the next 12 months the Agency intends to continue to workclosely with key stakeholders and delivery partners to ensure that the QCF becomesa reality and that all learners can access QCF provision more flexibly. As part of this

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work the Agency will review its funding confirmation process in order to ensure that abroader full range of QCF provision can be made available for learners.

5. We are also seeking to work more closely with awarding organisations, particularlyin terms of encouraging awarding organisations to share timescales for transition ofqualifications to the QCF with their centres so that providers are better aware of whatqualifications are in development and when they are likely to be available.

6. In identifying August as the key point to focus funding on QCF provision, theAgency also recognises that the QCF itself is still in its first phase of transition andthat the full flexibilities of a qualification and credit framework, including creditaccumulation and transfer will need to be realised over the subsequent period of theQCF’s development. During the next 12 months the Agency will continue to examinehow QCF success measures can be further developed and applied, and how fundingmight be based on credit as part of the wider simplification work.

7. Full details of the Agency’s timetable for the transition of funding to the QCF, alongwith the list of QCF qualifications confirmed for funding are available on the Agencywebsite.

8. Qualifications and units approved for funding will continue to be added to theLearning Aims Database (LAD), which will remain the primary source for fundingreturns and will include funding rates and programme weighting factors. The onlinelist, meanwhile, will provide the earliest notice of newly approved provision and willallow easy tracking of the notice periods set out above.

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