P. Mucklow, K Smith, J. Gravatt Conference, session 1.1 Everything you want to know about college funding 14 November 2017 P. Mucklow, K Smith, J. Gravatt

Funding Colleges: Changes and Trends AoC Conference 14 November 2017 Peter Mucklow Keith Smith

Outline 2017 to 2018 funding report Financial health trends Area Review implementation progress T levels and Work Placements Apprenticeships AEB Devolution

SR 15 framework to 2020 16-19 Funding Adult Funding Stable framework National funding rate for 16/17 YOs protected Savings for 2019-20 on track English and maths condition of funding tolerance confirmed Adult Funding Flat cash settlement Allocated by block grant Adult Learner Loans facility values rolled forward Support for Loan growth but more structured approach and performance management

16-19 Allocations changes for 2017/18 Cohort down by c.35,000 (1.8%) Student numbers down by c. 38,000 (3.2%) Programme Funding down by £187m (3.5%) Formula Protection Funding from £43m to £24m

16-19 College Allocations 2017/18

16-19 College Allocations 2017/18

Adult Allocations 2017/18

AEB: 2016/17 actual delivery compared to 2017/18 contract values

FECs - Operating loss/profits Proportion of colleges making an operating loss…. 2013/14: 46% 2014/15: 38% 2015/16: 38% 2016/17: 48% Median college operating profit… 2013/14: 0.4% 2014/15: 0.7% 2015/16: 0.9% 2016/17: 0.2% Sources: GFE Finance records 2013/14 to 2015/16; Financial plan 2017 for 2016/17 Note: National college figures are excluded

FECs – Income and borrowing Sources: GFE Finance records 2013/14 to 2015/16; Financial plan 2017 for 2016/17 and 2017/18 Note: National college figures are excluded

Trends in Financial Health - FECs Sources: GFE Finance records 2013/14 to 2015/16; Financial plan 2017 for 2016/17 Note: National college figures are excluded

AR Implementation – Changing FE Sector Total number of colleges has reduced by 14% by September 2017 Predicted to fall by 27% by September 2018 13 Colleges have come out of inadequate financial health as a result of mergers at 1 October 2017

AR Progress on Recommendations 57% of the mergers planned have been achieved 82% of completed mergers were as originally recommended

AR Progress on Recommendations Of the 11 mergers not progressing, 5 colleges undertaking a SPA to identify new merger partner

AR Progress on Recommendations 54% of academy conversions planned have been achieved

AR Completed Recommendations NORTHERN AREA Implemented as Recommended SOUTH TYNESIDE COLLEGE/TYNE METROPOLITAN COLLEGE FURNESS COLLEGE/BARROW-IN-FURNESS SIXTH FORM COLLEGE Implemented with changes MID-CHESHIRE COLLEGE/WARRINGTON COLLEGIATE HARTLEPOOL SIXTH FORM COLLEGE/SUNDERLAND COLLEGE WEST CHESHIRE COLLEGE/SOUTH CHESHIRE COLLEGE CARLISLE COLLEGE/NCG DONCASTER COLLEGE/NORTH LINDSEY COLLEGE

AR Completed Recommendations SOUTHERN AND SOUTH WEST AREAs Implemented as Recommended HILLCROFT COLLEGE (INCORPORATED) LIMITED/RICHMOND ADULT COMMUNITY COLLEGE LEWISHAM SOUTHWARK COLLEGE/NCG SOUTH THAMES COLLEGE/CARSHALTON COLLEGE/KINGSTON COLLEGE COLLEGE OF NORTH WEST LONDON/CITY OF WESTMINSTER COLLEGE HARROW COLLEGE/UXBRIDGE COLLEGE AYLESBURY COLLEGE AND AMERSHAM/WYCOMBE COLLEGE EAST BERKSHIRE COLLEGE/STRODE'S COLLEGE TOWER HAMLETS COLLEGE/REDBRIDGE COLLEGE NORTHBOOK COLLEGE/CITY COLLEGE BRIGHTON AND HOVE TOWER HAMLETS COLLEGE/HACKNEY COMMUNITY COLLEGE WESTMINSTER KINGSWAY COLLEGE/CITY OF ISLINGTON COLLEGE PALMER'S COLLEGE/SEEVIC COLLEGE CENTRAL SUSSEX COLLEGE/CHICHESTER COLLEGE SOUTH DOWNS COLLEGE/HAVANT COLLEGE Implemented with changes COLLEGE OF HARINGEY, ENFIELD AND NE LONDON/WKCIC

AR Completed Recommendations MIDLANDS AREA Implemented as Recommended NORTH WARWICKSHIRE/AND SOUTH LEICESTERSHIRE COLLEGE SHREWSBURY COLLEGE OF ART & TECHNOLOGY/SHREWSBURY SIXTH FORM COLLEGE SOUTH WORCESTERSHIRE/WARWICKSHIRE COLLEGE NEWCASTLE UNDER LYME COLLEGE/STAFFORD COLLEGES GREAT YARMOUTH COLLEGE/LOWESTOFT COLLEGE BOURNVILLE COLLEGE/SOUTH & CITY COLLEGE BIRMINGHAM CITY COLLEGE COVENTRY/HENLEY COLLEGE COVENTRY HUNTINGDONSHIRE REGIONAL COLLEGE/CAMBRIDGE REGIONAL COLLEGE CENTRAL COLLEGE NOTTINGHAM/NEW COLLEGE NOTTINGHAM (NCN) DEARNE VALLEY COLLEGE/RNN BEDFORD COLLEGE/TRESHAM COLLEGE OF FURTHER AND HIGHER EDUCATION

Restructuring Facility 47 applications received Including 25 SFCs who plan to convert to academy status Remaining 22 are GFEs 10 have been fully approved to date (£120m) Total spend to date is over £60m. Funding must be spent before March 2019 – so any additional cases must act quickly

Work Placement CDF  

T levels What we know now To be clarified Level 3 - Skilled Employment and progression 900 hours plus per year Tech qualification, E&Ms, Work placement Aligned to Apps standards under IFA Schedule of 11 Routes - panels in place for first 6 Co-creation and co-delivery To be clarified Content for each T level How will work for adults Fit with level 2 and Transition Year Funding levels/methodology Accountability system Certification system Additional support to providers

Work Placement Capacity & Delivery Guidance published on Gov.UK in September E mails to all eligible providers by 20 October Webinar 1st Nov and now on .Gov.uk Implementation Plans by 24 November Responses December – February Allocations Feb– March for 16 months Apr 18 – July 19 Distribution: 199 FE Colleges could share £52.8m 64 SF Colleges could share £3.7m 1,201 Other providers could share £8.4m  

Apprenticeships

A quick guide to the apprenticeship service

2020 Service Vision

Apprenticeship Service Roadmap Dec 2017 April 2018 July 2018 Oct 2018 Apr 2019 Forecasting for employers Tasks and activities Changes can be made to apprentices until payment Apprentice search introduced Employers can download transactions Accurate start and end date reporting in employer’s account Improved visibility of data for support team Employers can transfer funds Enhanced content and guidance for employers and providers Provider search Streamlined process for new providers Providers can trigger changes to live apprentices Changes to apprentices can be made without the need to stop and start. Additional payments shown in employers’ accounts Employers can request apprentice certification within their accounts Employers can select their End Point Assessment Organisation Pilots begin for non-levy payers Providers will trigger cohort creation By August, apprentice data will be taken from the ILR, improving the double lock process Employers can post vacancies collaboratively with training providers Improvements to access levels for employers Sub Accounts for employers Improved access to data for support team Non-levy paying employers can manage funding through the apprenticeship service Employer feedback introduced on Find Apprenticeship Training Improved marketing and dynamic content for employers, providers, apprentices and End Point Assessment Organisations

College delivery to employers

College Delivery to employers

Register of apprenticeship training providers Opportunity now to review the current register in the context of the 2020 Apprenticeship programme vision. Areas to be reviewed: Relationship with future procurements Differentiation on provider experience and track record Enables new providers and employers to access the apprenticeship market Pass or fail?

Devolution of Adult Education Budget (AEB) For 2018/19: Under ‘influence’ funding allocations Potential transitional year arrangement Full devolution to Mayoral Combined Authorities and Greater London Authority in 2019/20 Manage a smooth transition of the existing £556m ESF Programme beyond July 2018 Support MCAs in developing approaches to utilise AEB as match funding for further ESF investment beyond the current arrangements

Funding Colleges: Changes and Trends AoC Conference 14 November 2017 Peter Mucklow Keith Smith

Any questions? Session finishes by 1245