Hot breakfast briefing 29th March 2010, One90 Restaurant Adult and employer funding in 2010/11 Brought to you by the Pearson Research Institute

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Adult and employer funding in 2010/11 Nick Linford Head of the Pearson Research Institute And available to take questions: Andrew King, on secondment from BIS to the LSC (Skills Funding Agency from 1st April 2010)

The funding divide From April 1st 2010 the funding policy, eligibility and methodology divide is likely to widen further Skills Funding Agency

2010/11Funding Funding Learners £7.5bn 4m DCSF BIS 19+ ER 16-18 LR (FE) 16-18 LR (FE) 19+ ER Adult LR 4m £7.5bn 16-18 Appren 16-18 Appren Adult LR

The funding divide continued 2010/11 16-18 LR (FE) 16-18 (Appren) Adult LR (FE) 19+ ER (Appren & TtG) Funding + 12.2% + 6.6% +0.1% -11.5% + 23.3% Learners + 10.4% + 1.1% - 25.3%

A closer look at the adult learners Achieved by much lower rates Adult LR (FE) 19+ ER (Appren & TtG) Achieved by cutting less expensive ‘developmental’ (non-priority) provision + 23.3% - 25.3% But, more funding for new pre-employment programs

What makes this breakfast so hot? New LSC/SFA information for 2010/11 Earned Autonomy paper – published 25/03/10 SFA Guidance Note 3 – published imminently

Earned Autonomy 2010/11 will be a pilot year Three categories of provider: 1. New or poor performing No budget flexibilities Providers (excl. new/poor performing) Flexibility to view within ER only 2. Outstanding providers Flexibility to vire between ER and ALR plus a number of other freedoms 3.

Earned Autonomy Framework for Excellent (FfE) grade for Qualification Success Rate determines category FfE financial health and control grades likely to be taken into account Flexibility to vire capped (e.g. 20%), and SFA Divisional Director would need to agree it Opportunity to respond and shape the policy

SFA guidance note 3 Firstness: Even greater emphasis on funding firstness Completeness of prior achievement data poor Quicker ER data returns: Starts data within 2 reporting months and leavers/achievement within 3

Concluding themes for ALR and ER > Cut, switch and efficiencies > Earned autonomy > Data quality Q & A with Andrew King

The hands-on guide to post-16 funding Currently considering whether to write a 2010/11 edition www.fundingguide.co.uk

The hands-on guide to post-16 performance and data Launched on April 13th 2010 www.dataguide.co.uk

Thank you We hope this morning proved useful Please return your evaluation forms and enjoy the rest of your day Brought to you by the Pearson Research Institute