An update on 16-19 funding for the 2014 to 2015 academic year

Agenda Welcome and introduction Session 1 - Areas where funding policy is changing Session 2 - Funding per student update Session 3 - 16-19 Allocations for 2014 to 2015 Session 4 - High needs funding

( ) The funding formula Programme Cost Weighting Area Cost Allowance Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor ( ) Total Programme Funding

……plus extras (if applicable) Programme Cost Weighting Disadvantage Funding Student Numbers National Funding Rate per student Retention Factor ( ) Area Cost Allowance Total Programme Funding TP from 11/12 Formula Protection Funding High Needs Students Student Support Funding

Program Cost Weighting National Funding Rate per student Student numbers Program Cost Weighting DisadvantagFunding Area Cost Allowance National Funding Rate per student Retention Factor ( ) Student Numbers This is a count of students to be funded Must meet qualifying period of 2 weeks or 6 weeks- will not fund programmes under 2 weeks Based on autumn census or ILR return Either full time => 540 hours Or Part Time < 540 hours Student status Hours required per year Full time 540 + Band 4 450-539 Band 3 360-449 Band 2 280-359 Band 1 up to 280

Program Cost Weighting National Funding Rate per student The National Funding Rate Program Cost Weighting DisadvantagFunding Area Cost Allowance Student Numbers Retention Factor ( ) National Funding Rate per student Single National Full Time funding rate per student expressed in £ All 16-19 year olds in English sixth forms, colleges and independent providers are funded at the same national funding rate (except Youth Contract, Young Offenders, 16-18 Apprenticeships and European Social Fund (ESF)) This is the final element of the formula fixed by the EFA. It depends on how much learning is taking place across the country and the budget.

Program Cost Weighting National Funding Rate per student Retention Factor Program Cost Weighting DisadvantagFunding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Success no longer used in funding, a retention factor is now used Applied at student level, not qualification level Retained means still studying a core aim on planned end date or leaves early and is recorded as completed the core aim For academic programmes – still studying one of the academic aims For vocational programmes still studying the core aim Retention FACTOR =half way point between Retention RATE and 100% Number of students completed Number of students started Student Retention and funding Funding Leaves before qualifying period Leaves before planned end and not recorded as completed 50% Retained to planned end date and recorded as completed 100% Leaves before planned end date and recorded as completed

National Funding Rate per student Programme Cost Weighting DisadvantagFunding Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor ( ) Programme Cost Weighting Recognition that some vocational subjects are more expensive to teach than others Applied to the student’s whole programme Determined by the student’s core aim ie A Levels or substantial vocational qualification All academic programmes uplifted by one weight, which has been determined by merging the 2 current academic weightings and rebasing as 1, Vocational Programme Weighting categories are being reduced in number and re-based to make it simpler: applied at sector subject areas Cost Weighting Category 2012/13 equivalent Proposed 2013/14 Academic 1.06 1.00 Low 1.10 1.04 Medium 1.28 1.21 High 1.60 1.51 Specialist 1.72 1.62

National Funding Rate per student Programme Cost Weighting DisadvantagFunding Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor ( ) Programme Cost Weighting Shadow Allocations Based on whole-year 2010/11 data – same data source as for full-time/part-time No major issues with data – but inevitably some turbulence due to reduced number of categories Doesn’t take account of any business cases or protection of programme weighting in 2012/13 allocation, so may be some reductions Detailed list of sector subject areas and weightings will be given in [Field Guide]

National Funding Rate per student Disadvantage Funding Program Cost Weighting Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor ( ) Disadvantage Funding Recognises that some students require additional support to participate and achieve if we are to achieve full participation and improve attainment Principle is to create a Single budget that institutions use as they see fit Disadvantage Funding Economic Deprivation Prior Attainment Funds not ring-fenced Simple and transparent Calculated in two blocks, shown separately within the funding formula and paid as a single budget on profile Flat rate minimum amount, allocated to institutions in receipt/below a threshold, of either disadvantage or ALS from the formula

National Funding Rate per student Disadvantage Funding Program Cost Weighting Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor ( ) Disadvantage Funding Economic Deprivation Block one: Based on students’ home postcode Deprivation is calculated using Index of Multiple Deprivation 2010. This examines the students’ home area based on: income; employment; health and disability; education, skills and training; housing and services; living environment; and crime Uplift is between 8.4% and 33.6% Additional categories are no longer eligible Care Leavers attract a standard uplift- rate IMD is used to measure 27% most deprived lower super output areas (LSOA) within England Additional categories Basic skills learners Those living in hostels and residential centres. Those with mental health problems. Travellers. Those whose statutory education has been interrupted. Those in care or who have recently left care. Asylum seekers eligible for YPLA funding according to the Funding Regulations guidance. Refugees. Ex-offenders. Offenders serving their sentence in the community. Full time carers. Those recovering from alcohol or drug dependency. Learners funded by the Single Regeneration Budget. Learners funded under the Offender Learning and Skills Service (OLASS) arrangements. People living in supported accommodation provided by a registered social landlord (RSL) or housing association (HA) registered with the Housing Corporation, or provided by another non-profit-making organisation in a building owned by an RSL or HA. People living in supported accommodation provided by a registered charity. People living in supported accommodation registered with the local authority or National Housing Federation.

National Funding Rate per student Disadvantage Funding Program Cost Weighting Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor ( ) Disadvantage Funding Prior Attainment Block two: Acknowledges the additional cost of students who need extra learning support Based on students’ achievement of GCSE English and maths at end of Year 11 Funding rate for shadow allocations =£450 Reduced flat rate for part time = £274- pro rata as per programme costs Used to be graduated payments based on student’s grades Now only a flat rate based on non-achievement of grade C Shadow Allocations Block 1 - Same index as for 2012/13 allocations so relatively little turbulence as a result Some change due to exclusion of additional categories for FE Block 2 – uses matched database from 2009/10, total numbers shown on statement and in ShACT but not in background ShACT spreadsheets Flat rate so likely to result in some turbulence Also no historical element in FE so will result in changes as a result Example Maths below grade C English below grade C Funding attracted per student (£) Student 1 yes *Rate x1 Student 2 Student 3 *Rate x2

( ) ( ) Area Cost Allowance Program Cost Weighting DisadvantagFunding Student Numbers National Funding Rate per student Retention Factor ( ) Area Cost Allowance Program Cost Weighting DisadvantagFunding Student Numbers National Funding Rate per student Retention Factor ( ) Area Cost Allowance Reflects the cost of delivery in high cost local areas We will continue to calculate this using the same methodology as now Applied to the whole participation formula (including all disadvantage) Area Uplift Oxfordshire 7% Essex (London fringe) 6% Kent (London fringe) Bedfordshire 3% Hertfordshire (non-London fringe) Cambridgeshire 2% Hampshire and Isle of Wight West Sussex non-fringe 1% Area Uplift Inner London 20% Outer London 12% Berkshire Crawley Surrey Buckingham (London fringe) 10% Hertfordshire (London fringe) Buckinghamshire (non fringe) 7%

2014 to 2015 Areas where funding policy is changing

Funding of 18 year olds New for 2014/15 Band Study programme hours and ages 5 Full time 16/17 year olds doing 540 hours or more 4 Full time for 18 year olds and 16/17 year olds doing between 450 and 539 hours 3 Between 360 and 449 hours 2 Between 280 and 359 hours 1 Less than 280 hours Students who are 18 or over at 31st August preceding the start of the academic year New for 2014/15

Formula protection funding (FPF) FPF was introduced for 2013 to 14 to be paid for at least three academic years, until and including 2015/16 For 2014 to 15 it will: Reduce from any gains in the formula – e.g. where the value of the formula increases due to improved retention, more students attracting disadvantage, increased programme size, for example FPF will reduce Stay the same if the value of the formula reduces Should the value of the formula exceed the funding per student paid in 2012 to 13 then the formula, net of FPF, is paid in full For those institutions with additional TP for short courses in 2013 to 14, in 2014 to 15 this additional amount will be half the amount it was in 2013 to 14 New for 2014/15

Formula Protection Funding £4,500 £4,300 £3,800 12/13 13/14 14/15 Formula down FPF the same Funding per student reduces £500 £4700 £4,500 £4,000 12/13 13/14 14/15 £4,700 per student from the formula £500 £500

Free meals for 16-19 year olds Programme cost weightings Extends eligibility for free meals to disadvantaged students in further education and sixth form colleges Currently only eligible students in school sixth forms have an entitlement to free meals. Further details in January 2014. The review of Programme Cost Weighting is now completed and has been considered by Ministers There will be no changes to these weightings for 2014 to15 We will keep the weightings under review

Planned hours eligible for funding Relevant Directly relevant to the study programme Planned Explicit in the Learning Plan or Timetable Supervised Hours that are supervised and/or organised by the institution Quality Assured Hours that are quality assured by the institution Normal Working Pattern Hours that are within an institution’s normal working pattern Study Leave Where it meets the criteria set out above, is time limited and the weekly hours do not exceed the student’s planned weekly hours for the overall study programme

Hours that do not count for funding Voluntary Voluntary extra-curricular activities and clubs delivered during breaks or outside normal working pattern Homework Study that is homework or independent study/research that is not timetabled Employment Employment or work experience organised by anyone other than by or on behalf of the provider Volunteering Volunteering or community activities that are not organised by or on behalf of the provider

Recording planned hours for funding purposes Qualification Hours Hours that are delivered towards qualifications that are approved for teaching to 16-19 year olds under section 96 of the Learning and Skills Act 2000 Non Qualification Hours Do not count towards a qualification on section 96 Informal Certificates Non-qualification activity Tutorial activity Work experience/Work related activity Volunteering/Community activities Enrichment activities

Planned hours: Schools and academies with sixth forms You need to capture planned qualification hours and non-qualification hours separately in readiness for recording. Fields Census Planned hours for qualifications Planned hours for non-qualifications Autumn 2014 Students in 2013/14 Students in 2014/15 Autumn 2015 Students in 2015/16 Autumn 2016 Students in 2016/17

Work experience-developments From 2014 to15 the way non-qualification activity is recorded will change Work Experience will need to have taken place within an EXTERNAL employers’ workplace Simulated work environments should be separately recorded as non-qualification activity Institutions/providers need to put arrangements in place to achieve this during 2013 to14 Activity in, for example, a college crèche or restaurant would not count as external work experience

English and Maths condition of funding From September 2013, students who did not hold an A*-C in English or maths needed to continue to study towards: GCSE/iGCSE, or Functional Skills, Free Standing Maths or ESOL qualifications as stepping stones to GCSE. This becomes a condition of funds from the beginning of the 14 to15 academic year. This means any student recruited from 1 August 2014 without at least a GCSE grade C in these subjects and not registered to work towards this level will not be counted for your funding allocation for 2016 to17 ACTION FOR 2014/15

16-19 Allocations: 2014 to 2015

Timeline Key Dates for 2014 to 2015 allocations (schools / academies): Event October 2013 School census return date January 2014 Send out school funding factors based on 2012 to13 data and lagged numbers based on 2013 to14 recruitment February Deadline for business cases to be with EFA March EFA confirms national rate EFA send out school funding allocations

Lagged Student Numbers Schools/Academies 2013 to 14 student numbers based on autumn 2013 census

Data Sources (Schools/Academies) Autumn Census 2013 – autumn 2013 data for: Lagged student numbers – i.e. how many students will be funded Autumn Census 2013 – end-year 2012 to 13 data for: Programme Size (Full-time/part-time) Funding factors – retention, programme cost weighting, disadvantage block 1 (economic disadvantage) These factors determine the level of funding per student YP Matched Administrative Data, 2011to12 for: Disadvantage block 2 (GCSE English and maths grades) (DN: may also be used for bursaries) Affects the level of funding per student

Useful Documents Funding formula review - http://www.education.gov.uk/aboutdfe/executiveagencies/efa/a00210682/funding-formula-review Funding guidance - https://media.education.gov.uk/assets/files/pdf/f/funding%20review%20june%2013%20v4.pdf

High needs funding in 2014 to 2015

From 2015 to 2016 academic year A lagged system for most places based on the latest available data Flags already included in ILR Flags will be included in the school census from 2014 to 15 There will still be an opportunity for local authorities and institutions to discuss any expected substantial changes to the pattern of provision.

2013 to 2014 academic year We changed the high needs funding system in preparation for the Children & Families Bill and the significant reforms to the SEN system which will come into force from September 2014. Institutions need more stability in place funding and we have clarified that it is not specific to an individual student or local authority. In some cases, placement decisions and contracts have been finalised much later than envisaged. We have played, and continue to play, a supportive role to aid discussions between local authorities and institutions.

HNS 2014 to 2015 place funding Place Plus Element 3 Element 2 Element 1 Place Plus Accurate place funding gives security to institutions, and gives LAs greater control over top-up funding Intention to base place funding for 2015 to 2016 onwards on prior year data For 2014 to 2015, therefore, expect place numbers to be closely based on the actual numbers of placements commissioned in institutions for current year (2013 to 2014)

2014 to 2015 key changes We will be taking a step towards a lagged system and have designed the process to provide more stability in place funding for institutions. We have encouraged dialogue between local authorities and institutions since we launched the 2014 to15 place review process in July 2013. We have shared 2012 to 13 R14 ILR data with local authorities and requested they take this into account when planning for 2014 to15. We know that 2013 to14 allocated volumes are not robust in many cases have asked local authorities to declare post 16 2013 to 2014 actuals on their high needs template (HNT) We only expect 2014 to15 numbers to deviate from 2013 to 14 actuals where there are significant changes that LAs know will happen.

2014 to 2015 Timetable On-going dialogue between institutions and local authority regarding place numbers for 2014 to15 November: Update to HNTs (high needs templates) for local authorities, including 2012 to13 ILR data December 23rd: Local authorities return HNTs and submissions January 17th: Share 2014 to 15 high needs places with FE, CCPs, NMSS and ISPs January 31st: FE, CCPs, NMSS and ISPs return exceptional submissions February: Confirmation of outcome of local authority and institution submissions March: Final high needs allocations issued to local authorities and institutions

Website We have created a new high needs webpage, bringing together information for local authorities and institutions into a single place to improve access http://www.education.gov.uk/aboutdfe/executiveagencies/efa/a00228993/hn-funding-information