SFA funding reform update for 2013/14 1 March 2013 Nick Linford Managing Director of Lsect Editor of FE Week

First edition published in October Second edition published February Third edition published June Implementation from Aug 2013 ‘Funding Handbook’ due soon… Funding rules published end of Jan New 19+ ‘simple’ and ‘streamlined’ funding

SFA funding formula Current (since 08/09) New (from 13/14) Learner responsive (LR) Employer responsive (ER) Single Adult Skills Budget and formula Achievement value 20% (half available for Job Outcome Payment) Achievement 25% (of main qual for apprenticeships) Monthly in-year funding Standard Learner Numbers (SLNs) SLN Guided Learning Hours (SLN GLH) National funding rate Cash qualification rates based on a ‘QCF matrix’ National funding rate Unweighted co-funding Weighted co-funding Provider factor Retention and achievement in success factor Disadvantage and area cost uplift

/14 ‘Simplified’ Funding Rates No change from June 2012 doc

Return of bands, but funding by QCF credit

The bands based on pounds per QCF credit Funding per credit (from learning rates matrix) Average of £44 per credit

Example NCFE qualifications Learning aimQualification title Certificate in Working with People with Mental Health Issues Certificate in Equality and Diversity (QCF) Certificate in Safe Handling of Medicines Next year Increase New matrix rate £811£304% £724£14325% £811£304% This year (19+ classroom) SLN GLHSLNPWF NFR2012/ B1.12£2,615£ A1£2,615£ B1.12£2,615£781

‘Simple’ funding formula for 2013/14 QCF Rate from matrix x Disadvantage uplfit x Area cost uplift = £ Note: Achievement worth 20% Apprenticeship qual rates unchanged Job outcome payment only for eligible learners, who withdraw by get a job, minimum of 16 hours per week for 4 weeks, worth 10% (ie 50% of achievement) Monthly in-year funding, with double payment in month one

Apprenticeships “Given the major change in the longer term, it as been decided not to proceed in 2013/14 AY with applying the simplified approach to setting Apprenticeships rates to existing frameworks that is being adopted for wider FE qualifications. This approach will, however, be applied for new Apprenticeship frameworks where these are developed. This will ensure that all new funding rates will in future link more transparently to the cost of the component qualifications, with account taken of the additional activities involved in Apprenticeship delivery. All other simplification changes to the system will continue to be made.” Skills Funding Statement Dec 2011

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