1. www.bis.gov.uk/skillsfundingagency

2. 2013/14 Proposals A new streamlined funding system for adult skills Gaynor Field Head of Funding Systems

3. Simplification – the Broader System Reducing bureaucracy to enable more employers to engage with the skills system Simplifying the funding system Reducing data, regularity and funding system burdens on providers Streamlining and improving the clarity of communications

4. Funding Simplification Vision Reduce number of budget lines Reduce the number of funding rates Simplify funding methodology Streamline approach to supporting learners Not for simplification sake

5. Getting the Balance Right Simplification Rough justice ComplexityPrecision Government Policies and Priorities

6. Current and New Funding Systems Current Funding SystemNew Simplified Funding System Two separate systems and rules A single funding system and set of rules Nine elements to the formula in ALR; six elements in ER Three elements apply across adult skills Elements based on different data sets Elements based on actual in-year delivery Provider factor calculated annually for ALR No provider factor Different rates for classroom, workplace and Apprenticeship aims Single set of rates across all adult skills provision Rates expressed in SLN glh and SLN Rates expressed in pounds (£) Thousands of different rates Around thirty rates for all adult skills provision Listed and unlisted rates All listed rates Two methodologies for calculating provider earnings One methodology based on on-programme instalments and achievement Fragmented approach to providing additional support to learners A single budget for ALS; streamlined learner support funds

7. A Simpler Funding Formula Funding formula will be: Funding = rate (£) [x disadvantage uplift x area cost uplift (where applicable)]

8. A Simpler Funding Rates Matrix Provides illustrative fully funded rates (co-funded 19+ Apprenticeships) Gives a reduced number of uplifts Incorporates funding of full Apprenticeship Frameworks Supports the implementation of loans Still need to assign appropriate funding rates for Skills for Life learning aims and other currently unlisted rates Policy on large employers and 25+ Apprenticeships under review

9. A Single Earnings Methodology Whole of Adult Skills Budget to be based on current Employer Responsive earnings methodology Comprises ‘on-programme’ instalments plus an element of achievement Retains the dynamic elements of the funding system Gives colleges and training organisations the potential to achieve the maximum level of funding

10. Learning and Learner Support Need to align the current Additional Learning Support (ALS) and Additional Learning Needs (ALN) approaches Aim to have a single allocation process New arrangements aim to streamline current learner support schemes Discussions with BIS ongoing

11. 16-19 Proposals DfE 16-19 funding formula review: consultation Aim to align with changes in 16-19 funding methodology (where we can) Retain integrity of 16-18 Apprenticeships Work with YPLA ongoing

12. Outcome-led Proposals Introduction of Job Outcome Incentive Payments in 2011/12 Move towards a mechanism for integrating outcomes into the core funding system and formula

13. Timeline 2011/12Introduction of Job Outcome Incentive Payments 2011/12Shadow Funding Calculation in LIS 2011/12Shadow Rates Matrix 2012/13‘Dual-running’ with payments based on current Demand Led Funding system 2013/14Full implementation of the simplified funding system 2013/14Alignment with introduction of FE loans

14. www.bis.gov.uk/skillsfundingagency