1. 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

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

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

4. SR 15 framework to 2020 16-19 Funding Adult Funding Stable framework
National funding rate for 16/17 YOs protected
Savings for 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

5. 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

6. 16-19 College Allocations 2017/18

7. 16-19 College Allocations 2017/18

8. Adult Allocations 2017/18

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

10. 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

11. 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

12. 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

13. 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

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

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

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

17. 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

18. 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

19. 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

20. 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

21. Work Placement CDF

22. 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

23. 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

24. Apprenticeships

25. A quick guide to the apprenticeship service

26. 2020 Service Vision

27. 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

28. College delivery to employers

29. College Delivery to employers

30. Register of apprenticeship training providers
Opportunity now to review the current register in the context of the 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?

31. 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

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

33. Any questions?
Session finishes by 1245