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

2. Pearson Research Institute
Created in response to:
An increasingly knowledge-driven economy in which education is critically important
Lack of an established private sector company contributing to the policy debate

3. We will
Define and shape the educational environment we want to help build
Stimulate debate, collaborate and share ideas
Produce world class policy intelligence and analysis for Pearson
Deliver high quality publications, learning materials and forums for debate

4. 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)

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

6. 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

7. 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%

8. 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

9. 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

10. 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.

11. 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

12. 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

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

14. The hands-on guide to post-16 funding
Currently considering whether to write a 2010/11 edition

15. The hands-on guide to post-16 performance and data
Launched on April 13th 2010

16. Thank you We hope this morning proved useful
Please return your evaluation forms and enjoy the rest of your day
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