1. FE funding in 2020-1 2 September 2019
Julian Gravatt– deputy chief executive

2. 2020-1 spending decisions Increases in 2020-1 Schools +£1.8 bil
£3 billion extra in
SCHOOLS BUDGET (£45.1 billion)
Schools block £34.5 bil
High needs £6.3 bil
Early Years £3.5 bil
Central services £0.5 bil
Teacher pay grant £0.3 bil
Schools
+£1.8 bil
Increases in
5.8% Schools
..of which
12.6% high needs
4.7% rest of DSG
7.1% 16-to-18
Teacher pension grant
Paid in addition
High needs
+£0.8 bil
16-18 SPENDING (£6 billion)
SCHOOLS
Three year settlement
5.7% rise in total schools budget
12.6% rise for High Needs
4.7% rise in Schools budget outside high needs
Minimum secondary funding per pupil £5,000 in
TPS funding and Pupil premium funding in addition
16-to-18
7.5% rise in 16-to-18 funding
4.7% rise in 16,17 base rates
Programme weighting will rise
New funds for GCSE resits
Continuity for some smaller grants
TPS funding in addition
NOTES
Based on government press releases, published data and a conversation with an officials
Treasury and DfE work in financial years so academic year allocations will vary (funding pages) or for more information.
16-to-18 via ESFA £5.6 bil
16-to-18
£0.4 bil

3. The £400 million increase Treasury have made very specific decisions
£190 mil for core funding
National base rate (16.17 year olds) £4,188 (+4.7%)
£120 mil to increase programme weights
£35 mil for GCSE EM resits at Level 3
Continuity for various programmes (Advanced Maths Premium, workforce initiatives etc)
Implications
Boost for in FE colleges; not just for T-levels
Fall in numbers in 2019 partly offsets rises
16-18 funding only part of college income

4. Some context

6. College income & expenditure
16-18
£3.1 bil HE
£0.5 bil
Teachers
£2.2 bil
Supplies and services
£1.6 bil
FE loans
£0.1 bil
Debt interest
£0.1 bil
High Needs
£0.2 bil
Fees
£0.3 bil
Other staff
£2.1 bil
Depreciation
£0.5 bil
Apprentices
£0.5 bil
Catering etc
£0.6 bil
AEB
£0.8 bil
£6.5 bil Income
86% from public sources
47% 16-18
64% staff cost ratio
5% education EBITDA
0.4% surplus/income
Grants (incl ESF)
£0.5 bil

7. College budgets in 2019-20 Income Fewer 16-to-18 students (demography)
No allowance for inflation
Cash-limited budgets (adult ed, apprenticeships)
Competitors using cross-subsidies (schools, univs)
Funding reform (adult education devolution)
Expenditure
Rising staff costs (staff turnover averages 17%)
Pension contribution increases
New costs (eg. OfS, JISC) & obligations (eg. careers)

8. What next? Events HM Treasury statement on 4 September
Brexit scheduled for 31 October
Full budget statement must happen by March 2020
OBR forecast accompanies full statement
DfE and ESFA will now work through figures.
DSG and 16-to-18 statement normally in December
ESFA 16-to-18 allocations out in January 2020

9. Julian Gravatt. AoC deputy chief executive
Any questions?
Julian Gravatt. AoC deputy chief executive