1. 16-19 Funding 2013/14 Update May 2013

2. What is changing? Funding per student Study programmes Raising Participation Age

3. Funding per student 16-19 education was funded… Qualification by qualification Funding is unfit to support RPA Wolf found there to be perverse incentives which didn’t help raise standards System is very complex and opaque 16-19 education will be funded… student by student Increased focus on providing the student with a holistic study programme which will get them into university or work All students receive same basic level of funding Enables and supports a simple and transparent funding system Subject to A level and GCSE reform Funding per student Study programmes Raising Participation Age

4. The new 16-19 funding formula Total Programme Funding Programme Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor ()

5. This is a count of students to be funded Must meet qualifying period of 2 weeks or 6 weeks- will not fund programmes under 2 weeks Based on autumn census or ILR return Either full time => 540 hours Or Part Time < 540 hours For 2013/14 and 2014/15 Band 4 = full time The bottom band treated as Full Time Equivalent (FTE), that is a proportion of 600 Age groups 16-18 and 19-24 for HNS are treated the same Programme Cost Weighting Disadvantag Funding Area Cost Allowance National Funding Rate per student Retention Factor () Student Numbers Student numbers Student status Hours required per year Full time540 + Band 4 450-539 Band 3 360-449 Band 2 280-359 Band 1 up to 280

6.  Single National Full Time funding rate per student expressed in £  All 16-19 year olds in sixth forms, colleges and independent providers are funded at the same national funding rate  Out of scope Youth Contract, Young Offenders, 16-18 Apprenticeships and European Social Fund (ESF)  This is the final element of the formula fixed by the EFA. It depends on how much learning is taking place across the country and the budget.  The rate used in the 2013/14 allocation is £4,000 Programme Cost Weighting Disadvantag Funding Area Cost Allowance Student Numbers Retention Factor ( ) National Funding Rate per student The National Funding Rate

7.  A full time rate based on circa 600 hours  Three part time rates for bands 2,3,4  Each funded at mid-point of the band  For Band 4 (450-539 hours) for 13/14 and 14/15 we will fund at the full time rate  Band 1 (below 280 hours) funded as a proportion of 600 hours ie 150 hours gets 25% of the National Full Time funding Rate Programme Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers Retention Factor ( ) National Funding Rate per student Part Time Funding rates Student Number status Hours funded at… Funding Rate (13/14 allocations) Full time600£4,000 Band 4 600£4,000 Band 3 405£2700 Band 2 320£2133 Band 1 % of 600% of £4,000

8.  Success no longer used in funding, a retention factor is now used  Applied at student level, not qualification level  Retained means still studying a core aim on planned end date or leaves early and is recorded as completed the core aim  For academic programmes – still studying one of the academic aims  For vocational programmes still studying the core aim  Retention FACTOR = half way point between Retention RATE and 100% Student retention and funding Funding Leaves before qualifying period 0 Leaves before planned end and not recorded as completed 50% Retained to planned end date and recorded as completed 100% Leaves before planned end date and recorded as completed 100% Programme Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Number of students completed Number of students started

9.  Recognition that some vocational subjects are more expensive to teach than others  Applied to the student’s whole programme  Determined by the student’s core aim ie A Levels or substantial vocational qualification  All academic programmes uplifted by one weight, which has been determined by merging the 2 current academic weightings and low cost vocational programmes and rebasing these as 1,  Vocational Programme Weighting categories are being reduced in number and re-set to make it simpler: applied at sector subject areas Cost Weighting Category Agreed for 2013/14 Base1.0 Medium1.2 High1.3 Specialist1.6 Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor ( ) Programme Cost Weighting

10.  Recognises that some students require additional support to participate and achieve if we are to achieve full participation and improve attainment  Principle is to create a single budget that institutions use as they see fit Disadvantage Funding Economic Deprivation Prior Attainment Programme Cost Weighting Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor ( ) Disadvantage Funding

11. Based on student’s home postcode Deprivation is calculated using Index of Multiple Deprivation 2010. This examines the student’s home area based on: income; employment; health and disability; education, skills and training; housing and services; living environment; and crime Uplift is between 8.4% and 33.6% of 27% most deprived super output areas Block one: Disadvantage Funding Economic Deprivation Care Leavers attract a standard uplift- rate £480 Programme Cost Weighting Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor ( ) Disadvantage Funding

12. Prior Attainment Acknowledges the additional cost of students who need extra learning support Based on student’s achievement of GCSE English and maths at end of Year 11 Funding rate for 13/14 = £480 Flat rate for part time bands 2 and 3 = £292 Pro rata as per programme costs for band 1 Block two: Programme Cost Weighting Area Cost Allowance Student Numbers National Funding Rate per student Retention Factor ( ) Disadvantage Funding Example Maths below grade C English below grade C Funding attracted per student (£) Student 1yes£480 x1 Student 2yes£480 x1 Student 3yes £480 x2 Used to be graduated payments based on student’s grades Now only a flat rate based on non-achievement of grade C

13. Area Cost Allowance  Reflects the cost of delivery in high cost local areas – remains unchanged  We will continue to calculate this using the same methodology as now  Applied to the whole participation formula (including all disadvantage) Program Cost Weighting Disadvantage Funding Student Numbers National Funding Rate per student Retention Factor ( ) Area Cost Allowance AreaUplift Inner London20% Outer London12% Berkshire12% Crawley12% Surrey12% Buckingham (London fringe)10% Hertfordshire (London fringe)10% Buckinghamshire (non fringe)7% AreaUplift Oxfordshire7% Essex (London fringe)6% Kent (London fringe)6% Bedfordshire3% Hertfordshire (non-London fringe)3% Cambridgeshire2% Hampshire and Isle of Wight2% West Sussex non-fringe1% Programme Cost Weighting )

14. Formula protection funding (FPF) Will be paid for at least three academic years until and including 2015/16, where the move to a basic funding rate per student would otherwise result in a reduction in funding per student. Calculated by comparing funding per student allocated for 2013/14 (excluding transitional protection) with funding per student for 2012/13 The operation of formula protection funding for future years will depend on progress of Ministerial Working Group on the reforms for large programmes, A levels and GCSEs. Enables you to move on with curriculum reforms and simplification while final details are resolved ? TP from 11/12 ?? High Needs Students Student Support Funding Formula Protection Funding

15. Formula protection funding (FPF) For example:  Funding per student at Shakespeare College in 2012/13 is calculated at £4500 per student,  The new methodology for 2013/14 gives them £4060 per student,  FPF of £440 per student is included in the 2013/14 allocation ? TP from 11/12 ?? High Needs Students Student Support Funding Formula Protection Funding

16. High Needs Students (HNS) This is funding for students with learning difficulties and/or disabilities and/or special educational needs with support costs above £6,000 There’s a system based on the same principles for all children and young people from ages 0 – 24 It is called place plus – places are funded by the EFA and any additional top-up funding by the home local authority There are three elements to High Needs Funding ? TP from 11/12 ?? High Needs Students Student Support Funding Formula Protection Funding

17. High Needs Students (HNS) The place – EFA Funded Element 1 This is the standard 16-19 Funding Formula as we have described – it is based on lagged student numbers – this aspect rolls on from year to year. Element 2 This is the first £6,000 of additional support – numbers are calculated based on information provided by the local authority about the number of places it is going to commission from each institution and the EFA adds £6,000 for each place to the allocation – completing the place funding. The Plus – Top up Funding – LA Funded Element 3 any funding the individual requires above the first two elements is negotiated and agreed with the student’s home LA ? TP from 11/12 ?? High Needs Students Student Support Funding Formula Protection Funding

18. Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Funding for 14- 16s in FE

19.  Student numbers:- all full time  National funding rate:- same as post-16  Retention factor:- there is no retention for pre-16; we intend to use factor of 1  Programme Cost Weighting:- uplift of 4%  Disadvantage Funding (Block 1) –uses IMD based on pupils home postcode  Disadvantage Funding (Block 2) –All those who attract funding for IMD also get ALS payments  Area Cost Allowance :- exactly the same Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Funding for 14- 16s in FE

20. Pupil Premium for those who qualify: –those who qualify for Free School Meals (FSMs) –and, those in Care Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Additional funding applies

21. Those FE Colleges who wish to claim direct funding for 14-16s:  Good or Better (Grade 1 or 2) on most recent Ofsted assessment or Satisfactory and improving –Satisfactory/Requires Improvement (Grade 3) rating with significant improvement in past 4 years –Significant improvement is defined as an increase in the average point score per student at L3 GCE A/AS in 2008/09 with the score in 2011/12 (as published in the Performance Tables) Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Who Can be Funded Directly

22.  To have completed Self Assessment against criteria checklist and signed off by Chair of Governors and Principal  To have written to EFA Territorial Director stating that: - self –assessment been completed - signed off by Chair and Principal - college meets quality criteria - which year 14-16s direct recruitment will start Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Who Can be Funded Directly

23. 14-16 Data & Funding flow Autumn 2013ILR return – first 14-16 student numbers January 2014Collect data on Pupil Premium eligibility January 2014 2014/15 Student Number Statement includes 14-16 March 20142014/15 Allocations finalised and Funding Guidance April 2014First payment of 14-16 funding; profiled payments based a Financial Year (payments continue for 12 months)

24. 2013/14 Data returns – key changes for EFA funding:  Identify core aim  Record planned student-level hours: –Qualification hours –Non-qualification hours  Less emphasis on detail at aim level for funding purposes Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Key Data Implications (1)

25. 2013/14 Data returns – Learning Delivery Monitoring:  14-16 year olds - code 320 – Direct 14-16 provision - code 321 – Home educated  Traineeships- code 323 Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Key Data Implications (2)

26. Hours that are:  Directly relevant to the study programme  Planned, explicit in the Learning Plan or Timetable  Supervised and/or organised by the provider  Quality Assured by the provider  Within normal working pattern Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor What is Funded?

27. Hours that are delivered towards qualifications that are approved for teaching to 16-19 year olds under section 96 of the LSC act 2000 Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Qualification Hours

28.  Not counted towards a qualification  Informal certificates  Non-qualification activity  Tutorial purposes  Work experience/Work related activity  Volunteering/Community activities  Enrichment activities Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Non Qualification Hours

29.  Voluntary extra-curricular activities and clubs delivered during breaks or outside normal working pattern  Study that is homework or independent study/research that is not timetabled  Employment or Work Experience organised by anyone other than by or on behalf of the provider  Volunteering/Community activities that are not organised by or on behalf of the provider Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Not Funded

30. Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor What Else is Happening? Review queries raised in response to March allocations Funding Guidance 2013/14 published (early May) Review overall process  feed into 2014/15 allocations Ministerial Working Group – large programmes Specific review of Programme cost weightings for 2014/15 RPA and Study Programmes in place from autumn 2013…

31.  Any questions?  What are key issues for data and systems?  What areas do we need to review/refine?  What else can we do to simplify? Program Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Feedback

32. 01285 647500 | enquiries@capitafhe.co.uk www.capita.co.uk/fhe Welcome to Capita’s Further & Higher Education National Conference 2013 Delivering Solutions to Improve the Student Experience

33. Day 2 - Closing remarks

34. Improving the customer experience Nigel.Rayner@capita.co.uk

35. Capita Strategy Product Strategy Out of the back office Move to Mobile Partnership…in FE and HE Technology Strategy Representing you at national level The largest user group in further education Getting the basics right Consulting on Student Journey

36. Customer led presentations

37. Nigel Rayner Head of Further & Higher Education

39. 01285 647500 | enquiries@capitafhe.co.uk www.capita.co.uk/fhe Welcome to Capita’s Further & Higher Education National Conference 2013 Delivering Solutions to Improve the Student Experience