1. 16-19 Funding Formula for 2013/14 Shadow Allocations 2012/13
Venue
Date 2012

2. Today’s agenda Introduction Shadow Allocations and the toolkit –
Welcome
Supporting Government Policies
Shadow Allocations and the toolkit –
Programme Funding
Disadvantage
Protecting Funding
High Needs Funding
Student Support
Next Steps

3. Objectives By the end of the session you will :
understand the recent developments in government policy and how these are supported by funding reform
understand how the shadow allocation has been calculated and the supporting toolkit
have the opportunity to ask questions and provide feedback around the changes to the formula

4. Autonomous Professional Education Institutions
What is changing?
Autonomous Professional Education Institutions
Funding per student
Study
programmes
Raising Participation Age

5. Raising Participation Age
The participation age will be raised to:
For 16 year olds -end of the academic year in which they are 17 from Summer 2013
For 17 year olds to their 18th birthday from Summer 2015
Applies to all those resident in England
Enforcement deferred
What counts as participation?...
full time education (school, college or independent provider for at least 540 hours)
home education
Apprenticeship
full-time work including at least 280 hours of education
Funding per student
Study
programmes
Raising Participation Age

6. Raising Participation Age
Study
Programmes
What are Study Programmes?...
Applies to all year olds
Students will take either academic programme or a substantial vocational qualification recognised by employers – these must help them secure skilled work or a university place
Where appropriate students will also take part in work experience
Students who don’t have GCSEs grade C in English and maths at 16 will continue to study these subjects
Students who aren’t able to study a substantial qualification will take a programme of work experience and continue to develop their numeracy and literacy skills
Funding per student
Study
programmes
Raising Participation Age

7. Raising Participation Age
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 GSE reform
Funding
per student
Funding per student
Study
programmes
Raising Participation Age

8. What is
Changing?
Independent Specialist Providers, Special Schools, Non-Maintained Special Schools will now be funded through the National Funding Formula programme funding

9. What hasn’t changed?
Academies, colleges, and providers will still get their funding from the Education Funding Agency
Maintained schools – funding via the Local Authority
Funding system that is based on the data returned in census for schools/academies or Individualised Learner Record (ILR) for colleges and other FE providers
We still have a lagged student system…
…what is delivered in the current year, is the basis for funding in the next year

10. Shadow Allocations
for 2012/13

11. Shadow Allocation
Shows how the funding formula is calculated against data used in the 2012/13 allocation
Each education institution gets a toolkit:
a shadow allocation statement and technical note
a shadow allocation spread sheet and Field Guide
Gives an opportunity to ask questions or comment on the new formula
Helps you to plan for any change resulting from the new funding formula
Allows for feedback and then the arrangements to be confirmed for 2013/14
Allows us all to prepare for accurate allocations for 2013/14
ISPs will get their shadow allocation statement later for illustrative purposes based on averages

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

13. Program Cost Weighting National Funding Rate per student
Student numbers
Program Cost Weighting
DisadvantagFunding
Area Cost Allowance
National Funding Rate per student
Retention Factor ( )
Student Numbers
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 shadow allocs and 2013/14 Band 4 = full time
The bottom band treated as Full Time Equivalent (FTE), that is a proportion of 600
Age groups and are shown separately on the statement but treated the same
Student status
Hours required per year
Full time
540 +
Band 4
Band 3
Band 2
Band 1
up to 280

14. Program Cost Weighting National Funding Rate per student
The National Funding Rate
Program Cost Weighting
DisadvantagFunding
Area Cost Allowance
Student Numbers
Retention Factor ( )
National Funding Rate per student
Single National Full Time funding rate per student expressed in £
All year olds in sixth forms, colleges and independent providers are funded at the same national funding rate
Out of scope Youth Contract, Young Offenders, 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 shadow allocation is £3,900
The National Funding Rate for 2013/14 will be confirmed as part of the Spending Review decisions yet to be made

15. Program Cost Weighting National Funding Rate per student
Part Time Funding rates
Program Cost Weighting
DisadvantagFunding
Area Cost Allowance
Student Numbers
Retention Factor ( )
National Funding Rate per student
A FT 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 ( hours) we will for 13/14 fund at the FT 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
Student Number status
Hours funded at…
Part time Rate
Full time
600
£3,900
Band 4
Band 3
405
£2633
Band 2
320
£2080
Band 1
% of 600
% of £3,900

16. Program Cost Weighting National Funding Rate per student
Retention Factor
Program Cost Weighting
DisadvantagFunding
Area Cost Allowance
Student Numbers
National Funding Rate per student ( )
Retention Factor
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%
Number of students completed
Number of students started
Student Retention and funding
Funding
Leaves before qualifying period
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

17. National Funding Rate per student Programme Cost Weighting
DisadvantagFunding
Area Cost Allowance
Student Numbers
National Funding Rate per student
Retention Factor ( )
Programme Cost Weighting
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
Still under review- potential to change for 13/14
Cost Weighting Category
2012/13 average
Proposed 2013/14
Base
1.08
1.0
Medium
1.28
1.2
High
1.60
1.5
Specialist
1.72
1.6

18. National Funding Rate per student
Disadvantage Funding
Program
Cost Weighting
Area Cost Allowance
Student Numbers
National Funding Rate per student
Retention Factor ( )
Disadvantage Funding
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

19. National Funding Rate per student
Disadvantage Funding
Program
Cost Weighting
Area Cost Allowance
Student Numbers
National Funding Rate per student
Retention Factor ( )
Disadvantage Funding
Economic
Deprivation
Block one:
Based on student’s home postcode
Deprivation is calculated using Index of Multiple Deprivation 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%
Additional categories are no longer eligible
Care Leavers attract a standard uplift- rate

20. National Funding Rate per student
Disadvantage Funding
Program
Cost Weighting
Area Cost Allowance
Student Numbers
National Funding Rate per student
Retention Factor ( )
Disadvantage Funding
Prior Attainment
Block two:
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 shadow allocations =£450
Flat rate for part time bands 2 and 3 = £274
Pro rata as per programme costs for band 1
Should not assume these rates for 13/14
Used to be graduated payments based on student’s grades
Now only a flat rate based on non-achievement of grade C
Example
Maths below grade C
English below grade C
Funding attracted per student (£)
Student 1
yes
*Rate x1
Student 2
Student 3
*Rate x2

21. ( ) ( ) Area Cost Allowance
Program Cost Weighting
DisadvantagFunding
Student Numbers
National Funding Rate per student
Retention Factor ( )
Area Cost Allowance
Program Cost Weighting
DisadvantagFunding
Student Numbers
National Funding Rate per student
Retention Factor ( )
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)
Area
Uplift
Oxfordshire 7%
Essex (London fringe) 6%
Kent (London fringe)
Bedfordshire 3%
Hertfordshire (non-London fringe)
Cambridgeshire 2%
Hampshire and Isle of Wight
West Sussex non-fringe 1%
Area
Uplift
Inner London
20%
Outer London
12%
Berkshire
Crawley
Surrey
Buckingham (London fringe)
10%
Hertfordshire (London fringe)
Buckinghamshire (non fringe) 7%

22. Program Cost Weighting National Funding Rate per student
TP from 11/12
The new funding formula
…plus extras (if applicable)
Program Cost Weighting
DisadvantagFunding
Student Numbers
National Funding Rate per student
Retention Factor ( )
Area Cost Allowance ?
Formula Protection Funding
Total Programme Funding ?
High Needs Students ?
Student Support Funding
Student Support Funding ? ? ?

23. ? ? ? 11/12 Transitional Protection
For Shadow allocations the transitional protection amount is the same as that included in the 12/13 allocation
For 2013/14 we will remove the next tranche of transitional protection resulting from the funding changes introduced in 2011/12 as previously advised
TP from 11/12
Formula Protection Funding
High Needs Students
Student Support Funding ? ? ?

24. ? ? ? 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.
For shadow allocation calculated by comparing funding per student allocated for 2012/13 (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
For shadow allocations a 10% cap has been applied- no institution would gain by more than 10% funding per student
TP from 11/12
Formula Protection Funding
High Needs Students
Student Support Funding ? ? ?

25. ? ? ? Formula protection funding (FPF) For example:
Funding per student at St Nowhere College is calculated at £4500 per student in 2012/13, the new methodology gives them £4000 per student
FPF of £500/student is included in the 2012/13 shadow allocation
For 2013/14 a similar calculation will be carried out using updated data, amount will vary with both volumes and data
TP from 11/12
Formula Protection Funding
High Needs Students
Student Support Funding ? ? ?

26. ? ? ? 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
Formula Protection Funding
High Needs Students
Student Support Funding ? ? ?

27. ? ? ? High Needs Students (HNS) The place – EFA Funded
Element 1 This is the standard 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
Formula Protection Funding
High Needs Students
Student Support Funding ? ? ?

28. HNS Timeline
End Sept LAs confirm 2012/13 HNS student numbers and forecast 2013/14 High Needs places.
End of Oct EFA complete data collection and checks, including clarification of forecasts which will impact on individual institutions. LAs will confirm amended forecasts where applicable.
End Nov/early Dec EFA will share 13/14 HNS forecasts with LAs and institutions.
End January , learner number statements will be issued to all institutions.
End of March, institutions have received their funding allocation for 2013/14. This will include Element 1 funding for HNS on a lagged basis, and Element 2 on the basis of LA commissioning.
LAs will have completed the negotiations for Element 3 with institutions prior to the start of the academic year. T
TP from 11/12
Formula Protection Funding
High Needs Students
Student Support Funding ? ? ?

29. ? ? ? Student Support Funding Which includes
Bursaries to support participation and attainment
Residential Bursary Funds
Not included in the shadow allocation
Care to Learn
Dance and Drama Awards
TP from 11/12
Formula Protection Funding
High Needs Students
Student Support Funding ? ? ?

30. ? ? ? Residential Care Standards Funding Care Standards Funding
Funding to contribute to the costs of the standards required for residential provision to meet the care standards legislation
This is included in the shadow allocation and will be payable on exactly the same basis as now but shown in cash not a factor
£12,252 per institution plus
£817 per student
TP from 11/12
Formula Protection Funding
High Needs Students
Student Support Funding ? ? ?

31. What is available
Support and guidance on our website:
Powerpoint presentation
Written guidance
We welcome your questions and comments on the shadow allocation to inform 2013/14 allocations where appropriate
(CUSTOMISE) -

32. Where are the documents
Shadow Allocation and Technical Note
Shadow Allocation Calculation Toolkit and Field Guide
will be available for you to download from the Information Management Portal at:
We will send schools and FE institutions an alert to tell them when Shadow Allocations are available
Academies will be notified via the EFA Academies Bulletin

33. Next steps
End October 12/13 Shadow Allocation documents ready to download
4th October School Census date (deadline 31st October)
16th November 12/13 Shadow Allocations questions and comments deadline
16th November ILR 11/12 deadline
6th December ILR R04 12/13 deadline
January 13/14 Student Number Statement issued to providers
31st March 13/14 Allocations finalised and EFA annual statement published