1. Post-16 Funding Allocations 2015/16 Allocations Timeline and Process Colin Stronach – Head of 16-19 Allocations November 2014

2. Post-16 Allocations 2015/16  Allocations Timeline and Data Sources  Funding Formula and Funding Bands  Business Cases and Infrastructure  Sub-contracting  Student Support

3. Allocations Timeline (1) DateEvent OctoberAutumn funding letter High needs exceptional cases received from LAs, ISPs and NMSS (17 th ) ILR R14 return date (FE - 24 th ) Autumn census return date (Schools - 29 th ) NovemberReview of high needs exceptional cases DecemberILR R04 return date (FE – 4 th ) Funding factors send out to FE institutions High needs budgets confirmed to LAs alongside the outcomes of the exceptional cases process

4. Allocations Timeline (2) DateEvent JanuaryFunding factors and student numbers to schools, Student numbers to colleges High needs places confirmed to institutions FebruaryILR R06 deadline (FE – 5 th ) Allocations to most institutions, including high needs place numbers MarchAllocations to any FE institutions where lagged numbers are based on R06 Business cases from institutions AprilEFA reviews business cases and informs institutions of outcomes

5. Data Sources (Schools/Academies) Autumn Census 2014 – autumn 2014 data for:  Lagged student numbers – i.e. how many students will be funded Autumn Census 2014 – end-year 2013/14 data for:  Programme Size (Full-time/part-time)  Funding factors – retention, programme cost weighting, disadvantage block 1 (economic disadvantage)  These factors determine the level of funding per student YP Matched Administrative Data, 2012/13 for:  Disadvantage block 2 (GCSE English and maths grades)  Affects the level of funding per student

6. Data Sources (FE Institutions) ILR R04 December 2014 and/or R06 February 2015 for:  Lagged student numbers – how many students will be funded ILR R14 October 2014 for:  Programme Size (Full-time/part-time)  Funding factors – retention, programme cost weighting, disadvantage block 1 (economic disadvantage)  These factors determine the level of funding per student YP Matched Administrative Data, 2012/13 for:  Disadvantage block 2 (GCSE English and maths grades)  Affects the level of funding per student

7. Data Sources (Special Schools and Special Post-16 Institutions) Special Schools/Special Academies  Agreed high needs place numbers for 2015/16  Funded at £10k per place for post 16 learners, as it is for pre 16 Special Post-16 Institutions  Student numbers will be based on the higher of 2014/15 R04 data and the agreed high needs place numbers for 2015/16  Third year of funding on formula, so expect to use actual data for programme size and factors

8. Funding Formula Headlines  No significant change to formula!  Block 2 disadvantage rate confirmed as £480 (full-time) and equivalents  National rate per student to be confirmed in January  18yo funding reduction embedded – protection ends  Transitional protection ended  Formula Protection Funding applied as explained later in this presentation

9. Funding Bands (1)  2015/16 allocations use 2013/14 data – the first time we’ve used data post-funding review  Therefore we won’t uprate band 4 to band 5  So, for 2015/16 allocations:  Band 5 will only include 16 and 17 year olds with 540+ hours in 2013/14  Band 4 will include all 18+ year olds with 450+ hours and all 16 and 17 year olds with 450-539 hours  18+ year olds with high needs will be treated in the same way as 16/17 year olds

10. Funding Bands (2) BandAnnual hoursAge 5540+ hours16 and 17 year olds Students aged 18 and over with high needs 4a450+ hoursStudents aged 18 and over who are not high needs 4b450 to 539 hours16 and 17 year olds Students aged 18 and over with high needs 3360 to 449 hoursn/a 2280 to 359 hoursn/a 1Up to 279 hoursn/a

11. Formula Protection Funding  FPF in 2015/16 will be based on 2013/14 (not 2014/15) as the baseline. This will meet our commitment to protect funding in relation to changes to the methodology  The calculation will then be similar to that in 14/15 – ie FPF can never be greater than the amount in 13/14, but may be less  This means some institutions will get an increase in FPF compared to 14/15 (see following slides)

12. £4700 £4,500 £4,000 £500 (1) Formula less than 13/14 in 14/15 2 3 4 14/15 formula earned less same FPF 15/16 1.Formula is less than 13/14 and 14/15 – FPF stays the same as 14/15 2.Formula is the same as 13/14, FPF the same as 13/14 3.Formula more than 13/14 and 14/15 less FPF 4.Formula more than 13/14 and 14/15 no FPF £500 £200 1 £500 12/13 13/14 14/15 15/16 15/16 15/16 15/16 Formula 12/13, 13/14, 14/15 Formula 15/16 FPF

13. £4700 £4,500 £4,000 £500 (2) Formula greater than 13/14 in 14/15 3 4 1 14/15 formula earned more so less FPF 15/16 1.Formula is less than 13/14 and 14/15 FPF is the same as 13/14 2.Formula is the same as 13/14 FPF the same as 13/14 3.Formula more than 13/14 and 14/15 FPF is less, to equal the funding per student to the 13/14 figure 4.Formula is greater than 13/14 and 14/15 no FPF £100 £500 £200 £500 2 12/13 13/14 14/15 15/16 15/16 15/16 15/16

14. Business Cases  Business cases can be made for cases of major data error  Post-allocations – so cases will need to be sent in during March, reviewed by EFA in April  Cases only considered if following thresholds met:  5% or 50 - student number cases  5% or £250k - funding for FT/PT, programme weighting, retention, disadvantage  Case by case for other categories, such as infrastructure changes

15. Infrastructure – New sixth forms New school/academy sixth forms in existing schools  New quality threshold – good or outstanding  Year 1 – one third of capacity  Year 2 – double actual recruitment in year 1  Year 3 – lagged numbers  …but we will consider exceptional cases for a different profile

16. Sub-contracting – 2015/16  EFA position remains – whole-programme distance sub- contracting should be by exception only  Applications process not repeated for another year – institutions will need to assure themselves that subcontracted provision is compliant before entering into such arrangements  EFA will request sample checks by auditors  Refresh of the controls guidance by the end of December 2014

17. Student Support 2015/16  No change to allocations method for Bursaries, Residential Bursaries and Care to Learn  Vulnerable Bursary (VB) claims continue to be managed centrally via Learner Support Service  Free Meals 2015/16 allocations will use R04 data collection (subject to integrity of data)  Residential Student Support Scheme rules remain unchanged but administration will move to EFA  Learner Support Service contract currently being re-tendered

18. Post-16 Funding Allocations 2015/16 Allocations Timeline and Process Colin Stronach – Head of 16-19 Allocations November 2014