1. College finance conference, 9/10 June 2015 What do we know about Department for Education policy Julian Gravatt, Assistant Chief Executive, AoC Julian_Gravatt@aoc.co.uk @JulianGravatt http://www.aoc.co.uk/funding-and-corporate-services/funding- and-finance/reports-and-presentations

2. DFE policy What I’ll talk about The manifesto Action on coasting schools 500 new free schools New, rigorous qualifications School funding Issues in 16-18 funding

3. Timeline Summer 2015 General election (7 May 2015) Formation of new government (8 May 2015) Parliament returned (18 May 2015) Queens speech (27 May 2015) – 32 bills Education and Adoption Bill (2 June 2015) In-year fiscal review (4 June 2015) Budget (8 July 2015) Autumn 2015 Fast-tracking of conversions to academies Ministerial decisions as a result of spending settlement Schools and 16-18 funding announcements for 2016-17

4. Conservative manifesto - Schools Education (“schools”) Protection of school funding (5-16) Moves towards national funding formula Infant free school meals continue Implement curriculum changes English Bacc compulsory 500 more free schools Coasting schools to get new leadership Regional schools commissioners new powers No profit making schools College of Teaching in place Skills 3 million apprenticeships within 5 years Replace low value classroom courses A UTC within reach of every city

5. Coasting schools Education and Adoption Bill DFE intervention in coasting schools New law applies to maintained schools National replaces local intervention Inadequate means automatic conversion Reduction in consultation requirements Coasting schools Will be defined in regulations after consultation Rated as “requiring improvement” Not making progress Implication for colleges Any new DFE rules likely to be extended to colleges in some way

6. New schools Free schools 500 new ones in next five years Target is 900 by 2020 with 500,000 pupils.. About 5% of schools with 5% of pupils Pupil growth (primary +7%, secondary +11%) £21 bil school capital budget 2015 to 2021 Legally free schools are academies Charitable status governed by funding agreement 16-18 education c90 16-18 free schools, UTCs & studio schools with 12,000 pupils 8% fall in 16-18 population from 2015 to 2020 DFE policy that good & outstanding schools should expand

7. New curriculum, qualifications & performance Curriculum New national curriculum English Bacc compulsory (unclear how) New qualifications from Sept 2015 New GCSEs in English Lit, Lang and Maths New A-levels and AS-levels in some subjects Level 3 core maths New tech quals Performance tables from January 2017 (for 2015-16) Progress 8 measure in secondary schools New 16-18 tables with attaintment, progress and retention in 4 areas …plus additional measures (eg AAB, Tech Bacc, Level 3 maths etc)

8. DfE funds 4.3 mil primary and 2.7 mil secondary pupils via EFA and local authorities. Money based on pupil numbers & characteristics. In addition DFE funds 1.3 million 16-18 students, 0.1 mil under 19 apprentices and c 1 million early years places Big challenges in next few years are the growth in pupil numbers (7% primary, 11% secondary); the costs of moving towards a national funding formula; the pressure to increase teacher pay; the cost of high needs and the manifesto promises s Same old funding challenges £ bil Schools budget 41.2 16-18 7.0 All other DFE 5.5 DFE RDEL 53.7

9. School funding issues Early years Promise to expand early years places Possibility of a national formula Schools Flat cash per pupil (after 17 years of growth) Protection for pupil premium and infant meals Movement towards a national funding formula Dual academy / local authority system Schools are nationalised and have 75+% staff cost ratio High needs £5 billion budget (10%) spent on 200,000 pupils (2%) Councils will seek savings and more local places

10. 16-18 education – students and funding StudentsInstit 16,1718 FTPTH/Needs TotalAverage Colleges332519116105187552,274 Schools2,09941119233457218 Special Schools5523--141730 Comm & Charit28231936277273 Total3,265964141164371,306400 £ millionsProg Of which Disadv H/N Bursary Free Meals Total Colleges3,3724201101353,616 Schools2,05711020432,121 Special Schools1311372152 Comm & Charit2914814516305 Total5,7215772751966,193

11. 16-18 education - funding formula Total Programme Funding BandHoursTotal 5 540+£4,000 4 (*) 450+£3,300 3 360+£2,700 2 280+£2,133 1 < 279 Programme% Base 0% Medium 20% High 30% Specialist 60% Land-based 75% Disadvantage% 1 (GCSE Maths / English) £480 per GCSE 2 (27% most deprived) 8 to 33% extra Programme Cost Weighting Disadvantage Funding Area Cost Allowance (up to 20%) Student Numbers National Funding Rate per student Retention Factor (less than 1) ()

12. 16-18 education – where next? In 2015-16 Funding is driven by data about students (this year’s recruitment) FE college recruitment down c3% this year. Funding down in 2015 English and Maths funding condition is a significant challenge In 2016-17 and beyond Big question whether 16-18 is protected at all Forecast that 16-18 population will fall by 8% from 2015 to 2020 Savings simply by maintaining not raising participation % EFA will make some small technical savings in 2016-17 Further cuts either to rates or factors? Adjustments to lagged number system? Local commissioning? It takes time to adjust any formula involving schools