1. 16-19 Funding 2013/14 Update Princes Trust Delivery Partners June 2013

2. 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 18 th 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 Raising Participation Age Funding per student Study programmes Raising Participation Age

3. Applies to all 16-19 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 preparation or work experience Participate in value-added non-qualification activity 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 Study Programmes Funding per student Study programmes Raising Participation Age

4. 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

5. What is changing for 14-19? 14- 16 programme YC/ESF Traineeships Study Programmes Opportunities NEET remains at 10% Public Spending Pressures RPA Cohort decline Larger Provider Base Funding per student TechBacc

6. 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 ()

7. 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

8.  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

9.  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

10. 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 Prog Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor What is Funded?

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

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

13.  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 Prog Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Not Funded

14.  In some cases, where this best meets the assessed needs of the students and/or is strictly necessary to prepare them for their progression outcome, institutions will plan compressed programmes to allow students to complete a significant number of hours in a short period of time. These programmes will be funded at the standard funding rates based on the planned hours.  We would expect such compressed delivery to lead to excellent results, as demonstrated through qualification success rates and positive destinations. We would not expect this to lead to a student being funded for more than one full-time programme in an academic year. We will monitor the delivery and value for money of compressed programmes during 2013/14 and will decide whether to apply a funding cap to such provision in future accordingly. Prog Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Compressed Delivery

15.  Where a student progresses within an institution, the maximum of 600 hours funding is applied automatically and no student will be funded above this level.  Where a student moves onto a new institution, the level of funding depends on the number of hours the second institution will provide for the remainder of the academic year. In general, we would expect this second programme to be less than a full time full year programme. We would, therefore, expect to fund it in one of the part time bands. Prog Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Second study Programmes

16.  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

17.  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

18.  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

19. 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

20. 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

21. 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 )

22. 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

23. 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

24. 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

25. 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

26.  Any student 16-18 without a minimum grade C in English and/or maths must be working towards this level from 2014/15 Academic Year  Or that student WILL NOT be counted in lagged funding for 2015/16  DfE will publish a list of what counts as having a grade C – watch the bulletin  These students must enrol on a GCSE, Functional Skills, Free standing maths or ESOL  Functional Skills are a stepping stone towards GCSE and not an end in itself – if the student already has a FS at level 2 then must enrol on GCSE  We are producing reports to show you how you are doing before the summer Prog Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Condition of Funding M&E

27.  Identify core aim  Record planned student-level hours: –Qualification hours –Non-qualification hours  Less emphasis on detail at aim level for funding purposes Prog Cost Weighting Disadvantage Funding Area Cost Allowance Student Numbers National Funding Rate per student ( ) Retention Factor Key Data Implications (1)

28. TEAM Programme Example ActivityFunding Participation of 420 hours therefore part time band 3 370 to 449 hours £2,700 Retention factor assuming 90% retention is -0.95-£135 Programme cost weighting is 1.0£0 Disadvantage Block 1 (IMD) Could be anywhere between 8.4% (£227) and 33.6% (£907) per student £382(up to £612) Disadvantage Block 2 (Prior attainment) assumes below grade C in both English and maths – pro rata £548 (2x£274) Total funding over the 12 weeks (Area Cost Allowance of 0) £3,495