Supporting Young People to Succeed
- Challenges and Priorities for
2011/12 Onwards
Peter Lauener
Chief Executive, Young People’s Learning Agency
15 October
Tertiary Colleges Group Seminar
Championing Young People’s Learning
Championing Young People’s Learning
Agenda today……
• YPLA Update
• Young People’s Learning – what the facts
tell us
• Funding and Allocations for 2011/12
Championing Young People’s Learning
YPLA - three roles
Funding and supporting academies……
• Currently c 300 academies
• Budget for 2010-11 is £1.7 billion
Financial support for young learners……
• Education Maintenance Allowances for around 600,000 young
people, others get support for e.g. childcare and dance and
drama awards.
• The budget for 2010-11 is £663m
Funding learning opportunities for 16-19 year olds…..
• and allocations to schools, colleges and other providers,
including young offenders’ institutions.
• Around 1.4 million places, costing £6.4 billion in 2010-11
Our running costs are 5 pence for every £10 that we spend
Championing Young People’s Learning
YPLA objectives
• To deliver efficient systems for learner support
• To enable independent autonomous institutions of all
kinds to flourish
• To support rapid growth in the number of academies
• To develop a nationally consistent and transparent
funding formula post 16 based on individual need and
learning aims
• Publish, publish, publish…….to inform market provision
and individual choice
Championing Young People’s Learning
YPLA objectives (contd)
• To support local authorities in the exercise of their
local strategic role
• To ensure budgetary control across all budgets and
high standards of financial assurance
• To minimise the overhead that the YPLA takes in its
own operating costs (currently 0.5%)
• To support equality of opportunity for the 2 million
customers of our programmes and for our own staff
Championing Young People’s Learning
YPLA - Progress to date
• Accurate and timely payments to academies,
colleges and all types of providers
• Paying 800 colleges / third sector providers directly
– a change implemented in three weeks
• Paying 50% more academies than we were 2
months ago – with systems for paying new
academies up and running from 1 September
• EMA is running smoothly – applications processed
quickly with no queues
• Business Plan for 2010/11 agreed and on website
• Board brings cross-sector influence, expertise and
commitment
Championing Young People’s Learning
Young people’s
participation….Taking
the long term view
Championing Young People’s Learning
Changes in Young People’s Learning
over a Generation (1)
Participation in learning
100
90
Proportion (%)
80
70
60
50
40
Age 16
Age 17
30
Age 18
Age 16-18
20
10
0
Year
1985
1997
2009
Championing Young People’s Learning
Changes in Young People’s Learning
over a Generation (2)
Proportion (%)
80
70
60
50
Achievement by 15 year olds of 5 GCSEs at A*-C
or equivalent
Male
Female
Total
40
30
20
10
0
Year 1985
1997
2009
Championing Young People’s Learning
Changes in Young People’s Learning
over a Generation (3)
Employment
45
Proportion (%)
40
35
1985
1997
2009
30
25
20
15
10
5
0
Age 16
Age 17
Age 18
Age 16-18
Championing Young People’s Learning
Changes in Young People’s Learning
over a Generation (4)
Proportion (%)
25
20
Not in education, employment or training
1985
1997
2009
15
10
5
0
Age 16
Age 17
Age 18
Age 16-18
Championing Young People’s Learning
Where 16-18 year olds study
30
25
20
15
10
5
0
Schools/ academies
Independent
SFC
GFE
WBL/ EFT
HEI
Championing Young People’s Learning
16-18 year olds studying at Level 3
20
18
16
14
12
10
8
6
4
2
0
A/AS
school
A/AS SFC A/AS GFE VQ school
VQ SFC
VQ GFE
App WBL
Championing Young People’s Learning
How 16 year olds without Level 2
achieve Level 2 by 19
GCSE
NVQ/VRQ
Apprenticeship
Level 3
Championing Young People’s Learning
While participation has increased, the number
disengaged has edged down but is still stubbornly high……..
Championing Young People’s Learning
NEET
Most young people are never NEET: most
NEET episodes last fewer than six months
Source: Audit Commission report: Against the Odds, July 2010
Championing Young People’s Learning
Long-term effects of being NEET on
young men
Source: Audit Commission report: Against the Odds, July 2009
Championing Young People’s Learning
Costs of disengagement
A young person NEET in 2008 will cost an average of
£56,000 in public finance costs before retirement age (for
example, welfare payments, costs to health and criminal
justice services, and loss of tax and national insurance
revenue).
Also £104,000 in opportunity costs (loss to the economy,
welfare loss to individuals and their families, and the impact
of these costs to the rest of society).
The entire 2008 group of young people NEET could cost
over £13 billion to the public purse and £22 billion in
opportunity costs before they reach retirement age.
Source: Audit Commission report: Against the Odds, July 2009
Championing Young People’s Learning
So how will we now approach the
allocations round for 2011/12?
Championing Young People’s Learning
2011/12: Principles
• Funding follows learner choice
• Independent providers
• Local authority leadership role, exercising
strategic influence, statutory duty to secure
provision
• Stream lined, simplified system, reduced
bureaucracy
Championing Young People’s Learning
2011/12: Key features
• Lagged Learner Number basis for funding
• YPLA determines formula-led allocations
• Additional places for growth or gap filling
• No in-year or end-year adjustment if grant-funded
or equivalent (for example, schools, academies,
colleges) except in exceptional circumstances
• Light touch in-year contract adjustment for others
(for example, independent training providers,
ISPs)
Championing Young People’s Learning
2011/12: Roles and Responsibilities
The Role of Local Authorities:
• Statutory duty to secure enough suitable education and
training for young people age 16-19 or up to age 25 if
subject to learning difficulty assessment (ASCL duties
remain unchanged)
• Identifying gaps, enabling new provision, developing the
market - working with YPLA to maintain control of the
available budget
• Local statement of priorities
• Ministerial Advisory Group considering key strategic role of
local authority in education and children’s services (ages 0
– 19)
Championing Young People’s Learning
2011/12: Roles and Responsibilities
The role of YPLA:
• Data analysis and funding calculations
• Funding and financial assurance of colleges and
other providers
• Strategic analyses of performance and
participation by providers and within area
Championing Young People’s Learning
Allocations 2011/12: Draft Timeline
November/December
2010
DfE issues grant letter confirming budget and key
messages
November 2010
Local authorities advise YPLA of strategic priorities for
their local area
January 2011
YPLA confirm to existing providers the volume of activity
to be funded in 2011/12 [NB: not cash at this stage]
February 2011
YPLA provides information to local authorities on
aggregated provisional allocations (volumes) and confirms
any additional numbers to be funded outside the lagged
approach
Mid March 2011
YPLA sets national base rate based on total volume of
provision to be funded
End March 2011
Final allocations confirmed to all providers
May 2011 onwards
YPLA issues funding agreements to providers for
signature
Championing Young People’s Learning
Local Statement of Priorities
• LAs lead – can be joint
• Key points from strategic and local analyses and
partnerships
• Overall position and trends on participation; attainment
and provider quality: 2-3 year horizon
• Developed with 14-19 partnerships - but also a
challenge to providers
• Significant gaps in provision – evidence based
• (If appropriate) proposals for specific structural
changes eg
•
•
•
•
Adding a sixth form to a school
Opening/closing schools, colleges or other providers
Merger or de-merger of institutions
Championing Young People’s Learning
Developing new specialist provision
2011/12: Funding and Contracting
• The YPLA will fund directly academies, colleges,
private and charitable providers, and will fund
local authorities for schools with sixth forms and
some other budgets (e.g. Education Business
Partnerships and Young Apprenticeships)
• Private Providers that deliver provision across
YPLA regional borders will receive a single
Contract for provision
Championing Young People’s Learning
2011/12:
How lagged funding works
Championing Young People’s Learning
Worked Example
Learner Numbers
F05:F01 ratio –
2009/10
LR01 return –
December 2010
Data
returned
Ratio
Learner
Numbers
(2010/11)
A – FE College
1500
1.2
1800
B – School sixth form
400
n/a
400
School census –
[November 2010]
Lagged learner
numbers
Championing Young People’s Learning
Worked Example
Volume of Provision
Based on historical
data
Learner
Numbers
SLN/learner
ratio
SLN to be
funded
A – FE College
1800
1.4
2520
B – School sixth form
400
1.5
600
Championing Young People’s Learning
Worked Example
Provider Factor
Based on historical data
SLN to be
funded
Provider
factor
SLN
weighted by
provider
factor
A – FE College
2520
1.15
2898
B – School sixth form
600
1.04
624
Championing Young People’s Learning
Worked Example
Total volumes (illustrative only – will use
national figures)
Total volume of learning
Lagged data
College A
2898
School B
624
Academy C
470
Provider D
238
New provision
New Provider X
65
New Provider Y
105
Total
4230
Total volume =
SLN multiplied
by provider
factor
170
Overall volume to be funded = 4400
Championing Young People’s Learning
Worked Example
National Rate (illustrative only – will use
national figures)
Total funding available for participation (F)
Total volume of provision (V)
National Rate (F/V)
£12,980,000
4400
£2950/SLN
Note: all figures purely illustrative!
Assumes a single rate for all provision – could vary
Championing Young People’s Learning
Worked Example
Final Allocation
SLN
weighted by
provider
factor
National
Rate
Allocation
A – FE College
2898
£2950
£8,549,100
B – School sixth form
624
£2950
£1,840,800
All figures purely illustrative
Assumes a single national rate for all provision
Championing Young People’s Learning
Worked Example
Comments
• Could have a single national base rate for all provision
or different rates for schools and FE as currently depending on government policy
• Approach to convergence to national base rate to be
agreed
• Transitional protection may be required to reduce
levels of turbulence
Championing Young People’s Learning
19-24 LLDD
• In 2011 / 12 YPLA will fund ISPs direct
• Work in 201/11 to develop, model and test a new
approach to bringing together the main streams of
funding for learners with LDD – SEN block grant,
additional learning support, funding for provision
in independent specialist providers
• Local authority duty to arrange learning needs
assessment for young people with statement of
special education needs
Championing Young People’s Learning
2011/12 Allocations: Issues
• Levers for local authorities
• Responsiveness of the lagged approach
• Addressing strategic gaps
• Mergers and restructuring
• Appeals
Championing Young People’s Learning
And finally, the big picture……..
•
October 20th Spending Review results!
•
Education White Paper late autumn – to include conclusions on LA role
•
Allocations guidance to be published for consultation post White Paper
•
Qualification pathways and the Wolf review of vocational education
•
Learners with learning difficulties and disabilities and the Sarah Teather
review of special needs provision.
•
System challenges for all partners
•
 Continue to improve the learning offer and raise participation
 Narrow the gap in attainment
Challenges for YPLA:
 Growing number of academies
 Supporting local authorities leadership role for 16-19
 Simplifying funding for 16-19
Championing Young People’s Learning