SFA funding reform update for 2013/14 1 March 2013 Nick Linford Managing Director of Lsect Editor of FE Week New 19+ ‘simple’ and ‘streamlined’ funding First edition published in October Second edition published February Third edition published June Funding rules published end of Jan ‘Funding Handbook’ due soon… Implementation from Aug 2013 SFA funding formula Current (since 08/09) Learner responsive (LR) Employer responsive (ER) SLN Guided Learning Hours (SLN GLH) Standard Learner Numbers (SLNs) National funding rate National funding rate Unweighted co-funding Weighted co-funding Provider factor Monthly in-year funding Retention and achievement in success factor Achievement 25% (of main qual for apprenticeships) New (from 13/14) Single Adult Skills Budget and formula Cash qualification rates based on a ‘QCF matrix’ Disadvantage and area cost uplift Monthly in-year funding Achievement value 20% (half available for Job Outcome Payment) 2013/14 ‘Simplified’ Funding Rates No change from June 2012 doc 05-02-13 Return of bands, but funding by QCF credit Funding per credit (from learning rates matrix) The bands based on pounds per QCF credit Average of £44 per credit Example NCFE qualifications Learning aim Qualification title 50029848 Certificate in Working with People with Mental Health Issues 50083429 Certificate in Equality and Diversity (QCF) 10062269 Certificate in Safe Handling of Medicines Next year This year (19+ classroom) Increase SLN GLH SLN PWF PWF NFR 2012/13 New matrix rate 120 0.27 B 1.12 £2,615 £781 £811 £30 4% 100 0.22 A 1 £2,615 £581 £724 £143 25% 120 0.27 B 1.12 £2,615 £781 £811 £30 4% ‘Simple’ funding formula for 2013/14 QCF Rate Disadvantage from x x uplfit matrix Note: Area cost uplift =£ Apprenticeship qual rates unchanged Achievement worth 20% Job outcome payment only for eligible learners, who withdraw by get a job, minimum of 16 hours per week for 4 weeks, worth 10% (ie 50% of achievement) Monthly in-year funding, with double payment in month one Apprenticeships “Given the major change in the longer term, it as been decided not to proceed in 2013/14 AY with applying the simplified approach to setting Apprenticeships rates to existing frameworks that is being adopted for wider FE qualifications. This approach will, however, be applied for new Apprenticeship frameworks where these are developed. This will ensure that all new funding rates will in future link more transparently to the cost of the component qualifications, with account taken of the additional activities involved in Apprenticeship delivery. All other simplification changes to the system will continue to be made.” Skills Funding Statement Dec 2011 Q&A