FUNDING POLICY WATCH. Funding Guidance Funding Rates for 2008/09 SUMMARY. January Policy and Curriculum 2008/2
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1 Policy and Curriculum FUNDING POLICY WATCH 2008/2 January 2008 Funding Guidance Funding Rates for 2008/09 In December 2007 the LSC released their Funding Rates document ( It forms the first part of their Funding Guidance for 2008/09. It provides information on the funding rates for all three new funding models, and on the Standard Learner Number (SLN) funding values for all 3 models. It also provides information on the provider factor and additional learning support elements of the funding formula. This Funding Policy Watch summarises the document in 10 pages. SUMMARY From 2008/09 activity will be funded via 3 discrete models: model 6th Forms, Entry to Employment and year old in FE Adult Learner Responsive model Employer Responsive model Adult FE Adult Apprenticeships and Train to Gain The formula LSC funding = (SLNs x Funding Rate x Provider Factor) + Additional Learning Support (ALS) From 2008/09 funding rates for qualifications will be stated in SLN terms (they were previously been stated by learning aim in pounds) SLNs have funding rates for each model. I.e. per SLN. This Each provider will have a provider factor, different for x will convert SLNs into actual funding. x each of the 3 + funding models, reflecting individual profile and factor. Different rules apply for low cost Additional Learning Support (ALS) claims (under 5,500) and high cost claims (above 5,500). Different rules apply for each of the 3 funding models. Created by Sian Owen Authorised by Steve Besley January 2008 Page 1 of 10
2 ELEMENTS OF THE FORMULA IN DETAIL COMMON TO ALL THREE MODELS SLNS Each learning aim has an SLN value. This reflects the size of the learning aim. Learning aims are either funded at a listed SLN, or are unlisted. All learning aims within the Employer Responsive funding model are listed. Listed SLN values - The values for listed learning aims are set for a qualification irrespective of the time taken to complete. The same SLN value is payable irrespective of the duration of the learning aim. The SLN values (expressed in terms of glh) for the main individually listed learning aims are set out in Annex A. The SLN values for all listed learning aims may also be found in the Learning Aims Database (LAD). These are stated in either glh or SLN, depending on the funding model. Where the values are expressed in glh, the SLN values are calculated by dividing the glh by 450. Unlisted learning aims - Where the number of glh that colleges and providers use to deliver a learning aim varies significantly, the appropriate SLN value is determined from the planned glh recorded in the ILR. For schools all learning aims are listed. Some types of learning aim (such as basic skills) are unlisted due to particular Government and LSC policies. To determine the SLN for a particular learning aim that is not individually listed, the provider should determine the total planned glh for the learning aim Where the values are expressed in glh, the SLN values are calculated by dividing the glh by 450. Funding rates Funding rates are different for each model. See Annex B. Provider Factor Each provider will have a different provider factor for each of the 3 funding models which represents their individual profile and characteristics. The provider factor incorporates programme weightings, disadvantage weightings, area costs, short programme modifier, and a success factor. LSC will inform centres of their provider factor. Disadvantage uplift Disadvantage uplift affects all three funding models. In all funding models, one part of this is based on the Index of Multiple Deprivation 2004 (IMD2004). In the and Learner Responsive models, there are additional categories of disadvantaged learners who qualify for disadvantage uplift independently of IMD2004. Area-costs uplift See Annex C for the area costs uplift for 2008/09. Created by Sian Owen Authorised by Steve Besley January 2008 Page 2 of 10
3 ELEMENTS OF THE FORMULA IN DETAIL BY MODEL FUNDING MODEL Scope - The model covers all provision for all learners in that age range in school sixth forms, colleges and other providers following further education programmes (and those undertaking Employed Apprenticeships, for planning and budgeting purposes). Programme-weighting factors - There are seven programme-weighting factors in the model. These can be found for each qualification on the LAD. See Annex D for the list of programme weighting factors. SLN Values for Specific Learning Aims - The SLN values (expressed in terms of glh) for the main individually listed learning aims are set out in Annex A. Changes have been made to some SLN values for all provision funded using the model. Changes to the Edexcel aims are shown in Annex E. Particularly important changes to Edexcel qualifications are: Evidence shows that GCE AS/A2 and A Level General Studies is delivered in substantially fewer glh than the 2007/08 listed rate implies. So in 2008 GCE AS/A2 level General Studies is listed at 36 glh. GCE A Level General Studies is listed at 72 glh. The listed rates for GCE AS/A2 and A Level Critical Thinking are not being adjusted in 2008/09, as the glh is not sufficiently consistent around the average. As with all other qualifications, the LSC will continue to monitor this on an annual basis. Edexcel National Diplomas and OCR Extended National Diplomas are listed at 1080 glh in 2008/09. The change in funding methodology goes some way to reducing this impact. The listed rates for Edexcel National Certificates and National Awards and the OCR National Diplomas and National Certificates are not being adjusted in 2008/09. Applied GCE AS/A2 Levels are listed at 180 glh and Applied GCE A Levels are listed at 360 glh. Double Award Applied GCEs are not affected by this change. This will be subject to further review for 2009/10. Annex F details the funding arrangements for the new Diplomas. Entitlement - The entitlement has a listed SLN value of 114 glh. This does not include any SLN value for Key Skills, which are funded entirely outside of the entitlement from 2008/09. The sum of the learner s SLN including the entitlement SLN value will be capped at 1.75 in any one academic year. Key Skills and Functional Skills - Key Skills and Functional Skills are funded separately from the entitlement funding in 2008/09. Each core Key Skill or Functional Skill has a listed SLN value based on 36 glh. Specialist Colleges - The 10 per cent uplift for specialist colleges is removed from 2008/09. The necessary additional costs associated with this type of provision are reflected in the programme weightings, which now include an additional value, G. Created by Sian Owen Authorised by Steve Besley January 2008 Page 3 of 10
4 ADULT LEARNER RESPONSIVE FUNDING MODEL Scope of the Model - The scope of the adult learner-responsive model is the provision that was branded as further education (FE) adult provision in 2007/08, apart from those employer-based national vocational qualifications (NVQs) that were delivered within FE mainstream provision. Funding rates - The SLN values in the Adult Learner Responsive model are currently identical to those in the model. See Annex A and E. Tuition Fees - The tuition fee assumption will be increased in 2008/09 to 42.5 per cent. Programme weightings - Programme weightings are the same in the Adult Learner Responsive model as in the model. See Annex D. Area Costs - Area costs are the same in the Adult Learner Responsive model as in the model. See Annex C. Disadvantage - Disadvantage is the same in the Adult Learner Responsive model as in the model. Specialist Resources Programme Weighting - For 2008/09, a specialist resources programme weighting will apply to certain qualifications in the agriculture and horticulture sector, for a certain group of providers who prove to have the necessary resources to deliver the qualifications in a specialised way. A new programme weighting factor G will be available. Created by Sian Owen Authorised by Steve Besley January 2008 Page 4 of 10
5 EMPLOYER RESPONSIVE FUNDING MODEL Scope - The scope of the employer-responsive model is the provision that, in 2007/08, was being delivered as Apprenticeships, Train to Gain and national vocational qualifications (NVQs) delivered wholly or partially in the workplace within mainstream further education (FE). It does not include learners on Programme-led Apprenticeships (PLAs) who were funded through FE in 2007/08. The Apprenticeship provision will have a separate budget within the employerresponsive model. For 2008/09, the provision will be planned and managed using the model, but funding will be calculated and paid using the employer-responsive model. Funding rates - The detailed SLN values for employer-responsive provision will be confirmed in January. This guidance sets out some of the expected key changes to those rates. Train to Gain Funding for NVQs delivered wholly or partially in the workplace (which were previously funded through FE) and NVQs in the workplace (previously funded through Train to Gain) are being brought together. Funding for this provision will be aligned in 2008/09. The same SLN values apply to all NVQ provision in 2008/09 delivered through the Employer Responsive funding model. Apprenticeships Current funding for Apprenticeships in will be used as the basis for 2008/09 values, although these will be expressed in SLN terms for consistency with the funding of other programmes. The SLN value for the Apprenticeship will be split into four elements: NVQ based element, technical certificate, key skills, and the Apprenticeship element. The SLN values for Technical Certificates and Key Skills are the same as those in the and Adult Learner Responsive funding models. Employer Contributions Apprenticeships are classed as co-funded. The approach for moving the expected employer contribution towards 50% by 2010 will continue in 2008/09. Projected trajectory for increasing the expected employer contribution to 50% Academic Year Expected Employer Contribution 2008/ % 2009/ % 2010/11 50% Created by Sian Owen Authorised by Steve Besley January 2008 Page 5 of 10
6 ANNEX A - LISTED FUNDING VALUES and Adult Learner Responsive Qualification SLN value (glh) Listed Evening Value where applicable (glh) GCE AS level or A2 level (except General Studies) GCE AS level or A2 level in General Studies Applied GCE A-Level Double Award (12 units) Applied GCE AS-Level or A2-Level Double Award (6 units) Applied GCE A-Level (6 units) Applied GCE AS-Level or A2-Level (3 units) GCSE Short-course GCSE Applied GCSE Key skills qualifications (Application of Number, Communications and ICT) 36 Functional skills qualifications (English, ICT and Mathematics) 36 NVQ (delivered entirely at the provider in at least 450 glh) 520 Each additional NVQ unit 30/unit International Baccalaureate (Diploma) 1350 Access to Higher Education (studied in at least 450 glh) 520 EDEXCEL National Diploma (18 Units) 1080 EDEXCEL National Certificate (12 Units) 900 EDEXCEL National Award (6 Units) 450 Edexcel Level 1 Introductory Diplomas (6 units) 450 Edexcel Level 2 First Diplomas (6 units) 450 OCR Level 3 National Extended Diploma (18 units) 1080 OCR Level 3 National Diploma (12 units) 900 OCR Level 1, Level 2 and Level 3 National Certificate (6 units) 450 School sixth forms only: Qualification SLN value (glh) Edexcel Level 1 Introductory Certificates (3 units) 225 Edexcel Level 2 First Certificates (3 units) 225 Comments - Entitlement for year old learners will be funded at 114 glh ( SLN). This excludes Key Skills, which are funded separately. GCE and GCSE double awards are funded at double the standard rate. Under the and Adult Learner Responsive funding models, rates are stated in glh which are the basis of SLN values using the formula. In simple terms, the SLN values for individual learning aims are then calculated by dividing the glh by 450. Under the Employer Responsive funding model, the rates will be stated directly in terms of SLN values. Created by Sian Owen Authorised by Steve Besley January 2008 Page 6 of 10
7 ANNEX B - FUNDING RATES Funding rates are different for each model. School Sixth Forms 2, FE 2, Apprenticeships 2,860 Adult Learner Responsive 2,775 Employer Responsive 2,775 ANNEX C AREA COSTS UPLIFTS 2008/09 Local LSC region and districts Uplift 2008/09 London A (Inner London) 20% London B (Outer London) 12% Berkshire (fringe and non-fringe) 12% Crawley 12% Surrey 12% Buckinghamshire fringe 10% Hertfordshire fringe 10% Buckinghamshire non-fringe 7% Oxfordshire 7% Essex fringe 6% Kent fringe 6% Bedfordshire 3% Hertfordshire non-fringe 3% Hampshire and Isle of Wight 2% West Sussex non-fringe 1% Rest of England 0% Created by Sian Owen Authorised by Steve Besley January 2008 Page 7 of 10
8 ANNEX D PROGRAMME WEIGHTING FACTORS Code LSC programme weightings A 1 B 1.12 C 1.3 D 1.6 E 1.72 Basic Skills (F) 1.4 G TBC (specialist college weighting) ANNEX E CHANGES TO EDEXCEL SLN VALUES and Adult Learner Responsive SLN values changes as a result of the 2007 review of glh Learning aim reference Learning aim title Level 2007/08 equivalent SLN value (glh) 2008/09 SLN value (glh) Award in Digital Applications for IT Users 1 90 Unlisted BTEC Award in Infection Control BTEC Award in Photography X BTEC Award in Preparing for Enterprise (Pilot) BTEC Certificate for Teaching Assistants BTEC Diploma in Developing Counselling Skills BTEC Certificate in Public Services 1 Unlisted Certificate in History E Unlisted Certificate in Modern Foreign Languages E Unlisted Certificate in Science (Single Award) E Unlisted 54 Created by Sian Owen Authorised by Steve Besley January 2008 Page 8 of 10
9 ANNEX F SLN VALUES FOR DIPLOMAS and Adult Learner Responsive The tables give example SLN values for the component parts of each of the new Diplomas to be introduced in 2008/09. The Diplomas will be funded at component level, however, the Personal Learning and Thinking Skills and the costs of collaboration are not accredited learning and will be funded via the Diploma learning aim code at programme weighting A (1.0). In each example below, the minimum glh for the Additional and Specialist Learning is given as the SLN value. The actual funding for this element will depend upon the programme of study and the elements studied. For example, all functional skills have a listed SLN value based on 36 glh. QCA estimates that not all learners will study the same number of functional skills. Diploma component SLN value (glh) SLN Level 3 Advanced Diploma Principal Learning Extended Project Additional and Specialist Learning Personal Learning and Thinking Skills Costs of collaboration Total Level 3 Progression Diploma Principal Learning Extended Project Personal Learning and Thinking Skills Costs of collaboration Total Level 2 Higher Diploma NB: This example assume the learner has already attained Functional Skills in ICT. Principal Learning Project Functional Skills - English Functional Skills - Mathematics Additional and Specialist Learning Personal Learning and Thinking Skills Costs of collaboration/work experience Total Created by Sian Owen Authorised by Steve Besley January 2008 Page 9 of 10
10 Diploma component SLN value (glh) SLN Level 1 Foundation Diploma Principal Learning Project Functional Skills - English Functional Skills - ICT Functional Skills - Mathematics Additional and Specialist Learning Personal Learning and Thinking Skills Costs of collaboration Total Programme Weightings for the new Diplomas The programme weightings for the new Diplomas will be applied to the Principal Learning and Project elements. Diploma line Programme weighting (Level 1) Programme weighting (Levels 2 & 3) Construction and the Built Environment Creative and Media Engineering Information Technology Society, Health and Development Edexcel Funding Policy Watches are intended to help colleagues keep up to date with national developments. Information is correct at the time of writing and is offered in good faith. No liability is accepted for decisions made on the basis of information given. Centres can access the LSC s Learning Aims Database which allows them to search for aims and view aim details at: The last word on funding lies with the LSC. Centres should be in contact with their LSC in relation to the planning and funding of their provision. Created by Sian Owen Authorised by Steve Besley January 2008 Page 10 of 10
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