Skills Funding Agency
In London
Coalition Approach
• Investment strategy for truly lifelong learning,
nurturing sustainable economic growth & social
renewal
• Based on:
– Fairness
– Shared responsibility
– Greater freedom
• And in context of Skills for Sustainable Growth
strategy
Headlines
• FE resource budget reduced by 25% to 2014-15
• Savings through:
– Efficiencies
– Policy changes
– Unit cost reductions
– Changes to statutory entitlements
– Re-balancing who pays
– More freedoms for colleges
Skills Strategy sets
out key commitments
• Expand Adult Apprenticeships
– Over 200,000 starts per year
– 75,000 increase by 2014/15
– Prioritise Level 3
• Employers
– Financial support to SMEs to co-fund the costs of
training up to and including a Level 2
• Unemployed
– State subsidy for targeted provision for people on
active benefits to help them obtain work
Skills Strategy sets out
key commitments (2)
• Individuals
– Government backed loans to help finance intermediate and
higher level qualifications from 2013/14
– Lifelong Learning Accounts for all adults
– All Age Careers Service
• The Funding System
– Simplified systems and processes
– Greater alignment across pre- and post-19 systems
– Remove regulations to free colleges to deliver to their local
communities
Reform of Funding
Who is eligible for funding?
From 2011/12:
• More flexible delivery for unemployed through funding units
and full qualifications
• Greater focus on those on active benefits
• Consequent narrowing of fee remission category
• Continued full funding for literacy and numeracy (uplift
removed)
• Changes to ESOL funding
• Skills for Life uplift (1.2) removed from literacy and ESOL
• Rates reduce by 4.3% - new and existing learners
Reform of Funding
What is eligible for funding?
From 2011/12:
• Growth in Adult Apprenticeships
• Adult Apprenticeships continue to be co-funded; expectation
that employer contributions will increase
• Co-funding at Level 2 for workplace learning outside of
Apprenticeships will only be available to SMEs (fewer than
250 employees)
• Level 3 and above delivery in the workplace (outside of
Apprenticeships and current entitlement) will no longer be
eligible for funding
• Adult Safeguarded Learning protected
Reform of Funding
Further changes for 2012/13 and 2013/14
Make use of the summary on the website
Fee Loans
Simplification of
funding system
For 2011/12
• Single Adult Skills Budget
• Minimum Contract Level (£500k)
• Introduction of Outcome Payments
From 2012/13
• Simplified rates system
• Removal of provider factor (except area costs)
• Simplification of data returns
• Simplification of learner support / hardship fund
• Disadvantage uplift incorporated into Learning Support
Rationale for the
Agency
Implement government policy set out in
Skills for Sustainable Growth and
Investing in Skills for Sustainable
Growth.
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establish a simpler and more efficient funding and regulatory system
responsive to learners and employers
better use of management information
able to intervene where necessary
promote lifelong learning
sustainable economic growth
Rationale for the
Agency
To fund, promote and manage skills outcomes in
response to government targets.
To regulate 250 FE colleges & 15 specialist colleges in
respect of both adult and young people.
To contract with private training providers, third sector
and Local Authorities for the provision of adult further
education and Apprenticeships.
Outcomes
•focus public funding on outcomes
•outcomes judged by the needs of economy and
society
•rather than simply funding qualifications
•accountability for those judgements moves
from Whitehall to local communities
What does this mean?
Stakeholder power…direct relationships with colleges and
providers, informing and influencing
– College and providers need to respond to local communities and
economies
– Expect active pursuit of direct engagement with a range of
stakeholders (LEPs, Local Authorities, Jobcentre Plus,
employers, Sector Skills Councils, learners, Probation Service
etc)
– Consult on business plans and set out how public money will be
used
– Publish information on how plans have been delivered
What does this mean?
(2)
More responsibilities for colleges/providers
– Transfer of central planning to local planning
– Engagement with / responsiveness to stakeholders and
customers
– Tougher decisions on use of scarce resources/focus on those
who need it most.
Skills Offer for JCP Customers
Background
•Discrete Programmes for the Unemployed
ended 31st March 2011:
• Employability Skills Programme,
• R2R,
•Six Month Offer,
•Routes into Work
•Work Focused Training
Going Forward
The Priority is to meet skills needs of JCP
customers on active benefits pre-Work
Programme (primarily those unemployed for up
to 12 months, up to 9 months for 18-24 year olds)
Skills Investment Strategy encourages providers
to meet the needs of JCP customers from their
Single Adult Budget.
The Offer
Small Regional ESF programme from Spring 2011
April 11 – July 11: FE Colleges strongly
encouraged to meet needs of JCP customers
from their Single Adult Budget within existing
funding rules
August 2011onwards: freedom, flexibility (unit
funding and Job Outcome payment incentive)
Our role
Ensure successful transition from current to new
arrangements
Assist JCP understand changes in the skills
landscape/brokering discussions with providers
Monitoring progress and taking action as
required
Benefits
Improved offer to jobseekers/employers
Reduced bureaucracy
Lower unemployment/reduced numbers
progressing to the Work Programme
Related Developments
Unit funding
Service academies
Skills Conditionality
JCP structure and remit
Work programme
Key Messages
JCP Customers on active benefits are a priority
group. (full fee remission)
Delivery ideally to be roll on roll off, short sharp
inventions
Training should be tailored towards known or
potential vacancies in local area focused on
learners entering sustainable employment
Regular communication with local JCP essential