SFA funding 2013/14 14 February 2013 in London
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1 SFA funding 2013/14 14 February 2013 in London #FEparty Workshop programme 1pm Registration 1:30 The new 2013/14 SFA funding formula and rates 2:30 Curriculum planning for 2013/14 with the new rates matrix 3:15 Coffee break 3:30 Key changes in the funding rules (incl. FE loans and subcontracting) 4:30 End Slides will be ed to you after the event, and along with any revision updates owing to new SFA information For more events visit 1
2 Four documents published (6pm 31 Jan) 1. Funding Rules 2013/2014 This document sets out the rules for funding and associated evidence requirements for the funding year 2013/14 effective from 1 August Letter from Keith Smith to colleges and training organisations Introduction to the Funding Rules 2013/ /14 Simplified Funding Rates This catalogue lists all provision which the Skills Funding Agency has approved for public funding in 2013/14 and their funding rates Advanced Learning Loans: Maximum Loan Amounts This spreadsheet provides the details of the maximum loan amounts for 2013/14 Two documents due but not yet published: 1. An update to New Streamlined Funding System for Adults Skills 2. Funding Handbook The new 2013/14 SFA funding formula and rates #FEparty For more events visit 2
3 SFA funding formula Current (since 08/09) New (from 13/14) Learner responsive (LR) Employer responsive (ER) Single Adult Skills Budget and formula SLN Guided Learning Hours (SLN GLH) National funding rate Unweighted co-funding Provider factor Retention and achievement in success factor Standard Learner Numbers (SLNs) National funding rate Weighted co-funding Monthly in-year funding Achievement 25% (of main qual for apprenticeships) 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 > Cover note > QCF > QAA > Non-reg > Appren Feedback by 15 March For more events visit 3
4 2013/14 Simplified Funding Rates No change from June 2012 doc The bands a steps For more events visit 4
5 The band averages per credit Funding per credit (from learning rates matrix) Average of 44 per credit Band based on policy Access to Higher Education qualifications will be funded at 3,022, 3,384, 3,928, 4,835 or 5,197 dependent on Programme Weighting. QCF qualifications have their funding band determined by their credit value. NQF qualifications have their funding band determined using their recommended guided learning hours (GLH) available from the Register of regulated qualifications operated by Ofqual. Other learning aims have their funding band determined by their previous delivery patterns. For more events visit 5
6 Bands by glh (exceptional cases) Where funding bands are determined by any form of GLH, the following mapping applies: Programme weightings are determined with reference to Sector Subject Area (SSA), according to the following table, with a limited number of exceptions Apprenticeships Given the major change in the longer term, it has 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 For more events visit 6
7 Simple funding formula for 2013/14 QCF Rate from matrix x Disadvantage uplift x Area cost uplift = Note: 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 Curriculum planning for 2013/14 with the new rates matrix #FEparty For more events visit 7
8 Modelling the impact on rates yourself Example 1 for Rates on NCFE Level Current funding rates Award in Employability Skills (QCF) SLN GLH SLN PW NFR Rate , NCFE Level 1 New funding rates Credits Rate Rate + / - + / Award in Employability Skills (QCF) 6 Award (5-12) % Modelling the impact on rates yourself Example 2 for Rates on NCFE Level Current funding rates Award in Exercise Studies (QCF) SLN GLH SLN PW NFR Rate , NCFE Level 1 New funding rates Credits Rate Rate + / - + / Award in Exercise Studies (QCF) 12 Award (5-12) % For more events visit 8
9 Modelling the impact on rates yourself Example 3 for X Rates on NCFE Level X Old Certificate in Employability Skills (QCF) SLN GLH SLN PW NFR Rate , NCFE Level 1 New Credits Rate Rate + / - + / X Certificate in Employability Skills (QCF) 13 Cert (13-24) % Modelling the impact on rates yourself Example 4 for Rates on NCFE Level 1 Old Award in Sexual Health Awareness (QCF) SLN GLH SLN PW NFR Rate , NCFE Level 1 New Credits Rate Rate + / - + / Award in Sexual Health Awareness (QCF) 1 Cert (1-5) % For more events visit 9
10 LARA does not always match SFA spreadsheet Rate in LARA NCFE Level Current funding in LARA NVQ Certificate in Spectator Safety (QCF SLN GLH SLN PW NFR Rate , NCFE Level 2 New funding in SFA spreadsheet Credits Rate in SFA spreadsheet + / - + / NVQ Certificate in Spectator Safety (QCF) 29 Cert (25-36) 1, % Worth checking if your quals will be fundable We expect this will mean that we will no longer fund about 2,500 qualifications for new starts from 1 August Spreadsheet of 2,488 learning aims If you wish to notify us about qualifications with low or no enrolments that you think we should continue to fund, please complete and return the Notification Form and Summary of Notifications Form to qualifications@skillsfundingagency. bis.gov.uk by midday on Wednesday, 6 March For more events visit 10
11 Shadow Funding Software (SFS) Version 2 includes further functionality to enable better comparisons between the current 2012/13 calculations and shadow funding calculations; allows providers to calculate shadow funding from either 2012/13 or 2011/12 data, the latter option in the Shadow Funding Software supersedes the Shadow Funding functionality present in LIS which should no longer be used. Curriculum planning summary Natural temptation will be to model every qualification with rate in SFA spreadsheet At what point does a fall in funding rate warrant redesign of delivery or removing/replacing? -5%? -10%? An increase in funding rates could mean planning less as who wants to over-deliver? Impact (winners and losers) likely to be very varied, and with in-year funding you are in control How will awarding organisations respond, and how to ensure right quals rather than just well funded? For more events visit 11
12 SFA Funding Rules 2013/14 #FEparty FE loans : SFA funding rules 2013/14 Section Page 24+ Advanced Learning Loans 62 Qualifications funded through Loans 62 Number of Loans 63 Deciding whether learners are eligible for a Loan 64 Loan amounts and financial contributions 64 Information needed 64 Payments 66 If the learner s circumstances change 68 Retrospective applications and changes 68 Evidence required For more events visit 12
13 24+ Advanced Learning Loans For learners aged 24 or over, from 2013/2014 our funding for provision at level 3 and 4, and for advanced- or higher-level Apprenticeships, will end and be replaced with Loans (except TUC learning aims and ex-military personnel) Qualifications funded by a loan Programme of A-levels (including AS, A2 and full A-levels) QAA Access to HE Diplomas QCF Certificates at levels 3 and 4 QCF Diplomas at levels 3 and 4 Level 3 (advanced) apprenticeships Level 4 (higher) apprenticeships Units and provision funded via the Code not eligible Number of loans Learners are entitled to up to four Loans, for four learning aims or Apprenticeship frameworks, where each Loan is for a different category of provision (on previous slide) But: Every learner who has previously withdrawn from a learning aim will be given one more chance to access a repeat Loan, taking the potential maximum number of Loans up to five. This repeat Loan can only be for the same learning aim or the same type of learning aim at the same level that the learner previously withdrew from. With the exception of AS/A2/A-levels, a learner can only take out a loan on one of the qualifications (if delivered as part of a programme) For more events visit 13
14 Eligibility Loans will be non-means-tested and will be available to eligible learners aged 24 and over studying in England for learning aims we approve at a provider we approve in England. The Student Loans Company will be responsible for assessing whether learners are eligible. Loans amount and fees Minimum loan value of 300 Can charge a loan fee up to LARA Max (-50% for apprens) SFA on Thursday published Maximum Loan Amount spread sheet for apprenticeships The SLC will make payments to providers their online learning provider portal Applying for a loan If the learner decides to apply for a Loan, you must give them information in the learning and funding information letter to help them make their application. This letter is vital in the application process, as otherwise the learner will not have the relevant information to fill in either the paper or online Loan application. Must include loan value Provider funding You must fill in an ILR for Loans-funded learners, and make sure that it matches the information you have filled in on the loans portal. And you have to reconfirm attendance every 3 months The definition of a start for the purposes of loans is 2 weeks Payment is in loan / months instalments No achievement element nor appren discount rates For more events visit 14
15 Bursary fund The Loans Bursary Fund is aimed at helping vulnerable learners such as those with learning difficulties or disabilities, parents who need help with childcare, and exmilitary personnel. The fund will be distributed as decided by the provider and is not an entitlement. The Loans Bursary Fund is a separate allocation which will be paid monthly based on ILR returns, and claimed by the providers as a fixed monthly rate, with a higher rate paid for learners needing childcare or residential support. In exceptional circumstances, funding above the fixed monthly rate may be needed. See para For more events visit 15
16 Subcontracting : SFA funding rules 2013/14 Section Page Contracting and subcontracting 73 Subcontracting 75 Procurement 76 Contracting 76 Terms that must be included in contracts with subcontractors 77 Monitoring 78 Second-level subcontracting 79 Reporting subcontracting arrangements 79 Distributing income between you and the subcontractors 79 Evidence required 81 Subcontracting : SFA funding rules 2013/14 NEW Distributing income between you and your subcontractors You must publish your supply-chain fees and charges policy on your website before entering into any subcontracting agreements for the 2013/14 academic year. You must, as a minimum, include the following in your supply-chain fees and charges policy: Your reasoning for subcontracting The policy s contribution to improving your and your subcontractor s quality of teaching and learning The typical percentage range of fees retained to manage subcontractors, and how this range is calculated The support subcontractors will receive in return for the fee you charge If appropriate, the reason for any differences in fees charged for or support provided to different subcontractors Payment terms between you and your subcontractors timing of payments in relation to delivering provision and timescale for paying invoices and claims for funding received How and when the policy is communicated to and discussed with current and potential subcontractors Timing for policy review Where the policy is published For more events visit 16
17 Subcontracting : SFA funding rules 2013/14 You must also publish data on the actual level of funding paid and retained for each of your subcontractors in 2013/14. This data must be published within 30 days of the 2013/14 ILR closing You must, as a minimum, include the following in your published supply-chain fees and charges: Name of the subcontractor UKPRN number of the subcontractor Contract start and end date Type of provision (for example, Apprenticeships, 19+ Apprenticeships, classroom learning, workplace learning Funding we have paid to you for provision delivered by the subcontractor in that academic year Funding you have paid to your subcontractor for provision delivered in that academic year Funding you have retained in relation to each subcontractor for that academic year If appropriate, funding your subcontractor has paid to you for services or support you have provided in connection with the subcontracted provision Subcontracting : SFA funding rules 2013/14 You must publish this information on fees and charges alongside your supply-chain fees and charges policy to allow all your supplychain fees and charges information to be viewed in context. Your fees and charges information should only include provision subcontracting. Provision subcontracting is when you subcontract the delivery of full programmes or frameworks. It is not subcontracting the delivery of a service as part of the delivery of a programme (for example, buying the delivery of part of an Apprenticeship framework or outreach support). If you are not sure whether your subcontracting arrangements are defined as provision subcontracting, discuss this with your relationship manager. For more events visit 17
18 Final Q&A For more training events visit For more events visit 18
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