LSECT - updates

UPDATE 15-12-10 (click here for MS Word version)

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Guidance Note 6 published by the Skills Funding Agency
Yesterday the Skills Funding Agency published their latest guidance, which builds on the announcements in the Investment Skills Strategy: http://tinyurl.com/27r5rrs

To find out more there are still places available at my SFA and YPLA briefing on the 21st December in London and 18th January in Solihull. Visit www.lsect.com to book a place.

Summary of 19+ funding rate and eligibility changes
The table in the MS Word version of this update should help you get a grasp on the menu of changes this year and for the next few. Clearly some areas, such as ESOL, will be hit by several changes in 2011/12.

Interestingly BIS had initially intended to hit carry-in learners with the eligibility changes for 2011/12. This would have meant that, for example, the funding for the remainder of some learner programmes would have stopped (e.g. ESOL in the workplace) or become co-funded (e.g. those not on job ready benefits) from 1st August 2011. However, this decision was reversed within the last few days so that whilst rate changes will still apply to carry-in enrolments ‘any changes to funding eligibility and fee remission will be applied only to new learners’. I wonder if therefore some providers will start lots of non-entitlement Level 3 TtG starts in July 2011 (that would not have been funded had they started in August 2011)?

Also, unless I’ve missed it, there seems to be no mention of ‘settled communities’ (appeared in the Skills Strategy and left meaning wondering what it meant).

ESOL Funding Summit and twitter campaign
There are still places available at the ESOL Funding Summit if you or a colleague is interested in attending. About 100 people have signed up so far but the Morley College hall can accommodate many more. Also, I think the campaign for 16-18s in terms of EMA has really taken off this week, but what about the adults in need of English skills? Have your say on www.twitter.com by tweeting a comment ending in #challengeESOLcuts

Minimum Contract Levels (MCL)
Much of Guidance Note 6 is devoted to explaining the new £500k MCL policy. Basically, the SFA will be issuing providers with 2010/11 allocations below £500k a notional 2011/12 allocation, which they will have to give to a willing lead provider (with a contract in 2010/11 greater than £500k) and then deliver the provision as a sub-contractor. The policy is complicated as there is a list of provider types that are exempt, leaving mainly only independent training providers with small contracts in the frame (approx 400-500).

The policy is being introduced to reduce SFA contracting costs, although this ambition I think is being thrown into doubt as it appears the YPLA/DfE are resisting the call to implement the policy for 16-18 funding. This means that, for example, a provider with a £50k 16-18 and £449k 19+ apprenticeship allocation would keep the 16-18 one but lose the 19+ one! Clearly a nonsense (especially as the SFA administer the 16-18 apprenticeship payments via their Single Account Management System) which if unresolved could in my personal view result in a messy and litigious end to the policy within a few months from now.

Having said all that I’ve just written a guide to MCLs and sub-contracting on behalf of ALP and LSIS for a MCL conference next Monday in Birmingham. I’ll send out a link to it once published and see you there if you’re at the conference (weather permitting!).

Not charging fees? It could cost you future public funding
Following the Chris Banks review of fees it remains unclear how the SFA would ensure providers charged sufficient fees. However, SFA Guidance Note 6 fires a shot across the bow: “We will consult in January 2011 further with the sector on how best to maximise fees and employer contributions, with the expectation of reflecting non-collection in future allocations, probably through an incremental implementation process.”

Framework for Excellence (FfE) scores published online
After a delay of a year, and then a further delay in June, individual provider FfE scores have been published at http://ffepublication.skillsfundingagency.bis.gov.uk/

The website is aimed at either learners or employers, and enables the user to compare the scores of success rates, destinations, learner/employer views (where the provider is not exempt) for up to 10 providers. The FfE success rate reports drill-down into considerable detail, although unfortunately they are based on 2008/09 results (see next item).

I have my doubts as to whether learners or employers will use this data to make informed judgements when it comes to where to spend their time and money. However, if I were a provider I would be selecting some of the positive destination scores and learner/employer views and splashing them across my marketing literature.

2009/10 ER success rates and Minimum Levels of Performance (MLP) published
Somewhat ironically, the same day FfE is finally launched with 2008/09 success rates, the Data Service publish 2009/10 success rates (and MLPs) for providers. Read more about this here: http://tinyurl.com/2uzuqpo

2011/12 19+ Single Budget Allocations sent to providers today
Providers should have received their 19+ allocations today, and I understand they don’t look as bad as feared. One college example I heard of was a 4.5% cut based on 2010/11 with an expectation that within this 11.5% more apprenticeship funding should be generated. Obviously with all the rate cuts (especially ESOL) many providers will need to do more delivery for less funding to earn all the allocation (and watch-out for the mid-year review).

SFA Update Issue 36 was also published this evening: http://tinyurl.com/2w82u5c

Avoid the ACTOR elephant trap at all costs (even if it means cancelling Christmas!)

Kind regards,

Nick
www.twitter.com/nicklinford