LSC Funding 200809 Methodology and formula The move

Key reading material Page count The LSC bedtime reading 200 150 100 50 1.

New funding models 2007/08 School 6 th Forms 2008/09 16 -18 model Entry to

The new funding formula New ‘demand-led funding formula’ for all three models Introduction of:

Standard Learner Numbers SLN x NFR x PF = £ SLNs replace the National

Examples of learner SLNs SLN x NFR x PF = £ Four AS levels

The National Funding Rate per SLN x NFR x PF = £ The LSC

The Provider Factor SLN x NFR x PF = £ Each funding model has

The funding earned per SLN x NFR x PF = £ 16 -18 year

Other things to note: When SLNs count This is commonly referred to as the

Other things to note: The SLN per learner ratio This ratio is likely to

Find out more and access free resources at www. lewisham. ac. uk/pf

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LSC Funding 2008/09 Methodology and formula "The move to a demand-led funding system in 2008/09 signifies a wholesale step change for the learning and skills sector. " LSC 27 November 2007 Nick Linford Head of Planning, Funding and Projects 12 February 2008

Key reading material Page count The LSC bedtime reading 200 150 100 50 1. National Statement of Priorities 2008/09 - 2010/11 0 2. National Policy Summaries for 2008/09 (more than 80) 3. Funding Models and formula for 2008/09 4. Funding Rates for 2008/09 (SLN per qualification) 5. National Funding Rates for 2008/09 (£ per SLN) Complex landscape! 250

New funding models 2007/08 School 6 th Forms 2008/09 16 -18 model Entry to Employment Further Education Apprenticeships* Train to Gain * 16 -18 apprenticeships planned and budgeted in 16 -18 model (DCSF) Adult learner responsive model Employer responsive model

The new funding formula New ‘demand-led funding formula’ for all three models Introduction of: Standard Learner Numbers (SLN) this National Funding Rates (NFR) x this Provider Factor (PF) x this There will be winners and losers, as shown in this LSC graph for 16 -18 funding * Additional Learning Support can be added = £* Will get 2. 1% real terms protection 4. 2% in cash terms Will get 2. 1% real terms protection

Standard Learner Numbers SLN x NFR x PF = £ SLNs replace the National Base Rate and will either be listed in the Learning Aims Database, or unlisted and based on guided learning hours in the ILR SLN GLH / 450 = SLN with a learner cap of 1. 75 SLN per year £ Part Time (0. 5 FTE and 0. 5 SLN) SLNs (divisor) 08/09 NBR (loadbands) 07/08 Full Time (1 FTE and 1. 22 SLN) Full Time (1 FTE and 1 SLN) Guided Learning Hours

Examples of learner SLNs SLN x NFR x PF = £ Four AS levels (listed 150 SLN GLH each) One AS General Studies (listed 36 SLN GLH) One Key Skill (listed 36 SLN GLH) Entitlement (listed 114 SLN GLH) = 1. 33 SLN = 0. 08 SLN = 0. 25 SLN = 1. 75 SLN One BTEC National Diploma (listed 1080 SLN GLH) One 90 glh Certificate in Literacy (unlisted) Entitlement (listed 114 SLN GLH) = 1. 2 SLN* = 0. 2 SLN = 0. 25 SLN = 1. 65 SLN One full time NVQ (listed 520 SLN GLH) Two Key Skills (listed 36 SLN GLH each) Entitlement (listed 114 SLN GLH) = 1. 16 SLN = 0. 25 SLN = 1. 57 SLN * Per year in proportion to days in each year between start and end dates

The National Funding Rate per SLN x NFR x PF = £ The LSC set fully-funded £ per SLN each year, and in 08/09 they are: • School Sixth Forms • 16 -18 FE • 16 -18 Apprenticeships • Adult Learner Responsive • Employer Responsive £ 2, 945 £ 2, 860 £ 2, 775 These are used unless the provider has been set a transitional rate For a 16 -18 year old using previous example programmes: AS level programme: BTEC Nat Dip programme: NVQ programme: 1. 75 x £ 2, 860 = £ 5, 005 1. 65 x £ 2, 860 = £ 4, 719 1. 57 x £ 2, 860 = £ 4, 490 Finally, the funding must be multiplied by a Provider Factor

The Provider Factor SLN x NFR x PF = £ Each funding model has its own Provider Factor and for 16 -18 and adult model in 08/09 is based on averages from delivery in 06/07 e. g. 16 -18 Model Lewisham College PF = 1. 334 AS level programme: BTEC Nat Dip programme: NVQ programme: Area Cost (e. g. 1. 200) x Disadvantage (e. g. 1. 079) x Programme weighting (e. g. 1. 217) x Short-programme modifier (e. g. 1. 001) x Success factor (e. g. 0. 846) 1. 75 x £ 2, 860 x 1. 334 = £ 6, 677 1. 65 x £ 2, 860 x 1. 334 = £ 6, 295 1. 57 x £ 2, 860 x 1. 334 = £ 5, 990

The funding earned per SLN x NFR x PF = £ 16 -18 year old 1 SLN x £ 2, 860 NFR x 1. 334 PF = £ 3, 815 Adult (19+) fee remitted 1 SLN x £ 2, 775 NFR x 1. 411 PF = £ 3, 916 Adult (19+) fee paying 1 SLN x £ 1, 939 CFR x 1. 411 PF = £ 2, 736 Assumed tuition fee 1 SLN x £ 2, 775 NFR x 42. 5% Total income to provider = £ 1, 179 = £ 3, 916 The formula is the same within the Employer Responsive Model, but with fewer Provider Factor elements (based on actuals) as well as a 75: 25 funding split between monthly on-programme payments and achievement (full framework)

Other things to note: When SLNs count This is commonly referred to as the ‘definition of a start’ The three funding census dates (e. g. 1 st October) have been scrapped Instead there are minimum attendance measures, based on duration Duration Minimum attendance 24 weeks or more 6 weeks 2 to 24 weeks 2 weeks Less than 2 weeks Once If an enrolment meets the minimum attendance criteria the SLN value assigned in the given academic year will be counted Fewer full timers and more part timers now being counted?

Other things to note: The SLN per learner ratio This ratio is likely to be important to the LSC, but what does it imply? Part time adults 2500 Learn 2000 1500 ers 0. 25 1000 0. 34 SLNs 0. 55 2005/06 2006/07 500 0 2004/05 SLNs are a new volume measure that are not the same as FTEs. Caution recommended when used for non-funding purposes.

Find out more and access free resources at www. lewisham. ac. uk/pf