Further Education New Horizon Investing in Skills for Sustainable Growth David Hughes National Director of College

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Assist Education – New Horizon Investing in Skills for Sustainable Growth David Hughes National Director of College & Provider Services Skills Funding Agency 17 November 2010 AoC Conference

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Coalition Approach Investment system for really deep rooted learning, sustaining manageable monetary development & social recharging Based on: Fairness Shared obligation Greater flexibility And in setting of Skills for Sustainable Growth procedure

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Reform Program: 1 Confirm, restate and convey the requirement for a talented country Work with businesses over the need to prepare and where proper acquaint exacts and licenses with practice 2 Empower the planned understudy by giving a vocation administration that gives unbiased counsel 3 4 Provide a prestigious suite of capabilities that are very much respected by bosses and versatile Through the advancement of Life Long Learning Accounts fiscally bolster the most powerless in the public eye by completely sponsoring programs: For those with poor essential abilities, Young grown-ups (19-24) who didn't finish their auxiliary instruction (level 2 capability) ‏ and who could advance and increase level 3. 5 6 Rebalance Government venture by presenting co-subsidizing and credits for full time grown-ups (more than 24) programs prompting to a perceived Level 3 QCF capability . 7 Deregulating the segment, improving the subsidizing framework and diminishing the quantity of associations required in the aptitudes conveyance scene

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Headlines FE asset spending plan decreased by 25% to 2014-15 Savings through: Efficiencies Policy changes Unit cost decreases Changes to statutory privileges Re-adjusting who pays More flexibilities for schools

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(£000s) ‏ SR gauge 2010-11 Budget 2011-12 Indicative Budget 2012-13 Adult Skills Budget 2,835 2,795 2,685 of which Apprenticeships 360 605 648 OLASS 134 133 131 Adult Safeguarded Learning 210, Learner Support 144 151 163 Information Advice and Guidance 82 81 84 Skills Infrastructure (counting LSIS) ‏ 137 56 51 Capital Grants 305 278 Total Skills Funding Agency 3,734 3,607 Funding not steered through the Skills Funding Agency 337 179 172 Funding and Investment

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Skills Strategy sets out key duties Expand Adult Apprenticeships Over 200,000 begins for every year 75,000 increment by 2014/15 Reshape program so Level 3 turns into the level to try to Employers New Growth and Innovation Fund Financial support to SMEs to co-finance the expenses of preparing up to and including a Level 2 Unemployed State endowment for focused arrangement for individuals on dynamic advantages to help them get work

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Skills Strategy sets out key responsibilities (2) ‏ Individuals Government upheld advances to back halfway and larger amount capabilities from 2013/14 Lifelong Learning Accounts for all grown-ups All Age Careers Service The Funding System Simplified frameworks and procedures Greater arrangement crosswise over pre-and post-19 frameworks Remove directions to free universities to convey to their neighborhood groups

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Reform of Funding Who is qualified for subsidizing? From 2011/12: More adaptable conveyance for unemployed/wrongdoers through subsidizing units and full capabilities Greater concentrate on those on dynamic advantages Consequent narrowing of charge reduction classification Continued full financing for proficiency and numeracy (inspire expelled) ‏ ESOL completely supported for unemployed/guilty parties (as above); co-supported for those settled here. ESOL in the work environment will never again be qualified for subsidizing Skills for Life elevate (1.2) expelled from proficiency and ESOL Rates lessen by 4.3% - new and existing learners

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Reform of Funding What is qualified for financing? From 2011/12: Growth in Adult Apprenticeships Adult Apprenticeships keep on being co-subsidized; desire that business commitments will build Co-financing at Level 2 for work environment learning outside of Apprenticeships may be accessible to SMEs (less than 250 representatives) Level 3 or more conveyance in the work environment (outside of Apprenticeships and current privilege) will never again be qualified for financing Adult Safeguarded Learning secured

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Reform of Funding (2) From 2012/13, proposed changes to statutory qualification: Full subsidizing for first full Level 2 and 3 concentrated on youngsters (19 to up to 24, ie 23) ‏ From 2013/14 FE Fee Loans presented for Level 3 or higher capabilities where open financing is no more drawn out accessible (24 and over)

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Simplification of financing framework For 2011/12 Single Adult Skills Budget Rationalization of Adult Safeguard lines Minimum Contract Level (£500k) ‏ Introduction of Outcome Payments For employments from 2011/12 Wider conference on approach for 2012/13 From 2012/13 Simplified rates framework Removal of supplier variable (with the exception of zone expenses) ‏ Simplification of information returns Simplification of learner support/hardship finance Disadvantage elevate fused into Learning Support

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2011/12 Allocations Single Adult Skills Budget Indicative for 12/13… . Need to guarantee development of Apprenticeships… . … .and reflect end of Train to Gain/decreased work-based learning offer Transparent approach will be set out in Skills Funding Agency Guidance Note Expect to get demonstrative Adult Skills designations out before Christmas Additional Learning Support Budget (ALS) to be adjusted Offender Learning and Skills Service (OLASS); European Social Fund (ESF) and Adult Safeguard will be separate Final Allocations in March 2011 Reflect effect of MLP Update for mid-year gauges/Quarter 2 changes Reflect result of talks for those suppliers falling beneath MCL

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Alignment with YPLA Joint briefings for part – with AOC, ALP and UKCES – in January 2011 Agreement over LLDD Entitlement subsidizing for 16–18 year olds turning 19 (6th shape universities especially)‏ 16-18 financing for schools and suppliers directed through Agency 16-18 Apprenticeship spending plan accessible in December?

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