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Going further for Further Education
‘Louder than Words’ is part of BTEC’s continuing commitment to Further
Education; a series of activities designed to transform the way we support FE
colleges – because words are all very well, but actions show our dedicated
support for FE providers and learners alike.
For further information visit
www.btec.co.uk/louder
FE Policy Breakfast
with Steve Besley
Steve Besley,
Head of Policy (UK and International)
November 2012
Current Landscape
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5 policy priorities, 4 growth ambitions, 3 current concerns, 2 ½ more years for
the Coalition, 1 new Minister
5 policy priorities
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4 growth ambitions
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2.
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Reduce the deficit, strengthen the economy
Develop conditions for growth
Transform the qualification system
Create a more responsive provider system
Reform funding systems, strip out waste, rebalance contributions
To
To
To
To
create the most competitive tax system in the G20
make the UK the best place in Europe to start/grow a business
support a more balanced economy
create a more educated workforce that is the most flexible in Europe
3 current concerns
1. Lack of growth
2. Future levels of investment
3. Impact of reform
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2 ½ more years for the Coalition
1 new Minister
Political and Economic Context
• Moment of truth outlined in Cameron’s 2012 Conference speech
• Government struggling to meet its two set economic targets
• Current picture:
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Global growth: 3.3% (2012) 3.6% (2013.) Source IMF Oct 2012
UK growth: 1.0% 3rd Quarter 2012 Source ONS Oct 2012
UK Inflation: 2.2% CPI. Source ONS Oct 2012
UK Unemployment: 2.53m. Source ONS Oct 2012
• Next key moments: post Olympic stats (Nov 2012,) latest OBR
forecasts (Nov 2012,) Chancellor’s Autumn Statement (Dec 2012)
• Eurozone remaining a source of concern
• Coalition sticking with Plan A but some talk of renewing marriage vows;
Opposition pushing 5 point plan for recovery and seeking to capture
‘One Nation’ rather than us and them
• Reshuffle over, main players in place for build up to election, narrative
emerging
• Lines being drawn for forthcoming Spending Review, little room for any
give, deficit plan rolling to at least 2018, welfare in the firing line
Current policy priorities
1. Reduce the deficit, restore the economy to health
2. Develop conditions for growth
3. Transform the qualification system
4. Create a more responsive provider system
5. Reform funding systems, strip out waste, rebalance contributions
2. Develop conditions for growth
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Rolling ‘Growth’ programme launched in Budget 2011, updated in Budget 2012,
intended to run to 2015
Over 130 measures, 11 for education and skills focusing on developments in:
apprenticeships; employer ownership; literacy/numeracy; STEM; Youth Contract;
work experience and qualification reform
Major campaign to use Olympic bounce over the summer, long-term returns of
£13bn targeted as part of GREAT Britain business programme
Wave of activity running throughout autumn 2012 to help stimulate activity
Recent developments
– Fresh 5-point strategy (Planning, Housing, Employment, Infrastructure, Schools)
announced by David Cameron in Sept
– New industrial Strategy announced by Vince Cable in Sept
– New employee-owner scheme announced by George Osborne in October
– New red tape reduction measures in Enterprise and Regulatory Reform Bill published in
Oct
– Heseltine Industrial policy Review in Nov
2. New Industrial Strategy
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Cross Government strategy, launched by Vince Cable, intended to reinforce
Growth Plan
Five main components:
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creation of business bank
support for essential sectors
development of innovative technologies
raising of skill levels
improving procurement
Three headline messages
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Focus on supporting key sectors grouped into: advanced manufacturing; knowledge intensive traded
services; enabling industries. Other sectors to follow, progress updates in 2013
Further expansion of Catapult Centres, innovation and research and foresight technology
Devolution of skills system through EOPs, Round 2 testing out greater employer ownership of voc
skills agenda
3. Transformation of the qualification system
Big picture
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Two challenging dynamics
– Concerns about standards, impact on learning, costs, international performance
– Concerns about speed and extent of change
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Current architecture
– An independent regulator but with a brief to maintain standards and ensure healthy
markets
– A drive to simplify the qualification market but make it both more responsive and more
accountable
– A commitment to a core programme of learning measured by exams at 16
– A desire to ensure a better fit with user needs
– A belief in more formal methods of testing knowledge
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Leading to
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Retreat of the National Curriculum to essential knowledge requirements
Review of exams at age 16 around core requirements
A higher education endorsed model of exams at age 18
A post Wolf model of vocational qualifications
A surge of interest in Bacc variants
A new set of quality ‘controls’ for apprenticeship programmes
3. Transformation of the qualification system
What to look out for
1. GCSE reform
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Consultation out on new EBacc model (Sept – Dec 2012)
Pronouncement on new format (spring 2013)
Post-16 impact (2016/17)
2. 16-19 changes
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Consultation complete on design principles for A level reform (Sept 2012)
possible introduction from (Sept 2014,) moving towards IB model
New Wolf based 16-19 PoS backed by uniform funding system from (Sept 2013)
Focus on progression and transition to work
3. English and maths
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Adoption of L2 benchmark for all programmes
Incentivised funding and inspection reporting (2012)
Dedicated LSIS support programme (2012)
Big focus on maths, National Numeracy Challenge (Oct 2012)
3. Transformation of the qualification system
4. Apprenticeships
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Holt Report published (Aug 2012,) Richard Report (Oct 2012)
New quality arrangements (August 2012)
Flexing up of AGE (Sept 2012)
GTA Inquiry Report (Sept 2012)
Higher Apprenticeship consultation (Sept 2012)
Miliband proposes employer owned model (Oct 2013)
Latest stats show overall increase in numbers but worrying drop at 16 – 19 (Oct
2012)
Traineeships (Spring 2013)
5. Other
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Ofqual Consultation on ESOL (Sept 2012,) review of QCF, NOS, Healthy Market
Report (2013)
Review of impact of Innovation Code, continued trend towards deregulation
(2013)
Impact of CAVTL (spring 2013)
3. Summary of framework developments
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Gove model
– EBaccs: primarily aimed at 16 yr olds, long-term GCSE replacement, largely knowledge
based, core academic subjects, offered through tendered exam process
– ABaccs: linear A levels but based on new design process, incorporation of IB approach
with contrasting subject, dissertation, community work
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Tech Bacc
– Labour alternative at 14-19
– Conditional on L2 Eng/maths, an accredited L3 qual, ‘quality’ work experience
– Builds on Adonis thinking informed through Husbands’ Review
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Adonis models
– A-Bacc: based on IB, create greater challenge at A level, incorporate a contrasting
subject, project, theory of knowledge, community service
– Tech Bacc: 2 levels, Eng/maths, a sector qual, formal work experience
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Wolf model
– 14-16: emphasis on core learning, streamlined voc offer, revised performance
measures, greater mobility of staff and students, diversity of providers
– 16-19: coherent programme of substantial qual; L2 Eng/ma; work placement
– WBL: clarity of employer role; minimum frameworks; traineeship scheme
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Other qual frameworks
– IB, Welsh Bacc, Birmingham Bacc, BTECs, apprenticeships
4. Create a more responsive system
• Range of system reforms as Government seeks to streamline systems,
free up provider side, encourage innovation and responsiveness
• Current approach set out in latest reform programme
• Mechanisms include:
– Shifting from grants to increased purchaser power
– Developing a new breed of informed consumers through the application of
new intelligence sources and comparative data
– Enabling progression through a stronger ladder of vocational qualifications
– Granting employers greater ownership of aspects of the skills system
– Raising the quality of teaching and learning through stronger inspection,
performance and accountability measures
– Reconfiguring institutional business planning around local market needs
– Liberalising providers to enable them to develop new structures and
partnerships
– Removing funding barriers where possible
4. Create a more responsive provider system
What to look out for
1. Transformation of the skills system
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Shift of funding through Employer Pilots, results of bids (Sept/Oct 2012,) Round 2 (autumn
2012,) fuller evaluation (April 2013)
Direct funding models developed though apprenticeships, key sectors, City Deals
Launch of new Industrial Strategy to support Growth Plan (Sept 2012)
Development of LEP Regional Skill Commissions (autumn 2012)
2. Programmes for the unemployed
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Ofsted Skills for Employment Report (July 2012)
DWP Select Committee Report on Youth Contract (Sept 2012)
Further developments expected around the Youth Contract, the Work Programme, (autumn
2012)
Battle around welfare reform and lead up to Universal Credit (2013)
3. Reform of governance
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New flexibilities following 2011 Education Act and New Challenges, New Chances programme
Considerable re-thinking of new opportunities and partnerships
New procedures for dealing with underperformance
Ofsted’s ‘How Colleges improve’ Report (Sept 2012)
4. Create a more responsive provider system
5. HE developments
• Current position
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Key issues
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Short to medium direction set out in official Response to White Paper (June 12)
Emerging data about trends and uptake under new fee system (Sept 2012)
Maximum fee level remaining for 2013/14, maintenance grants uprated in line with
inflation (April 2012)
New institutional fee levels for 2013/14 signed off by OFFA (July 2012)
Financial health of the sector considered strong but some unease about how a future
market might operate and about some course provision
Tariff policy liberalised to ABB and 5,000 added to margin places for 2013 entry
So-called ‘squeezed middle;’ growing debt burden; potential lifting of the cap; impact on
recruitment; emergence of high – table; nature of regulation; global market; widening
participation; latest HEPI analysis of fee regime
What to look out for
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Introduction of KIS, NSP, Unistats (Sept 2012)
Adoption of HEAR (2012/13 )
Milburn Report (Oct 2012)
Update on new QA system (Nov 2012)
Impact Reports from HEFCE and Independent Commission (spring 2013)
Confirmation of funding for 2013/14 (spring 2013)
4. Create a more responsive provider system
5. Elsewhere
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Reform of the exam system (Autumn 2012)
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Enhancing learner support through new careers system, FE Choices, Learning Accounts, CIS,
Learner View (Sept 2012)
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Diversification of 14 -19 providers and local structures (ongoing)
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Preparation for RPA (2012 – 2015)
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Piloting of Community Learning Trusts (2012-2013)
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Emergence of executive style Funding Agency (2012 on)
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Development of FE global brand (ongoing)
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Review of teaching qualifications (Oct – Nov 2012)
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Potential post Lingfield developments (2012/13)
5. Reform of funding systems
• Government looking to maximise efficiencies and outcomes as a
way of counter balancing effects of cuts
• Re-balancing funding burden on the state by adopting coinvestment and introducing new fee regime
• Streamlining support funding and targeting it at the most
disadvantaged
• Slashing capital budgets
• Adopting flat budgets for schools but long-term reduction in FE
and HE budgets
• HE fee system already introduced, reform of school funding
postponed beyond SR, reform of 16-19 and FE funding coming in
from 2013
• Some funding protections being maintained during reforms
• Pay, performance and pension issues rumbling on
FE Policy Breakfast
Funding – what’s coming up in
2013/14?
Siân Owen
Head of AB Stakeholder Engagement (Funding)
Funding – what’s coming up in 2013/14?
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2)
3)
Changes to 16-18 funding.
Changes to 19+ and Apprenticeship funding.
Introduction of 24+ Advanced Learning Loans.
1) Changes to 16-18 funding
Study programmes and funding formula review
Summary
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Study programmes.
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Move from funding qualifications to funding learners.
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Single rate based on 600glh – part-time in four bands.
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Based on 600 learning hours.
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‘Substantial’ qualification.
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Retention, but no success.
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(Higher rate for large programmes?)
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Formula protection funding – three years.
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Performance tables, inspection, and minimum standards.
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English and maths – will become a condition of funding – phased
implementation.
What could the changes mean?
Transitional
protection
No funding per student lost for 3
years.
Psychological
change
Stop thinking in terms of adding
up glh.
Large
programmes
Uplift still being considered.
Evidence
requirements
December.
Lower levels
Level 3
Maths and
English
Levers
Flexibility?
Change will be around maths
and English, and access to work
experience.
Part of every programme.
KS5 performance tables, Ofsted.
2) Changes to 19+ and Apprenticeship
funding
Streamlined adult funding system
Summary
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Credit
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Rates matrix
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Funding formula
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Achievement
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Cap in £
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Payments
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Tracking – or rather – lack of
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Unit funding
The funding rate matrix
Programme Weighting Factor (PWF)
Learning aim type (credits)
1.0
1.12
1.3
1.6
1.72
Award (1-4) (1-6)
£148
£166
£193
£237
£255
Award (5-12) (old 7-12)
£336
£376
£437
£537
£578
Certificate (13-24)
£724
£811
£941
£1,159
£1,246
Certificate (25-36)
£1,265
£1,417
£1,645
£2,025
£2,176
Diploma (37-48)
£1,987
£2,225
£2,583
£3,179
£3,417
Diploma (49-72)
£2,573
£2,882
£3,345
£4,117
£4,425
Diploma (73-132)
£4,170
£4,670
£5,421
£6,671
£7,172
Diploma (133+)
£6,602
£7,395
£8,583
£10,564
£11,356
What could the changes mean?
24+ studying
level 3+ – no
funding
Further details in loans section
to follow.
Turbulence
Funding cut/increased, hours
cut/increased – balanced out, or
implemented course by course.
Less simple
Originally simplified’ now
‘streamlined’
Qualification
based
Unlike 16-18, funding will still be
based on qualifications.
Impact on
other students
Basic skills
QCF
Two systems
Unknown.
Cut more sharply than other
areas.
Based on QCF qualifications.
16-18 and 19+.
3) 24+ Advanced Learning Loans
24+ Advanced learning loans
Summary
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Does what it says on the tin
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All fees – but loans to help
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Priorities, but protection
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Terms
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Access to HE
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Fees
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Allocations (facilities)
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Apprenticeships
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Timetable
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Learners with existing student loans
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Four advanced learning loans
Advanced learning loans in number
£129m
13/14 budget
£300
Minimum a learner can
borrow
£398m
14/15 budget
50%
% of published rate an
Apprentice can borrow
£50m
Bursary fund
24+
Age at which a learner can
apply for a loan
204,000
Number of 24+ learners in
14/15 if total is drawn
3+
Level of qualification
eligible for loan funding
£11,356
Maximum a learner can
borrow (equivalent to
published rate)
4
Number of loans any one
learner can draw from
£21,000
Salary threshold
0
Level of attention paid to
prior attainment
What could the changes mean?
Reduction in
demand
There is debate over the
quantity of the decrease, but
there is a broad assumption that
demand will fall.
Change in
incentives for
providers
Loans could be
an enabler
Learners who were formerly
ineligible for public funding, are
likely to be eligible for loans –
how will they respond?
Learners
becoming
more
demanding
Providers
charging less
than the
maximum
Will providers continue to do
what they’ve done with the
employer fee in apprenticeships
and overlook a proportion of the
fee?
Mixed
possibilities for
Apps
Previous incentive to maximise
the number and size of
qualifications learners take –
could there now be an opposite
incentive?
Government assumption that
learners have a vested interest
in demanding greater quality
and quantity of content.
Debates point to UK HE where
demand is around prestige, and
US HE where demand focuses
on grades.
New concept, might employers
be persuaded to absorb the
cost? Might apprentices want to
take the full cost themselves?
Simplifying the system
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‘Simplifying’ or now ‘streamlining’ a theme of all funding
consultations on change.
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Simplifying one funding system in two directions – two new
‘simple’ systems…
Key issues facing the sector
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Building a strong vocational route
Responding to changing quality assurance requirements
Raising the quality of T/L across the board
Developing new forms of professionalism and governance
Establishing effective performance management systems
Strengthening position in local supply chain
Understanding local market economy and learner trends
Adapting to the growth of social media
Winning in the new funding system
Elevating the brand
Thank You
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