Funding Vocational Provision for 14-16 year olds

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Funding Vocational Provision for 14-16 year olds

• Edexcel Funding Network
• 28th November 2006
• Mick Fletcher

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Evidence Base

• Provision for Learners aged 14-16 in the FE
  sector LSN Fletcher Styles 2006
• Implementing 14-19 provision a focus on schools
  LSN Fletcher, Styles Valentine 2006
• AoC risk analysis of the specialised diploma
  programme
• DfES regional conferences and website
• DfES analyses of IFP
• Nuffield 14-19 Review
• Size Matters Fletcher Owen LSN 2006
• Do post 16 structures matter? NFER 2006

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Aim of the Initial LSDA Research

• To establish baseline data about the nature and
  scale of college involvement in 14-16 provision
• To gather college perceptions on benefits and
  concerns
• To gather evidence on the costs and funding of
  provision

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Evidence Base

• Postal survey of all FE colleges in summer term
  2005
• 132 responses, broadly representative of the
  sector
• Discussions and email exchanges with expert
  reference group

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Headline Findings 1

• Substantial and growing involvement of colleges
  across all types and areas
• Since 2002/3 growth of 144 in NQF provision and
  36 in Other
• Across all areas of learning but 54 in
  Engineering, Construction ,Hair Beauty Broad
  range of pupils involved

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Headline Findings 2

• BUT
• The level of subsidy by colleges is not
  sustainable
• Income from all sources significantly less than
  direct costs
• Including overheads the funding shortfall for the
  sector is around 100 million.

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Attendance
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Enrolments by level
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Forward Plans (42 colleges)
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Areas of learning
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College perceptions of offer
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Benefits of 14 16 provision
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Concerns (all respondents)
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Major concerns by size of 14 - 16 provision
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Income versus Expenditure
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Aim of LSDA stage 2 research

• To identify school perceptions of vocational
  options for 14-19 year olds
• To identify how schools could organise themselves
  to participate efficiently
• To identify the savings that schools might
  realistically make by collaborating

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Key Messages

• Broader choice at 14 seen to have real benefits
  for motivation, skills and progression
• Effective vocational programmes cost more to run
  properly than GCSEs
• Currently provision is cross subsidised from ESF,
  IFP and colleges
• Schools cannot make sufficient savings to meet
  the real costs of colleges
• There is a danger that things will begin to
  unravel

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Typical Cost Profile

• College Costs - 2300 per pupil
• School Contribution - 4-500 per pupil
• ESF Contribution - 4-500 per pupil
• College subsidy - 13-1500 per pupil
• Contribution from IFP reduces as nos. rise

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Case study 1

• 12 students in total attend college
• School costs - 9000 college fees
• - 1000 transport
• School savings nil

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Case study 2

• 70 pupils take 3 hrs per week at college/wbl
• School savings 3 groups of 20 9hrs
• 9/20ths teacher
  16,200
• materials
  800
• 
  17,000
• School costs 50 FE at 560 28,000
• 20 wbl at 1000
  20,000
• 
  48,000

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Case Study 3

• 130 pupils on 2 half days per week
• School costs
• 130 pupils at 400 52,000
• Transport
  5,000
• 
  57,000
• School savings
• Group size 15
• 130 /15 x 4 35 periods x 36,000/24
  52,000
• Group size 20
• 130/20 X 4 26 periods X 36,000/24
  39,000
• Material/exam savings might equal an extra 10

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Case Study 3

• College Fees
• 03/04 free 04/05 200 05/06 300 06/07 400
• College Costs Group size 11
• 11 x 400 x 2yrs/70 weeks 125.71/wk or
  31.43/hr
• LSC Understanding Costs project
• Teaching staff 38/hr with overheads 75/hr

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Case Study 4

• School pays 15 per student day
• For 20 pupils 15 x 34 weeks 10,200
• 1 group x 1 day 1 teacher/5 7,200
• materials etc at 10 720
• 
  7,920
• College gets 15 school 15 ESF
• 30/6 hrs 5/hr
• Covers direct costs at 8 full costs at 15

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Case Study 5

• College charges 1,000/pupil/day/year
• School pays 500 ESF IFP 500
• School estimates savings 500

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Impact on a School

• If
• For 2 out of 5 years
• 2 out of 10 pupils
• Take 1 day out of 5 on voc. options
• Of which half are in FE
• Then
• 2/5 x 2/10 x 1/5 x1/2 1/125 or 0.8

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Option Patterns

• Vocational options not equally popular
• 19 in engineering for every 1 in retail
• Modelling suggests
• 18 schools needed to make all groups viable (ie
  15 in retail)
• 5 schools needed to make groups viable overall
  (ie average of 15)
• BUT who will run the loss makers?

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Allocation Approaches

• Fund schools
• Fund Local Authorities
• Fund Colleges
• Fund Partnerships

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Types of Cost

• Set up costs
• Capital
• Staff Development
• Partnership Costs
• Transport
• Co-ordination
• Running Costs
• 14-16
• 16-19

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Scale EffectsRange of subjects by cohort size
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Economies of Scale
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Scale and A Level Performance
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16-19 f-t funding location and levelSource
Fletcher and Owen, LSDA 2005
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Participation by Area