East Midlands Learning and Skills Council: presentation on priorities and budgets for 20072008

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(No Transcript)
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LSC Priorities and Budgets 2007 - 2008 16
November 2006
Welcome
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Agenda

• Grant Letter
• Raising our Game / Annual Statement of Priorities
• Funding - Key Issues
• Regional Strategic Analysis
• Regional Priorities
• Planning and Allocations 2007 - 2008

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Raising our Game Verity Bullough Regional
Director
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Public Sector Reform

• LSC Priorities to be seen in context of wider
  framework for public sector reform
• Providing more choice for customers
• Funding following users choices
• Tailoring services to meet individuals needs
• Competition and contestability
• Encouraging innovative new providers to enter the
  market
• Taking robust action to deal with poor quality
• Giving more autonomy to the excellent
• Stretching outcome targets
• Workforce development, skills and reform

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Grant Letter / National Priorities

• Meet the trajectories for the Public Service
  Agreement (PSA) targets Skills for Life, Level
  2 for young people, Level 2 for adults
• Support expansion in 16 18 participation
• Implement the 14 19 phase of learning
• Reform the FE system
• Support the development of higher level skills
  Leitch readiness
• Implement Learning for Living and Work

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Priorities for Success

• Building on Priorities for Success 1
• Public funding redirected towards key priorities
• Meet the trajectories to deliver PSA targets
• Continued focus on 16-18 growth and funding
• Targeted Adult growth
• Introduction of fees to ESOL provision
• Type 2/3 provision, Fees
• Continued reductions in non-core budgets

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16 18 Funding

• Distinct growth allocation of 1.8 (FE only)
• Continued focus on unit rates no specific cuts
• Continuation of MFG 3.7
• Closing the School/College gap
• 16-18 apprenticeships / E2E 2.5 on rates
• Target reduction to WBL rates to create growth
• 19 apprenticeships increase employer
  contribution to 50 by 2010 / 11

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Adult Learning

• Rates increase (FE only) of 2.5
• Continuing policy of employer responsibility for
  funding statutory courses
• Continuing reduction to type 2/3 provision
• Adult Level 2 growth funding increases
• Funding for Level 3 entitlement (19-25) linked
  to adult learning grant
• Additional 16.7 million for Adult
  Apprenticeships
• PCDL offer remains at 210 million nationally

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Adult Learning

• ESOL no longer gets automatic fee remission
• JC basic skills funding
• Asylum seekers 19 no longer eligible for
  funding, with some exceptions
• Skills for Life Level 1and 2 will no longer
  attract funding enhancement
• Entry/pre entry SfL will only be fundable within
  SfL standards and curriculum framework
• Fee income assumption rises to 37.5

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Other Budgets

• Redirection of non-participation budgets to the
  front line
• LLDD specialist college placements growth of 15
  to 181 million
• Learner Support Funds to grow by 12 to 230
  million
• 14-16 IF ends, replaced by 14-19 fighting fund
• Train to Gain hold back 20 of the total 230
  million as rapid response fund
• Train to Gain Infrastructure - 21 LIF - 41

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AllocationMethodology

• Currently under review
• Regional target trajectories to play greater role
  in determining allocations - shift to more needs
  based
• Recognition of the differential impact that a
  focus upon key targets can have
• Key targets to be funded sequentially
• Remainder allocated on basis of adult population
• Review of allocations process within the region

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Funding System2008/09 onwards

• FE White Paper March 2006
• Different systems for 16-19 (planned) and adults
  (demand-led)
• LSC commissioned by ministers to develop
  demand-led models
• Three models developed for consultation
• 16 19 / adult individual learner driven /
  adult employer driven

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Questions
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Regional Priorities, Planning and
Allocations Paul Williamson Regional Director of
Learning, Planning and Performance
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Strategic Analysis- Demand

• Employment rates are high for the region, but
  earnings are low by comparison and there are more
  occupations with lower skills needs.
• Majority of sectors have high levels of employees
  without Level 2 qualifications, amounting to over
  500,000 people.
• Replacement demand is significant in most
  sectors.
• Fewer young people will enter the labour market
  the labour force will rely more on older people
  who are currently less well qualified

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Strategic Analysis- Demand

• New entrants are needed in the labour market to
  maintain and increase skills levels, for example
  benefit claimants, migrants
• Those with higher level qualifications are more
  likely to have employer supported training
• Those with lower qualifications are less likely
  to identify skills needs accurately or at all
• Those with low or no qualifications are employed
  in sectors and levels of occupation threatened by
  international competition

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Strategic Analysis- Demand

• There is a mismatch between the skills
  individuals feel they need to improve (general IT
  skills) and those employers have identified as
  skills shortages (communications skills, problem
  solving and customer handling skills)
• There is little recognition of the need to
  improve literacy and numeracy skills, especially
  amongst those in work and those not intending to
  work. Those looking for work are the most likely
  to want to improve their ability.

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Strategic Analysis- Demand

• There is significant employer investment in
  training in the region, (2,475M) but very little
  in accredited training, especially by large
  companies
• Whilst 60 of large employers reporting using FE
  colleges for training, most of this is in the
  public sector and largely for statutory
  requirements.
• Disability/ill-health was a barrier for a third
  of unemployed men without a Level 2 or equivalent
  qualification.
• Disadvantage, deprivation and unemployment are
  concentrated in the same areas of the region the
  cities, Coalfields, Corby, and eastern
  Lincolnshire

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Strategic Analysis - Sectors

• Expansion in terms of new jobs is forecast in
  Business Services, Wholesale, Retailing, Health
  and Education.
• Health and construction sectors have significant
  numbers of large employers and both forecast to
  grow faster than the national average due to
  significant development opportunities and
  demographic changes.
• High levels of employment in manufacturing, with
  Food and Drink and Transport Equipment identified
  as significant for the region.
• Priority sectors of construction and retailing
  show lower levels of investment in training.

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Participation 16 - 18

• FE participation fell in 2005/6 but is planned to
  rise by 3 in 2006/7
• Participation in WBL rose by 13 in 2005/6 but is
  planned to fall in 2006/7 by 1
• Skills for Life participation rose in 2005/6 1.5
  times faster than national averages and is
  planned to do so again in 2006/7
• Level 2 participation rose by 20 in 2005/6 and
  is planned to do so again by 100 in 2006/7.
• Participation at Level 3 is rising faster than
  the national trend and is planned to increase
  again in 2006/7
• NEET figures rising

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Adult Participation

• Participation in FE has decreased by a total of
  39 between 2004/5 and 2006/7 in comparison to
  national decreases of 16 and 11.
• WBL participation in 2005/06 increased by 6.
  There is a planned reduction of 1 in 2006/7.

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Achievement

• Success rates improving in WBL, and East Midlands
  success rates are amongst the highest.
• 68 of people who will be 19 in 2006 have already
  reached Level 2 by age 18. To meet the target a
  further 1.4 increase is needed in 2005/06. Early
  indications are that Level 2 at 19 target has
  been met.
• Early indications are that the target of 1million
  adults achieving a full Level 2 between 2003 and
  2006 will not be met, and thus the 2008 target
  will need to increase
• The Skills for Life target for 2005/6 has been
  exceeded

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LSC Priorities

• Young People
• Skills
• World Class System
• Deliver Choice and Economic Development through
  Partnership Working
• Improving the Performance of the LSC

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Young People

• Raise the quality and improve the choice of
  learning opportunities for all young people to
  equip them with the skills for employment,
  further or higher learning and for wider social
  and community engagement.
• 90 participation by 2015
• NEET and ENT
• Review WBL and E2E provision
• 14 19 Phase of learning Prospectus,
  guarantee, communications
• All young people to be able to access high
  quality provision
• Improve success rates in all types of provision
• Broader curriculum offer Specialised Diplomas,
  Foundation, E2E
• Address gaps and poor provision contestability,
  competitions
• LLDD

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Skills

• Raise the skills of the nation, giving employers
  and individuals the skills they need to improve
  productivity, employability and social cohesion.
• Fixing the long tail of low skills,
  pre-employability and skills for life provision
• Strengthening the intermediate level, Level 2,
  the platform for employability
• Delivering higher level skills to improve
  employer productivity.
• Clear offer for employers
• Train to Gain
• Higher level skills strategy and action plan
• Public Sector skills
• Sector focus, addressing employer needs
• Provider specialisation Skills Academies, CoVEs
• Adult Offer - Learner Accounts, focus on hotspots
• LLDD

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Strategy for AdultProvision and Funding

• Expect continuing squeeze on adult F.E. budget
  16 18 growth
• Participation in F.E. in the region reduced at
  twice national rate
• Adult Level 2, Skills for Life, Priority Level 3
• Remain disparities in funding allocations to LSC
  areas in PCDL and adult F.E.
• Many areas do not have a coherent offer of
  provision to adults all levels, progression
  routes, designed to meet needs
• Regional project to bring forward options for
  future development
• Coherent adult offer, including entitlements
• Funding allocated more on basis of need than
  historical basis
• Address via commissioning and competition

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World Class System

• Raise the performance of a world class system
  that is responsive, provides choice and is valued
  and recognised for excellence.
• High quality responsive provision, address
  underperformance
• Reform F.E. system to realise potential as driver
  of economic growth
• Responsive provision
• Strategic commissioning identify need and
  demand, contestability
• Deliver full range of provision H.E., short
  courses for employers
• Ensure choice in full cost provision, deliver
  coordinated offer in area
• All buildings world class, align with Building
  Schools
• Communications gateway
• Possible pilot of Learner Accounts new funding
  approaches

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Partnership Working

• Raise our contribution to economic development
  locally and regionally through partnership
  working.
• Develop higher level skills in support of
  economic development
• Work with partners to support economic
  development
• New Deal for Towns, Cities, and Regions, LSPs,
  Local Area Agreements, City Strategies, Regional
  Skills Partnerships
• Address low skills and skills gaps low skilled
  job seekers, support into sustainable employment.
  Employability.
• Work with Jobcentre Plus, role for ESF funding
• Rural and urban focus
• Community and Voluntary sector

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Improving thePerformance of the LSC

• Establish revised governance arrangements
• Build capacity within the LSC to engage
  effectively with issues of regional scale and
  impact
• Use funding flexibly to support achievement of
  key objectives
• Ensure that the LSC works consistently across the
  region
• Communications

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Funding and Allocations 2007/08
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A New Approach

• Continue the development of strategic
  relationships with strong, autonomous providers
• Encourage collaboration for the benefit of
  learners and employers
• Simplify planning arrangements
• Be clear about investment priorities
• Deal robustly with poor performance
• Develop the market demand led responses and new
  high quality provision
• Ensure Government funding is focussed on
  priorities

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Shape of the Regional Plan
Annual sector skills analyses
Annual sector skills analyses
Annual sector skills analyses
Regional Statement of Priorities
Regional Commissioning Plan (Nov 30)
Local Delivery Plans (March 31st)
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Recommendation One

• Quality in WBL
• LSCs Regional Quality Strategy sets regional
  performance minima for overall performance by age
  group and for priority sectors
• National levels of minimum performance are too
  low to reflect the excellent progress made over
  the last two years in full framework completion
  rates

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Recommendation Two

• Entry to Employment
• Development of a regional approach to E2E
  programmes
• Building on examples of good practice flexible
  model responsive to NEET and young people by area
• Securing consistency on use of E2E funding
• Enabled by E2E budgets being part of WBL budget
  stream
• E2E task and finish group

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Recommendation Three

• WBL
• Demand evidence by sector and area is used to
  re-allocate through open and competitive
  tendering (OCT), funding progressively to 2010,
  to enable gaps to be filled.
• There is a need to increase participation in
• Young People
• Region wide
• Utilising Programme Led Apprenticeship Strategy
• Construction, Health and Social Care, Engineering
  and Retail
• Adults
• Construction Leicestershire, Lincolnshire and
  Rutland, Northamptonshire and Nottinghamshire
• Health and Social Care Northamptonshire
• Retail Leicestershire, Derbyshire
• Business Administration Leicestershire and
  Nottinghamshire

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Regional Plans

• Regional Strategic Analysis
• Annual Statement of Priorities
• WBL Strategy
• Quality Strategy
• LLDD Strategy
• Strategy for Adult Provision and Funding
• 14 19 Plan
• Regional Commissioning Plan
• Area Plans
• Available at www.lsc.gov.uk/eastmidlands

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When will we tender?

• Poor quality linked to minimum levels of
  performance and/or unsatisfactory Ofsted
  inspection Intervention Strategy
• New money eg Train to Gain
• Different provision model / new service eg OLASS
• ESF
• Significant shifts to mix balance and mix of
  provision, including 16-19 competitions
• Aim - one tendering round per year in each region
  encompassing all provision provider benefits
  and LSC benefits

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Group Discussions

• Key issues and questions on the funding and
  allocations process
• Further information
• Communications
• Process
• Feedback on Regional Priorities
• Clarity
• Focus