The effects of the Comprehensive Spending review

CANTERBUR
Y COLLEGE
 DfE – current education
spend

CAN
TER
BUR
Y CO
LLE
GE
 YPLA spending review
 The schools budget will increase in real
terms in each year of the Spending Review
period.
 But economies in other areas mean that
there will be a total real reduction in
Departmental resource spending of 3% by
2014-15.

CAN
TER
BUR
Y CO
LLE
GE
 YPLA – Spending review

CAN
TER
BUR
Y CO
LLE
GE
 YPLA – spending review
 Following on from the decision to halt
Building Schools for the Future (BSF),
capital spending will be reduced by 60% in
real terms by 2014-15.
 The average annual capital budget over the
period will be higher than the average
annual capital budget in the 1997-98 to
2004-05 period.

CAN
TER
BUR
Y CO
LLE
GE
YPLA funding allocation
timetable
November 2010 Local authorities advise YPLA of strategic priorities for their local
area

December Joint DfE/YPLA 16-19 Funding Statement published

January 2011 YPLA confirm to existing providers the volume of activity to be
funded in 2011/12 [NB: not cash at this stage]

February 2011 YPLA provides information to local authorities on aggregated

provisional allocations (volumes) and confirms any additional
numbers to be funded outside the lagged approach (see below)

March 2011 YPLA sets national base rate based on total volume of provision to
be funded

March 2011 Final allocations confirmed to all providers

May 2011 YPLA issues funding agreements to providers for signature
onwards
 Funding allocation – lagged
funding

2010 initial X Increase in X Standard X Provider + Additional

enrolment learners learner factor Learning
numbers of from start to number to Support
learners end of year learner ratio
(2009-10) (2009-10)

CAN
TER
BUR
Y CO
LLE
GE
 Lagged funding – some
problems
 Rate for funding determined by national
volume of learners
 No negotiation/planning of learner numbers
 No reduction/increase for displacement or
cohort change
 Providers expected to respond to learner
needs, funding follows the learner

CAN
TER
BUR
Y CO
LLE
GE
 BIS – current spend

CAN
TER
BUR
Y CO
LLE
GE
 BIS – top level changes
 Protection for science
 80% cut in higher education teaching grants
phased over several years
 Student loans to cover higher education fees
of up to £9,000 a year
 Changes to student loans and grants to
make them progressive
 25% cut in further education and skills (a £1
billion cut)

CAN
TER
BUR
Y CO
LLE
GE
 SFA - main changes for 2011-
2012
 national base rate will be reduced by 4.3%
 Skills for Life literacy and ICT will have the
weighting of 1.2 removed
 Fee remission will apply only to learners in
receipt of “active” benefits (eg JSA)

CAN
TER
BUR
Y CO
LLE
GE
 SFA - main changes for 2012-
2013
 national base rate will be further reduced
 the provider factor will be removed from the
funding formula
 Fee remission for level 2 and 3 qualifications
will only apply to learners aged 19 to 23
years old.


CAN
TER
BUR
Y CO
LLE
GE
 SFA - main changes for 2013-
2014
 No funding will be given in respect of level 3
qualifications
 A student loan system will be introduced for
level 3 learners who don’t qualify for grant
funding (ie aged 24 years and over).

CAN
TER
BUR
Y CO
LLE
GE
CAN
TER
BUR
Y CO
LLE
GE
 Employer responsive – main
changes
 Level 3 non-apprenticeship provision not
funded
 Level 2 non-apprenticeship provision only
funded for employers with less than 250
staff and to be co-funded (at 50%)
 No ESOL funding (in the workplace)

CAN
TER
BUR
Y CO
LLE
GE
 19+ apprenticeships
19+ Apprenticeship funding

£700k 7% more
68% more
£600k

£500k

£400k

£300k
2010-11 2011-12 2012-13
Financial year

CAN
TER
BUR
Y CO
LLE
GE
 Employer responsive – main
changes
 Minimum contract level of £500k
 Pilot of outcome incentive payments
 Employer contributions for adult
apprenticeships to increase
 Growth in adult apprentices

CAN
TER
BUR
Y CO
LLE
GE
 Going forward
What does this mean for us?


CAN
TER
BUR
Y CO
LLE
GE
 Staff to be cut in budget
squeeze at MidKent
College

 Scores of MidKent College staff are facing the

chop as bosses attempt to plug a £4.3m black
hole in its finances.
 The further education college plans to cut 67
full-time jobs across its sites by September.
 About 12 per cent of the workforce is expected
to go …
 College bosses are tightening its purse strings
as they bid to save £2.5m this academic year
to stem a predicted £4.3m deficit by 2014.
CAN
TER
BUR
Y CO
LLE
GE
 The good news
 We have been expecting these cuts for
some time
 We have no plans to reduce our workforce to
compensate for the cuts

CAN
TER
BUR
Y CO
LLE
GE
 The bad news
 We did not plan for poor recruitment in 2010
 We haven’t done enough to recover
 Any numbers that we make up now will only
be reflected in 2012-2013
 We look set to lose funding of up to
£1,228,000 next year in respect of 16-18
year olds

CAN
TER
BUR
Y CO
LLE
GE
 For us going forward
 Up to now we have only closed courses
based on academic performance
 We now need to consider courses based on
their financial viability
 We will be less able to support a broad
range of separate academic departments
 We will need to carefully consider any non
frontline expenditure (staff and resources)

CAN
TER
BUR
Y CO
LLE
GE