Funding
On 20 July 2010, the government announced changes to the funding system for 16 – 19 education and training. The Secretary of State has requested simplification of the funding process by switching to a system whereby providers are for the most part funded on the basis of their previous year’s activity – or ‘lagged pupil funding’. This will remove the need for detailed planning by either local authorities or the Young People’s Learning Agency (YPLA), and will secure efficiency savings across thesector.
With a simpler allocations system for much of 16-19 provision, the YPLA will now directly fund general Further Education and Sixth Form Colleges and other providers for 16-19 provision, rather than funds being directed through local authorities. In practical terms this change will cut out the need for LAs to fund and to hold financial audit and assurance functions for 16-19 and removes the need for local authorities to manage funding agreements with 16-19 providers. Local authorities will however continue to fund maintained schools for their sixth form provision.
Apprenticeships will continue to be funded by the National Apprenticeship Service.
The YPLA made its first direct payments to learning providers for the academic year 2010/11 in mid August 2010.
Other simplifications to the allocations and funding processes will apply in the planning for, and the operation of, the 2011/12 academic year. The process for agreeing allocations for 2011/12 which was described in the National Commissioning Framework has been withdrawn and will be replaced with a simpler system.
Stakeholders will be briefed on the new system early September at the latest with final arrangements in place by the end of September.
For further information about these changes go to http://www.ypla.gov.uk/news/latest/funding.htm
