Skills Investment Strategy Briefings - Provider Questions and Answers
Communicating the Skills Investment Strategy (SIS)
On 1 December 2011, the Government published New Challenges, New Chances: The Skills Investment Statement 2011-2014: Investing in a World Class Skills System, setting out the Skills Investment Strategy, key policy objectives and operational drivers for the further education and skills sector for 2011-14.
The Skills Funding Agency has developed an implementation plan in support of these announcements to define the key priorities for the Skills Investment Strategy. This plan is currently being delivered to colleges and other providers by our regional relationship teams during January and February 2012.
The Agency has pulled together questions raised by providers at these briefings together with their answers. Our intention is to share with you questions raised by providers across the country regarding the Skills Investment Strategy which we hope you will find informative. For ease of reference we have put questions and answers under generic subject headers.
As each Agency region completes its provider briefings, we will update and refresh the Questions and Answers on this page so we recommend that you visit it regularly during the rest of January and the month of February 2012.
Items marked as 'new' represent the latest additions.
Provider Questions and Answers - Updated 15 February 2012
Agency – provider relationships
Q: Are we moving back to a more direct relationship approach now that the Agency’s area relationship teams are in place?
A: Yes, but always recognising that the Agency’s role has changed and it has far fewer people than before. Area relationship teams will have structured and more direct dialogue with providers around critical points of the business cycle such as allocations, quarterly reviews and strategic communications (such as the Skills Investment Statement). The face-to-face approach will also include addressing a larger group of providers to communicate strategic messages.
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Capital Grants
Q: Is there any further information on Capital Grants for 2012/13? New
A: The recently completed ERG Phase 2 allocation commits funding available in the 2011-2012 and 2012-2013 financial years. However, the Skills Funding Agency is in discussion with BIS and the Treasury to confirm the availability of any possible additional funding in 2012-2013 and beyond. The hope is that the Agency will be able to consult with the sector in late February or early March 2012.
Q: Will Capital Grants follow the same process as that for 2012/13? New
A: The ERG process was developed and adapted to fit particular circumstances affecting the two allocations (ERG Phases 1 and 2). Whilst future allocations are likely to draw on the experiences of these two allocations it is not possible at this time to confirm how any future capital allocations will be administered.
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QCF Units for the unemployed
Q: Awarding organisations state that assessments must be carried out in the workplace (real work). This is a real barrier to delivering meaningful, or sectorally-relevant pre-employment training. What can the Agency do to help providers overcome this?
A:. Awarding organisations and Sector Skills Councils will identify the assessment requirements for vocational qualifications and units and, usually where the purpose of the unit/qualification is to demonstrate competence there may be specific requirements linked to the nature, approach and context of assessment. These requirement may well be around assessment in the work place or, for some qualifications/units in a realistic working environment. However, before offering any units/qualifications, the provider should ensure that they can deliver the unit/qualification and assessment in line with the awarding organisation requirements. The Agency would not expect providers to circumvent awarding requirements. Where providers cannot meet the assessment requirements of particular units/qualifications they should focus on those units/qualifications where the assessment requirements can be met. The Agency is keen to ensure a broad offer will allow providers scope to meet individual needs.
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Qualifications and Credit Framework (QCF) - Unit Funding Trials
Q: The flexibility this policy offers is to be welcomed, however doesn’t the continuation of trials from one year to the next indicate a lack of confidence with the policy? When will there be a further announcement?
A: During 2010/11 the Agency supported a small number of providers to begin to test out flexible delivery across the QCF. The evaluation of those unit delivery trials showed that some of the benefits of flexible delivery for learners and employers are beginning to be realised and that a demand for credit accumulation is beginning to emerge. However, the evaluation also flagged up some of the issues that large-scale unit delivery brings with it. These are particularly around issues of curriculum planning and delivery, awarding organisation systems and processes, and costs and charges. Therefore, we want to further examine these challenges through another round of unit delivery trials in order that these issues and challenges can be resolved. So, rather than a lack of confidence, the extension of the trials is around wishing to ensure that structurally, and in terms of capacity and costs, providers and awarding organisations can deliver coherent packages of units and support learners to accumulate and transfer credit on a wider scale. NIACE have been commissioned to evaluate the 2011/12 unit delivery trials, and are focussing on some of the logistical issues around wider scale unit delivery, that providers have highlighted. The evaluation of the 2011/12 unit delivery trials will report in the summer, but we will be advising providers of the future policy around large-scale unit delivery before then.
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National Careers Service
Q: Many FE colleges currently have careers advisers as part of their delivery teams. Is there an expectation that colleges will link to the National Careers Service, and that the National Careers Service will have a presence in all colleges?
A: There is an expectation that colleges will direct learners to the National Careers Service, where appropriate, and that there will be closer co-location between FE colleges, Jobcentre Plus and the prime contractors involved in the delivery of the service.
The National Careers Service will comprise a single web address and telephone helpline number, 0800 100 900, which will provide access to online resources and professional guidance on careers, skills and the labour market for both young people and adults. It will also include a network of public, private and voluntary sector organisations, funded by BIS to provide face-to-face careers guidance to adults, working in the community.
There is also an expectation that all learners will be made aware of the National Careers Service and be encouraged to open a Lifelong Learning Account which will provide them with access to a range of information and products to assist with their learning and careers aspirations.
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Outcome Incentive Payments and Learner Tracking
Q: How do Outcome Incentive Payments apply to providers who only deliver Apprenticeships? New
A: The calculations for Outcome Incentive Payments will only apply if a learner is recorded in the ILR as being unemployed.
Q: When will information be available on Outcome Incentive Payments? New
A: More information should be available from the end of February 2012. This will be consolidated into the Funding Requirements for 2012/13 which will be published at the end of March 2012.
Q: Is there an expectation that colleges/providers will have to track learners beyond the end of their learning intervention in order to report outcomes (that is, jobs)?
A: It will be for the sector to agree what information will be published regarding the performance of FE colleges and providers,
It is also not yet clear what the final funding mechanism will be for outcome incentive payments (such as for moving unemployed people into jobs). Whilst it is the Agency’s intention to keep bureaucracy to a minimum, the Agency will need to be able to reward providers in a timely and auditable manner. Currently, data-matching options (learning matched to benefits data) are not timely enough to support this process. The only credible way to report outcomes is for colleges and providers to report them. This will inevitably include a degree a customer tracking after the end of learning.
In order to deliver some of the outcomes it is likely that colleges/providers may need to continue to work with learners beyond the end of the ‘learning’ programme. As such it may be that this should not be viewed as tracking, rather working with the learner to progress them onto the next stage of their journey.
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Job Outcome Payments
Q: How will the fact that providers are establishing individual tracking systems for job outcomes deliver a simplified and less bureaucratic system? New
A: Simplifying the funding system will allow providers to focus their efforts on delivering training that meets the needs of learners and employers. Having a simplified set of rates will allow greater transparency in levels of public subsidy, in particular where learners and employers are expected to contribute towards the cost of their learning. The Skills Funding Agency is also carrying out a detailed impact assessment of the new funding system and rates to help take account of provider behaviour.
Q: How do we measure Job Outcome Payments for those already in work?
A: It might be done in a number of ways:
- measuring sustainability in the job (minimum period of employment)
- progression parameters.
Work on exploring a range of measures for job incentive outcomes is being carried out at the moment. There are no proposals to implement progression payments like this in the near future. Job outcome achievement payments would be about unemployed people moving into work.
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Q: Can we have clarity on the evidence needed for Job Outcome Payments by 2012/13? Will it still be allocated at 2.5 per cent?
A: Job Outcome Payments will be implemented in 2012/13 and an update with further guidance will be communicated to providers in March 2012. An amount of 2.5 per cent of the Adult Skills Budget has been ring-fenced for Job Outcome Payments in 2011/12, and the ways in which this budget can be spent are set out in the Agency document ‘Adult Skills Budget Funding Requirements 2011/12’.
The proposal is that job outcome achievement payments (as we are now calling them) will be built into the funding calculation for 2013/14 as part of the funding simplification proposals.
We are currently consulting on how to implement this for 2012/13. The final decisions will be set out in the Funding Requirements for 2012/13, published at the end of March 2012.
The New Challenges, New Chances Skills Investment Statement 2011 – 2014: Investing in a World-Class Skills System) December 2011 states that in the 2012/13 academic year the Skills Funding Agency will trial making payments on the basis of job outcomes for unemployed learners, whose training is being fully funded. This trial will enable the payments to be integrated into the new, simplified funding system from the 2013/14 academic year. The amount will be relative to the size of the learning aim in line with the approach taken to funding qualification achievements. This will ensure the amount paid for an outcome is proportionate to the funding paid for a student's training.
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Skills Infrastructure Funding
Q: In the Skills Investment Statement there is reference to Skills Infrastructure Funding. What is covered by Skills Infrastructure Funding?
A: This includes areas that fall under the responsibility of the Capacity and Infrastructure team in the Agency. Examples of this are: capital, the National Careers Service (including web and telephone channels, and associated supporting IT developments), the implementation of FE loans and quality.
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Indicative Budget Allocations
Q: The money that has been allocated for Apprenticeships looks proportionally lower than the national budget. Why is this?
A: The annual allocations presented in the Skills Investment Statement are financial year summaries and they include funding for the employer ownership of the skills funding pilot that will make up to £250m available over two years for large employers to bid for, to support the delivery of Apprenticeships.
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Cost of Unit Registration
Q: The cost of registering candidates for pre-employment training is too high, and is a significant and real barrier to providers in delivering to the unemployed. What can be done to address this?
A: There is a range of awarding organisations who are offering units/qualifications which feature in the offer for the unemployed. Awarding organisations will have different approaches to fees and what those fees cover. The Agency expects providers to make informed choices around which awarding organisations they work with and these purchasing decisions will be based on a range of factors, including existing relationships, quality and range of service and also costs. Where a provider is concerned about fees from one awarding organisation, they may wish to either discuss the issue with the awarding organisation and see if a resolution can be reached or they may wish to compare areas of costs and service across a range of awarding organisations and decide if they wish to switch organisation. Both the Association of Colleges and Association of Learning Providers have produced best practice and ‘buyer guides’ to support providers in purchasing awarding organisation services. These are available on their respective websites. In addition, some providers have formed consortia with regard to purchasing awarding organisation services.
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Funding of first full-level 2
Q: Can you clarify the age in relation to funding of the first full-level 2? The Agency’s Skills Investment Statement presentation slides indicate that it is 19-23 whereas the government’s document states 19-24.
A: The document actually states the age range is ‘19 up to the age of 24’ – this would therefore not include those individuals who have reached the age of 24. Both the slide and the document are correct, they have just been expressed in different ways – a first full-level 2 can be funded for those learners who are aged 19 to 23 inclusive.
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First Steps - Adult Skills Budget (ASB)
Q: First Steps being incorporated into the Adult Skills Budget. Does this mean that providers delivering adult and community learning will only have an ASL contract?
A: The change will not come into effect until 2013/14. This is an issue already highlighted by the sector and there is a working group looking at the implications of the change. For those delivering ASB and First Steps, the First Steps element will be incorporated into the Single Budget.
Q: As an Adult Safeguarded Learning (ASL)-only provider, currently delivering Formal First Steps learning, does this mean we will have a separate Adult Skills Budget in addition to ASL funding?
A: Yes.
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Funding (general)
Q: Is there any scope for existing subcontractors to secure a direct contract with the Skills Funding Agency? New
A: Existing subcontractors who are successfully performing and delivering to a high quality can complete the Due Diligence Assurance Gateway process. If they are successful, they will be included in future invitations to tender which will allow them an opportunity to compete for direct contracts. The Skills Funding Agency is also considering a new process which will allow high-performing, existing subcontractors an opportunity to compete to secure contracts in response to demand.
Q: Will there be any transitional protection with the introduction of the new funding systems and rates? New
A: This is still under consideration.
Q: Considering the decrease in funding is there still an expectation for learner volume growth?
A: There is an expectation for apprenticeships numbers to grow. In 2012/13, although funding reduces, funding rates for 19+ will remain unchanged. This means that, given a similar mix of provision, learner numbers will reduce.
Q: Will the Agency take into account the fact that the mid-year estimate in 2011/12 will be different from the mid-year estimate in 2010/11 due to the extra funding and/or changes in the delivery?
A: Yes. As well as an analysis of the data submitted, discussions with colleges are crucial to take into account other factors impacting on performance and enrolments. The Agency needs to be able to recognise additional information from providers that cannot be captured purely by data. However, we cannot commit that additional funding allocated in 2011/12 will be consolidated at the same level in 2012/13.
Q: Is there additional information available on the criteria for the £1500 Employer Apprenticeship Grant? New
A: More infomation should be available in February 2012 and is likely to be communicated during Apprenticeship Week.
Q: What will trigger the 12-month 16-18 apprenticeship measure? Will it be the planned or actual leave date as currently, in exceptional circumstances, some learners achieve in fewer than twelve months?
A: For apprentices aged 16-18 the minimum duration time will be at least twelve months. Therefore, they will not be able to achieve their apprenticeship in fewer than twelve months in order to receive their completion certificate.
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Funding (16 - 18 Funding Rates)
Q: What will trigger the twelve-month 16-18 Apprenticeship measure? Will it be the planned or actual leave date as currently, in exceptional circumstances, some learners achieve in fewer than twelve months? New
A: For those apprentices aged 16-18 the minimum duration will be at least twelve months. Therefore, they will not be able to achieve their Apprenticeship or receive their certificate of completion in fewer than twelve months.
Q: Does the two per cent reduction in 16-18 funding rates apply to both existing and new learners? New
A: Any change in national rates is applied to all learners, existing and new.
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Funding (NEETs)
Q: With regard to providers allocated extra NEET funding in 2011/12, is the extra funding being consolidated for the 2012/13 allocations?
A: The final allocation in March will take into account the mid-year estimate and the February data return. The February data return is particularly important, as the Agency will use this to make an estimate of a provider’s end-year position for 2011/12 (comparing it with the data for the same point in 2010/11). For those allocated extra funding we would expect a higher estimate. This could mean an uplift in the final allocation if greater provision is being delivered at the mid-year point. However, the extra cash will not be directly consolidated into the calculations for 2012/13.
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Funding (Adult and Community Learning)
Q: Informal Adult and Community Learning. Is the Community Learning Trust model a way to redistribute the Adult Safeguarded Learning pot?
A: The model is about the targeting of provision on particular areas and not about a wider redistribution of funds, although that has been mooted for a number of years.
Q: Can you provide any more information about the ACL and the Community Learning Trust model? How will it be funded?
A: (Model) The model will be piloted in a representative sample of some different local areas during 2012/13. It will not necessarily apply to all providers. A prospectus giving further information about the pilot arrangements will be published in the spring of 2012.
A: (Funding) There will be more information about the funding arrangements as part of the prospectus this spring. We are aware of the additional demands that are likely to be placed on the current Adult Safeguarded Learning budget nationally, which may include Community Learning Trust models. However the focus of the consultation is on the likely structure and viability of these models, rather than any planned redistribution of the ASL budget to meet such needs.
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Funding (Adult Safeguarded Learning) (ASL)
Q: Are there any changes in funding for the current year that have had a detrimental impact on adults with learning difficulties?
A: We are not aware of any specific changes within the ASL budget. It may be worth noting that changes to general learner entitlement arrangements in 2011, allowing self-declaration of eligibility for those on both ‘active’ and ‘inactive’ benefits will have increased access for many LLDD students. However if you have any evidence of any specific detrimental impact that funding arrangements may have had on this group of learners, please contact your relationship team to enable the Agency investigate.
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Minimum Contract Levels Q: Does the £500k minimum contract level include Young People's Learning Agency (YPLA) and Skills Funding Agency funding?
New
A: The £500k minimum contract level only applies to Skills Funding Agency funding.
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Q: Is there going to be additional NEET for 2012/13?
A: NEET continues to be a priority and the Agency will seek to direct funding for 2012/13 to where there is evidence of demand. It is not known at this point if there would be additional funding in-year for NEET, and it should not be assumed there will be.
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Self-assessment reports (SAR) and Ofsted
Q: Is the quality of provision going to be measured by Minimum Levels of Performance and success rates reports only now that the Agency does not require submission of SARs?
A: It is good practice for the organisation to carry on uploading their SAR on the provider gateway as this has proved to be a critical document to assess providers’ continuous quality improvement.
Q: Given the removal of the requirement for providers to send their SARs to the Agency, how will the Agency now continue to monitor these reports?
A: The Agency is no longer required to monitor these. However they should still be uploaded to the provider gateway for Ofsted to be able to access these prior to inspections. The Agency will also continue to have access to the reports via the gateway. Although the Agency no longer has a ‘policing’ role regarding completion of SARs, these will continue to provide vital information about the provider quality, and should form part of the continuing dialogue relationship teams will need to have with providers about their performance and plans for improvement.
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Employer Architecture
Q: Can you give further clarification on how extensive the notion of employer architecture will be for providers?
A: This is an area which is still work in progress. The key priority is to have the small-to-medium enterprise (SME) and employer needs as the main driver. A prospectus will be published later this year following development work. Pilots will start in 2012/13 and some might look into collaboration between training providers and employers.
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Register of Training Organisations
Q: Whose responsibility is to register in the scenario where a subcontractor is tripped over the minimum contract level (MCL)?
A: In that scenario the subcontractor needs to register. It is good practice for lead providers to ask all subcontractors, as part of their due diligence process, if they receive other forms of Agency funding. Where the Agency identifies a subcontract is above the MCL and continues to fail to complete the Register we will advise the relevant lead provider.
Q: When is the deadline for registering?
A: The deadline for completing the Register is the 17 February 2012. However, financial statements need to be returned by the 10 February 2012. Those who have registered to complete the Due Diligence Assurance Gateway will receive an email alert forty-eight hours prior to the closure date.
Q: Will current provider details on ACTOR be migrated to the Register? New
A: Information will be prepopulated into the answer on the Register in the following circumstances:
- the training organisation must have previously completed the answer on ACTOR and
- the training organisation must have already answered the question on ACTOR.
Where a training organisation has a prepopulated answer on the Register it must ensure this information is accurate and current.
Q: When will the Register be available for providers to update? New
A: There will be specified periods when the Register will be refreshed. Once agreed, these dates will be communicated to providers.
Q: Can you confirm if all providers who wish to receive direct Agency funding need to complete the Register of Training Organisations? New
A: Yes. All training organisations who wish to receive Agency funding must successfully complete the Due Diligence Gateway process on the Register to receive funding. This applies to both existing contract holders and new training organisations.
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Community Learning Trust and Employer Ownership Pilots
Q: Is there scope for providers to influence the prospectuses for the Community Learning Trust and Employer Ownership Pilots?
A: Providers are welcome to submit innovative ideas if they wish. However the Agency cannot guarantee these will be included in the prospectuses as other key partners are also involved in the decision-making such as BIS and other national organisations.
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ESOL (English for Speakers of Other Languages)
Q: English and Maths are a priority in the Skills Investment Statement. What about ESOL?
A: The Skills Investment Strategy confirms the continuation of the current funding support for ESOL. Discussions are also taking place with Jobcentre Plus about the importance of ensuring there is sufficient ESOL provision for unemployed people for whom the lack of English is a barrier to gaining a job.
Q: Should colleges build ESOL into literacy provision?
A: Providers should do what is right for the learner, and there is no steer from the Agency on this. This area is being debated as part of the progression-to-employment agenda.
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