This month saw the Skills Funding Agency (SFA) set out its qualification eligibility principles for the new Adult Education Budget (AEB), set to replace the Adult Skills Budget (ASB) from August 2016.
This year, in line with the previously published Simplified Funding Rules for 2016-2017, the SFA is changing the way in which it creates an approved, publicly funded qualifications offer for learners. For 2016-2017 it’s introducing a new process that reflects both their policy to simplify the Further Education funding system and to place more of the decision making into the hands of learners, employers and localities.
The diagram below (taken from this SFA document) sets out how the SFA envisages this system working, with approximately 10% of the overall £1.5billion AEB being allocated for the Legal Entitlement.
Legal Entitlement
Alongside this update the SFA has published an initial list of qualifications that will be funded under what is called the Legal Entitlement. We’re currently working with the SFA to identify qualifications we want included in the Legal Entitlement. There will be an updated final list of qualifications eligible for the Legal Entitlements in 2016-2017 released by the SFA w/c 21 March.
On a bit of a sidebar, personally, it was frustrating that this process was rolled out over the half term break, as a key part of getting a qualification approved by the SFA is getting support from colleges and training providers, the majority of whom, as you’re well aware, would be closed over the half term.
Local Flexibilities
The other aspect of the AEB is the Local Flexibility component. As you can see from the diagram above, this could include qualifications, bespoke provision or locally designed and tailored training provision. The SFA’s intention is that the around 90% (approx. £1.35bn) of the AEB will be set aside to respond to these Local Flexibilities.
According to the SFA, “This recognises that localities, colleges and other training organisations are best placed to decide on the most appropriate type of provision to respond to local needs”, and that if qualification are used “the only requirement is that the qualification is eligible for local delivery.”
The SFA will use its Learning Aims Hub to list qualifications confirmed as eligible for local delivery – the guidance provided to Awarding Organisations states that this will start to take place from April 2016.
Of course, all this depends on a local skills ecosystem that is informed by colleges, training providers, Local Enterprise Partnerships (LEPs) and city regions – all of which will be impacted upon by the ongoing area review programme that is currently underway.
…and let’s not forget that we’ve the Apprenticeship Levy to be introduced from April 2017, by which time we’ll have a funding landscape that may look different to what we’re used to.
