Revenue Funding

Geoff Daniels, LSC Director Funding & Strategic Analysis

16-18

Additional funding for 17,500 16-18 apprentices and 54,500 FE learners
Demographics - cohort declines by 33,000 in 09/10 and further 44,000 in 10/11, doesn't bottom out till around 2018.
Final allocations to be issued June 5th.
2010/11 1% efficiency gain as yet unspecified

Adult
Allocations issued 7 April, overall 2% reduction (wide range of outcomes for individual providers), focus on priority delivery
Mid year reconciliation: growth £5m, clawback £12m, moderation - floor on reductions. Guidance changed to 5% over and under, growth capped at 110% (priority provision), clawback capped at 85%.

Response to downturn:
T2g/ESF response to redundancy, 6 month offer (FE only), 12 month + programme TBD

Employer Responsive
Management of demand is key issue (T2G), 08/09 budget increased, so 09/10 budget is lower than 08/09 i.e. brought forward within fiscal year (may still change) .
10/11 £340m efficiency saving needed across FE and skills sectors.