WIREDGOV

Over the last 2 years, we have worked closely with representatives from colleges, training organisations and sector bodies to review all aspects of the current funding system: funding rates, funding formula and earnings method.

As part of our moves to simplification, we published in January The Funding Rules for 2013/2014 and now we have published the details of the 2013/2014 simplified funding method. Both documents set out the rules and how we will work with colleges and training organisations using the simplified funding method in 2013/2014.

Keith Smith, Executive Director of Funding at the Agency said: "The guiding principles of the new funding system will mean fairness, transparency and recognition of the diverse needs of adults and safeguarding the use of public funding. We now have a clear transparent mechanism of funding - a single funding system, a single set of funding rules, funding rates, funding formula, earning methodology, learning support funding and apprenticeships (new frameworks).　 All of this results in a simplification of the funding system for colleges and training organisations delivering real benefits to learners and employers."

We want to continue dialogue with the sector so any feedback from colleges and training organisations on the rules and funding system will be welcome.　We will be looking at ways and opportunities to gather this feedback through a series of provider webinars we are currently running. More information is available here.

Commenting on the new simplified funding system, Paul Warner, Director of Employment and Skills at the Association of Employment and Learning Providers (AELP) said: "In 2011 the Skills Funding Agency responded to a major consultation on the future of the Funding System. Since that time AELP and other stakeholders have been working with the Agency to develop a streamlined funding system for all providers that would be more transparent and would allow providers to respond more flexibly to the needs of their learners and employers. Clearly simplicity and flexibility has to be balanced with the need to manage public funds and ensure that funding follows those most in need of support.

"We welcome the Agency’s approach to involving the sector in its deliberations and we will continue to make a positive contribution to those discussions so that we maximise the ability of providers to respond to the needs of their communities, create a transparent and clear structure which will minimise bureaucracy. In the recent Skills Funding Statement it was announced that Apprenticeship rates would not be included in the simplification proposals because of the need to review the long term funding of the programme. We will however continue to discuss the options for Apprenticeship funding with the Government and its Agencies."

Julian Gravatt, Assistant Chief Executive at the Association of Colleges, said: "AoC has been pleased to work with the Skills Funding Agency and other stakeholders towards a Simplified Funding mechanism. This journey has been long and at times fraught, but we are supportive of the collaborative approach that the Agency has taken in its development.

"AoC and our member colleges have been, and will continue to be, involved in the process in order to directly inform the way in which funding is distributed throughout the skills sector. By working toward this common goal, both sides have increased their understanding of each other.

"However, we recognise that there is still some way to go in developing a simple funding mechanism that is above all effective for all parties. As such AoC remains committed to working with the Agency to ensure that providers, employers and most importantly their students, get what they need from the system."