As with so many recent developments in the industry over the last decade, my clients and friends working in ITPs are often confused and bewildered by the requirements for 16 to 19 funding under the Study Programme system. So, I wanted to discuss a few of the reasons behind why this is such a tough nut to crack and explain a few of the realities about how the system works.

Follow the money

Similarly to AEB allocations, in which colleges are automatically awarded vast sums while  ITPs are forced to fight over a comparatively small and limited pot, colleges of various types are by far the largest recipients of 16-19 funding. That’s not too surprising, given that the industry’s experience with AEB shows that the Government still prefers, on the whole, to fund colleges over ITPs.

Add in the stringent study programme requirements, which mean that, in addition to pursuing a “core aim”, usually a “substantial qualification” or work experience, programmes must include some work experience, maths and English for students without GCSE grade 4 equivalent, and non-qualification activities intended to support progress into work or further study at FE or HE level.

This lends colleges, sixth forms, academies and the like a unique advantage, given their existing strong specialisms in working with large numbers of young people to deliver programmes including substantial qualifications alongside maths, English, and other activities.

Given these inherent advantages, a glance at the 16 to 19 funding allocations for 2019-2020 reveals a clear (and unsurprising) trend: the vast majority of recipients are colleges of one form or another. 

Of the top 200 recipients in 2019-2020, colleges accounted for over 54% of the total allocation, over £3b. Just 4 of those top 200 are independent providers, while independent providers as a whole obtained just 3% of the total allocation in 2019-2020.

Top independent providers of 16 to 19 study programmes

Considering the Independent Providers, the 200 top winners receiving over £7.5m include just four ITPs (namely Access To Music Limited, Staff Select Ltd (t/a Nova Training), SCL, and Nacro)  seventeen Sixth Forms; a handful of academies and agricultural colleges; and a whopping 116 General FE and Tertiary colleges.

The largest recipients among independent providers were, by and large, companies and charities with strong specialisms in a particular area of study or category of learner, such as Access to Music, Nacro, AP Cymru, and Fashion Retail Academy; or large and recognised training providers with a broad base and the capacity to deliver most of the required elements, e.g. Nova Training, Skills Training UK, Juniper Training, and Aspire-Igen

Insights

Figure 1: 16 to 19 funding formula - source, published under Open Government Licence v3.0

A quick note on the topic of subcontracting 16 to 19 funds… discussions with my contacts have revealed that many recipients choose to jealously guard their funding, keeping everything in house, and a glance at the list of subcontracted students for 2018-2019 compared against the 2018-2019 allocations tends to confirm that position. A quick calculation suggests that only about 2% of students were subcontracted in 2018-2019. However, as could be expected, a chunk of the larger primes are subcontracting out some portion of delivery to other providers and colleges who can plug the gaps in their offering.

When it comes to getting a slice of the pie, these patterns combined with the above formula tell me that providers looking to turn 16 to 19 study programme funding into a major revenue stream should focus on some combination of:

• Developing capacity to deliver all of the required elements of a study programme, including those elements which attract premiums and other additional payments

• Deepening existing specialisms in working with learners in high-demand subjects or with particular needs alongside developing strong connections with business and other local providers who work with young people

Which course is most appropriate for you will depend on your current positioning among other factors, and I’m always available to discuss what makes most sense for your business.

I’d love to hear your thoughts about 16 to 19 funding in the comments. What’s your experience so far, and how can the system be improved?

Don’t forget you can find all the latest funding opportunities at FEfunding.co.uk

You can also catch up on all previous articles on Everything FE.