Maths and English Penalty Charges
Over a period of five years, the Department for Education is introducing a major change to the 16 to 18-year-old curriculum by using a system of penalty charges to ensure that every student is enrolled on a GCSE Maths or GCSE English course until they attain grade C or the age of 18. DFE describe this as a “funding condition” but, whereas many of the clauses in the funding contract with institutions are loosely applied, this one involves a direct financial loss to a college or school.
The Maths and English penalty charges will be levied on colleges and schools two years after non-compliance at a rate of their average funding per student (average £4,500). DFE’s funding agreement with institutions prohibits fees and charges in most circumstances which leaves the option for institutions of:
- educating students for free
- excluding them (after appropriate warnings)
- not admitting them in the first place.
The legal duties on 16 and 17 year olds to participate sit with the individual and with local councils not with institutions apart from those covered by the new Education Health and Care Plans.
The new system of penalty charges sits alongside some financial incentives to admit students below the GCSE threshold. Since 2013-14, the funding formula provides an additional payment of £480 for each student who is below either of the thresholds (and £960 for those below both). There is also money available to support teacher training and recruitment.
However these new orders from DFE come at a time when cuts are being made in the overall funding of 16 to 18-year olds. Cash funding per student has been reduced at a rate of 1-2% each year since 2010-11. There is no funding for inflation and there have been additional targeted cuts (for example the 17.5% cut of £700 to funding of full-time courses taken by 18 year olds). There is no firm information on the 2015-16 budget which is a year where DFE is expected to make a 1.2% cut to its non-school budget. In addition to any spending cuts in 2016-17, schools and colleges will see the cost of employing teachers rise by 5% because of the rise on pension and national insurance contributions.
The Class of 2012
Born in 1995-6, Year 11 in 2011-12, take GCSEs in June 2012
70% achieved Maths GCSE threshold
67% achieve English GCSE threshold
Old rulesNo specific funding requirement
The Class of 2013
Born in 1996-7, Year 11 in 2012-13, take GCSEs in June 2013
71% achieved Maths GCSE threshold
68% achieve English GCSE threshold
Study Programmes in 2013-14Ought to be enrolled on GCSE or stepping stone qualification
Additional funding (£480) for those below GCSE threshold
EFA data matching has estimated extent of compliance
EFA cash paid per student cut by average of 1%
The Class of 2014
Born in 1997-8, Year 11 in 2013-14 (now), take GCSEs in June 2014
Maths and English GCSE results out in August 2014
Funding condition takes effect in 2014-15Must be enrolled on GCSE or stepping stone qualification
If not, their College or School loses all funding (a £4,500 fine)
New data collection arrangements now in place (for Colleges)
EFA cash paid per student cut by average of 2%
The Class of 2015
Born in 1998-9, Year 11 in 2014-15 (next year), take GCSEs in June 2015
Maths and English GCSE results out in a year’s time
Tighter funding condition for those with grade DMust be enrolled on GCSE if they achieved a D
Choice of a one-year resit to take old GCSE in summer 2016
Or a two year new GCSE (first exam cohort in 2017)
Stepping stone qualifications for those with lower grades
No information on EFA funding levels yet
The Class of 2016
Born in 1999-2000, Year 11 in 2015-16, take GCSEs in June 2016
Last cohort taking old GCSEs at school
Must be enrolled on GCSE if they achieved a DLast chance to resit old GCSE is November 2016
The grade D group will mainly take new GCSEs
Stepping stone qualifications for those with lower grades
Funding cuts possible following 2015 spending review
Cost increases (pensions, NI) will force savings elsewhere
The Class of 2017
Born in 2000-2001, Year 11 in 2016-17, take GCSEs in June 2017
Last cohort taking old GCSEs at school
Must be enrolled on the new GCSE2017-18 will be the year when every 16 year old will either have a GCSE in Maths and English at grade C or be enrolled on a GCSE resit course. Summer 2017 sees the first set of tougher exams so the pass rate is likely to be lower and numbers on the resit courses higher. Two years after an election is normally a time when public spending cuts are hardest. The Treasury and DFE will be expecting to make savings because of the decline in the 16 to 18-year-old population (down by 8% between 2015 and 2020). Many colleges and schools have a strategy of expansion to maintain overall income at a time of reducing funding and this is possible for the more popular institutions. This is likely to lead to sixth form closures in other places – most probably in schools with poor GCSE results as well - resulting in more student movement at 16. It is plausible that other schools and some colleges will only recruit students who already meet the GCSE thresholds.
DFE has published a statement setting out plans to tighten the funding condition in 2015-16, has produced an equality impact assessment and has consulted Ofqual. There is still time to carry out a full three month consultation about the latest set of plans and we recommend this should be done to work out the full impact and to let those running schools and colleges, particularly those who teach Maths and English, to discuss and document the issues for those making decisions in Westminster
Association of Colleges
3 July2014