For Consultation: Responses to This Document Are

Circular 02/17

For Consultation: Responses to this document are

requested by 15 November 2002

Funding

Second Stage Consultation on Additional Learning Support Arrangements from 2003/04

Summary

This document provides the second stage of the Learning and Skills Council’s consultation on the proposed arrangements for funding additional learning support in the post-16 sector from 2003/04.

The proposed arrangements seek to establish common funding principles across the work based learning for young people, further education, adult and community learning, and school sixth form sectors. Whilst it is intended to introduce the new approach from 2003/04, there will be no significant changes to the existing approach for school sixth forms until 2004/05 at the earliest.

Responses to the consultation issues raised within this document are requested to be sent to local Learning and Skills Councils by 15 November 2002.

September 2002

Contents

Paragraph numbers
Section One: Introduction and Background
Introduction
Background
Responses to Consultation / 1
3
12
Section Two: Developing the Principles of the New Approach
Introduction
Background
Implementation in Each Learning Sector
Cost Study
Definition of Additional Learning Support
Learner Support
Specialist College Placements
The Anti-bureaucracy Agenda / 13
14
16
20
24
31
37
38
Section Three: Elements of the Proposed Funding Approach
Introduction
Common Principles of Funding
Establishing National ALS Rates
Thresholds for Funding
Cash Ceiling
Area Costs
Equipment
Small Group Provision
Assessment of ALS Needs
Other Issues Raised in Consultation / 43
44
47
61
66
69
72
77
89
91
Section Four: Developing the LSC Arrangements for Funding Post-16 Special Educational Needs in Schools
Introduction
Context
Underpinning Principles
Funding Allocations for 2003/04
Funding Allocations for 2004/05 and Beyond
Maintained Special Schools
Timetable / 98
101
108
113
119
122
123
Section Five: Next Steps
Response to Second Stage Consultation
Further Development Work / 124
126

Annexes:

Annex A / Membership of External Advisory Group
Annex B / Analysis of First Stage Consultation Responses
Annex C / Response to Consultation

Further information

For further information, please contact the appropriate local Learning and Skills Council.

Responses to this document

Responses are requested by 15 November 2002.

Executive Summary

Date: September 2002

Subject: Funding: Second Stage Consultation on Additional Learning Support Arrangements from 2003/04

Intended recipients: Heads of providers within the post-16 education and training sector, namely: further education, work based learning for young people, adult and community learning, and school sixth forms; chief education officers

Status: For consultation

a.This document provides the second stage of the Learning and Skills Council’s consultation on the proposed arrangements for funding additional learning support in the post-16 sector from 2003/04. The proposals in this document build on the proposals outlined in the first stage of consultation, which took place between February and April 2002, through Circular 02/04.

b.The proposed arrangements seek to establish common funding principles across the work based learning (WBL) for young people, further education (FE), adult and community learning (ACL) and school sixth form sectors. Whilst it is intended to introduce the new approach from 2003/04, there will be no significant changes to the existing approach for school sixth forms until 2004/05 at the earliest. This document will be of interest to all providers within the post-16 education and training sector.

c.Responses to the consultation issues raised within this document are requested to be sent to local Learning and Skills Councils, using the proforma at Annex C, by 15 November 2002.

d.The contents of this document are outlined below:

section one provides an introduction and the background to this document, including a summary of the outcome of the first stage consultation exercise;

section two develops the general principles of the new funding approach, giving consideration to how the new approach will be implemented in each of the four learning sectors;

section three considers the individual elements of the proposed new funding approach and seeks views on a number of specific issues;

section four provides details of the Council’s proposed approach to determining the arrangements for funding post-16 special educational needs in schools within the overall approach for the post-16 sector; and

section five summarises the consultation questions posed within this document and outlines the next steps in developing the new funding arrangements.

Second Stage Consultation on Additional Learning Support Arrangements from 2003/04

Section 1: Introduction and Background

Introduction

1This document sets out the second stage of the Learning and Skills Council’s (LSC’s) consultation on the proposed funding arrangements for additional learning support (ALS) in the post-16 sector, to be applied from

2003/04.

2The proposals in this document build on the common principles of the new funding arrangements which were consulted upon in Circular 02/04, First Stage Consultation on Additional Learning Support Arrangements from 2003/04, published in February 2002.

Background

Consultation process

3The background to the development of the new funding arrangements for ALS is detailed in Circular 02/04 which can be accessed via the LSC’s website at In summary, the series of consultation exercises the LSC is engaging in follows on from extensive consultations by Ministers between June 1999 and May 2000 on future funding arrangements for the post-16 education and training sector.

4The Department for Education and Skills’ (DfES’) document, Post-16 Funding: Second Technical Consultation Paper, published in May 2000, included specific consultation on future arrangements for funding ALS .In October 2001, the LSC published Circular 01/13, Post-16 Funding Arrangements for 2002/03, which provided an overview of the funding arrangements for the post-16 sector for 2002/03. That circular indicated that the funding arrangements for ALS would remain unchanged in 2002/03 as the LSC wished to undertake further extensive development work in conjunction with representatives from across the post-16 sector.

5Circular 02/04 and this current circular have major role in informing the development work. In addition, the LSC has established an external advisory group, which includes representatives from each of the four learning sectors, to inform this work, in particular to comment on the outcomes of the first and second consultation exercises. Membership of this group is provided at

Annex A.

Outcome of first stage consultation exercise

6The first stage consultation exercise, set out in Circular 02/04, took place between late February and 30 April 2002. The LSC received over 300 responses to this consultation. An analysis of the responses is provided at Annex B.

7To summarise, there was widespread support for the overall approach proposed albeit that the details of the arrangements had not been developed at that stage. Key messages included that the broad approach proposed has the potential to be sufficiently flexible to meet the needs of all individuals with ALS needs. Within the responses, a whole host of issues were identified as needing to be addressed within the more specific details of the funding arrangements. These include:

the need to ensure that any thresholds for funding enable ALS needs to be funded at a reasonable level, regardless of mode of study;

concern that the move away from funding actual costs of support might lead to a less flexible system;

concern that a ‘table of costs’ approach to funding would be difficult to implement, particularly given the difficulty in defining all aspects of ALS;

the need to focus on the funding of equipment costs and small group/ workshop provision;

the importance of making a link to learner support funding in terms of home-to-provider transport costs; and

the need to reduce the amount of administrative and audit time associated with claiming ALS funding.

8The above list is not exhaustive but provides a broad illustration of the key themes that came out of the consultation exercise. Section three of this document addresses the key issues which arose from the consultation and develops the proposals further.

9Following the conclusion of the first stage consultation exercise, the key themes emerging from responses were considered by the external advisory group at a meeting on 28 May 2002. The group discussed the emerging issues and provided a number of suggestions for further development of the proposals. This circular provides the next stage in the development work.

Entry to Employment pathfinder programmes in 2002/03

10Circular 02/04 indicated the LSC’s intention to pilot some initial changes to the ALS arrangements in the WBL sector in 2002/03, through the Entry to Employment (E2E) pathfinder programmes starting in August 2002. The LSC has selected 11 pathfinder programmes and will be testing an approach whereby providers identify the costs of individuals’ ALS needs, similar to the current FE approach. This moves away from the existing approach in WBL where standard sums are provided depending on the categorization of the individual as having additional learning and/or additional social needs.

11In costing the delivery of the E2E pathfinder programmes, and focussing on the particular cohort within each pathfinder programme, E2E partnerships will have incorporated the costs of all support necessary to ensure that each young person is able to progress towards achievement of their primary learning goal. Where it is apparent and can be demonstrated that a level of ALS is necessary beyond the resourcing of support already integrated into the costs of the programme, the partnership will be able to apply for this at any appropriate time throughout the programme. The process for applying for and accessing ALS funding will be confirmed with the E2E partnerships.

Responses to Consultation

12The LSC would welcome responses to the specific consultation issues raised, together with any other general comments on the proposals in this document. A proforma for responses is provided at Annex C. Completed proformas should be forwarded to the appropriate local LSC no later than 15 November 2002.

Section 2: Developing the Principles of the New Approach

Introduction

13This section develops the general principles of the new approach which were outlined in Circular 02/04, giving particular consideration to how the new approach will be implemented in each of the four learning sectors.

Background

14Circular 02/04 indicated that, in developing the new approach, the LSC considers that:

the aim should be to implement the new arrangements, incorporating common principles across the learning sectors, by 2003/04;

single definition of ALS for the post-16 sector should, if possible, be agreed;

whilst it may not be possible for identical arrangements to apply to each learning sector, a set of common principles should be established;

ALS funds should be available to all learners eligible for LSC funding, regardless of age, mode of study or type of programme; and

the arrangements for specialist college placements will remain differentiated from the other sectors.

15The remainder of this section develops these points further.

Implementation in Each Learning Sector

16The LSC intends to introduce the new funding arrangements for ALS as soon as is practicable. It is envisaged that, for the FE and WBL sectors, this will be from 2003/04. For ACL, the introduction of new arrangements will form part of the formula approach which is the subject of a separate consultation document, Circular 02/16, Consultation on Arrangements for Funding Adult and Community Learning from 2003/04. For school sixth forms, given the complexities which surround the funding of special educational needs (SEN) in schools, further consultation is planned to take place during spring/summer 2003 with a view to introducing an approach, which is aligned to the LSC’s common funding principles, in 2004/05 at the earliest.

17The intention is that the new arrangements will be based on a common approach which will ensure that individual learners’ ALS needs are addressed equitably, regardless of where their learning is delivered. In order to achieve this, the funding arrangements might, by necessity, vary between the learning sectors, to take account of any differing characteristics.

18Implementation of the new arrangements may need to be phased, depending on the outcome of this consultation exercise, the LSC’s modelling of the potential costs involved and decisions made by the Government on funding for 2003/04 onwards.

19The following timetable for consultation and further work is planned:

Stage / Date
LSDA Study of range of costs of ALS / August to November 2002
Publication of second stage consultation document / September 2002
Consideration of cost study findings by the National Rates Advisory Group (NRAG) / November/ December 2002
Consideration of outcomes of second stage consultation exercise by external advisory group / December 2002
Consideration of consultation outcomes by the Council, informed by the views of the external advisory group and the NRAG / December 2002/ January 2003
Publication of finalised arrangements for 2003/04 / February 2003
Introduction of new arrangements (excluding school sixth forms) / August 2003

Cost Study

20The LSC has commissioned the Learning and Skills Development Agency (LSDA) to undertake a detailed study of the existing patterns of expenditure on ALS and to consider what scope there is for standardising the funding approach, leading to increased consistency of practice amongst post-16 providers. The study will look primarily at the range and distribution of costs for different types of ALS, including a detailed examination of equipment costs and usage, and ALS delivered through small groups/workshops.

21The cost study is currently underway and is being conducted in a number of stages. The findings of this study will be presented to the NRAG for consideration.

22Given the wide range of issues which need to be addressed and the detailed work which needs to be undertaken in so doing, it is likely that the new arrangements will be introduced in annual stages for 2003/04 and 2004/05. This will certainly be the case for school sixth forms (where no significant changes will be made until at least 2004/05) but may also apply to certain elements of the new approach for all learning sectors. It is important to emphasise that a phased introduction of the new arrangements is intended to ensure that key improvements are made as quickly as possible but also to ensure that any changes which are made are well informed.

23It is intended that a timetable for all stages of the implementation is provided at the earliest opportunity, once the second stage consultation exercise has been completed and the Council has agreed the structure of the new approach.

Definition of Additional Learning Support

24Circular 02/04 proposed a single definition for ALS to apply across the post-16 sector. The proposed definition was based on the definition which currently applies to the FE sector.

25Annex B provides an indication of the outcome of consultation on this issue. In brief, 88% of respondents were in broad agreement with the proposed definition. A large number of the comments received focused on refining the wording in the definition for added clarity.

26As a result, the LSC proposes that the following definition is used to apply to ALS throughout the post-16 sector (amendments to the original definition proposed in Circular 02/04 are shown in bold):

“any activity that provides direct support for learning to individual learners, over and above that which is normally provided in a standard learning programme which leads to their learning goal. The additional learning support is required to help learners gain access to, progress towards and successfully achieve their learning goals. The need for additional learning support may arise from a learning difficulty and/or disability, or from literacy, numeracy or language support requirements.”

27In addition to the highlighted amendments, it should be noted that the term ‘primary learning goal’ has been changed to ‘learning goal’.

28A number of consultation responses expressed concern that the proposed definition did not include specific reference to additional social needs, emotional or behavioural difficulties, those with mental health issues or the socially excluded. These terms have not been referred to specifically in the definition as the intention is not to provide an exhaustive list of situations where ALS might be applicable. The term ‘learning difficulty and/or disability’ is intended to encompass these and other circumstances.

29With particular regard to the concept of additional social needs which applies currently in WBL, the LSC wishes to move away from ‘tick list’ approach to the identification of additional support needs and, therefore, does not wish to categorise all individuals with additional social needs as automatically requiring ALS. The definition of ALS is intended to include those instances where an individual has identifiable social needs which impact directly on his/her learning. It should be noted that within the LSC’s funding formula, which currently applies to WBL, FE and school sixth forms, the disadvantage uplift is designed to address the additional costs associated with engaging individuals from disadvantaged backgrounds. A review of the costs of disadvantage is being undertaken for the LSC with a view to implementing any changes to the funding arrangements from 2003/04.

30Suggestions were also made by some respondents that the definition should make references to existing and imminent legislation which identifies particular roles and responsibilities for the LSC and providers in relation to individuals with learning difficulties and/or disabilities. However, the LSC would prefer to establish a broad definition of ALS which applies across the spectrum of appropriate legislation.

Learner Support

31It is important to distinguish between additional learning support and learner support, whilst emphasising that the LSC will be developing its policies for each with reference to the other.

32The Government is committed to encouraging more learners to continue in education and training, and to raising attainment levels. The provision of learner support funding that supports access to and participation in FE is a key element of the DfES’ strategy to achieve these objectives and will also help in tackling social exclusion and providing equal opportunities.

33Learner support funds (LSF) are discretionary and provide financial help for individual learners whose access to, or completion of, education or training is inhibited by financial constraints or barriers. Currently, the LSC pays LSF to school sixth forms (via local education authorities (LEAs)), FE institutions and higher education institutions offering FE provision. Providers must have written policies for LSF that are made widely available and that they are able to sustain. LSF payments fall into the following categories: