Edexcel Funding Network
Funding for BTEC Qualifications
Nick Linford
Head of Planning, Funding and Projects
25 September 2007
Presentation Contents
1. The Level 3 BTEC funding rates
• The LSC proposal
• The rationale for the proposal
• The proposed glh rate reductions
• The impact on funding rates
• The evidence base and likely decision
• Closing remarks
2. And if there is time…..
• The BTEC versus ‘The Diploma’
The LSC proposal
In January 2007 the LSC, with reference to level 3 GNVQ
successor qualifications, stated that ‘significant rate
changes have been considered by the LSC in its annual
review of funding rates…with a view to revising the rates
in line with the awarding body glh [guided learning hours]
in 2008/09’
These funding reductions relate to Edexcel BTEC:
National Diplomas (18 units)
National Certificates (12 units)
National Award (6 units)
The rationale for the proposal
The LSC believe the rates they set for these qualifications
are in excess of the costs associated with delivery
Costs, in terms of setting the ‘base rate’, are simply
expressed by the LSC as guided learning hours (glh)
When actual duration (glh) analysis suggests the rates
are too high, the LSC can and does reduce the rates
In this case, the LSC delayed changes for 2007/08 and
are consulting the sector on rate reductions because:
• BTEC qualifications are delivered in great volumes
• They form a complex suite of delivery patterns
• A new funding methodology adds to the complexity
The proposed glh rate reductions
The following reductions are being considered by the LSC
Funding Awarding
glh
body glh
National Diplomas (18 units)
glh
reduction
1,440
1,080
- 25%
National Certificates (12 units)
900
720
- 20%
National Award (6 units)
450
360
- 20%
HOWEVER….it is not the case that these reductions translate into
similar reductions in LSC funding rates, nor have the LSC
published what the impact on funding rates would be.
That would be far too simple!!
The impact on funding rates (1 of 2)
Within the current funding methodology, funding rates are
based on glh bands. The likely impact on funding via the
current methodology would be:
Impact via CURRENT
funding methodology
National Diplomas (18 units)
- 17%
National Certificates (12 units)
- 30%
National Award (6 units)
- 33%
BUT….the LSC are scrapping the current funding formula,
along with the glh bands and qualification rates.
The impact on funding rates (2 of 2)
From 2008/09, a new and very different funding formula has been
proposed. This replaces funding rates with Standard Learner
Numbers (SLNs), and replaces glh banding with a glh ‘divisor’.
Unpublished LSC modelling suggests the likely impact on funding
via the new funding methodology would be:
glh
SLN
Impact via
NEW funding
methodology
1,080
2.4
- 3%
National Certificates (12 units)
720
1.6
- 20%
National Award (6 units)
360
0.8
- 9%
National Diplomas (18 units)
The evidence base and likely decision (1 of 3)
The evidence strongly supports a National Diploma rate reduction
from one based on 1,440 glh to one based on 1,080 glh (2.4 SLN)
National Diploma delivery durations in 2005/06 (England)
The evidence base and likely decision (2 of 3)
The evidence does not strongly support a National
Certificate rate reduction, so likely to stay at 900 glh (2 SLN)
National Certificate delivery durations in 2005/06 (England)
The evidence base and likely decision (3 of 3)
The evidence does not support a National Award rate
reduction, so likely to stay at 450 glh (1 SLN)
National Award delivery durations in 2005/06 (England)
Closing remarks
The LSC have the power to change rates, assign qualifications
priority statuses and even remove funding eligibility
The new SLN funding methodology complicates comparisons as it
creates different variances depending on the qualification and provider
I believe the LSC are addressing the rate proposals with integrity,
and as a result the BTEC Cert and Award rates will not be reduced
2008/09 funding methodology is expected to be published in late
October whilst the qualification rates will be published in December
Questions and/or comments?
[email protected]
020 8694 5156
The BTEC versus ‘The Diploma’
General
BTEC National Diploma for IT Practitioners
• 1080 glh Level 3 Nat Dip in IT (50015953 )
ICT Systems Support
Software Development
Communications Technology
(new) Advanced Diploma in IT (1080 – 1260 glh)
• 540 glh Level 3 Principal Learning in IT (50023627)
• 120 glh Level 3 Extended Project (5002372X)
• 360 glh + Additional and Specialist Learning
Both with progression into employment or further study
 Two diploma qualifications……..plus A Level Computing
 What impact on simplicity and economies of scale?
 How will providers choose, and will it discourage partnerships?
 Will the LSC fund BTECs without Sector Skills Council approval?
 Most importantly, will the Government protect the new diploma?