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Dear Principal/headteacher,
LSC 16-18 FUNDING ALLOCATIONS FOR YOUR SCHOOL SIXTH FORM
2009/10
We wrote to you in January detailing your provisional funding statement for 2009/10,
based on your autumn 2008 census data, a provisional provider factor and 2006/07
SLN/learner ratio. Since then we have been able to do further work to establish
likely volumes in the sector: and this letter updates the content and detail of that
provisional funding statement and establishes your final allocation for 2009/10.
Should you have any questions or queries on the allocation these must be raised by
the 11th March and, so that we can finalise your allocation on the 13th March.
Overall Situation
Taking into account any additional numbers expected as part of local infrastructure
changes (for example major capital projects or collaborative 14-19 partnership
developments) the projected number of young people in School Sixth Forms for
2009/10 is in excess of the anticipated number in the Statement of Priorities.
We are awaiting the Secretary of State’
s approval for this increase. If it is
forthcoming then the LSC will, in 2009/10, be funding 390,000 places in School Sixth
Forms 18,000 more than anticipated in our Statement of Priorities. These places are
in addition to the 27,000 places being funded by DCSF in academies. This is an
overall increase of 12,000 learners (3%) over the number of learners funded in
2008/09. These increased places are funded by an increase of £80m in the budget
for School Sixth Forms.
Overall 16-18 providers of all types have exceeded expectations on recruitment and
this means we are ahead of our profile for increasing participation. These additional
places are in most cases being consolidated into the 2009/10 allocations. This is
supported by nearly £200m of new money. As I am sure you appreciate it has been
difficult to find this new money in the current economic climate. We must ensure that
this new money ‘
follows the learner’
whichever route they choose. This means we
need the capacity to re-consider allocations in light of the choices young people
make. Therefore for 2009/10 we are working with representatives of the sector to
develop proposals, to Ministers, for a system whereby schools and colleges who do
significantly under achieve on recruitment targets return some funds so these funds
can be allocated to providers who have significantly over recruited. We envisage
that any return of funds would be at a reduced rate to take into account of the fixed
costs incurred by schools. Equally any additional funds would also be allocated at a
reduced rate.
Private providers are already subject to contract reductions in year and we are
looking to formalise this for all 16-18 Apprenticeship providers. The details of how
this will work will be worked up through a dedicated advisory group and in a way that
means the majority of the sector has a stable allocation and only those that
significantly over or under recruit see changes. All providers will get the opportunity
to comment on the proposals.

Your Allocation
Wherever possible we have used the data you submitted in the autumn 2008
census. The learner number count, learning aim data and provider factor have all
been updated with this 2007/08 data. The 2007/08 data used has shown far greater
levels of volatility at an individual school level than we expected. In some cases this
shows changes in funding which would cause significant financial difficulties to those
schools and therefore it would be unacceptable to use this data in the allocations
process without some form of protection. We have therefore changed the point in the
formula at which we apply transitional protection. Instead of applying it to funding per
SLN at the start of the calculation we have applied it at funding per learner at the end
of the process. This absorbs the volatility, ensures most schools receive at least the
2.1% Minimum Funding Guarantee and some receive more, up to the 4.2%
maximum allowed under the principles of transitional protection.
Using this principle schools that are already funded at over £3,200 per SLN will
receive the same funding per learner as they received in 2008/09 as they converge
towards the national funding rate. Schools where the formula allocates less than a
2.1% increase between 2008/09 funding per learner and the 2009/10 rate will
receive the full 2.1% increase and those that show an increase above 2.1% will
receive the additional uplift up to a further 2.1% (4.2% in total).
I am pleased to enclose your 2009/10 academic year 16-18 allocation for your
School Sixth Form. The enclosed proforma shows information on learner numbers
and funding for the 2009/10 Academic year only. Financial year figures will follow
shortly. Your allocation is made up of the following constituent parts:
 Participation Funding for 16-18 year olds (excl Apprenticeships)
 Additional Learning Support for 16-18 year olds (excl Apprenticeships
 Teachers’pension
This allocation does not yet include the additional 0.1 SLNs required for the delivery
of Diplomas in 20009/10. We have set aside funds to meet these additional costs
and will allocate them in the autumn when the number of actual starts is confirmed
through the census.
[DN: To be changed if Diplomas have been included to]
Your allocation includes an allowance for your planned Diploma numbers at 0.1 SLN
per learner. This will need to be adjusted once final learner numbers are known in
the autumn.
I have enclosed guidance notes relating to the Proforma to enable you to understand
how your allocation is arrived at and a question and answer sheet that should
answer many of your questions.
You will be aware that the LSC must provide assurances over the distribution of its
budget and will therefore conduct audit visits to a sample of School Sixth Forms. By
accepting this allocation you have an obligation to have in place adequate control

procedures to keep errors to a minimum and to keep and allow auditors, appointed
by the LSC, access to learner records in accordance with published funding
guidance. Errors identified by auditors may result in a reduction to this allocation.
If you have any questions relating to this allocation you should contact your local
Partnership manager [insert name] by 11th March to enable queries to be resolved
by the 13th March after which I will confirm your allocation and provide a final
financial year split.
Yours sincerely
Area Director XXXXX Learning & Skills Council