FE Review: Inaugural meeting of the External Reference

FE Review: Inaugural meeting of the External Reference

FE Review: Inaugural meeting of the External Reference Group Data Evidence Paper Paul Mount, Learning & Skills Analysis Division, DfES [email protected] 01142591148 22 February 2005 1) Providers, learners and provision mix There are 393 FE colleges in total Of which: 253 General FE and Tertiary Colleges (GFEC) 102 Sixth Form Colleges (SFC) 16 Specialist Designated Colleges (SDC) 17 Agriculture and Horticulture colleges (AHC) 5 Art, Design and Performing Arts Colleges (DPAC) The number of colleges has fallen significantly in recent years there were 429 colleges in mid-2000 Source: Edubase 3 Regional distribution of colleges Region

NE EM SW YH WM EE NW London SE Source: Edubase Population 2,515,479 4,172,179 4,928,458 4,964,838 5,267,337 5,388,154 6,729,800 7,172,036 8,000,550 No. colleges 23 27 33 41 49 34 64 54

68 4 Size distribution of providers learner numbers The average number of learners at a general FE college (GFEC) is 12,000 The largest GFEC has 45,000 learners, the smallest has 2,500 learners The average number of learners at a sixth form college (SFC) is 2,000 The largest SFC has 7,000 learners, the smallest has 570 learners Source: DfES analysis of ILR 5 Size distribution of providers funding allocations The average LSC funds allocated to a GFEC is 14m The most funding allocated to a GFEC is 35m, the least is 1m The average LSC funds allocated to a SFC is 6m The most funding allocated to a SFC is 13m, the least is 2m Based on 03/4 funding allocations 6

GFECs dominate the FE sector in terms of learner numbers (3 million of the 4.1 million total learners) Learners by type of college (03/4) Under 19 GFEC 524 SFC 134 Ext. Insts 38 Other colleges 5 FE sector 701 % learners Under 19 GFEC 13% SFC 3% Ext. Insts 1% Other colleges 0% FE sector 17% Over 19 2,499 95 711 108

3,413 All ages 3,023 229 749 113 4,114 Over 19 61% 2% 17% 3% 83% All ages 73% 6% 18% 3% 100% Source: ILR/SFR05 (14 December 2004) Note: Figures include external institutions (the majority of which are LEA-maintained providers) 7 The majority (71%) of GFEC learners are adults studying part-time The majority (56%) of SFC learners are under

19 year olds studying full time GFEC and SFC learners in 2003/04 by mode of study and age Full time Under 19 GFEC (000 learners) 401 GFEC (% total learners) 13% SFC (000 learners) 129 SFC (% total learners) 56% Over 19 347 11% 8 3% Part time Under 19 123 4% 5 2% Over 19 2,152 71% 87 38%

Total 3,023 229 Source: ILR/SFR05 (14 December 2004) 8 Level 1 & entry is main level of study for adults Level 3 is main level of study for young people Learners on council-funded FE provision 2003/04 Percent total learners Under 19 19 plus 36% Level 1 and entry 3% Level 2 4% 21% 9% Level 3 11% Level 4, 5 and HE 0% 2% Level not specified 0% 13% All levels 17% 83%

All ages 39% 25% 20% 2% 14% 100% Source: ILR/SFR05 (14 December 2004) Note: Figures include external institutions 9 ICT is the most popular area of study % learners by area of learning (main qualification aim) 2003/04 ICT 18% Health, Social Care and Public Services 17% Foundation programmes 11% Business administration, Mangmt. & Prof. 9% Hospitality, Sports, Leisure and Travel

8% Visual and Performing Arts and Media 7% English, Languages and Communications 6% Not known 5% Humanities 4% Science and Mathematics 3% Engineering, Technology and Manufacturing 3% Construction 3% Hairdressing and Beauty Therapy

3% Retailing, Cust. Service and Transportation 2% Land based provision 1% 0% Source: ILR/SFR05 (14 December 2004) Note: Figures include external institutions 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 10 and this is true for both short courses The ten most popular short courses

Learners enrolled in 2001/02 with less than 120 glh Learning Aim OCR Computer Literacy and Information Technology (CLAIT) Stage I Short Course in ICT, 3 glh HSE First Aid at Work Certificate CIEH Basic Food Hygiene Certificate * BCS European Computer Driving Licence * Short Course, 6 glh, CWF B UFI learndirect Experience (The) OCR Integrated Business Technology Stage II * Unitisation: Level 1, Sub-programme area 1F, CWF B C&G 7261 Information Technology - Computer Applications Certificate Total learners - top 10 short courses Source: LSC analysis of ILR data Learners 206,561 107,182 97,796 91,823 77,851 68,213 62,371 59,615 53,489 49,209 874,110 11 .. and long courses

Learners on long courses in GFEC and SFC (000) by AOL of main qual. aim Information and Communication Technology 238 Business administration, Management and Professional 225 Health, Social Care and Public Services 194 Visual and Performing Arts and Media 195 188 Foundation programmes 367 220 181 119 English, Languages and Communication 132 127

Hospitality, Sports, Leisure and Travel 115 119 Engineering, Technology and Manufacturing 103 Construction 156 98/99 97 96 Humanities 88 Hairdressing and Beauty Therapy 57 Science and Mathematics 03/04 134

81 81 Land based provision 98 40 45 Not Know n 32 Retailing, Customer Service and Transportation 31 - 297 50 208 52 100 150

200 Source: DfES analysis of 98/9 ILR and ILR/SFR05 (14 December 2004) Note: Figures include external institutions 250 300 350 400 12 The sector attracts a disproportionate number of female and ethnic minority learners In 2003/04, there were 2.5 million female learners and 1.6 million male learners In 2003/04 16% of learners in FE colleges were from non-white ethnic groups. (Adults from nonwhite ethnic groups account for 8% of the adult population) Source: ILR/SFR05 (14 December 2004) Note: Figures include external institutions 13 A significant proportion of learners receive Widening Participation (WP) uplift 37% of learners were eligible for widening participation uplift in 2003/04 (additional funds are paid to the college,

not the learner) WP uplift is payable for a variety of reasons Most typically, the learner is resident in a post code deemed to be relatively disadvantaged The uplift is payable if the learning aim is basic skills 47% of learners eligible for WP uplift have a short course as their main qualification aim, compared to 41% of learners not receiving the uplift Source: DfES analysis of ILR data 14 GFECs attract a higher proportion of disadvantaged learners We can compare the proportion of learners resident in a WP post code across institutions The proportion of GFEC learners resident in a WP postcode is 29.3%, compared to 25% of the population The sixth form college and school sixth form figures are 25.4% and 19% respectively Source: DfES analysis of ILR data 15 Total learner numbers increased markedly in 01/2 and 02/3. Expansion was almost entirely due to an increase in part-time adult provision FE sector learner numbers (000) 4,000

Under 19 Over 19 1997/98 1998/99 3,500 3,000 2,500 2,000 1,500 1,000 500 1996/97 Source: ILR/SFR05 (14 December 2004) Note: Figures include external institutions 1999/2000 2000/01 2001/02 2002/03 2003/04 16

Much of the expansion in adult learning was in short course (<24 weeks duration) provision at GFECs GFEC: Number of qualification aims (000) - adult learners 99/00 Short (< 24 weeks) 1,370 A Level 66 GCSE 74 Long Vocational Level 1 and Entry 518 Long Vocational Level 2 466 Long Vocational Level 3 366 Long Vocational Level 4,5 and HE 60 Long Vocational Level Other 219 Long course total 1,769 Total 3,139 00/01 1,688 59 61 509 465

351 54 313 1,812 3,500 01/02 2,214 57 57 589 519 351 49 299 1,920 4,134 02/03 2,618 58 54 694 476 319 57 181 1,839 4,457 Source: DfES analysis of ILR data 17

Half of the qualification aims in GFECs are short courses GFEC and tertiary colleges: % qualifications by course length and student age 60% 50% 43% 40% 30% 50% 49% 35% 32% 22% 20% 31% 19% 19% 01/02

02/03 10% 0% 00/01 Short Source: LSC Benchmarking Data Long 16-18 Long 19+ 18 However, if we look at guided learning hours (GLH), rather than number of qualifications, the provision mix of GFECs looks very different long vocational courses at levels 1, 2 and 3 dominate in terms of hours of teaching (also note that 16-18 appears far more important 50% of provision) GFECs: % GLH by qualification type and age (2002/03) Qualification type Short A Level GCSE Long Vocational Level 1 and Entry Long Vocational Level 2 Long Vocational Level 3 Long Vocational Level 4,5 and HE Long Vocational Level Other Long course total

All courses Source: DfES analysis of ILR data 16-18 2% 7% 1% 8% 12% 16% 0% 3% 48% 50% 19+ 13% 1% 1% 11% 9% 10% 2% 2% 37% 50% All ages 15% 8% 2% 19%

21% 26% 2% 5% 85% 100% 19 and provision mix over time appears more stable GFECs (all learners) GLH (m) in year: Change 02/3 on 97/8 % total provision Provision type 97/8 02/03 % m GLH 97/98 02/03 Short 62 73 17% 11 11% 15% A Level 51 41 -20% -10

9% 8% GCSE 18 9 -49% -9 3% 2% Long Vocational Level 1 and Entry 68 92 35% 24 13% 19% Long Vocational Level 2 111 101 -9% -10 20% 21% Long Vocational Level 3 158 127 -20% -31 29% 27% Long Vocational Level 4,5 and HE 22

10 -55% -12 4% 2% Long Vocational Level Other 55 26 -53% -29 10% 5% Total 545 479 -12% -66 Source: DfES analysis of ILR data 20 Sixth form college provision mix in 2002/03 on the basis of qualification and GLH mix Short Qualifications All ages 16-18 Adults Guided learning hours All ages

16-18 Adults % of total provision A level GCSE Voc. Long 11% 3% 9% 43% 42% 1% 5% 4% 0% 41% 36% 5% 3% 1% 2% 60% 59% 1% 5%

4% 0% 32% 29% 4% Source: DfES analysis of ILR data 21 2) College performance Success rate is the headline measure of performance for FE colleges For every one hundred learners who start a qualification, the Success Rate tells us how many achieve the qualification Success Rate can be expressed as Retention Rate multiplied by Achievement Rate On this definition, data is available from 97/8 23 The FE college headline success rate has increased significantly since 97/8 80% 70% 60% 53%

53% 55% 59% 65% 68% 50% 40% 30% 20% 10% 0% 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 Source: LSC Benchmarking Data Note: Figures exclude external institutions (including EIs, the 02/3 figure is 67%) 24 The recent improvement in success rates has been most marked for short courses and 16-18 long courses (a high proportion of which are A levels) Short Long 16-18 Long 19+ Long total All courses/learners

00/01 69% 57% 48% 52% 59% 01/02 76% 62% 51% 56% 65% Source: LSC Benchmarking Data. Excludes external institutions 02/03 79% 64% 52% 58% 68% 02/03 v 00/01 10% 7% 4% 6% 9% 25

Looking at retention and achievement separately helps us to understand better the drivers of change Success rate % Short Long 16-18 Long adult All long courses Retention rate % Short Long 16-18 Long adult All long courses Achievement rate % Short Long 16-18 Long adult All long courses 00/01 69% 57% 48% 52% 00/01 91% 74% 70% 72% 00/01 76% 76%

69% 73% Source: LSC Benchmarking Data. Excludes external institutions 01/02 76% 62% 51% 56% 01/02 92% 79% 71% 75% 01/02 82% 78% 72% 75% 02/03 79% 64% 52% 58% 02/03 92% 80% 70% 75% 02/03

86% 81% 75% 78% 26 which vary according to length of course and age: For short courses, higher success driven by improvements in achievement The 16-18 year old long course retention rate increase is part due to the two-year A level qualification being split into two one-year qualifications (AS/A2) The adult long course success rate has increased less quickly than the 16-18 equivalent, due to stable retention rate 27 Long course success rates vary by qualification type, level of study and age For example: For 16-18 year olds studying at level 2, the GNVQ success rate is 61%, but the NVQ success rate is only 42% For adults studying at level 2, the NVQ success rate is 48% The GCE A/AS level success rate is 75% for 1618 year olds and 54% for adults Source: LSC Benchmarking Data. Includes external institutions

28 Moreover, within the same qualification type/age groups, there is significant variation by curriculum area 16-18 year old 'A' Level Success Rate by Area of Learning (2002/03) 67% Information and Communication Technology 72% Science and Mathematics Humanities 74% Business administration, Management and Professional 74% 75% Engineering, Technologyand Manufacturing Hospitality, Sports, Leisure and Travel 78% Visual and Performing Arts and Media 79% 81%

English, Languages and Communication 0% 10% 20% 30% 40% Source: LSC Benchmarking Data. Excludes external institutions 50% 60% 70% 80% 90% 100% 29 Variation in success rates by qualification type, level and subject area, means that comparisons of institutions headline success rates must be treated with caution, due to variation in provision mix. Particularly true if comparing GFEC and SFC

Has led to the concept of adjusted success rate Curriculum adjusted success rate gives a more balanced benchmark for each institution, as it takes account of variations in average success rate for different curriculum areas Analysis to date has not identified a robust and reliable method for taking learner characteristics into account (work is ongoing on this) 30 Substantial variation in college headline success rates .. 1.00 Maximum success rate 0.80 succ Median success rate 0.60 21 0.40 Minimum success rate

82 242 50% of college success rates lie in the shaded box. 25% lie between the box and the maximum and 25% lie between the box and the minimum 0.20 GFEC SFC col_type 31 which is significantly reduced when we calculate curriculum adjusted success rates 1.0 0.8 CAsucc 0.6 0.4 0.2 0.0 GFEC

SFC col_type 32 Adjusted success rates correct for qualification/ subject area provision mix differences, but not for learner mix differences (e.g. prior attainment, relative deprivation) The Measuring Success project within Success for All is guiding the development of a basket of measures For young people taking level 3 academic qualifications, there is a strong relationship between prior attainment at level 2 (e.g. GCSE) and level 3 (e.g. A level) outcome For adult learners and for vocational courses, such strong relationships do not exist 33 Value added for 16-18 year olds at level 3 A more sophisticated measure of performance which takes into account the individual students starting point Based on a strong relationship between prior attainment, as measured by average points at GCSE/GNVQ, and outcome, as measured by points at level 3 VA is currently widely used for reflection and improvement

LSC leading work to develop an institutional measure of VA, for piloting in 2005 SCAAT (formerly known as the Performance Tables) 34 VA relationships and institutional comparison The following analysis looks at A level performance for students with different levels of prior attainment, by institution type Most relevant comparison is schools and sixth form colleges, as A level provision is their core business It should be noted that VA looks only at results in exams entered. If a school student does not enter for the exam, the institution is not penalised. If a college does the same, the penalty is a hit to its qualification success rate measure, which is a key targeted measure for colleges 35 Using VA can tell a different story from more basic performance measures. For example, when we look at average point score by candidates achieving Level 3 qualifications, GFE and other colleges lag significantly behind SFCs and schools Average point score 300 277 270

250 181 200 150 100 50 Sixth Form Colleges Maintained Schools Other FE Sector Colleges Note: based on UCAS points system: A level grade A=120; B=100; C= 80; D=60; E=40 Source: SFR38/2004 36 But GFECs attract more low prior attainment students (figure shows cumulative percentage of students below given prior attainment thresholds) 17 yr olds entering 2 or more GCE/VCE exams (cumulative % below given average GCSE/GNVQ prior attainment thresholds (2002/03) 100% 90% 80% 70% 60% 50% 40%

All maintained schools 30% Sixth form colleges 20% GFEC 10% 0% <4 <4.5 <5 <5.5 <6 <6.5 <7 <7.5 <8 All maintained schools

1% 5% 16% 34% 53% 72% 86% 96% 100% Sixth form colleges 1% 5% 17% 38% 58% 77%

89% 97% 100% GFEC 3% 14% 33% 57% 75% 88% 95% 98% 99% Note: GCSE points are allocated to grade as follows: A*=8; A=7; B=6; C=5; D=4; E=3; F=2; G=1 37 It is this that explains much of the difference in average

points per candidate. For given prior attainment, GFEC performance is only slightly below SFCs and maintained schools FEC v Maintained Schools: Average GCE/VCE points (17 yrs old taking 2+ GCE) by prior attainm ent (2002/03) and institution type GCE/VCE average points per entry 140 120 Sixth Form College 100 Maintained schools GFEC 80 60 40 20 0 4 4.25 4.5 4.75 5 5.25 5.5 5.75 6 6.25 6.5 6.75

7 7.25 7.5 7.75 8 GCSE/GNVQ average points per entry Note: GCSE points are allocated to grade as follows: A*=8; A=7; B=6; C=5; D=4; E=3; F=2; G=1. A level points are allocated to grade as follows: A=120; B=100; C= 80; D=60; E=40 38 This is easier to see if we compare college performance to schools. SFC performance is slightly better than schools and GFEC performance is slightly worse College perform ance relative to schools GCE/VCE average points per entry (college - school) 4.0 2.0 0.0 4 4.25 4.5 4.75 5

5.25 5.5 5.75 6 6.25 6.5 6.75 7 7.25 7.5 7.75 8 -2.0 -4.0 -6.0 -8.0 GCSE/GNVQ average points per entry SFC minus Schools GFEC minus Schools 39 Other measures of performance inspection grades Inspection reports contain a wealth of performance data As well as an overall assessment, grades are awarded for management & leadership and teaching & learning by subject on a scale of 1-5, where: 1= Outstanding; 2 = Good; 3= Satisfactory; 4 = Unsatisfactory; 5 = Very Poor

GFEC inspection data indicates generally solid performance, with pockets of poor provision (graded 4 or 5) at the majority of providers A small number of GFECs have achieved excellence throughout the institution and this has not been at the expense of harder to reach learners 40 GFEC performance in inspection: Management & Leadership grades in current inspection round (01/02 to present) GFEC Management and leadership grades 01/2-03/4 90 79 80 No. colleges 70 60 60 50 40 26 30

20 10 4 2 0 1 2 3 4 5 Inspection grade 171 GFECs inspected 01/2 03/4 41 GFEC performance in inspections: pockets of poor provision 101 of 171 GFECs inspected have at least one subject area with T&L grade 4 or 5 Almost three quarters of GFECs have been subject to some degree of reinspection GFEC: Overall inspection Grades 01/2-03/4 90

78 80 70 No. colleges 60 45 50 40 30 20 26 19 10 0 3 Full Partial Partial LM

Partial WBL None Inspection grade 42 Other measures of performance learner satisfaction Findings from Satisfaction Survey 2003/04 (31,786 respondents) 90% of FE learners were 'fairly', 'very' or 'extremely' satisfied with their overall learning experience 23% of FE learners were 'extremely' satisfied with their overall learning experience When asked to rate 'overall satisfaction with quality of teaching and learning', 63% of FE learners in the survey were 'very' or 'extremely' satisfied 60% of FE learners in the survey said they were 'very' likely to return to learning within the next 3 years Source: LSC Learner Satisfaction Survey 43 Future development of performance measures Key areas for development are measures which allow comparison of institutional performance in two key areas: 1) Learner destinations: do learners progress to desirable outcomes (e.g. employment, further learning at a higher level)?

2) Employer responsiveness. How responsive are providers to the needs of local employers? 44 Future development of performance measures: Value for Money A project is currently underway to develop VFM indicators Benchmark provision within colleges - funding per successful outcome by provision type Cost benchmarking at a higher level (e.g. admin cost as % revenue). There is no comparable cost data at department/ course level 45 3) Funding FE colleges are highly reliant on LSC funding 73% of FE college income is LSC funding 11% is from fees - includes employers and individuals 16% is from other sources, including HEFCE and EU grants, traded services and financial income Source: DfES analysis of 02/3 college accounts 47

Plan-Led Funding Vast majority of colleges are within trust Colleges agree plans with LSC - No more funding audit - No more retrospective claw back or unplanned growth - Data sharing - Learner numbers match plans Funding outturns impact allocation for next year Simplified funding formula Provision and funding profile to plan and monitor progress 48 Underlying the Plan-Led Funding System the LSC relies on a system of funding rates per qualification aim A complex system with the following key elements: A national base rate which is dependent on the type of qualification (e.g. A level, GCSE, NVQ). Varies with the size of the learning aim (GLH) and cost of delivery National base rates are uplifted by various weighting factors to better reflect costs. The main weighting factors relate to: subject area (programme weight); learner disadvantage; and college location (area uplift) An achievement element equal to 10% of the weighted base rate A fee element equal to 25% of the unweighted base rate, unless the learner is entitled to fee remission (then = 0) Funding ceases if a learner drops out 49

Funding of qualification aims - summary National base rate * Programme weight = Weighted national base rate * Disadvantage uplift * Area costs uplift = Uplifted weighted national base rate Learner contribution = Learner funding 10% dependent on achievement Fee element (unless learner entitled to remission) 50 Example: GCE AS or A2 level, studied during the day (excluding General Studies) National base rate = 766 Assumed fee element = 191 (remitted for 16-18 year olds) Most AS/A2 courses are programme weight band A (=1) With a number of exceptions being band B (=1.12). For example, Biology, Chemistry,

Physics, Geography and Music 51 4) Workforce Key data on the FE college workforce 239,000 people work in FE colleges - 134,000 teachers, 27,000 teaching support staff and 78,000 other support staff Of the 134,000 teachers, 49,000 are full-time and 85,000 are part-time In terms of full-time equivalent (FTE), there are 52,000 full-time teachers and 23,000 part-time teachers Ethnic minorities are underrepresented in the FE workforce Source: Staff Individualised Record 02/3 53 The age distribution of FEC teachers is skewed to the right. Only 19% of teacher FTEs are under 35 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 -

96% 85% 66% 48% 32% 8% 19% 2% Under 25-29 30-34 25 35-39 Number of FTEs 40-44 45-49 100% 90% 80% 70% 60% 50% 40% 30% 20%

10% 0% 50-54 55-59 60 and over % FTE < given age band Source: Staff Individualised Record 2002/03 54 The majority of teaching staff are on permanent contracts. Average pay is 6% below that for school teachers 52% teaching staff are on permanent contract; 32% are on fixed term contract; 7% are casual; 4% are agency staff; 5% are self-employed The average salary of full-time FE teachers is 27,710 per annum (at 31/3/2002) This is 6% below the average salary for full-time secondary school teachers. The pay gap is higher for GFEC teachers (7%) than for SFC teachers (1%) Source: Staff Individualised Record 02/3 55 We need a better understanding of recruitment and pay by region/subject

Our best estimate of the Wastage Rate (based on the Labour Force Survey) is 20% (which is similar to the average for all industrial sectors). Survey evidence suggests a much lower figure. On average, wastage would not appear to be a major problem However, there are likely to be significant differences in wastage rates by region and subject area. Survey evidence suggests recruitment problems in certain subjects/regions. For example: ICT in London; Engineering in the North; and Construction in the West Midlands We lack pay data by region/subject. It is possible that inadequate differentiation accentuates recruitment problems 56 5) Market position Competitive landscape SFCs are focused on 16-18 year olds studying A levels and compete for students with schools sixth forms GFECs have a wider curriculum. They compete with schools and SFCs for A level students, with WBL, other private providers and schools for students undertaking vocational learning and with private providers for adult short course provision 58

Of the total number of 16-18 year olds studying for GCE A/AS levels, 33% are based in FE colleges, and 67% in schools Number learners by institution type Maintained schools Independent schools Sixth form colleges Other FHE institutions Total % learners by institution type Maintained schools Independent schools Sixth form colleges Other FHE institutions 1985 181,300 57,300 49,300 50,500 338,400 2003 257,300 70,000 88,700 69,500 485,500 Change 76,000 12,700

39,400 19,000 147,100 1985 53.6% 16.9% 14.6% 14.9% 2003 53.0% 14.4% 18.3% 14.3% Change (% pts) -0.6% -2.5% 3.7% -0.6% Source: DfES Note: FHE = Further and Higher education institutions (mainly GFEC for A levels) 59 Colleges provide a high volume of vocational provision to 16-18 year olds and adults Long vocational provision (qual. aims): 16-18 year olds in 2002/03 Level of study

SFC GFEC Total FEC Level 1 and Entry 16,758 374,730 391,488 Level 2 70,355 470,873 541,228 Level 3 89,366 278,230 367,596 Level 4,5 and HE 73 2,290 2,363 Level Other 150,242 211,627 361,869 Total 326,794 1,337,750 1,664,544 Long vocational provision (qual. aims): adults in 2002/03 Level of study SFC GFEC Level 1 and Entry 17,388

694,268 Level 2 12,617 476,355 Level 3 7,450 318,847 Level 4,5 and HE 730 57,026 Level Other 7,224 180,664 Total 45,409 1,727,160 Source: DfES analysis of ILR Total FEC 711,656 488,972 326,297 57,756 187,888 1,772,569 60 There is limited vocational provision in schools 49% of all 16-18 year olds are participating in further education (school sixth forms and colleges) 12.4% of all 16-18 year olds are in further

education and have a level 3 vocational qualification as their highest qualification aim. Three quarters of these learners are based in colleges 8.8% of all 16-18 year olds are in further education and have a level 2 or level 1 vocational qualification as their highest qualification aim. Nine out of ten are based in colleges A further 8% of all 16-18 year olds are on vocational provision in WBL providers (this is a separate category from further education) Source:SFR03/2005 61 Are there benefits from competition? Local diversity means that it is difficult to draw conclusions at a national level In the past, competition has been cited as a key reason for low fee collection (incentives in the funding system drive this behaviour) Strategic Area Reviews (Success for All initiative) are designed to curb destructive competition and improve local collaboration (amongst publicly funded providers at least) 62

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