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					Money – The Lubricant Of The QCF System

11th May 2011

Written and presented by Nick Linford
        Summary of the Framework
        8                                      QCF qualification, such as an Award
                                                   Unit                 Unit
                                                  Credit               Credit
                                                  Credit               Credit

        3                             Full Level 3 = Diploma                   not always
        2                             Full Level 2 = Cert and Diploma          and only
                                      Foundation Learning Curriculum
            Award   Cert    Diploma         Each credit represents 10 hours of
            1-12    13-36     37+           learning time (not same as guided
              Credits bands (ish)           learning hours)
Demand Led Funding formula
QCF qualifications are funded using the DLF funding formula,
which is an enrolment based funding methodology
Therefore, every enrolment has an individual value
Elements in the demand-led funding formula:
   > Standard Learner Number (SLN)
   > National Funding Rate (NFR)
                                                   Formula elements
   > Programme Weighting Factor (PWF)
                                                   multiplied together
   > Disadvantage Uplift (DU)*                     equals maximum
   > Short Programme Modifier (SCM)**              funding for the
   > Area Cost Uplift (ACU)
   > Success Factor (SF)**
* Not included for Train to Gain
** Not included for ER (Apprenticeships or Train to Gain)
Learning Aim Database

SLNs and PWFs on the LAD     Programme
                           Weighting Factors
                            A            1
                            B        1.12
                            C         1.3
                            D         1.6
                            E        1.72
                            F         1.4
                            G        1.92
                            H         1.2
                            J        1.25
                            K         1.5
                            L        1.15

SLN GLH / 450 = SLN
Minimum attendance
This is commonly referred to as the „definition of a start‟
If an LR or ER withdrawal is before the minimum attendance period
no funding is generated and the enrolment is not counted as a start

Planned duration (calendar days)          Minimum attendance

24 weeks or more                          6 weeks

2 to 24 weeks                             2 weeks

Less than 2 weeks                         Once

Co-funding for 19+
50% of the unweighted funding (LR) or weighted funding (ER)
Claiming demand-led funding
Providers submit Individualised Learner Record
(ILR) data online for funding and performance purposes

Monthly for ER (01-13) and less frequently for LR (01-05)

     ILR ER or LR          OLDC portal              Provider
       e.g. LR01             & SAMS                   paid
    Monthly is on 4th    Data collection and    BACS payment on
      working day         payment systems       10th working day

Other related software and databases:
   > Learner Information Suite (LIS)
   > Learning Aims Database (LAD)
   > Data Self-assessment Toolkit (DSAT)
Register of Regulated Qualifications
Formally the National Database of Accredited Quals (NDAQ)
Beware that when searching by learning aims you may
need the forward slashes, e.g. 500/9076/8

This website includes individual QCF unit details,
as well in mandatory and options information like:
“To achieve this qualification all mandatory generic
units must be achieved, all mandatory technical
units must be achieved and a minimum of 12 credits
from the optional group. A total of 54 credits are
required to achieve this qualification.”
Being on the Register does not mean it is fundable
16-18 qualification fundability
The 16-18 qual advisory committee (JACQA) has been „dissolved‟:
“Further to the announcement in the YPLA e-bulletin Issue 11 (10-11-
10) the Department for Education has now approved around 1500
qualifications under Section 96; these have been added to the Section
96 website. ”

“New accredited vocational qualifications for use post 16 will
in general be approved.”

For a spreadsheet of recently approved or amended Section 96
qualifications visit

Following Wolf Review of 14-19 Vocational Education this likely to
change. Rumour is the DfE will publish their response on Friday.
19+ qualification fundability
The SFA QCF funding spreadsheets*

QCF qualifications confirmed spreadsheet, last updated 20/04/11

ALR confirmed = 3,554                 TtG confirmed = 1,739
Example information for a confirmed qualification:

ALR conditional = 162        TtG conditional = 61
Example information for a conditional qualification:

* Apprenticeships dealt with separately as part of mandatory Frameworks
Funding rates
QCF funding rates are in the main based on recommended GLH or
where available, historical information and can change year on year
Rates are recorded on the LAD, and can differ between age and
funding stream. They can also be very different from the NQF
qualification they replace
QCF Diploma in Playwork

As you can see the funding rates
(SLN and SLN GLH) differ, as do
the programme weightings

If a qualification is not on the
LAD, funding cannot be claimed
(regardless of what anyone or a
spreadsheet tells you!
Fundability and rate implications
~ Most vocational NQF quals no longer fundable (or soon to be „switched-off‟)

~ Some quals will be fundable, but maybe for only some learners

~ Some quals will be fundable, but maybe for only some funding streams

~ Rates can change year on year

~ The QCF funding rates can be very different from previous quals


~ Providers should keep checking the spreadsheet and the LAD

~ Curriculum planning which takes these things into account will be more
 critical than ever

~ And watch out for the funding iceberg (A51a) – more on this later
The QCF funding icebergs
Recognition of prior learning (RPL), formerly referred to as the
accreditation of prior experience and learning (APEL):
 “Where 50% or more of the assessment for a programme is achieved
 though RPL a reduction in proportion to half the value of the
 assessment achieved through RPL should be made”

 “funding cannot be claimed for any part of a programme achieved
 through exemption; therefore a proportionate reduction will be expected”

Rules of Combination and Credit Accumulation and Transfer (CAT):
 Rules of Combination allow for the transfer of credit from a previous
 episode of learning. “Where a qualification has been partially achieved
 through credit transfer a reduction in funding is required”

 In these cases (which are likely to increase) ILR field A51a must be used
 to reduced funding and “ensure that double funding is not recorded”
Practical example for use of A51a
“The value in A51a should be calculated using remaining planned credit
To achieve the learning aim divided by the credit value of the leaning
aim recorded on the LAD”

With the ConstructionSkills QCF diplomas “the lower level courses are
also embedded within the higher level courses”
Level 1 Dip in Bricklaying (5004056X)        SLN GLH 470 (47 Credits)
Level 2 Dip in Bricklaying (50040558)        SLN GLH 900 (90 Credits)

Assume a 16-18 learner progresses from the Level 1 to the Level 2

For the Level 2, what discount would be applied within ILR field A51a?

Now calculate the unweighted Level 2 funding for this
16-18 learner (national base rate = £2,920)
 Quick answer:         430 / 450 x £2,920 = £2,790               Too
But really:                                                    complex?
                   900 / 450 x £2,920 x 0.48 = £2,803
Lsect summer events across England
  ~ Sub-contracting Funding Summit
  ~ Summer College Data Conference
  ~ Apprenticeship Funding Practiclass
  ~ Intro to funding for curriculum staff
  ~ Year-end data audit essentials
  ~ ESOL Funding Practiclass

Find out more and book via
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