I announced last October as part of our post-16 funding strategy—Priorities for Success—that planned expenditure for further education would increase to £4.8 billion in 2006-07 and £4.9 billion in 2007-08, a 3 per cent. increase in funding compared to 2005/06 baselines. These figures cover both 16-18 and adults but do not include work-based learning, Personal Community and Development Learning (PCDL) or additional funds for the roll out of Train to Gain, of which we expect colleges to receive a significant proportion.
Providers should now have received confirmed further education funding allocations from the Learning and Skills Council (LSC) for 2006/07. The LSC will be writing to all further education providers shortly with a more detailed analysis of the 2006/07 allocations and this information will also be available on the LSC website.
The process of setting funding allocations began last October when we announced our funding strategy, Priorities for Success. The strategy made clear that higher participation among young people must have the highest priority, alongside helping disadvantaged adults gain basic and Level 2 skills for employability. The allocations for 2006-07 are based on the principles that we outlined in Priorities for Success. The LSC have published a number of documents detailing how these principles would be applied in practice and the funding formula used to determine allocations is set out in the LSC's document “Funding Guidance for Further Education in 2006/07”.
The original Priorities for Success strategy laid out a clear path for funding priorities leading into 2007-08. We intend to provide an update to Priorities for Success in October 2006 and funding allocations will continue to be based on the principles outlined.