Key definitions

Employed and Unemployed Residents:

The WMCA has chosen to adopt the Department for Work & Pensions labour force survey definition of employment/unemployment. This is:

Everybody aged 16 years or over is either employed, unemployed or economically inactive. The employment estimates include all people in work including those working part-time. People not working are classed as unemployed if they have been looking for work within the last four weeks and are able to start work within the next two weeks. A common misconception is that the unemployment statistics are a count of people on benefits; this is not the case, as they include unemployed people not claiming benefits.
Jobless people who have not been looking for work within the last four weeks or who are unable to start work within the next two weeks are classed as economically inactive. Examples of economically inactive people include people not looking for work because they are students, looking after the family or home, because of illness or disability, or because they have retired.

Employed

For 2021/22, the WMCA will continue to use the criterion to confirm whether a resident is employed. The WMCA defines residents as employed if they are in receipt of waged income as either a permanent, temporary (including part-time, zero-hour and agency contracts) or self-employed worker. Providers should ensure that learning for those employed is directly relevant to providing new skills to enable them to progress into new or broader job roles leading to a better-paid job.

Unemployed & Economically Inactive

For funding purposes, the WMCA defines a resident as ‘unemployed’ if they’re not currently employed and are able to start work or available for work. Providers should ensure that for those unemployed, the learning is directly relevant to their employment prospects and labour market needs and is recorded in the ILP.

The WMCA will also define economically inactive residents who are not currently employed and seeking to secure work through re-training as ‘unemployed’. For this cohort of resident’s providers should ensure that the learning is directly relevant to the resident’s future career aspirations in work and is recorded in the ILP. The training must also support their employment prospects and labour market needs.

To support assurance, activity providers should secure self-declarations from residents that can be evidenced to identify employment status set out in paragraphs 132 – 140.

Residents in receipt of low wage.

135.You may fully fund residents who are ‘Employed’ and would normally be co-funded. You must be satisfied the resident meets both of the following:

is eligible for co-funding
Earn less than £19,350 (£9.90 per hour) based on the real living wage

You must have seen evidence of the resident's gross annual wages in these circumstances. This could be a wage slip within three months of the resident's learning start date, bank statement showing the paid amount or a current employment contract which states gross monthly/annual wages. Please note this is not an exhaustive list but must support your decision to award full funding to an individual who would normally be eligible for co-funding.

Sector based work academy programme

The Sector-based Work Academy Programme (SWAP) is designed to help.

Jobcentre Plus claimants build confidence to improve their job prospects and enhance their CV, whilst helping employers in sectors with current local vacancies to fill them. SWAP can last up to 6 weeks and has 3 main components:

pre-employment training
work experience placement
a guaranteed job interviews

The scheme runs in England (and Scotland). Participants remain on benefits throughout their placement.

To claim full funding for claimants referred to SWAP pre-employment training you must complete the Benefit Status Indicator (BSI) to identify the claimant is in receipt of Jobseeker’s Allowance (BSI 1), Universal Credit (BSI 4), or Employment and Support Allowance (all categories) (BSI 5) and use the coding provided in the WMCA ILR guidance.

Job outcome payments

For eligible 19-year old learners, we will pay the full 20% achievement element if they leave their training early to start a job. This is subject to meeting requirements in paragraphs 208

National Skills fund - level 3 adult offer

As part of the Lifetime Skills Guarantee, a targeted level 3 adult offer has been developed to support adults without an existing full level 3 qualification.

The offer includes:

level 3 qualifications which will support the development of new skills for adult learners and improve the prospects of eligible adults in the labour market. In particular, adults aged 24+ will now be able to access fully funded level 3 provision from the qualification website
support funding in line with paragraphs 143 to 143.5
The ability for eligible learners to take one short qualification (identified by category code 49) without exhausting their eligibility. We expect this flexibility to be used where a learner could benefit from a more substantial qualification once they have completed a short qualification
An uplift is payable at 2 different rates and follows the earnings methodology set out in the Adult Education Budget: funding rates and formula 2020 to 2021. This uplift should be used to support delivery of the level 3 adult offer.
Only level 3 qualifications on the Qualifications in the National Skills Fund – level 3 adult offer will attract an uplift. There may be additions to the list, to ensure it meets the needs of the economy – we encourage providers to check availability regularly.
When qualifications are added to the funding eligibility list, they will become eligible for funding from that publication date, and not be backdated to the start of the level 3 adult offer (1 April 2021).
Please note this policy is subject to potential further amendments and clarifications.

We will fully fund individuals as part of this offer where they:

Are a WMCA resident
where WMCA have formally agreed the allocation and qualifications
resident is aged 19 or above on 31 August within the 2021 to 2022 funding year
the resident has not achieved a full level 3 qualification, or above, which meet the requirements set out in paragraph 143 to 136
have not achieved a qualification available through the level 3 adult offer, unless that qualification is a short qualification, in accordance with the rules outlined in paragraphs 142
enrol on the level 3 adult offer qualifications approved for funding with effect from 1 April 2021

From 1 April 2022, we will also fully fund individuals as part of the offer where they:

meet the unemployed or low wage criteria and
140.1.1. if they already have an existing full Level 3 qualification or higher, or have achieved any other qualification included in the level 3 adult offer qualifications list which must have been achieved before 1 April 2021 or
If they have achieved short qualification and that was achieved after 1 April 2021, the individual is eligible for one further qualification through the offer
enrol on the level 3 adult offer qualifications approved for funding with effect from 1 April 2022

We will fund eligible learners to take one short qualification, followed by one further qualification in the level 3 adult offer without exhausting their eligibility. Short qualifications are identified by category code 49 which can be found in “National Skills Funding Level 3 Offer – short qualification” within Find a learning aim.

learner will not be eligible for this additional “short” qualification offer if they have already achieved one of the short qualifications prior to 1 April 2021.

You must not claim for ESFA AEB funding where learners are already being funded through an Advanced Learner Loan (ALL) for qualifications that are in the level 3 adult offer. The criteria for ALL can be found in the Advanced learner loans funding rules 2021 to 2022.

You must:

use LDM code 378 and FFI code 1 to claim for funding for learners who meet the requirements set out in paragraph
use category code 49 to identify a short course qualification in Find a learning aim (fasst.org.uk)

Full level 2

the inclusion of these qualifications in the level 2 entitlement list is under review.

Level 2 is the level of attainment which is demonstrated by:

a General Certificate of Secondary Education in five subjects, each at grade C or above, or grade 4 or above,
Technical Certificate at level 2 which meets the requirements for the 2018, 2019,2020, 2021 and 2022 16 to 19 performance tables
If a resident aged 19 to 23 has achieved a level 2 qualification that was, at the time they started
still is classed as a full level 2, any subsequent level 2 qualifications will be co-funded unless paragraphs 133 & 138 apply. Please contact aeb.enquires@wmca.org.uk if you need advice on a previous qualification’s designation.

If the National Academic Recognition Information Centre has confirmed the authenticity of a qualification gained overseas and confirmed it is comparable/compatible with a regulated qualification in England, currently part of the level 2 and level 3 legal entitlement, the individual will be deemed to have achieved their first level 2 and/or level 3 qualification

Full level 3

The inclusion of these qualifications in the level 3 entitlement list is under review.

Level 3 is the level of attainment which is demonstrated by a:

General Certificate of Education at the advanced level in two subjects
General Certificate of Education at the AS level in four subjects
QAA Access to Higher Education (HE) Diploma at level 3
Tech level or applied general qualification at level 3, which meets the requirements for the 2018, 2019 and 2020 16 to 19 performance tables.

If a resident aged 19 to 23 has achieved a level 3 qualification that was at the time they started, or still is, classed as a full level 3, and wants to enrol on any subsequent level 3 qualification of any size, they may apply for an Advanced Resident Loan (provided the qualification is designated for funding, and subject to resident eligibility conditions), or pay for their own learning. Please contact aeb.enquiries@wmca.org.uk if you need advice on a previous qualification's designation

The WMCA will fund partial or fully funded Level 3 qualifications and units where they support progression in work or career changes. This will be agreed as part of your delivery plan with agreed levels of contribution.

For new linear AS and A levels, where a resident enrols on an AS qualification and continues with further study to take the A level qualification in the same subject, you must record both the AS and A level in the ESFA ILR. The AS learning aim will be funded separately to the A level learning aim.

Full level 4+

West midland Combined Authority is introducing a local flexibility in 2021/22 academic year to support local skills needs at Level 4+.

Providers wishing to offer level 4+ qualifications must have these agreed as part of their approved Delivery Plan with the Combined Authority prior to any delivery commencing.

These can be a full or modular level 4+ qualification either available from Learning AIM or a locally agreed qualification.

Eligible Qualifications

Where you deliver regulated qualifications and/or their components, you must ensure they are eligible for WMCA AEB funding you must ensure they are approved for funded AEB and available on Find a learning aim.

Where you deliver approved qualifications and/or their components you must ensure that learners are registered for the qualifications and/or component in line with the awarding policies and procedures. You must not pre-register students a significant period in advance of the learner starting the qualification

Certain qualifications that meet statutory employer requirements or a licence to practise are eligible for unemployed residents that meet the criteria in para 133. You can find more information about these qualifications at the Qualifications website

You must provide accurate unique learner number (ULN) information to awarding organisations and ensure all information you use to register learners for qualifications is correct. You can find more information in the Learner Records Service guidance.

Non regulated learning

Where you deliver non-regulated learning, you must ensure it is eligible for funding. Such learning could include:

independent living skills or engagement learning, supporting adults to operate confidently and effectively in life and work
locally commissioned and/or locally developed basic knowledge and skills needed to access technical qualifications
employability and labour market re-entry
locally commissioned and/or locally devised technical education short courses (also known as taster sessions)
community learning courses

The eligibility principles the WMCA applies to non-regulated learning are as follows:

It must not be provision linked to UK visa requirements
It must not be provision linked to statutory employer requirements (including a licence to practise) unless there is an agreed concession in place
It must not be vendor-specific provision, linked to a particular employer or commercial system unless this has been agreed as a flexibility
It must not be learning, for example, ‘induction to college’, that should be part of a resident’s experience
It must not be a non-regulated version of a regulated qualification
It must not be above notional level 2 (that is, at notional levels 3 or 4). At notional level 2, it must focus on technical provision
Where you are delivering non-regulated learning, you must ensure you have appropriate and robust quality assurance processes in place. For instance, ‘The Recognising and Recording Progress and Achievement (RARPA) Cycle’. Further information on RARPA is available from the Learning and Work Institute.
It is the intention of the WMCA to use the RARPA model to monitor, review and measure the quality and outcomes from non-regulated provision in 2021/22. Non-regulated learning should have clear achievement aims for the residents and identified progression outcomes prior to commencement of learning.

Learning in the workplace

The WMCA will fund learning in the workplace where a resident has a statutory entitlement to full funding for:

English and/or maths up to and including level 2 (paragraph 113)
Essential digital skills qualification, up to and including level 1
a first full level 2 or
first full level 3 qualification

We will fund learning in the workplace for the adult level 3 offer

The WMCA will also fund learning in the workplace for work experience linked to a Sector Based Work Academy as part of your delivery plan.

The WMCA will consider funding provision in the workplace where:

The WMCA has agreed a concession related to significant economic shock impacting on groups of residents e.g. large-scale redundancy

English and maths for those aged 19 or older

WMCA will fully-fund individuals, including individuals who are employed, aged 19 or older, who have not previously attained a GCSE grade A* to C or grade 4, or higher, in English and maths, as part of their legal entitlement on the day they start the following qualifications:

GCSE English language or maths.
Functional Skills English or maths from Entry to level 2.
Stepping-stone qualifications (including components, where applicable) in English or maths approved by the Department for Education and ESFA.

If a resident wants to ‘retake’ their GCSE English and maths qualification because they did not achieve a Grade 4 or higher (C or higher), WMCA will not fund the resident to only resit the exam.

You must not enrol individuals on qualifications which are not necessary for progressing towards a GCSE or Functional Skill level 2.

You must not fund an apprentice for English or maths from the WMCA AEB.

The WMCA will fully-fund non-regulated English and maths learning for residents, including those assessed at pre-entry level, aged 19 years and over with significant learning difficulties or disabilities, as part of a personalised learning programme, where assessment has identified the resident cannot undertake provision.

You must:

carry out a thorough initial assessment to determine an individual’s current level using current assessment tools based on the national literacy and numeracy standards and core curriculums
carry out an appropriate diagnostic assessment to inform and structure a resident’s resident file to use as a basis for a programme of study
enrol the resident on a level above that at which they were assessed and be able to provide evidence of this
deliver ongoing assessment to support learning
record the evidence of all assessment outcomes in the resident file

The assessments must place a resident’s current skill levels within the level descriptors used for the RQF.

Digital entitlement for those aged 19 or older

The WMCA has set out its approach to the digital entitlement in its Annex F.

We will fully fund individuals, including individuals who are employed, aged 19 or older, assessed at below level 1, as part of their legal entitlement on the day they start the following qualification:

Essential Digital Skills qualification (EDSQ up to and including level 1)

We will fully fund non-regulated digital skills learning for learners assessed at pre-entry level, with significant learning difficulties and/or disabilities as part of a personalised learning programme, where assessment has identified the learner cannot undertake accredited provision. This provision must be aligned with the national standards for essential digital skills and must not be a non- regulated version of a regulated qualification. In these circumstances you must:

carry out an initial assessment using current assessment tools based on the national standards for essential digital skills
carry out an appropriate diagnostic assessment to inform and structure a learner’s learner file to use as a basis for a programme of study
enrol the learner on a level above that at which they were assessed and be able to provide evidence of this
deliver ongoing assessment to support learning
record the evidence of all assessment outcomes in the evidence pack

The assessments must place a learner’s current skills levels within the level descriptors used for the RQF.

Individuals aged 19 to 23 (excluding English, maths and ESOL)

The WMCA will fully fund 19 to 23-year olds (refer to paragraph 30), including individuals who are employed, on the day they start the following learning:

Qualifications defined within the legal entitlement that are a resident’s:

first full level 2, and/or
first full level 3 as part of the legal entitlement and/or access to additional qualifications from the level 3 adult offer

local flexibility provision:

up to and including level 1 to support progression
to a first full level 2, and/or
level 2 for those who already have a full level 2, or above, if they are unemployed

We will co-fund provision up to, and including, a level 2 for learners who have already achieved a full level 2, or above, who are employed. The low wage flexibility may apply

Local flexibility provision

WMCA funded AEB also supports delivery of flexible tailored provision for adults, including qualifications and components of these and/or non-regulated learning, up to level 2 – we call this ‘local flexibility’.

Local flexibility provision either is fully or co-funded, depending on the learner’s age, prior attainment and circumstances. Please refer to the ‘level of WMCA contribution’ table and paragraphs 26 to 61 for learner eligibility.

Where appropriate for the learner, you can deliver local flexibility provision alongside a legal entitlement qualification.

Learners aged 19 to 23 progressing towards their first full level 2, must undertake learning at entry and/or level 1 only from local flexibility.

Local flexibility and legal entitlements

Learners aged 19 to 23 who progress to their first full level 2, must only enrol on a qualification we have approved for funding from the Qualifications website.

Learners aged 19 to 23 and aged 24 and over, who have already achieved at level 2, or above can undertake learning up to and including level 2 qualifications from the local flexibility offer or qualifications for the level 2 legal entitlement available on the Qualifications website or Find a learning aim.

Learners aged 24 and over who have not achieved a level 2 qualification can undertake learning up to and including level 2 qualifications from the local flexibility offer or qualifications in the level 2 legal entitlement list available on the Qualifications website or Find a learning aim.

We will co-fund provision up to, and including, a level 2 for learners who have already achieved a full level 2, or above, who are employed. The low wage flexibility may apply, refer to paragraph 137.

The WMCA is reviewing qualifications that are not listed on the entitlement list at level 2 and those qualifications that do not demonstrate clear progression to Level 3 or into work.

These qualifications are likely not be funded or to be subject to a rate reduction at course level in future years. We will work with representative provider groups ACLA, CWM and WMPN over the course of this academic year to discuss implementation.

Individuals aged 24 or older (excluding English, maths and ESOL)

The WMCA will fully fund individuals aged 24 or older on the day they start the following

provision up to, and including, a level 2, if they are unemployed
qualifications from the legal entitlement and level 3 adult offer, if learners do not have a full level 3 qualification and they meet the eligibility criteria

The WMCA will co-fund all other learners aged 24 years and older for provision up to, and including, a level 2. Where learners are employed, the low wage flexibility may apply,

English for Speakers of Other Languages (ESOL)

The WMCA will fully fund individuals aged 19 and over on the day they start their ESOL learning aim where they are unemployed, set out in 132.

The WMCA will co-fund all other individuals aged 19 and over on the day they start their ESOL learning aim. Where residents are employed, the low wage flexibility may apply.

Providers offering ESOL qualifications may need to deliver additional learning to individual residents that incurs additional cost above the qualification rate. You can access information on this in the WMCA Adult Education Budget Funding Rates and Formula 2020 to 2021.

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Adult Education Budget FUNDING RULES 2021/2022 - August 2021 - July 2022