ADD2677 London Multiply year one performance, reconciliation and adjustments

1.1.    The London Multiply Programme offers a meaningful opportunity to support Londoners to improve their maths skills and confidence needed for life and work. London Multiply is free for adults aged 19+ who don’t have a level two numeracy qualification. The programme is intended to support a minimum of 31,000 Londoners to improve their numeracy skills through 300 courses across 57 providers.
1.2.    Under the cover of Mayoral Decision (MD)3035, the Mayor approved the receipt and award of £40,945,591 of grant funding from the Department for Education (DfE) and set out the administration arrangements for Multiply funding in London. This decision also delegated the authority to make further Multiply programme level decisions to the Assistant Director- Skills and Employment via Assistant Director Decision (ADD) forms as necessary. Subsequently, ADD2632 also approved budget flexibility to the needs of the programme (within each FY), with future reprofiling between streams of the engagement and outreach budget to be agreed by the Assistant Director – Skills & Employment.
1.3.    The delivery of the first financial year allocation was delayed. The funding went out to providers in October 2022, that had to be spent by 31 March 2023. As such the GLA has recognised in the first academic year of delivery until 31 July, under the reconciliation arrangements (Appendix A), a period of over delivery between 1 April and 31 July 2023 would be allowed. 
1.4.    Providers were asked to submit the information on their delivery for the Year One funding year (1 August 2022 – 31 July 2023) by 14 September 2023.
1.5.    Where providers have reported underspend in the first financial year (FY) (FY ending 31 March 2023), but have reported over delivery in the period of 1 April to 31 July 2023, the additional delivery in this period will be funded up to the total value of the provider’s 1 August 2022 to 31 July 2023 funding allocation. 
1.6.    The underspend for FY1 has been reported to the DfE and will be recovered by adjusting payments related to the 1 August 2022 to 31 July 2023 funding allocation. Funding will be recovered via GLA OPS from November 2023 onwards.
1.7.    Under the cover of ADD2632, the Assistant Director – Skills & Employment approved the London Multiply Engagement and Outreach programme, this included growth funding of £718,000 for FY2 of the programme (1 April 2023- 31 March 2024) and £500,000 for employer engagement activity for the same time-period. The Skills and Employment Unit’s employer engagement activity start date has been delayed. Therefore, to reduce the risk of losing this funding as Multiply funding cannot be rolled over between financial years, it will be redirected to fund over-delivery.
1.8.    The London Multiply delivery team has also approached providers who are facing clawback of funds in FY1 and have low performance in the start of FY2. Those providers will be offered opportunity to reduce their FY2 allocation. Any adjustments made and money returned will also contribute to the over delivery payments for FY1 to other providers also in receipt of funding.
1.9.    The adjustments to the allocations through reconciliation will be reflected in reconciliation statements issued at the end of November 2023.  
 

2.1.    Based on final data for the year, submitted by providers in September 2023, the additional funding required for the period April to July 2023 is £1,506,969. In addition, the funding clawback for underperformance, to be recovered from providers for the year to March 2023, is £2,610,038.  
2.2.    Allowing over delivery enabled providers to better plan for the programme and continue strengthening the programme for good year two performance of the programme. Providers mobilised at great pace and many overcame the challenge of delivery FY1 with a particularly late roll out of funding by the Department for Education, to over perform in the April-July period.  
 

3.1.    Section 149(1) of the Equality Act 2010 provides that, in the exercise of their functions, public authorities, of whom the Mayor is one, must have due regard to the need to:
•    eliminate discrimination, harassment, victimisation and any other conduct that is prohibited by or under the Equality Act 2010
•    advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it
•    foster good relations between persons who share a relevant protected characteristic and persons who do not share it.
3.2.    Relevant protected characteristics are age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex and sexual orientation.
3.3.    The Mayor is required to comply with the duty set out above in making the decision set out in this form, and any future decisions relating to the AEB made pursuant to those arrangements that will be subject to separate decision forms.
3.4.    An Equalities and Impact Assessment (EqIA) was conducted for the London Multiply programme during mobilisation.
3.5.    The EqIA demonstrates how equality groups were considered in the development of the programme and set out the likely impact delivery would have on equality groups and wider issues of socio-economic inequality.  
3.6.    The London Multiply programme will give Londoners without Level two numeracy qualifications the opportunity to learn and develop essential numeracy confidence and skills they need in life and work. From the EqIA, it is clear that those without a Level two qualification are more likely to be low income, older, disabled, or from a minority ethnic background. As such, this provision is likely to reach equalities groups and support them to upskill, supporting progression into further learning and good work. 
3.7.    The decisions in this form do not make any changes to the intended programme that impacts this assessment, furthermore it supports providers to continue to deliver high quality provision. 
 

4.1.    The reconciliation arrangements outlined in this ADD aligns with commitments made in the Mayor’s Skills for Londoners Strategy, Skills Roadmap for London, and the Mayor’s commitment to helping Londoners into good jobs by redistributing funding where providers are over delivering the London Multiply programme. 
4.2.    The following are risks to consider: 
•    Employer engagement activity for the 2023-24 financial year will not take place. This could reduce the number of employers that are aware of London Multiply provision in their local area. While additional activity will not take place this FY, London Multiply providers are delivering this work, and reallocating funding to over-delivery reduces the risk of losing funding as the Skills and Employment Unit’s employer engagement activity start date has been delayed. Additional employer engagement activity will take place next FY.
•    In addition to the amount of £1,218,000, the additional payment of £1,506,969 will be covered by recouping funding from under-delivery in Year. In the event that there is insufficient recouped funding to cover the amount, the GLA will reprofile delivery in the final quarter to ensure delivery within budget. 
4.3.    The London Multiply programme aligns with commitments made in the Mayor’s Skills for Londoners Strategy and his Skills Roadmap for London. It also aligns to the Mayor’s commitment to support to Londoners through the cost of living crisis and his mission to build a fairer and more prosperous city for everyone.
4.4.    There are no conflicts of interest to declare from those involved in the drafting or clearance of this decision.
 

5.1.    Approval is sought for the following.
•    the reconciliation arrangements for the London Multiply programme (attached at Appendix A), 
•    expenditure of up to £1,506,969 from the London Multiply budget (2023-24), to be awarded to fund over delivery for the period of 1 April 2023 and 31 March 2024. This includes £718,000 previously allocated for growth, £500,000 previously allocated for employer engagement activity and forecast recouped funding from under-performance; and
•    The redistribution of funding recouped from under-performing providers to further fund the over delivery in the period of 1 April 2023 – 31 June 2023. This will be in addition to the expenditure outlined above.

5.2.    This expenditure will be funded from the London Multiply programme budget in the 2023-24 financial year and there is sufficient budget to meet this expenditure.
 

6.1    The foregoing sections of this report indicate that:
6.1.1    the decisions requested of the Assistant Director concern the exercise of the GLA’s general powers, falling within the GLA’s statutory powers to do such things considered to further or which are facilitative of, conducive or incidental to the promotion of economic development and wealth creation in Greater London; and
6.1.2    in formulating the proposals in respect of which a decision is sought, officers have complied with the GLA’s related statutory duties to: 
•    pay due regard to the principle that there should be equality of opportunity for all people;
•    consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom; and
•    consult with appropriate bodies.
6.2    In taking the decisions requested, the Assistant Director must have due regard to the Public Sector Equality Duty - namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity and foster good relations between persons who share a relevant protected characteristic (race, disability, sex, age, sexual orientation, religion or belief, pregnancy and maternity and gender reassignment) and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Assistant Director should have particular regard to section 3 (above) of this report.
6.3    Should the Assistant Director choose to make the decisions sought officers must ensure that the reconciliation,  adjustments and related expenditure proposed: 
6.3.1    align with those set out in all applicable funding rules and conditions and are documented in accordance with the provisions of the agreements with the providers concerned; and
6.3.2    the agreements in question are varied before any commitment is made or any reliance is placed upon the new figures, profiles and related details where necessary.  
 

Appendix A – Multiply reconciliation arrangements 2022-23 academic year