Area Cost Factors Business Definition

DEFINITION

1. The Area Costs Uplift is a funding uplift to reflect the higher costs of delivery provision in different parts of the country, particularly London and the South East.

DETAILED DESCRIPTION

2. The uplift is applied to 15 areas, ranging from 20% for Inner London to 1% for West Sussex.

3. For the 16-18 and Adult Learner Responsive models, the provider-level area cost uplift is normally determined by the geographical location of the provider’s headquarters. In the Employer Responsive model, area cost uplift is determined by delivery location – that is, employer premises.

4. Where provision is delivered to a wide geographical area, the Area-Costs Uplift will be calculated as a weighted average of the area-costs uplift for each delivery centre.

Last date modified: 7th November 2008