Demand Led Funding Business Definition 2008/2009

DEFINITION

1. Demand led funding (DLF) is a new funding model, reflecting the principle that learner (or employer) demand and choice should directly affect the amount of funding earned by providers.

DETAILED DESCRIPTION

2. Under the DLF model, providers earn money based on actual delivery. Following the tendering process, approved providers will agree an allocation value with the LSC prior to the start of the year. However, the provider's actual budget will depend on learner demand, as the reconciliation arrangements will recover funding from those providers that fail to deliver their agreed allocations.

3. Demand Led Funding is split into three models:

• 16-18 Learner Responsive
• Adult Learner Responsive
• Employer Learner Responsive

Last date modified: 7th November 2008