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Sue Blake Projects Manager, AoC West Midlands Lorna Freakley Director, Magna Education and Training Associates Ltd
Sue Blake
Projects Manager, AoC West Midlands
Lorna Freakley
Director, Magna Education and Training Associates Ltd
Introduction – Steve Sawbridge
The Apprenticeship Reforms – Teresa Frith Opportunities and Challenges
Workshop – Sue Blake/Lorna Freakley
The Apprenticeships Reforms, update and progress to date
Comparing Frameworks to Standards
Understanding the Changes to Funding
Changing employer conversations
Strategic options/SWOT analysis
Planning for delivery
Action Planning
Q&A and close
All apprenticeships have synoptic end point assessment; grading and links to professional recognition (where appropriate)
Ensuring that apprentices are signed off as fully competent at the end of
their apprenticeship
All apprenticeships must last at least 12 months
Give employers greater control over funding
Employer-led Trailblazers designing apprenticeships
Giving employers the opportunity to set the skills, knowledge and
behaviours needed
Short, concise standards replace long, complex frameworks
Providing a clear and attractive ‘shop window’ for parents, apprentices and businesses
Continuing to drive up the quality of apprenticeships
Enabling employers to be intelligent customers, getting the training they
want and driving up quality
Costing Template
Trailblazer forms & submits expression of interest
Trailblazer writes new standard
Assessment Plan
Approved Approved Approved and funding band
allocated
Gateway 2 – draft Standards
Gateway 3 – Assessment Plans
Gateway 1- EOIs
Delivery phase
• Over 1,400 businesses in over 100 sectors involved
• 216 standards published to date
• 82+ ‘ready to deliver’ – standard and assessment plan approved, funding Cap allocated
• 376 approved for
development or
developed
• Over 40% Higher
and Degree
• Over 1000 starts to
31 January 2016
Summary
Apprenticeships 2020 Vision Link
English Apprenticeships: Our 2020 Vision
Full Publication
Published December 2015 and includes:
Institute for Apprenticeships
Apprenticeship Delivery Board (ADB)
Public Sector targets
Digital Apprenticeship Service
Large Employer Levy
The Institute for Apprenticeships will be an independent employer-led
body that will regulate the quality of apprenticeships. It will be set up by
April 2017 (shadow form from 2016)
Rachel Sandy Thomas appointed Shadow Chief Executive from 11 April 2016
An independent Chair will lead a small Board of employers, business leaders
and their representatives
Outline role:
• Approve/reject EOIs, standards and assessment plans
• Provide advice and guidance during their development
• Determine policy on when standards need to be refreshed or closed
• Advise on funding for each standard
Consultation
”The public sector plays a crucial role in modern civic life, supporting the wellbeing, security and prosperity of the country. It’s essential that the public sector is representative of the country and has the skills it needs to deliver, both now and for the future. Government believes that apprenticeships can play a major role in achieving the public sector’s ambitious goals.”
“We're seeking your views on which public bodies in England should be set on targets on the number of apprentices working for them.”
This consultation closed on 4th March 2016 at 11:45pm
Activity 1 – Identifying the key changes
Working in table groups:
Read through the Standard and Assessment Plan
From what you know already, identify the key changes between existing Apprenticeship frameworks and the new Apprenticeship Standard
Feedback to wider group
Break
Activity 2 – exploring standards and assessment plans
Working in table groups: using your own devises?
Examine a selection of Standards and Assessment Plans
that are currently available
What looks similar to what you do now?
What is different?
Who is involved in the delivery of the Standard?
Feedback to wider group
https://www.gov.uk/government/collections/apprenticeship-standards
Qualifications are not (always) the starting point in
determining future delivery models
The quality of individual learning plans will be crucial
Developing curriculum will require some thought
Formative assessment is provider responsibility – End
Point Assessment is not
EPAs vary and end-point assessment organisations are
not necessarily awarding bodies
There is more potential for higher apprenticeships
Apprenticeship Funding
(Funding caps
Price agreed for Training &
Assessment
Employer 1/3 contribution
Government 2/3 contribution
Employer Incentive Payments
English & Maths Additional
Learner Support
Caps 2015/16 £2,000, £3,000, £6,000 £8,000,
£18,000
Caps 2016/17 £2,000, £3,000, £6,000 £8,000,
£13,000, £18,000
Co-Funded
Government Funded
Maximum core government contribution (£2 for every £1 from employer)
Cap 1 Cap 2 Cap 3 Cap 4 Cap 5 Cap 6
£2,000 £3,000 £6,000 £8,000 £13,000 £18,000
Employer contribution if the cap maximum is required
£1,000 £1,500 £3,000 £4,000 £6,500 £9,000
Co-payment for training and assessment if the cap maximum is required
£3,000 £4,500 £9,000 £12,000 £19,500 £27,000
Additional incentive payments
Recruiting a 16 to 18-year-old
£600 £900 £1,800 £2,400 £3,900 £5,400
For a small business (<50)
£500 £500 £900 £1,200 £1,950 £2,700
For successful completion
£500 £500 £900 £1,200 £1,950 £2,700
Maximum total government contribution
£3,600 £4,900 £9,600 £12,800 £20,800 £28,800
Employers will select a lead SFA approved provider to coordinate their
training and assessment delivery
Employers will agree a price for their delivery with their chosen providers
Providers can include many of the services they offer as part of their price
Government will pay £2 for every £1 of this price invested by an employer
up to the cap allocated for the standard
Employer Incentive Payments are paid:
• for 16-18 year old: 50% at 3 months and 50% at 12 months (for starts
2016/17 also includes 19 to 24 Care leavers )
• For small businesses: 100% at 3 months
• For completion: at end of the apprenticeship
Employers have complete flexibility on what they use
any incentive payments for
The Government is introducing a levy on employers to fund
apprenticeships
Will be collected through PAYE
The levy will be set at 0.5% of an employer’s pay bill. Employers will
have an allowance of £15,000 to offset against their levy payment.
This means the levy will only be paid on any bill in excess of £3M
Employers who pay the levy and are committed to apprenticeship
training will be able to get out more than they pay in
Secondary Class 1 NICs abolished for apprentices under the age of
25 from April 2016
Guidance will be provided in Spring 2016
Example: Paybill £5,000,000 Levy sum 0.5% x £5,000,000 = £25K Allowance £25,000 - £15,000 = £10,000 annual levy payment
Example: Employer has £12,000 annually entering their levy account Monthly account funding = £1,000 Top up: 10% x £1,000 = £100 Levy monthly account increase: £1,000 + £100 = £1,100
£13,200 annually to spend on Apprenticeships
Levy page published on GOV.UK
Employer levy guide, updated providing more details
Employers will get more than they put in - 10% top up for levy
accounts announced in budget
Go
vern
me
nt
Tra
inin
g
Pro
vid
er
Paid by SFA and balance by employer
HMRC collect levy (PAYE)
Employs Apprentice. Commits to
training
Provides training to apprentice
Timely data on training
Employer views funds in digital
account to spend in England
Check training is complete
If funding unlocked: Pay
provider
Registers with SFA
Employer and Provider Identity Assurance
Pass data on levy payments from HMRC to BIS
Unused levy funds expire
after 18 months
Receives training for apprentice
SFA draws down levy
funds monthly
Offers apprenticeship
training
10% Top up
Lev
y p
ay
ing
e
mp
loy
er
No
n-l
evy
pa
yin
g
em
plo
ye
r
Employs Apprentice. Commits to
training
Provides info via ILR to SFA that training
has taken place & that employer has made contribution
Employer pays for proportion of cost direct to training
provider
Receives training for apprentice
SFA pays proportion to the training
provider
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Employers will not be able to spend an unlimited amount of money on a single apprentice. • Funding bands will be set which limit the amount of levy funds an
employer can spend on training for an individual apprentice. • The band will vary according to the level and type of apprenticeship
(for example, more expensive, higher quality training is likely to be in a band with a higher limit).
Government want to ensure that apprenticeships represent the best quality and value for money to the employer. • Setting limits to the amount of government or levy funding that
can be used for apprenticeships will enable employers to increase the quantity of apprenticeships they can purchase with their funding, whilst ensuring that quality training does not become too expensive for employers to purchase.
Employers can negotiate the best price for the training they require directly with training providers. • Employers encouraged to seek the best price for the training they
are purchasing. Much like all business investment decisions, employers should be empowered to get a quality service for an acceptable price.
• If employers want to spend more than the funding limit themselves then they will be free to do that.
Funding bands set the
ranges in which government expects the
cost of training an assessment for
apprenticeships to fall.
Each of the bands will set an upper limit to which
government or levy funding can be used to pay
for the apprentice’s training.
For example:
Butcher Apprenticeships Standard
Band 3
£3,000 to £6,000
What is a funding band?
• Example funding band limit = £6,000
• Price employer negotiates with the training provider = £5,000
• The cost is within the funding band limit
• Example funding band limit = £6,000
• Price employer negotiates with the training provider = £7,500
• The cost is above the funding band limit
WITHIN THE FUNDING BAND LIMIT OVER THE FUNDING BAND LIMIT
£5,000 will be deducted from employer levy account over the life of the apprenticeship.
Levy payers Non-levy payers*
Employer will be required to contribute a small proportion of the £5,000 cost. The level will be announced in June.
• Employers who have not contributed to the levy, or who have used all the funding in their accounts
£6,000 will be deducted from employer levy account over the life of the apprenticeship.
Employer will be responsible for paying £1,500. This payment can’t be made from the digital account
Levy payers Non-levy payers*
Employer will be required to contribute a small proportion of the £6,000 cost, and
Will be responsible for paying £1,500.
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The new Digital Apprenticeship Service will provide a new simple online portal for employers
Proceeding with the Digital Apprenticeship Voucher To be implemented from 2017 – as part of a broader end-to-end service that simplifies the employer journey and supports them to employ apprentices
Simplified solution
Enabling employers to make decisions about taking on apprentices (for all apprenticeships and all employers including the smallest)
Giving employers greater purchasing power and oversight of providers available
Giving transparency on apprenticeship standards and their costs
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Candidate search
and apply
Course/Provider
search
Levy management
Discovery, alpha, beta, live
Employer
vacancy posting
Provider
vacancy posting
Lunch
Engaging Employers
• Selecting Standards
• Negotiating the contract agreeing a price
• Receiving payment
• Delivery Stage 1 – Recruitment?
• Delivery Stage 2 - Induction
• Delivery Stage 3 - Initial Assessment
• Delivery Stage 4 - Learning Plans
• Delivery Stage 5 - Teaching and Learning
• Delivery Stage 6 - Progress Reviews
• Delivery Stage 7 - Assessment (formative)
• Delivery Stage 8 – Supporting End-Point Assessment Achievement
• Delivery Stage 9 - Progression
Return business
Selling your service to Employers – competitive environment – Employers will need to know much more about your offer and the cost
Paying for both training and for end assessment – what does that cost?
The caps are a maximum Government contribution; costs and charging will be a balancing act - need to fully understand the costing models
Each of the bands will set an upper limit to which Government or levy can be used to pay for training
Apprenticeships cannot be sold as ‘free training’ but for some employers the contributions might be mitigated by incentives
Who is communicating with the employer – who holds that relationship now?
Clear contracts; Lead Provider with employer/ sub-contractor/partners/ assessment organisations
How does this all impact on your models of delivery?
How much customisation for different employers do
you foresee?
How will you create your USP?
Who are you working with? SMEs vs large
employers?
Activity 3 – Operational checklists
Working in table groups, discuss:
Implications for business development.
Cross organisation communication – curriculum
Feedback to wider group
Activity 4 - SWOT
Review the SWOT analysis questions.
Identify two or three points in each of the criteria
Feedback to wider group one strength and one opportunity
Shared Vision
Strategy
Systems &
Processes
Staff Skills
Structure
Activity 5 – transition planning, what next
Where would you start with pilot delivery?
Think of the actions you need to take to prepare
What further information do you need?
Who needs to be involved in planning?
How do you get employers involved?
Identify some initial actions for yourself
High level scope Operating detail
APRIL 2017
Operation
• BIS/DfE publish
confirmed funding rates for April 2017
• SFA publish
provisional funding rules
Transition
• SFA publish confirmed funding rules
• Full set of confirmed funding guidelines published
• Digital apprenticeship service registration opens
• Apprenticeship Levy operational
• digital apprenticeship service operational
• New funding model live
• Institute for Apprenticeships in place
BY END 2016 AUTUMN 2016 SUMMER 2016
• BIS/DfE publish provisional funding rates for different elements of the new funding regime in June
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2016/17 Apprenticeship Funding Guide - Funding Guide 16/17
Summary Guidance - SFA funding rules 2016 to 2017
Funding rules - SFA Funding
Removal of SASE Frameworks - Removal of Frameworks
Skills Funding Letter 2016 to 2017 – Funding Letter
Degree Apprenticeship Fund - Degree Apprenticeships opportunities
Higher and Degree Apprenticeship Expansion - Expansion Update
New Standards Toolkit - Future Apprenticeship provider toolkit
Future Apprenticeship Portal - Future Apprenticeships Support
ROTO tightened up – consultation
Guidance for developers of standards – updated March 2016 Guidance for developing Standards
List of standards and stage of development - Standards list
Standards ready for delivery - Standards approved for delivery
Approvals process – Updated May 2016 - Approval process
Have your say on draft EOIs, standards and assessment plans, via the monthly online survey - Standard Surveys
How to become an Assessment Organisation - Information on AO
Levy guidance - Levy How it Works
New Employer Guide - Employer Guide
Thank you
Any final questions? Sue Blake
07727 453507
Lorna Freakley
07799 478215
Steve Sawbridge
