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What are the main aims of the Reforms?
The Government’s message
• Employer driven
• Quality
• Simplicity
The aims of the reforms in reality?
• Increase productivity
• Achieve the target!
• Reduce public funding
• Reduce government responsibility
Apprenticeship spending
• Apprenticeship spending will reach £2.45bn in England by 19-20
• This is more than double the amount spent in 10-11*Forecast
Per year in England, £bn
• Scotland, Wales and Northern Ireland will receive a share of the levy, and will take decisions on how that will be spent
Comparison to current delivery
Total projected levy paid by sector in 17-18, £m Delivery by sector in 15/16
Key Implications
• Less direct funding
• A more commercial approach
• Priority shift to employers
• Success measured by progression?
• (3 million target)
• Less government influence
• Changing opportunities and threats
Key Considerations
• strategic direction and mind set
• relationship with employers
• external LMI
• internal MI
• staff skill sets
• curriculum offer and resources
• relationship with key stakeholders
• communications
• preparing potential apprentices
The Detail as we know it
• Government’s 2020 vision
• Key changes from ‘SASE’
• Current position
• Levy funding for 1 May 2017
• RoATP
• Apprenticeship governance
Government’s 2020 vision
• 3 million! (a lot less talk of this since change in Govt)
• Quality and recognition of Apprenticeships
• Funding
• Public Sector (statutory 2.3% of workforce)
• Small Businesses (remove barriers to allow growth)
• Larger Employers (increase investment)
• Marketing and communications
• Careers advice and guidance
• Provider Readiness
• System Governance
• Higher and Degree
So where are we now? (Oct 2016)
• ‘Trailblazer’ employer groups: approx. 180
• Standards published: 258 )
• Standards in preparation: 166 ) 424
• 147 Standards ‘approved for delivery’
• Of those approved for delivery (June 2016)
L2 L3 L4 L5 L6 L7
33 64 27 5 15 3
• No ‘standard’ approach to Standards!
• L6 and L7 defined as ‘degree apprenticeships’
The Levy from 1 May 2017
• Separate approaches for levied and non-levied employers
• Levied employers will work through the Digital
Apprenticeship Service (DAS) to access funding
• Non-levied employers will work directly with providers to
access funding
• The intent is for all employers to use DAS at some point
• Standards and frameworks are funded in the same way
• All apprenticeships have been allocated to a funding band
• Providers have now applied to RoATP and have undertaken
procurement with SFA to deliver to non-levied employers.
Funding bands
Every apprenticeship has been placed in a
funding band
• The upper limit of each funding band will cap the
maximum:
• amount of digital funds an employer who pays
the levy can use towards an individual
apprenticeship.
• price that government will ‘co-invest’ towards,
where an employer does not pay the levy or
has insufficient digital funds.
Employers can negotiate the best price for the
training they require
• If employers want to spend more than the funding
band limit, using their own money, then they will
be free to do that.
• Funding bands do not have a lower limit.
Number Band limit
1 £1,500
2 £2,000
3 £2,500
4 £3,000
5 £3,500
6 £4,000
7 £5,000
8 £6,000
9 £9,000
10 £12,000
11 £15,000
12 £18,000
13 £21,000
14 £24,000
15 £27,000
Levied Employers from 1 May 2017
• Levied employers make up 2% of the employer base
• There are approximately 22,000 levied employers
• All employers are in scope of the levy, only those who have
a pay bill in excess of £3m pa will pay due to a £15,000 tax
allowance
• The levy is set at .5% of total pay bill, minus the allowance
• Levy will be deducted monthly by hmrc
• Levied employers can access their payments (plus 10%)
through their digital account on DAS
• Funding can only be used to pay for the delivery and
assessment of government recognised apprenticeships
Co-Investment
There are two types of employers who will benefit from government support
towards the cost of their apprenticeships training:
1. Employers who haven’t paid the levy and want to purchase
apprenticeship training from a provider
2. A levy-paying employer with insufficient funds in their digital account
to pay for the cost of training and assessment they want to purchase
We propose that:
• The government pays 90% of the costs of training and assessment.
• The employer will be responsible for paying 10% of the costs.
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Additional support 16-18 & 19-24 EHC and Ex Care
• Employers with fewer than 50 people working for
them will be able to train 16 to 18 year old and 19
– 24 year olds from care or with and EHC at no
cost to them
• All delivery to these two groups will also attract
£1000 for the employer and £1000 for the provider.
• For frameworks only, in transition, 20% of the
maximum funding rate will be added when the
framework is delivered to these two groups
Additional support for disadvantage
SFA have altered their stance on uplifts following
AoC lobbying. Rates are based on the Index of
multiple deprivation. The simplified system gives:
Three payment bands:
Top 10% = £600
10 – 20% = £300
20 – 27% = £200
The payment should equate to ‘at least’ the same
amount as is provided within the current approach.
Currently only for transition period
Additional support English and maths and ALS
• Maths and English funded at £471 per
qualification delivered
• Additional Learner Support continues at
£150/month plus additional costs based on
evidenced need
Subcontracting within the Reforms
SFA have determined not to make major
alterations around sub-contracting for the
time being, but this is not likely to continue
past the transition period.
Prior Qualifications
SFA have changed the rules here to allow
the funding of lower level apprenticeships for
those who are undertaking training that is
‘materially different’ from previous study or
apprenticeship. They will keep this under
review (12 month minimum study rule still
applies)
Overall non-levied funding (ITT)
Minimum funding available in total: £ 440 million (over 15 months)
Total ring fenced into:
16 to 18: £213 million
19+ : £227 million
Maximum initial contract value: £ 5 million
Minimum initial contract value : £ 100,000
Scores gained will be used to prioritise contract awards
Values contracted can be increased or decreased and the period
could be extended by up to one year
Next steps for RoATP and Procurement
• December 2016 - Further employer guidance from HM Revenue
and Customs (HMRC) on how to calculate and pay the
apprenticeship levy
• January 2017??
• February 2017??
• March 2017 – results of PQQ and ITT known
• April 2017 – levy starts
• May 2017 - Levy funded delivery starts
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Will you be ready when the apprenticeship
reforms commence from
May 2017?
Organisational strategy
Contracts
Systems and data
Funding rules and
complianceFinance
Curriculum
Marketing
Apprenticeship readiness
Transition Planning
• Overarching college strategy
• Systems Policies and procedures
• Financial modelling and systems
• Business development, target market(s)
• Marketing and communications
• Partners, subcontractors, stakeholders
• People, skills and resources
• Curriculum design
• Approach to end point assessment
• Pre-apprenticeship activity
• Apprenticeship progression
• External and internal QA
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