Higher Apprenticeship Funding

Higherapprenticeships@sfa.bis.gov.uk

Rebecca Rhodes Head of Apprenticeship Funding Policy Implementation November 2015

Apprenticeship Reforms

Simplicity Simplifying

apprenticeship standards

so that they are shorter and more accessible

Employer driven Employers designing

apprenticeships to make them more responsive to their needs and the future economy, and controlling

funding

Quality Improving the quality of apprenticeships so that they are viewed

with the same esteem as University

Current Direction

SFA operates all Apprenticeship funding from one budget but there are two types of apprenticeships with their linked funding models :

• Existing suite of approved SASE apprenticeship frameworks

• 353 new apprenticeship standards• 195 approved and published

of which 60 available for delivery (26 at L4-6)• 158 in development

• Apprenticeship frameworks replaced by apprenticeship standards over time

• To significantly increase the quantity and quality of apprenticeships in England to 3 million starts this Parliament, putting control of funding in the hands of employers.

  • Employers at the heart of designing new Apprenticeships Standards through

the Trailblazer programme

• Employer-routed funding reforms, such as the digital apprenticeships voucher, is putting control of funding directly into hands of employers

• Apprenticeships will be given legal treatment equal to degrees

• The government is abolishing employer NICs for apprentices under the age of 25 from April 2016

• The government will set apprenticeship targets for public sector bodies

Apprenticeship Reform Commitments

Apprenticeship Levy Announcement

But a step change in the scale and quality of the apprenticeship programme also needs a step change in funding.

The government will introduce a levy collected from larger employers which in England will be spent by the employer on apprenticeships

Employers will access levy funds through the digital apprenticeship voucher

Government consultation on levy implementation closed on 2 October 2015

Getting Involved

1. Have your provision included in an apprenticeship framework or Standard

2. Apply to join the SFA Register of Training Organisations

3. Apply through an SFA procurement round for funding

4. Prepare for the opportunities presented by the levy

Apprenticeship Delivery

Lead Providers

Are an existing SFA account holder with an apprenticeship budget

• Are on the Register of Training Organisations

• Lead relationship with employers

• Arrange & manage subcontracted delivery

• Arrange end-point assessment

• Make the employer incentive payments to employersSubcontractorsWork to a lead provider and deliver elements of the apprenticeship

Higher Apprenticeship Funding

• Qualifications that make up Higher Apprenticeships can be FE, HE or a combination of the two.

• Only approved SASE apprenticeships can be delivered • Apply to the Issuing Authority who governs the framework to include your

provision (http://www.afo.sscalliance.org/)

• FE qualifications - these have national “rates” published by the SFA• https://hub.imservices.org.uk/Learning%20Aims/Pages/default.aspx• HE qualification ‘rates’ / prices are agreed with the SFA as part of

contracting • Funding is either paid on a standard Agency profile

or on actual delivery depending on provider type• Apprenticeship Grant for Employers available

Funding Model - Frameworks

Funding

Price agreed for Training &

Assessment

Employer 1/3 contribution

Government 2/3 contribution

Employer Incentive Payments

English & Maths Additional Learner Support

Trailblazer Funding Model – Standards

Co-Payment Government Pays

Trailblazer Funding Model for Standards

Maximum Core Government contribution (£2 for every £1 from employer)

Cap 1 Cap 2 Cap 3 Cap 4 Cap 5

£2,000 £3,000 £6,000 £8,000 £18,000

Employer contribution if the maximum cap is claimed £1000 £1,500 £3,000 £4,000 £9,000

Minimum Co-funding for training and assessment at the cap

£3,000 £4,500 £9,000 £12,000 £27,000

Additional incentive payments

Recruiting a 16-18 year old

£600 £900 £1,800 £2,400 £5,400

For a small business (<50)

£500 £500 £900 £1,200 £2,700

For successful completion

£500 £500 £900 £1,200 £2,700

Maximum total Government contribution £3,600 £4,900 £9,600 £12,800 £28,800

Trailblazer Standards - Employer Incentive Payments

16-18 Incentive£1,800

• 50% at 3 months

• 50% at 12 months

Small employer Incentive

£900

• < 50 employees

• 100% at 3 months

Completion Incentive

£900

• 100% on completion

• Lead provider is paid at 90 and 365 days by the SFA automatically

• Cannot be ‘offset’ against employer cash contribution

For Further Information on Higher Apprenticeships

For General Higher Apprenticeship Queries: higherapprenticeships@sfa.bis.gov.uk

For trailblazer standards in development: https://

www.gov.uk/government/publications/apprenticeship-standards-in-development

For trailblazer standards available for delivery: https://

www.gov.uk/government/publications/apprenticeship-standards-ready-for-delivery

Higher apprenticeship webpage: https://

www.gov.uk/government/collections/sfa-higher-and-degree-apprenticeships

Advice for employers on trailblazer standards: https://

www.gov.uk/government/publications/employers-guide-to-trailblazer-apprenticeships