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Welcome
Engagingwithappren2ceshipsFriday20thMay2016
Purpose To bring key intermediary to business, up to speed with regards to the various changes within the world of apprenticeship reforms. There will be plenty of opportunity to raise questions, discuss the changes and network with other key intermediaries across Hertfordshire.
Agenda Skills & Labour Market update
Progress against Apprenticeship Plan
Welcome – Norman Jennings
09.00 Registra-on&Networking
09.30 WelcomefromNormanJennings
09.45 Overviewofthelatestappren2ceshippolicychangesincludingthelevy,thenewDigitalAppren2ceshipService,fundingandincen2vechangesfromApril2017andtheimpactforsmallbusinessesinHerIordshire.
10:30 Introducingthenewappren2ceshipreferralsystem
10:45 Refreshmentbreak
11:00 DevelopinganIntermediariestoolkitforHerIordshire
11:50 Nextstepsandroundup
12:00 Lightlunchandnetworking
Agenda
Herts Productivity rate improvement – 3.1% increase in 2013
Jobs growth has strengthened – 3.1% increase in 2014
Strong employment rate – 80% of working age residents
Strong employment growth in PST, ICT, Construction, Hospitality & admin/support services
Greater % of employment in higher skilled occupations – 59% at L3 & above
Highly qualified working age residents – 44% at L4 and above
JSA claimants continue to fall – 1% of working age residents
Skills gap more prevalent in Hertfordshire – 3.7% increase in 12 months
NEETs rate remain low – circa 3.5%
Overall growth in Apprenticeship starts although issues re 19-24
Skills & labour Market Review
Revisions to LEP area apprenticeship plan to reflect changes i.e. Levy, funding etc.
Three key themes remain – Employer, Apprentice & sharing best practice
Progress being made against 3 of 5 targets
Hertfordshire Apprenticeship Plan
Target 1: Increased numbers of 16-18 year old Hertfordshire residents starting on the Apprenticeship programme.
Between 2013/14 and 2014/15 increased to 1682 from 1597 - target of 1865 by 2017.
Target 2: Increased numbers of Hertfordshire residents starting on Higher Apprenticeships.
Between 2013/14 and 2014/15 increased to 321 from 124 - target of 400 by 2017.
Target 3: Increased numbers of 19-24 year old Hertfordshire residents starting on the Apprenticeship programme.
Between 2013/14 and 2014/15 decreased from 2305 to 2109 - target of 2830.
Target 4: Improved balance between intermediate/advanced/higher starts.
Between 2013/14 and 2014/15 balance improved to 56.8% (Inter)/43.2 %(Adv+High) - target of 55% (Inter)/45% (Adv+High).
Setting the scene Public Sector targets The levy The new Digital Apprenticeship Service
Considerations for SMEs
Funding and incentive changes from April 2017 Act now or wait until April? Activity: Priorities for negotiating the cost of training
Apprenticeships update
• Thegovernmentiscommi<edtosignificantlyincreasingthequan-tyandqualityofappren-ceshipsinEnglandtoreach3millionstartsin2020:
• NewIns-tuteforAppren-ceshipsledbyemployerstosupportqualityappren2ceships
• EmployersattheheartofdesigningnewAppren-ceshipsStandardsthroughtheTrailblazerprogramme
• Appren2ceshipswillbegivenequallegalprotec-ontodegrees• SecondaryClass1NICsabolishedforappren2cesundertheageof25fromApril2016
• Butastepchangeinthescaleandqualityoftheappren-ceshipprogrammealsorequiresastepchangeinfunding.
Broader apprenticeship reforms
The Bill
• The Enterprise Bill received Royal Assent on 4 May and became the Enterprise Act
• Secretary of State has powers to set targets for prescribed public bodies in relation to the number of apprentices working for them in England.
The 2.3 % Target
• The Act includes a duty on all public bodies (250+) which are set a target to ‘have regard’ to that target and report annually.
• Bodies in scope /the target itself will be set out in regulations debated in autumn 2016.
• The target period for the duty is the financial year, 1 April to 31 March.
• Implementation to be set out in the Government Response to the consultation published in June
Public sector targets
• The Apprenticeship Levy will be a levy on all UK employers to fund new apprenticeships.
• The levy will be 0.5% of the pay bill, paid through PAYE.
• Any UK employer, in any sector, with a pay bill of more than £3 million per year is liable to pay the levy.
• An allowance of £15,000 will offset against levy liability. The levy allowance is not a cash payment and cannot be used to purchase apprenticeship training.
• Employers in England who pay the levy will be able to get out more than they pay into the levy, through a 10% top-up to their digital accounts.
• Levy and top up payments will be made monthly and will expire after 18 months
• Providers will be paid monthly via the employer’s digital account. The Digital Apprenticeship Service (DAS)
The levy
The Digital Apprenticeship Service
An online service for employers of all sizes from April 2017 To facilitate the management of apprenticeships, including:
Information
Finding a standard / framework / training provider
Recruiting apprentices
Managing levy and funding
Digital apprenticeship service screenshots
Digital apprenticeship service screenshots
Digital apprenticeship service screenshots
Digital apprenticeship service screenshots
Before April 2017 Current frameworks £0 cost of training for 16-18 yr olds Employer contribution for 19+ (includes payment in kind) Access to AGE grant £1500 for 16-24 (criteria apply)
New standards £2 for £1 funding methodology Mandatory employer contribution for all ages Significant incentives available
Funding pre-April 2017
Maximum Core Government contribution (£2 for every £1 from employer)
Cap 1 Cap 2 Cap 3 Cap 4 NEW Cap 5
NEW Cap 6*
£2,000 £3,000 £6,000 £8,000 £13,000 £18,000
Employer contribution if the maximum cap is claimed
£1000 £1,500 £3,000 £4,000 £6,500 £9,000
Co-funding for training and assessment if the maximum cap is claimed
£3,000 £4,500 £9,000 £12,000 £19,500 £27,000
Additional incentive payments
Recruiting a 16-18 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
PilotFundingCapsStandards-August16–April17*IncludesStandardsautoma-callyre-designatedintocap6on1stAugust
• Examplefundingbandlimit=£6,000
• Priceyounego2atewithyourtrainingprovider=£5,000
• Thecostiswithinthefundingbandlimit
• Examplefundingbandlimit=£6,000
• Priceyounego2atewithyourtrainingprovider=£7,500
• Thecostisabovethefundingbandlimit
WITHINTHEFUNDINGBANDLIMIT OVERTHEFUNDINGBANDLIMIT
£5,000willbedeductedfromyourlevyaccountoverthelifeoftheappren2ceship.
Levypayers Non-levypayers*
Youwillberequiredtocontributeasmallpropor-onofthe£5,000cost.ThelevelwillbeannouncedinJune.
*Employerswhohavenotcontributedtothelevy,orwhohaveusedallthefundingintheiraccounts
£6,000willbedeductedfromyourlevyaccountoverthelifeoftheappren2ceship.
Youwillberesponsibleforpaying£1,500.Thispaymentcan’tbemadefromyourdigitalaccount
Levypayers Non-levypayers*
Youwillberequiredtocontributeasmallpropor-onofthe£6,000cost,and
Youwillberesponsibleforpaying£1,500.
Funding limits – how they work
Knowns All apprenticeship training allocated into a cap of funding Caps likely to increase from 6 to 10 Mandatory cash employer contribution for all ages In time, all employers will move to DAS (but not 2017) Additional payments for 16-18/19-24 EHCP, English & Maths and ALS Not knowns What the funding ratio will be (unlikely to be 2:1…it could be better) Incentives likely to only be for 16-18 and 19-24 with EHCP AGE grant might remain in some form (tbc)
Funding post-April 2017
Go for it now or wait until April?
Goforitnow Waitun-lApril2017
Thereiscertaintyoffundingandincen2ves
Thereisuncertaintyaroundfundingandincen2ves…itcouldbebe[er?
Itcouldbefree(for16-18)Norealcostnego2a2on(somefor19+)
Employerwillhavetomakeacashcontribu2on
Itisthecurrentsystem–familiarandeasy
Thepriceoftrainingcanbenego2ated
Weknowwhoourlocalprovidersareandwhattheyareoffering
Theofferwillbemorecompe22ve–newproviders?Differentdeliverymodels?Employerswillbeabletoshapethetrainingandinfluencethecontentanddelivery
Negotiating – What are SME priorities?
Break
10:45–11:00
Hertfordshire Growth Hub is a partnership between:
Working together to support SMEs in Hertfordshire with their skills requirements
Hertfordshire Growth Hub is a partnership between:
Are employers you work with struggling to recruit and retain skilled staff?
Do they need to upskill their existing workforce? Do they need to scale up their workforce to support the future growth of their business? Could they be more effective at recruiting young talent?
Defining skills needs
Hertfordshire Growth Hub is a partnership between:
1. Overview of Hertfordshire Growth Hub 2. Skills Advisory Support 3. Process for referring employers to the Skills network
Skills Support in Hertfordshire
Hertfordshire Growth Hub is a partnership between:
• A small team of 4 highly experienced Business Advisers providing specialist support in Skills, Finance, Sales and Marketing and Innovation
• Support is provided to established Hertfordshire businesses that have growth potential
• Established business – one that has been trading for over 2 years
• Growth potential – New markets, job creation, new products, innovation, external environment creating new conditions where the business could expand
1. Overview of the Herts Growth Hub
Hertfordshire Growth Hub is a partnership between:
Businesswith
growthpoten2al
Skills
SalesandMarke2ng
Finance
Innova2on
Impact and Adding Value
Hertfordshire Growth Hub is a partnership between:
• Developing the infrastructure for people development – ensuring the Business Plan is integrated with the People Plan.
• Skills audits – current & future requirements; providing progression opportunities.
• Developing the management and leadership team.
• Securing your long term talent pipeline – engaging school leavers, providing work experience and internships, Apprenticeships and accessing graduates via the University.
• Sector-based advice – understanding job roles and skills gaps in specific industries – engaging with the Sector Skills Councils and trade associations.
• Funding – understanding how to access funding to support Apprenticeships, graduate internships, work-based qualifications, local, regional and national funding programmes.
2. Growth Hub Skills Advisory Work
Hertfordshire Growth Hub is a partnership between:
• Business details – employee numbers, introduction to right contact
• Details of the employer’s training needs which might include Apprenticeships, work-based qualifications, leadership and management
• If the organisation is interested in Apprenticeships:
What are the job roles of the potential Apprentices? (job description if available)
Is the apprenticeship for a new or existing post?
What is the hourly wage expectation for the apprenticeship role?
Has the organisation any experience of recruiting and supporting apprentices and if so has the organisation employed an apprentice in the past 12 months
• Any further background information which would support the training provider’s contact and discussions with the employer
3. Intermediary to Provider Referral Process
Hertfordshire Growth Hub is a partnership between:
The Hertfordshire Growth Hub helps businesses find the right support they need, from the right provider, at the right time to enable their business to grow.
Skills Adviser Support could include L&D planning to Apprenticeships
Intermediary to Provider Referral process developed to support ease of referral
Contact details – Caroline Cartwright 01707 398113, 07767 481 084, [email protected]
In summary
DevelopingtheintermediariestoolkitforHerIordshire
ExampleofaHerIordshirespecificversion
Basic powerpoint & script covering key topics An introduction to apprenticeships (levels, subjects, standards vs frameworks) Levy / Digital Apprenticeship Service Using Apprenticeship Training Agencies Funding and incentives
Pre-recorded 15 minute webinar e.g. https://www.youtube.com/watch?v=IGPh7Sj7bLQ&list=PLaWOtGcX1byGstnNZ-N8o5hgDttHYJneV
NAS literature Employer guide Apprenticeships and traineeships
CIPD – Employing young people a step by step guide http://www.cipd.co.uk/binaries/employing-young-people-sme.guide_2015.pdf
Apprenticemakers journey http://apprenticemakers.org.uk/journey/
Developing the intermediaries toolkit
How to book an apprenticeship speaker e.g. apprentice / employer / provider / expert
How to invite training providers to attend an event
How to use the Apprenticeship Ambassadors (employers)
Local case studies / articles
Levy section on gov.uk
Supporting your employers to negotiate with their providers
Calendar of events
Monthly webinar update / newsletter
Factsheets / guides
Which of the ideas listed do you like / dislike?
What else would you like / need?
What would be useful to you? When would you want it? How would you want to access it? E.g. paper based / online?
How else can we help you?