THE APPRENTICE LEVY: PRACTICAL SOLUTIONS FOR EMPLOYERS AND PROVIDERS

Transcription

1 THE APPRENTICE LEVY: PRACTICAL SOLUTIONS FOR EMPLOYERS AND PROVIDERS Christian Warden - Group Head of Technical Services 5 th June 2017

2 The Apprenticeship Levy, two months in.

3 Funding Revolution

4 The Apprenticeship Levy Overview The levy is set at 0.5% of total pay bill The levy is UK wide 15,000 allowance Therefore, employers with a pay bill over 3m will pay. Connected companies will pay Levy based on total group pay bill. 90% - 10% funding rule for sme s/non- Levy payers Proposed 100% for Payment starts 6 th April 2017

5 The funding system

6 The Skills issue is here now! 2017

7 The Skills issue is here now! Competitive Capability is essential! Are we ready to compete?

8 Articulating Demand Demand for Skills Existing underrecruitment Shortfall and demographics current technology 96,300 Current workforce Known Challenge Unknown Challenge Approx. 880, 000 Today Employers estimate: 3yrs Forecast: 5+ yrs?

9 Meeting the demand Demand for Skills Existing underrecruitment Shortfall and demographics current technology 96,300 Current workforce The New Funding World Challenge Known Challenge Unknown Challenge Approx. 880, 000 Today Employers estimate: 3yrs Forecast: 5+ yrs?

10 Developing Effective Apprenticeship Schemes People Skills Productivity Business Improvement Competitiveness Local / Global Profitability Bottom Line Measure Investment in Skills = Genuine Bottom Line Impact

11 Developing Effective Apprenticeship Schemes People Skills Productivity Business Improvement Competitiveness Local / Global Profitability Bottom Line Measure Investment in Skills = Genuine Bottom Line Impact Volume Value Level 2/3 Level 4 Level 5 Level 6 Level 7

12 MAKING THE LEVY WORK!

13 MAKING THE LEVY WORK!

14 MAKING THE LEVY WORK!

15 Apprenticeship Levy Total Workforce Solution (Levy/non-Levy) An end-to-end totality of training solution Recruitment to Retirement Identification, registration and redeployment years old traditional apprentices 19+ adult apprenticeships Upskilling, multi-skilling and re-skilling Higher/Degree Apprenticeships Trailblazer development End-point assessment

16 What are Trailblazers/Standards? New employer designed apprenticeship standards Must set out the requirements for full Occupational Competence Focused on the outcome of an apprenticeship Apprenticeships should be graded Delivered to recognise Professional Standards Level 2 English and Maths Digital account

17 SEMTA GROUP SOLUTION Recruitment to Retirement Our information, advice and guidance is completely free of charge. Find out how an Apprentice can help transform your business. Free Initial Consultation (information advice and guidance) New funding guidelines Initial Skills Action Plan, How the Semta group support your business Identify any requirements that you have One Stop Skills Shop Provide a comprehensive 'Matching' and management service. Immediate Apprenticeship recruitment Trailblazer/Standards/Assessment Plans End-point assessment Apprenticeship Levy managed service Apprenticeship Levy consultancy

18 Questions?

19 Alex Barker ARAeS Aerospace and DefenceGroup Motor Holdings Airport Properties Cambidge Airport Turnover: 300m Employees: 1800 Turnover: 750m Employees: 2000 Turnover: 5m Employees: 70 Marshall Aerospace and Defence Group marshalladg.com

20 Started an apprenticeship five years ago Joined Marshall ADG as an advanced apprentice Background Support Solutions Developed through a three year program to graduate as a design engineer

21 Marshall ADG A Long History of Engineering s Today 1912 WWII Today Marshall Aerospace and Defence Group marshalladg.com

22 Marshall ADG A Long History ofapprenticeships Aerospace and DefenceGroup Turnover: 300m Employees: 1800 Motor Holdings Turnover: 750m Employees: 2000 Airport Properties Presentation Title Marshall Aerospace and Defence Group marshalladg.com

23 Craft Apprenticeship Aircraft maintenance L3 NVQ BTEC Post apprenticeship licenses Apprenticeships at Support Marshall ADG Solutions Advanced Apprenticeship L3 NVQ BTEC HNC/HND Post apprenticeship degree and management training

24 BTEC in Aeronautical Engineering Relatable theoretical knowledge Educational Support Training Solutions HNC/HND Further education to suit role and career aspirations Professional Accreditation EngTech, IEng, CEng Aircraft manintenance licenses

25 NVQ in Aircraft Maintenance L2 NVQ in manufacture L3 NVQ in maintenance Practical hands-on industry standard qualification Vocational Support Training Solutions NVQ Management Qualifications Team leading Development and mentoring skills

26 PEOPLE

27 Benefits Of An Apprenticeship Scheme Unique training Integrated into company strategy Aerospace and DefenceGroup Turnover: 300m Employees: 1800 Airport Properties Feel valued Help create a diverse workforce Marshall Aerospace and Defence Group marshalladg.com

28 Personal Experience Of An Apprenticeship Scheme Experience encourages continued employment and education Aerospace and DefenceGroup Turnover: 300m Employees: 1800 Airport Properties Successful mentoring scheme Working with graduates to challenge and improve A viable alternative to university Marshall Aerospace and Defence Group marshalladg.com

29 1 st Years of Apprenticeship Aircraft maintenance AOG and support work Final Years of Apprenticeship Aircraft design Personal Support Experience Solutions Mentored younger apprentices Additional qualifications SEMTA/World Skills Post Apprenticeship Further training and development Liaison role for RNoAF

30 Thank you

31 Apprenticeships An Further Education Insight Kam Dehal Director of Business Development Richard Brooks Business Development Manager

32 Overview ESC an outline Apprenticeship Reforms key changes Engaging employers Apprenticeships understanding the new Standards Summary

33 ESC Summary Based in Redhill (30 mile radius) Rated Good with Outstanding Ofsted SFA FE Choices Outstanding - 97% satisfaction Work with over 300 employers 95% repeat business Growth of Levy employers by 30% Growth of apprenticeships by 50% Listed on RoATP employerservices@esc.ac.uk

34 Course Offer Applied sciences Art, Design & Media Reigate School of Art Aviation, Air Cabin Crew, Travel & Toursim Business, Accounting, IT & Games Design Childcare/Early Years Construction and Engineering Hairdressing, Beauty, Media Make-Up and Spa Motor Vehicle & Repair Motor Sports Public Services & Sport

35 Course Profile Student Numbers by Level Entry L1 L2 L3 L4 HE Apprenticeship

36 ESC challenge How do we support new and existing customers with the biggest reform ever to apprenticeships?

37 Key questions 1. Who is a Levy customer in our community 2. What can the college offer? 3. What are the key messages that need to be shared with our employers? employerservices@esc.ac.uk

38 1. Funding bands Number Band limit 1 1, , , , , , , , , ,000 Every apprenticeship will be placed in a funding band The upper limit of each funding band will cap the maximum: Employers can negotiate the best price for the training they require Employers are free to spend more than the funding limit 11 15, , , , ,000

39 2. Funding rules Prior qualifications - now and in the future Train any individual to undertake an apprenticeship at a higher level than a qualification they already hold An individual can be funded to undertake an apprenticeship at the same or lower level to acquire substantive new skills

40 3. Additional support for Apprentices Funding for year olds Government proposes to pay 1,000 to employers, and a further 1,000 to training providers if they train a year old apprentice. Disadvantaged young people Government proposes to pay 1,000 to employers, and a further 1,000 to training providers if they train year olds leaving care or who have a Local Authority Education and Healthcare plan. Funding for additional learning support Where an apprentice requires additional learning support as a result of conditions such as dyslexia, learning difficulties or disabilities up to 150 a month Funding for English and Maths training The government is committed to helping apprentices gain the minimum standard of Level 2 in English and maths.

41 4. What can funds be used for? Digital funds and government funding can be used for: apprenticeship training and assessment against an approved framework or standard with an approved training provider and assessment organisation up to the funding band maximum for that apprenticeship Digital funds and government funding can not be used for apprentice wages travel and subsistence costs managerial costs traineeships work placement programmes the costs of setting up an apprenticeship programme recruitment costs

42 5. Co-Investment Government support towards the cost of their Apprenticeships training: A levy-paying employer with insufficient funds in their digital account to pay for the cost of training and assessment they want to purchase Government 90% Employer 10% The government pays 90% of the costs of training and assessment The employer will be responsible for paying 10% of the costs

43 How do we communicate? 1. We set up Breakfast Levy events with Reigate & Banstead County Council 2. We addressed employer questions and concerns 3. We set up further Breakfast events 4. We met HR teams and line managers 5. We set us sector specific employer forums 6. We are working with employers in supporting a strategy that combines sector needs and training overall employerservices@esc.ac.uk

44 What is an Apprenticeship Standard, and how does it differ from frameworks?

45 Frameworks Competency Qualification { Or Combined Knowledge Qualification Qualification Transferable Skills Maths English ICT Personal Learning and Thinking Skills Employment Rights and Responsibilities employerservices@esc.ac.uk

46 Standards Occupation Entry Requirements (only if needed) Requirements: Knowledge, Skills and Behaviours (KSBs) Duration Qualifications if required (inc. English and Maths) Link to Professional Registrations Level

47 Assessment Plan for Standard Summary of Assessment Assessment Overview (sets out key assessment information) On Programme Assessment (if applicable) Assessment Gateway End-Point Assessment End Point Final Judgement

48 End Point Assessment They should be Synoptic Include a Range of Assessment Methods Be Graded Deliver a constant (reliable) judgement Deliver an accurate (Valid) Judgement Be independent employerservices@esc.ac.uk

49 Differences Not all Assessment plans will have the same criteria in the same way that frameworks did eg. NVQ s Yes or No? Qualification required Yes or No? Other specific requirements? employerservices@esc.ac.uk

50 Off the Job Training Off the job training is defined as learning which is undertaken outside the normal day-to-day working environment and leads towards the achievement of an apprenticeship. This can include training that is delivered at the apprentice s normal place of work but must not be delivered as part of their normal working duties. employerservices@esc.ac.uk

51 Includes The teaching of theory (for example, lectures, role playing, simulation exercises, online learning, manufacturer training) Practical training; shadowing; mentoring; industry visits and attendance at competitions Learning support and time spent writing assessments/assignments

52 Does NOT include English and Maths (Up to Level 2) which is funded separately Progress reviews or on programme assessment required for an apprenticeship framework or standard Training which takes place outside the apprentice s paid working hours employerservices@esc.ac.uk

53 Getting started Search the Apprenticeship Portal to find an apprenticeship Enter your postcode You should then be provided with training providers offering that apprenticeship Alternatively contact your local/preferred training partner and discuss with them

54 Summary and next steps Review your People Skills Strategy Use the tools -The Apprenticeship Portal Partner - with your local Training Provider Make joint decisions and plan for short, medium and long term skills needs employerservices@esc.ac.uk

55 Do contact us Kam Dehal Director of Business Development Richard Brooks Business Development Manager

56 Useful Links Apprenticeship Latest Documents Apprenticeship Standards -standards Find Apprenticeship Training

57 Presentation by John Lanham Assistant Vice Chancellor Degree UWE Experiences and views from an HEI June 2017

58 Overview UWE-Bristol National developments/opportunities UWE 2020 Strategy and why Degree Apprenticeships HEFCE DADF call June 2016 West of England Degree Apprenticeship Project WEDAP Experiences Why would SME s engage? Questions

59 UWE-Bristol Income m Some numbers 27,000 students 3,600 staff 600 programmes 23 research centres Expenditure m 250 m Campus investment Employed using degree 78% League tables Times/Guardian 60/68 (+17 places ) 1.3% of GVA for region m

60 UWE 2020 Strategy 1. Outstanding learning All our students experiencing engaging and outstanding learning, teaching and support services throughout their journey with us; making full use of advances in technology to support their academic, professional and social growth and development. 2. Ready and able graduates Our graduates ready and able to realise their full potential; well equipped to make a positive contribution to society and their chosen field of work or further study; and primed to play their part in developing a sustainable global society and knowledge economy. 3. Research with impact World-class performance in selected areas of research that meets the needs of a sustainable economy and society, and feeds the scholarship and enquiry underpinning our learning and teaching. 4. Strategic partnerships, connections and networks Strategic links that differentiate our academic activity and enhance the global reputation, health, sustainability and prosperity of the University, Bristol and our wider region.

61 Strategy 2020 holistic approach Learning 2020 Programmes Pedagogy Learning platforms Professional Practice Campus 2020 Learning spaces Infrastructure /7 People 2020 Staff academic/professional services

62 Apprenticeships national agenda Established model earn & learn Vocational / skill based / practitioner Limited engagement Engineering / Construction sectors Variable quality / variable learner experience National / Government agenda Skills shortages many sectors / many levels Productivity challenge falling behind competitor nations Demographic challenges ageing and diversity Widening access / engagement Major national policy changes Employer levy 0.5% for employers with > 3,000,000 wage bill 90% co-funding for SME non-levy payers Extended range of academic levels Pre-degree, Foundation Degree, Bachelors Degree + Masters 3,000,000 starts by end of current administration

63 Why would UWE engage? Builds on existing / past activities FDSc apprenticeships FET, HAS with FE college partners Higher Apprenticeship Project 2012 with City of Bristol College Long track record of employer centred / based education and CPD Environment Agency FDSc / MSc River & Coastal Engineering NHS Nursing / Midwife / Paramedic programmes ILM Programmes

64 HEFCE DADF June 2016 Launched June ,000,000 to support development / launch of pilot Degree Apprenticeship. Bid criteria Level 6/7 only currently approved standards only To start September 2017 Any HEI could lead one, be a partner on others ~ 4 week bid window ~ 70 applications 12 projects funded

65 WEDAP Project Partners Led by UWE in partnership with Bridgwater & Taunton College, City of Bristol College, Gloucester College & Weston College Level UWE Level college partners Combination of new programmes / adaptations of existing programmes Programme UWE - Level MSc Digital Electronic Systems Engineering 7 Chartered Manager Degree Apprenticeship 6 College Partners IT Solutions Professional - Weston 6 Quantity Surveying Bridgwater & Taunton 6 Electronics & Computer Engineering 6 Aerospace Engineering City of Bristol 6

66 Reflections & Observations - I Dynamic nature of the landscape! national picture SFA / BIS ( now BEIS ) / DFE / IFA volume and number of changes policy and small details / systems ESFA / HEFCE culture differences / expectations Employer led??? Learning from college partners ESFA etc supporting their development in return UWE new business / existing business? UWE - Assigned fee bands and TEF based degree fees?

67 Reflections & Observations - II RoATP uncertainty created through new register process Employer / applicant uncertainty / lack of clarity UWE learning new set of ESFA/IFA protocols/rules/agreements Timescales for whole project multiple unknowns employers, applicants, EPA,. What is a DA how is it different / similar to existing provision? Level 6/7 DA different skill set / expectations impact of EPA rather than portfolio of competencies as with frameworks Impact / benefit to core UGrad programmes

68

69 Why would / should SMEs engage? Help shape the landscape o o o Standards development Forms of delivery / study Intelligent/Innovative use of the 20% OTJ Upskill existing staff new markets / new challenges do you face Link with a local FE/HE network o Apprenticeships / Degree Apprenticeships are just a part of the support available. Link / Work through trade/sector groups larger/louder voice! Access to different talent pool VFM 10% contribution to fees

70 Degree Apprenticeships for SMEs

71 Questions?

72 Cross-Sector Response to the Levy Subtitle goes here Jun 2017

73 Where is the Market Moving? There are varying levels of maturity across sectors and organisations in how they are responding to the apprenticeship levy. Those organisations that see the levy as an opportunity to build the workforce of the future are focusing on developing their strategic plans, ensuring they have the correct investment to create the operational infrastructure and processes to implement their programme.. Transport HIGH OPERATIONAL MATURITY Global Bank Desired position is a fully functional op model and coherent strategy in place that is scalable across the organisation Retail Bank Global Investment Bank Communications Insurance Once a strategy has been decided, the operations can then be implemented according to this strategy. Private Health Insurance LOW STRATEGIC MATURITY Police Force HIGH STRATEGIC MATURITY Global Investment Bank Multinational Security Transport Environmental Challenger Bank Multinational Insurance Multinational Insurance Retail University LOW OPERATIONAL MATURITY 2016 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. 2 Document Classification: KPMG Confidential

74 What challenges are we consistently seeing? Continual struggle for companies to understand the how to manage and performance manage this requirement. Short sighted approach to identifying how apprenticeships can tackle the skills deficits of the future as well as today Creating meaningful career pathways for mid management and above using apprenticeships has proved difficult. Each provider has a different approach to learning and will use different delivery methods and platforms that may have a considerably different look and feel to in-house training There are a number of things to consider when setting up an op model for apprenticeships from recruitment to marketing, supplier management and increased administrative requirements. A consistent theme we are seeing is to simply spend the levy. All of the above require extra resourcing that may be a new requirement. Organisations are struggling to write the business case and case for investment KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. 3 Document Classification: KPMG Confidential

75 The benefits - KPMG 360 apprenticeships Adding value 3 or 6 year programme, which means we are providing loyalty to our clients 70% 100% utilisation rates and there is a dedicated resource manager who ensures that apprentices move inline with the business needs of the apprentices are involved with client facing, chargeable work Due to the Flexibility of the programme KPMG are able to resource apprentices to cover maternity and temporary roles, which results in significant cost savings The KPMG360 programme is a Rotational model which means apprentices can be flexibly resourced in line with business demand. This is across Audit, Tax and Advisory Attracting diverse talent into the firm 2016 recruits 47% female 23% entitled to free school meals 86% state school 75% of parent s did not attend university 2016 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. 4 Document Classification: KPMG Confidential

76 Aerospace Trailblazer Group: Where are we? A view from an industry apprentice provider Mark Donnelly, BAE Systems plc 5 th June Copyright 2015 BAE Systems. All Rights Reserved. BAE SYSTEMS is a trade mark of BAE Systems plc. (See final slide for restrictions on use.)

77 2 Agenda Focus Agenda Where are we? Back in 2013/2014 Now in ) Our Group One Aerospace Trailblazer group (later combined with Airworthiness) Wider Cross Sector group established across Automotive, Aerospace, Airworthiness, Maritime Defence and the wider advanced manufacturing engineering sector. 2) The Apprenticeship Standard Aerospace group developed its first new Apprenticeship Standard, published as Aerospace Manufacturing Fitter Now over 20 Standards have been developed and the development of a Battersea Model (a super standard embracing a number of occupational pathways at the same level) Families of Apprenticeships (Battersea model) 3) Our Principles Established Common Principles on grading, UK-SPEC alignment, qualifications inclusion, partial independence at End Point Assessment, Awarding Organisations working collaboratively together Maintained Common Principles and fostered wider sectoral commitment to these 4) The Funding Average 9000 of funding per apprentice e.g. across a 42 month programme 27,000 of funding available per Apprentice e.g. across a 42 month programme 2 Copyright 2015 BAE Systems. All Rights Reserved. BAE SYSTEMS is a trade mark of BAE Systems plc. (See final slide for restrictions on use.)

78 1) Our Group - Aerospace Trailblazer 3 Large Employers GTA England Professional Engineering Institutions Small and Medium Sized Employers Semta NFEC Awarding Organisations PLUS HEIs & Training Providers & The forming of the Cross Sector Group: Automotive, Aerospace, Airworthiness, Maritime Defence & the Advanced Manufacturing Engineering Sector 3 Copyright 2015 BAE Systems. All Rights Reserved. BAE SYSTEMS is a trade mark of BAE Systems plc. (See final slide for restrictions on use.)

79 2) The Apprenticeship Standard 4 Example: Engineering Technician Standard (Level 3 Advanced Apprenticeship) Foundation Competence Qualification Battersea Model The On programme training and assessment has: Core Foundation of Knowledge, Skills & Behaviours all at the same level (described on 2-3 pages) + Specific Development of Knowledge & Skills relating to a defined occupational pathway (multiple pages) 4 Copyright 2015 BAE Systems. All Rights Reserved. BAE SYSTEMS is a trade mark of BAE Systems plc. (See final slide for restrictions on use.)

80 2) The Apprenticeship Standard and the End Point Assessment 5 The End Point Assessment has two key elements: Viva Occupational Interview Employer tests apprentice s occupational competence and this is quality assured by the End Point Assessment organisation PEI undertakes a Professional Competence Assessment, aligned to Engineering Council s UK-SPEC competencies and for professional recognition (EngTech) 5 Copyright 2015 BAE Systems. All Rights Reserved. BAE SYSTEMS is a trade mark of BAE Systems plc. (See final slide for restrictions on use.)

81 3) Our Common Principles 6 Strong collaboration across AME Sector Built around the needs of the all including the SME community Desire to have as few Standards as possible to support consistency and communication/ marketing to aspiring apprentices/their parents, SMEs and providers Commitment to qualifications Ambition to support transferability of skills Strong commitment to progression Partial Independence at End Point Assessment occupational and professional competence Underpinned by an understanding of the occupational, professional and regulatory requirements of the Sector at each level occupational architecture created Alignment with Engineering Council UKSPEC long standing professional definition of competence Aligned to and supporting Industrial Strategy 6 Copyright 2015 BAE Systems. All Rights Reserved. BAE SYSTEMS is a trade mark of BAE Systems plc. (See final slide for restrictions on use.)

82 4) The Funding Engineering Technician at Level 3 = 27,000 per apprentice 7 The Engineering Technician includes for the Aerospace and Airworthiness sector: - Aerospace Manufacturing fitter - Machinist - Technical Support Technician - Aerospace Manufacturing Mechanical and Electrical Systems Fitter - Aircraft Maintenance Fitter/Technician - Airworthiness Quality, Planning and Safety Technician Aircraft Certifying Engineer at Level 4 = 24,000 per apprentice Aerospace Engineer Degree Apprenticeship at Level 6 = 27,000 per apprentice Post Graduate Engineer Master s Level (Level 7) = 27,000 per apprentice Under the Levy apprenticeship is procured by employers, a price is agreed with a training provider and then is paid on profiled monthly payments with 20% held back for completion 7 Copyright 2015 BAE Systems. All Rights Reserved. BAE SYSTEMS is a trade mark of BAE Systems plc. (See final slide for restrictions on use.)

83 CEng Behaviours Knowledge & Skills Example delivery model of a Level 7 Post Graduate Engineering Apprenticeship Year 1 Foundation Phase Year 2 Development Phase Placement 1 Placement 2 Placement 3 Placement 4 END POINT ASSESSMENT Technical Knowledge (E.g. Core Engineering principles, SHE) Technical Knowledge / skills Technical knowledge / skills Technical knowledge / skills Business Acumen E.g. PM skills Business Unit Induction E.g. Code of Conduct Business Acumen E.g. Process improvement Business Acumen E.g. Managing people Delivered and assessed by Company Internal Subject HE Partners Outward Bound Delivered by and assessed by Company SME s & Assessment Gateway 1 Business Acumen E.g. Leading Change Stretch Opportunities Business Acumen E.g. Innovation & Entrepreneurship Matter Experts, other training partners & (PG Dip) Business Acumen E.g. Corporate Strategy PG Dip Project PG Dip Project PG Dip Project PG Dip project PG Dip Project PG Dip Project Other educational / charitable activity other training partners, and HE partners (PG Dip) Assessment Gateway 2 Viva Interview (Occupational Competence Assessment) conducted by Us as an Employer Professional Competence Assessment conducted by Academic partner (PEI) Development of CEng competencies related to Level 7 Engineering Standard Requirements: 1. Evidence requirements for Knowledge & Understanding (Met in full/progress towards); 2. Evidence requirements for Professional Competence (Met in full/progress towards). PG Dip PG Dip draws from and assesses evidence from the all the above Achievement of PG Dip in Engineering Competence