UNDERSTANDING APPRENTICESHIP REFORMS INTRODUCTION

Transcription

1 UNDERSTANDING APPRENTICESHIP REFORMS INTRODUCTION The Review of Apprenticeships in England was commissioned in June 2012 by the Secretaries of State for Education and Business, Innovation and Skills (BIS). The purpose of the review was to ensure that apprenticeships deliver the training, qualifications and skills that employers and learners need. The report highlighted a significant number of employers complaining that the existing frameworks are not fit for industry needs. By addressing this, the subsequent implementation plan acts as a strategy for redefining the shape of the apprenticeship system to meet the needs of the changing economy. It is planned to:- 1 Give employers control in designing apprenticeships 2 Increase the flexibility of delivery 3 Simplify the funding system 4 Increase the effectiveness of training Trailblazer apprenticeships are the end result. (The term Trailblazer refers to a group of employers working together to design new Apprenticeship Standards for occupations within their relevant sectors. The group must consist of at least ten employers, which must include at least one Small or Medium-sized Enterprise (SME) representative.)

2 WHAT HAS OR HASN T CHANGED? Current System Grant incentive for employer (age based) Employers choose the training provider Training provider recruits apprentice. Or employer provides recruit Qualification based framework All trainers provide the same programmes Maths and English integral Training provider receives fixed funding from Gov t Defined unit based programme content No mandatory on/off job content Ongoing assessment based upon requirements of framework units Fixed assessment type Assessment completed by trainer/ training provider and verified internally. (Awarding body verifies a Sample) New System Fixed incentive for employer (age based) Employers choose the training provider Training provider recruits apprentice. Or employer provides recruit Occupation based standards (may or may not have qualifications) Each provider can offer different programmes Maths and English integral Funding is based on a specific price agreed with the employer i.e. employer control/contract, but also introduces the concept of co-funding. Programme content based on an assessment plan that defines the content, which is then agreed with the employer Mandatory 20% off-job content Sign off for end assessment by the employer and trainer, followed by considerable external independent assessment Types of end assessment required will vary between standards Employer selects end point assessor as part of contract

3 MOVING FROM FRAMEWORKS TO STANDARDS Current Frameworks New Standards Initial assessment Initial assessment On-the-job and off-the-job training Mandatory Qualification(s) NVQ and Technical Certificate or combined qualification Maths and English Personal Learning and Thinking Skills Employment Rights and Responsibilities On-programme phase: On-the-job and off-the-job training Qualifications are not mandatory Trailblazer groups can choose to build qualifications into Standards, either mandatory (in the Standard) or recommended (in the Assessment Plan). If qualifications are not written into a Standard, providers can still build them into their apprenticeship programme. Maths and English Formative assessment of behaviours Completion and certification Gateweay (Preparing to finish) End-point assessment Occupational competence Completion and certification Occupational competence

4 FUNDING OF APPRENTICESHIPS Funding From 1st May 2017: Employers will be split into 2 groups:- Levy paying payroll over 3 million. Levy is taken via PAYE monthly and is placed in your account to be accessed via the Digital Apprenticeship Scheme (DAS). Levy payment is calculated based upon 0.5% of payroll - 15k allowance + a 10% top up from the Government. Levy payers will contribute all of the agreed apprenticeship cost from their levy pot (See funding flow diagram). Each Apprenticeship type will have a funding cap based around monetary bands. The actual rate of funding is however based on the price negotiated/agreed by the training provider with the employer. Levy-Payer: Employer with a pay bill of 50million Levy sum (0.5% of pay bill) 0.5% of 50,000,000 = 250,000 Allowance (15,000) 250,000-15,000 = 235,000 Annual Levy Payment 235,000 annual levy payment +10% Government top-up* 10% of 235,000 = 23,500 Total to spend on apprenticeships Non levy paying payroll under 3m 258,500 to spend on apprenticeship delivery and assessment Each Apprenticeship type will have a funding cap based around monetary bands. The actual rate of funding is however based on the price negotiated/agreed by the training provider with the employer. Non levy payers will contribute between 0%-10% of the agreed price based on certain additional criteria (See funding flow diagrams for businesses with 50+ employees or for businesses with less than 50 employees). Non-Levy Payer: Employer with a pay bill of 2million Levy sum (0.5% of pay bill) 0.5% of 2,000,000 = 10,000 Allowance (15,000) 10,000-15,000 = -5,000 Annual Levy Payment 0 because total levy sum equals less than the 15,000 allowance +10% Government top-up* N/A Total to spend on apprenticeships Non-Levy Payer. Funds will be through co-investment model

5 LEVY PAYER FUNDING APPRENTICESHIP PRICE AGREED BY EMPLOYER & TRAINING PROVIDER EMPLOYER PAYS ALL OF AGREED PRICE TO TRAINING PROVIDER FROM LEVY ACCOUNT (DAS) *SUBJECT TO FUNDS BEING AVAILABLE IN THE DAS. CO-FUNDING CAN COVER SHORTFALLS* TRAINING PROVIDER

6 NON LEVY PAYER FUNDING 50+ EMPLOYEES APPRENTICESHIP PRICE AGREED BY EMPLOYER & TRAINING PROVIDER EMPLOYER USUALLY PAYS 10% OF AGREED PRICE TO TRAINING PROVIDER DIRECTLY.* TRAINING PROVIDER GOVERNMENT PAYS 90% OF AGREED PRICE TO TRAINING PROVIDER (SUBJECT TO FUNDING CAP AMOUNT)

7 NON LEVY PAYER FUNDING UNDER 50 EMPLOYEES APPRENTICESHIP PRICE AGREED BY EMPLOYER & TRAINING PROVIDER EMPLOYER APPRENTICE PAY 0% OF AGREED PRICE TO TRAINING PROVIDER DIRECTLY.* APPRENTICE PAY 10% TRAINING PROVIDER GOVERNMENT YEAR OLD - PAYS 100% OF AGREED PRICE TO TRAINING PROVIDER (SUBJECT TO FUNDING CAP AMOUNT) 19+ YEAR OLD 90% PAID. *ADDITIONAL CATEGORIES OF APPRENTICE MAY ATTRACT 100% FUNDING.

8 WHAT INCENTIVES ARE THERE FOR EMPLOYERS? Those of you who are familiar with the existing Apprenticeship system will probably be familiar with the AGE Grant, which was the main incentive payment made by the Skills Funding Agency to qualifying employers. It was aimed at assisting businesses who might struggle with the financial implications of taking on apprentices between those ages. The current system of incentives will cease with effect from the end of July 2017 and be replaced by other payments which are aimed at supporting specific parts of the work force. The Government is therefore specifically going to target year olds who no longer wish to remain in full-time education but wish to continue their personal development whilst in the work place i.e. earning whilst learning. APPRENTICES YEARS OLD EMPLOYER RECEIVES INCENTIVE PAYMENT IN EQUAL INSTALMENTS AFTER 3 AND 12 MONTHS OF APPRENTICESHIP START DATE TRAINING PROVIDER RECEIVES INCENTIVE FROM GOVERNMENT AND PASSES ON TO EMPLOYER GOVERNMENT PAYS INCENTIVE FUNDS DIRECT TO TRAINING PROVIDER Eventually, the Government intends to make payments direct to employers.

9 POSSIBLE ADDITIONAL PAYMENTS Whilst the focus is upon year old apprentices, additional incentives will be paid to employers taking on young people in the following circumstances: Year Old Apprentices It is recognised that certain categories of young people may need extra support when entering the workforce and the Government will support employers accordingly. Apprentices within this age bracket and who have previously been in care or who have a Local Authority Education, Health and Care plan (EHCP) will also attract 1000 support for their employer. Payment will be made in exactly the same fashion as for the age groups. Learning support Additional payments may be made to Training Providers in order to provide additional support to apprentices who have learning or other disability. The Government will make these payments direct to them and will have no impact upon what you may need to be paying. Maths and English There is an expectation that every apprentice will be supported to reach at least Level 1 and if possible Level 2 in each subject. Employers will be expected to give time and support for individuals to achieve this. Employers will not be expected to contribute towards the cost of delivering this training. The Government will provide a fixed level of support to Training Providers where this is required. Any English and Maths training required by the employer over and above this requirement will have to be agreed and paid for by the employer.

10 WHAT NEXT? The college will be providing further updates as the new Apprenticeship system is rolled out and development work continues. The college will be undertaking various additional activities in order to ensure that our business connections are kept up to speed with the changes. This may involve you being invited to relevant Apprenticeship events, being visited by an appropriate Manager, or indeed by one to one chats with a Training Officer. You can check the amount your business may need to pay to towards the Apprenticeship levy using the calculator below:- You can also read the full Government document regarding the levy:- apprenticeship-levy-how-it-will-work Should you have any specific questions to ask, please contact us using the details shown at the foot of this page.