Apprenticeship Reforms

Size: px
Start display at page:

Download "Apprenticeship Reforms"

Transcription

1 Apprenticeship Reforms Noel Dunne Director

2 Fundamentals of reforms Employer ownership Raising status of apprenticeships Competitiveness Professional, rigorous Higher levels to degree equivalent Apprenticeships given equal legal protection to degrees

3 Impact Replacement of Frameworks to Standards developed via Trailblazers 3m apprenticeship target Public sector target 2.3% Focus on higher level apps 3-7 Employer ownership Apprenticeship Levy Co-investment Institute of Apprenticeships

4 Apprenticeship Trailblazers Developed by employers Create 2 page standards No mandatory NVQ/Qualification unless require Focus on occupational competence Partnerships employer/ provider/ learner Min 20% off the job training Independent end point assessment Intention to replace all frameworks by 2020

5 Trailblazer Delivery Training Provider / FE College: Deliver Training and Assessment Training Provider / FE College / Employer Deliver Training Independent End Point Assessment

6 Higher Apprenticeships Level 4 Foundation degree and above Alternative to current academic route Employer led similar to trailblazers Degree plus apprenticeship Aligned with professional membership

7 Funding reforms Funding bands Apprenticeship Levy Co-investment Digital Apprenticeship Service Apprentices registered before 30 th April 2017 will be funded under the existing arrangements

8 Funding Bands 15 funding bands 1.5k - 27k 20% held back for completion/endpoint assessment Harmonisation of standards and frameworks into single costing structure Incentives: 1k per apprentice for 16-18s (payable at 3 and 12 months) Employer agrees package with training provider Training contract

9 Apprenticeship Levy 0.5% > 3m payroll costs One payment per org Every 1 paid into your levy pot = value k incentive for apprenticeships Over levy co-investment 90%:10% Levy valid for 24 months During 2018 ability to transfer up to 10% to another employer or to an ATA Can be used to reskill, upskill, accredit new skills

10 Calculating your levy payment / Employer of 1,000 employees, each with a gross salary of 20,000 Pay bill: 1,000 x 20,000 = 20,000,000 Levy sum: 0.5% x 20,000,000 = 100,000 Allowance: 100,000-15,000 = 85,000 annual levy payment Levy Pot = 93,500 Inc. 10 % top up Employer of 100 employees, each with a gross salary of 20,000. Pay bill: 100 x 20,000 = 2,000,000 Levy sum: 0.5% x 2,000,000 = 10,000 Allowance: 10,000-15,000 = 0 annual levy payment *Deducted monthly by HMRC from April 17

11 Non Levy Payers Small employers <50 Employees s or up to 24 with EHCP (Education and Health Care Plan) Free Others 90%:10% co-investment Same incentives for 16-18: 1k per learner

12 Funding bands How they work Example funding band limit = 6,000 Price you negotiate with your training provider = 5,000 The cost is within the funding band limit 1k incentive Example funding band limit = 6,000 Price you negotiate with your training provider = 7,500 The cost is above the funding band limit 1k incentive Levy payers Non-levy payers* Levy payers Non-levy payers* 5,000 will be deducted from your levy account over the life of the apprenticeship. <50 employees no payment You will be required to contribute 500 of the 5k cost over course of apprenticeship. 6,000 will be deducted from your levy account over the life of the apprenticeship. You will be responsible for paying 1,500 not from digital account <50 Employees no payment up to 6k You will be required to pay 600 of the 6k cost, and you will be responsible for paying 1,500.

13 Digital Apprenticeship Service Provider portal selection of training provider and end point assessment org Virtual account- initially levy payers only Monitors spend against provision Monthly payment to Provider Visible to Employer/Provider/DfE

14 Institute for Apprenticeships An independent employer-led body that will regulate the quality of apprenticeships, set up by April 2017 (shadow form from 2016) An independent Chair will lead a small Board comprised primarily of employers, business leaders and their representatives. Role: Approve/reject Expressions of Interest, standards and assessment plans Provide advice and guidance during their development Maintain a public database of apprenticeship standards and publish information illustrating potential gaps Advise on the maximum rate of Government funding that should be assigned to each standard

15 Next Steps December 2016 HMRC release guidance, how to calculate and pay the levy SFA Publish confirmed funding rules Full set of confirmed funding guidelines published January of 2016 Registration for DAS account opens March 2016 May 2017 July 2017 National Apprenticeship Week Digital Apprenticeship Service operational New funding model live Institute for Apprenticeships in place First Levy fund deposited and available for spend AGE Grant scheme current end date 31 st July 2017

16 Issues to consider What are your organisation s priority skills requirements? Are there programmes suitable to meet your needs is there a trailblazer/standard programme for your sectors? How can you use apprenticeships to reskill existing staff? Prior qualifications, will be able to deliver same or lower level qualifications to acquire substantive new skills Who has the skills to mentor and develop young apprentices? How will you work with your training provider to deliver your needs?

17 Creative Alliance Social Enterprise UK award winners 2015 for education, training and jobs Apprentices4England training provider of the year award winners 2014/15/16 Highly commended Birmingham Post Business Awards % of apprentices went into employment and 15% went on to higher education The minimum amount we grew creative businesses in this region over the last year is 1,125,000 We enable talented young people to get into creative, digital and marketing roles.

18 Job Roles Account Executive Copywriter Digital Marketer Front of House Assistant Lighting Technician Production Assistant Sound Technician UX Designer Video Editor Web Developer = some of the roles 80% of our apprentices secure as a full time job.

19 How we can support you Maximise use of levy o Skills assessments o Advice and support o Recruitment o Strategic planning Creative Industry insight o Specialists o Apprenticeships are tailored to your business needs o Full support from industry professionals within the region o As much as possible delivered on site o 80% complete, 80% of those are employed, 10% o go onto degree o Fraction of the cost of recruiting

20 How we re working with the RSC Apprentice delivery: o Front of House o Technical Theatre Customer Service Training: o Welcome Host Planning and using levy: o New starts & existing staff

21 Recruiting Apprentices Job description templates Free recruitment service Mandatory induction to help transition into WBL Try before you buy option Flexible approach to suit companies Each apprentice has a designated training mentor/assessor Each company has regular liaison with us We provide HR and H&S support

22 Develop your workforce Support organisations in improving productivity of existing staff Adult Apprenticeships and Up-Skilling your existing workforce We identify skills gaps and devise training programmes Use your Levy funds to access nationally recognised accredited training for your staff Delivery of NVQ s and short courses through qualified and accredited staff Commercial training

23 Questions With thanks to RSC, BRB, PM Training