Electrical Distributors Association Presentation to EDA Business Forum 10 th September John Henry EDA Apprenticeships Plus

Transcription

1 EDA Business Forum Education and Training September 2015 Electrical Distributors Association Presentation to EDA Business Forum 10 th September 2015 John Henry EDA Apprenticeships Plus

2 What is an Apprenticeship? An Apprenticeship is a nationally recognised qualification all employees will be proud to achieve and as an employer you will have a benchmark of knowledge and skills in your team. The framework consists of: a National Vocational Qualification (NVQ) at either level 2 or level 3, Functional Skills in literacy and numeracy, and ICT, together with a Technical Certificate. Over 1,000 requests for Apprentices from EDA Members. 100 s have already completed their qualification and are now employed. Nearly 300 Apprentices are currently on the program (2015).

3 What does EDA Apprenticeships Plus Provide? Employment whilst in training; No head count for the units per branch performance; No redundancy or dismissal implications for you if the role or employee does not ultimately suit the position; All contract and supporting paperwork for the Apprentice and the Branch; Throughout the period of training a series performance reviews and data to the employer. HR support and employment advice on all HR issues to each branch manager. Negotiated selection of Training Providers to ensure the right service to each individual member anywhere in the UK; Service to EDA members only by recruiting and employing Apprentices only for EDA members.

4 EDA Scheme - How can it benefit my business? UK GDP is 17% lower per person than the G7 average and 30% lower than the US and Germany due to under investment in skills. For the economy - skills investment is responsible for a 20% growth in productivity. 1.4 Billion is budgeted for apprenticeships for each of the next 5 years. For an employer - Skills investment is recouped within 1 or 2 years, whomever pays! The 2015/16 Apprenticeships budgets have already committed 1,230,000 to EDA members. For an individual - a Level 3 apprenticeship leads to a 16% and a Level 2 apprenticeship an 11% improvement to an individual s earnings in 3 5 years.

5 The importance of apprenticeships is recognised but are they fit for purpose in your business? Let employers design apprenticeships that directly benefit their business. Currently 1200 employers are involved in the development of 280 new improved apprenticeship frameworks. Improve the status of an Apprenticeship as a qualification. Give the term equal standing to a degree. From April 2016 abolish employer National Insurance contributions for apprentices under the age of 25. Give employers control of the funding so that they become more demanding users. But..

6 Some numbers Over the next 5 years: 3 Million Apprentices is the target. 600,000 per year on average. 1.4billion is the budget per year. Say, about 4,000 per apprenticeship is the delivery cost. Shortfall 1billion per year!!! Let me introduce you to.

7 The Apprenticeship Levy (in consultation 21st August 2015 until the 2nd October 2015) It will be collected from larger employers, both public and private, in the UK through the PAYE system. Larger employers in England will be able to spend the levy to support all of their post-16 apprenticeships. The money raised from the levy will only be used to fund apprenticeships offered by the large employers. A top-up system for employers offering opportunities using unclaimed money from employers not engaged in the programme. (There will be a time limit for a large employer to claim their entitlement before the funding is moved into the top-up fund). No details included on the funding of SMEs apprenticeships, other than a commitment to the principle of smaller businesses making a cash contribution. The aim is to introduce the levy in 2017 to coincide the majority of the new apprenticeships.

8 So, what does this mean to you as a company and each branch? Register apprentices before 2017 to secure funding under the existing scheme. Your company will be paying towards apprenticeships whether they are your employees or your competitors; if you don t use it you will lose it! You will save on NI from next April 2016 if you engage your young employees through the apprenticeship route. Mandatory requirement to show your commitment to apprenticeships if tendering for public contracts within your PQQ. Only the registered and regulated apprenticeship schemes can legally use the term Apprentice. Get involved in the design of the qualifications that you want for your employees.

9 Current proposal for SME funding Core Government Contribution (CGC) Cap: Cap 1 Cap 2 Cap 3 Cap 4 Cap 5 2 for every 1 from employer Recruiting a Year old Additional incentive payments For a small business (<50) For successful completion Maximum total Government Contribution 3,600 2,000 3,000 6,000 8,000 18, ,800 2,400 5, ,200 2, ,200 2,700 4,900 9,600 12,800 28,800

10 Explained... Total Funding ( 2 + 1) 3,000 4,500 9,000 12,000 27,000 Employer Contribution ( 1) 1,000 1,500 3,000 4,000 9,000 Less: incentive ,800 2,400 5,400 Net Cost ,200 1,600 3,600 Less: Completion incentive ,200 2,700 Net Income / (Cost) 100 ( 100) ( 300) ( 400) ( 900) Less: Small Business (<50) ,200 2,700 Net Income ,800

11 What do I need to do to join in? Contact us and we will do the rest! To complete an Expression of Interest Form please contact :- Joanna Key - Marketing & Training Manager Telephone: joanna@eda.org.uk For all Recruitment and Employment enquiries please contact: - Michelle McCutcheon - Apprenticeship Training Manager Mobile: michelle@edarecruitment.co.uk Louise Sugars - Apprenticeship Training Manager Mobile: louise@edarecruitment.co.uk Patricia Henry - HR Manager Mobile: tricia@edarecruitment.co.uk