Guide to the New Apprenticeship Standards and Levy

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1 Guide to the New Apprenticeship Standards and Levy Easily the most coherent and well informed training professional we have met Ciaran Fahy Director The Ritz London #ComeUnderOurUmbrella Updated November 2016

2 What is new with Apprenticeships

3 The Government s aim is to: Put employers in the driving seat Define new stretching standards of competence Improve quality and rigour Route funding via employers

4 The Need Government wants to drive up skills, generating 3b of funding (up from 1.8b) to create 3 million apprentices across all industries by This sector needs to recruit 993,000 workers by 2022 (870,000 to replace existing staff) Staff retention bill is 247m, apprenticeships reduce this! 80% of companies who invest in Apprenticeships report an increase in staff retention Evidence shows that each apprentice can improve the bottom line by 5,200 Giving employers control of the funds, incentive to work with training providers to ensure they deliver best value, fit for purpose programmes!

5 What is new? Apprenticeship Standards (Replacing Frameworks) The Apprenticeship Levy (Replacing Fully Funded Government Standards)

6 The New Apprenticeship Standard

7 Hospitality Standards Level 2 Level 3 Level 4 Hospitality Team Member Apprenticeship Standards Hospitality Supervisor (Replacing Frameworks) Production Chef Hospitality Manager Commis Chef The Apprenticeship Levy Chef de Partie (Replacing Fully Funded Government Standards) Hospitality Trailblazer Led by Hilton Worldwide Senior Culinary Chef

8 New Apprenticeship Standards Genuine need for training of at least 12 months in a new job role NO mandatory qualifications Method of training is flexible English and maths Employer is confident that the apprentice is competent Independent end assessment Graded: pass or distinction Existing Apprenticeship Frameworks Initial assessment Prescribed qualifications Employees Rights and Responsibilities English and maths Provider led assessment of apprentice for each component of the framework All components of the framework achieved

9 Business Know it Show it Live it People Know it Show it Live it Commis Chef Apprenticeship Standard Culinary Know it Show it Live it Maths English Food Safety Know it Show it Live it End assessment (Independent) = 2 days at the end of the apprenticeship

10 Commis Chef Standard Developed by: Hilton Worldwide Mitchells and Butler The Spirit Pub Company Compass Group UK&I PGL McDonald s UK Hospitality SME consortium led by the Lancaster London Red Carnation Hotels Frederic Robinson Barchester Healthcare Whitbread SSP KFC UK Greene King, Institute of Hospitality Royal Academy of Culinary Arts British Institute of Innkeeping British Beer & Pub Association People 1st

11 The New Apprenticeship Levy

12 Levy Basic s 3m All employers are subject to the apprenticeship levy if their annual pay bill is 3 million or over Payable at 0.5% of payroll on a monthly basis The levy will come into force from April 2017 If employers do not spend their levy it will be lost The levy will be applied to all businesses across the UK Government will also top up the funds by 10%, so most employers will be able to invest more funds than they contribute in Levy

13 Work out your Levy All employers receive an allowance of 15,000 Pay bill will be calculated based on total employee earnings Example 250 employees, each with a gross salary of 20,000 = pay bill 250 x 20,000 = 5,000,000 Levy sum: 0.5% x 5,000,000 = 25,000 Allowance: 25,000-15,000 = Levy Bill: 10,000 To spend on Apprenticeships: 10,000

14 Levy Basic s Pay for Apprenticeship training with approved providers, confirmed by the end of the year! Non Levy, Small Businesses (under 50 employees) NO cash contributions Non Levy, large employers (over 50 employees) will have to make a contribution of only 10% year old apprentice or young care leaver with an education, health and care (EHC) plan, they will receive a 1,000 to meet the extra costs associated to this. Levy employers will be able to use funds to retrain workers in new skills, even if they have prior qualifications. Each Apprenticeship Standard will have a maximum funding amount 15 funding bands, each will an upper limit ranging from 1,500 to 27,000.

15 Funding Bands Standard Band Level Band Amount End Assessment at 20% Maximum on Apprentice Training includes 20% completion payment Commis Chef 9 9,000 1,800 7,200 Hospitality Team Member Operations/ Department Manager Team Leader/ Supervisor 7 5,000 1,000 4, ,000 1,800 7, ,000 1,000 4,000 Only these standards have bands confirmed Minim 50% of band can be charged by training provider

16 New Stakeholders Apprentice Employer Training Provider End assessor / Assessment organisations All assessed to the same criteria Achieve a professional standard Career progression opportunities Decides how their apprentices are trained and developed: Own in-house training Purchasing some training Purchasing all training Outcome must meet the standard Supports the employer in delivering learning and development The trailblazer lobbied government on behalf of employers so that the Skill Minister now recognises employer led assessment Must be independent of the apprentice, i.e. has not been involved in their training and does not have any line management responsibilities Industry-led quality assurance Employer Boards oversee that the new apprenticeships are maintained and operated in the best interest of the sector Works in collaboration with apprenticeship stakeholders Managed on a day to day basis by People 1 st

17 How you pay for training.. Set up a Digital Apprenticeship Service (DAS) Account January 2017 Agree a rate with your provider and sign a service level agreement If employers do not spend their levy it will be lost Set a price of the standard within the band The levy will be applied to all businesses across the UK DAS allows payment to be stopped. Government will also top up the funds by 10%, so most employers will be able to invest more funds than they contribute in Levy

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19 Working with a Training Provider

20 Top Tips Work out your Levy bill Talk to a range of Training Providers/Colleges Talk to other employers on approach and get recommendations If employers do not spend their levy it will be lost Collaborate The levy will be applied to all businesses across the UK Seek a service level agreement / Letter of intent Government will also top up the funds by 10%, so most employers will be able to invest more funds than they contribute in Levystandards Start to map your current training into the new START TODAY

21 Further Guidance

22 Further Guidance December Final detailed funding and eligibility rules Further employer guidance from HM Revenue and Customs (HMRC) on how to calculate and pay the apprenticeship levy

23 Contact us For more information

24 Contact us Sam Coulstock Business Relations Director #ComeUnderOurUmbrella #LevyLove

25 Thank you