Welcome

Apprenticeship reforms and standardsProvider Briefing

24th November 2015Tammie Harwin

WHY? Rationale for the Reforms

Simplicity

Simplifying apprenticeship standards

so that they are shorter and more accessible

Employer driven

Employers designing apprenticeships to make them more responsive to

their needs and the future economy, and controlling

funding

Quality

Improving the quality of apprenticeships so that they are viewed

with the same esteem as University

WHAT : Main Elements of Reform

All apprenticeships have an end point assessment and include grading

Ensuring that apprentices are signed off as fully competent at the end of

their apprenticeship

All apprenticeships must last at least 12 months

Give employers greater control over funding

Employer-led Trailblazers designing apprenticeships

Giving employers the opportunity to set the skills, knowledge and

behaviours you need

Short, concise standards replace long, complex frameworks

Providing a clear and attractive ‘shop window’ for parents, apprentices and businesses

Continuing to drive up the quality of apprenticeships

Enabling employers to be intelligent customers, getting the training they

want and driving up quality

• The aim is that all new apprenticeship starts from 2017/18

will be on the new programme

• Dual running in the interim, with potential to switch off

some frameworks/pathways earlier

• Minister committed to current trailblazer model for 14/15

and 15/16 starts (for starts up to 31st July 2016 only)

WHEN: Transitional arrangements

Apprenticeship Funding

(5 funding cap bands)

Price agreed for Training &

Assessment

Employer 1/3 contribution

Government 2/3 contribution

Employer Incentive Payments

English & Maths Additional Learner

Support

Trailblazer Funding Model

2014 to 2016

Co-Funded

Government Funded

Cap Bands

£2,000, £4,000,

£8,000 £12,000,

£18,000

Funding Rules

Trailblazer Funding Rules published

• Funding Rules for apprenticeship Standards is published

on gov.uk at:

https://www.gov.uk/government/publications/sfa-funding-rules-2015-to-2016

• All trailblazer funding queries to the email inbox :

trailblazerfundingenquiries@sfa.bis.gov.uk

Proceeding with the Digital Apprenticeship Voucher announced in March 2015

To be implemented from 2017 – as part of a broader end-to-end service that

simplifies the employer journey.

Simplified solution

• Enabling employers to make decisions about taking on apprentices (for all

apprenticeships and all employers including the smallest)

• Giving employers greater purchasing power and oversight of providers

available

• Giving transparency on apprenticeship standards and their costs

Digital Apprenticeship Service

Introducing an Apprenticeship Levy

•The levy will apply to larger employers. The Government intends for the levy to be calculated on the basis of employee earnings and for employers to pay the levy through their PAYE return to HMRC.

Who will pay?

•The levy will support post-16 apprenticeships. What will it pay for?

• In England, any firm will be able get back more than it puts in by training sufficient apprentices.

How much can an employer get out?

•The funding will be in the hands of employers via the digital voucher. How will the funding be accessed by employers?

•Consultation published on 21 August which considers how the levy should be implemented and its interaction with existing levies.

How will it be implemented?

The levy puts the apprenticeship programme on long-term sustainable footing, and will allow system to become genuinely employer-led

Apprenticeship standards and reforms

What does it mean for you and your employers?

What will Providers need to do?

• Curriculum development to deliver training to enable apprentices to

meet the new standard – not all qualification driven

• Understand the requirements for the independent, synoptic end point

assessment and grading

• Devise marketing strategies and materials

• Update Find an Apprenticeship profile

• Understand the funding model, training organisations’ responsibilities

and funding rules

• Develop business models to respond to employers needs – funding

in the hands of employers – BUT new opportunities too

• Providers talking about Standards to current/

potential employers and start delivering them

• New MI/data and cash flow systems (prime and sub)

Support for Providers

• Education and Training Foundation’s Apprenticeship

Staff Support Programme, see website for guides

and podcasts:

http://www.apprenticeship-staff-support.co.uk/resources

ETF have now launched: Future Apprenticeships:

http://www.et-foundation.co.uk/supporting/support-

practitioners/future-apprenticeships/

• Agency workshops

• Trailblazer events and product launches

• Provider Network Events

More information

We will keep our main hub page on apprenticeship reforms updated with

all of the latest information:

https://www.gov.uk/government/collections/apprenticeship-changes

Published standards and those in development:

https://www.gov.uk/government/collections/apprenticeship-standards

https://www.gov.uk/government/publications/apprenticeship-standards-in-

development

Guidance for developers of standards:

https://www.gov.uk/government/publications/future-of-apprenticeships-in-

england-guidance-for-trailblazers

Trailblazer funding rules

More information

List of all apprenticeship standards:

https://www.gov.uk/government/publications/ap

prenticeship-standards-list-of-occupations-

available

Any Questions for me?

And one or two for you…

- Anyone using standards?- How are your organisations gearing up for

standards?

Bank of additional slides

Funding model for trailblazers

Maximum Core

Government contribution

(£2 for every £1 from

employer)

Cap 1 Cap 2 Cap 3 Cap 4 Cap 5

£2,000 £3,000 £6,000 £8,000 £18,000

Employer contribution if

the maximum cap is

claimed £1000 £1,500 £3,000 £4,000 £9,000

Additional

incentive

payments

Recruiting a

16-18 year

old£600 £900 £1,800 £2,400 £5,400

For a small

business

(<50)£500 £500 £900 £1,200 £2,700

For

successful

completion£500 £500 £900 £1,200 £2,700

Maximum total

Government contribution £3,600 £4,900 £9,600 £12,800 £28,800

Implications

• Growth• Choice and control in the hands of the employers

• Employers more committed and engaged in process

• Marketplace • A commercial market place for apprenticeship providers (and employers)

• Employer £1 investment triggers Government £2 payment

• Providers focussed on securing employer commitment not simply government

funding

• Affordability • Employer co-investment supports viability of the programme

• Quality• Co-investment supports employer commitment to

successful outcomes

2014 to 2016 Delivery Model

• Lead Provider must be appointed

• manages payments and contracts with all subcontractors (providers and assessment

organisation) and incentive payments to employers

• must be on the Agency’s Register of Training Organisations and hold a current Agency

contract

• Employers agree a price for their delivery with their chosen providers:

• Trailblazer standards funded through current Agency system/infrastructure:

• Price agreed with employer entered onto ILR along with normal Apprentice/

apprenticeship details

• Apprentice must be registered on the ILR by month three

• Employer contribution added to ILR when each employer payment received

• Employer makes cash payments in line with payment schedule:

• Lead provider, on receipt of employer contribution, updates ILR to confirm amount

received from employer - ILR triggers provider earnings (£2 for every £1 received from

the employer)

• Employer completes / lead provider receives incentive payment

claim form - Incentive payment made to employer within ten days of

correct claim form receipt