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Apprenticeship Reforms
Update
March 2017March 2017
Patrick Mcleod
Director of Work-based Learning, SGS College
Putting Employers in Control Putting Employers in Control Putting Employers in Control Putting Employers in Control ---- 3 key Aspects to the Reforms3 key Aspects to the Reforms3 key Aspects to the Reforms3 key Aspects to the Reforms
1. Reshaping of What constitutes an Apprenticeship
2. Reform of Funding Methodology – simplified Funding Rates
3. Reform of Funding Routes
• College allocations to support Small & Medium Employers
• The Apprenticeship levy for employers with payroll exceeding £3m
• And Employer oversight via the Institute of Apprenticeships
1. Redefining of Apprenticeships1. Redefining of Apprenticeships1. Redefining of Apprenticeships1. Redefining of Apprenticeships
• “Apprenticeship” term enshrined and protected in law
• Employer-devised Standards replacing Frameworks
• Discreet occupations, competency based, no qualifications
• Holistic, Independent, End-Point-Assessment
• Graded; Pass, Merit, Distinction
• 20% off-the-job training – Frameworks and Standards
2. New Apprenticeship Funding Rates 2. New Apprenticeship Funding Rates 2. New Apprenticeship Funding Rates 2. New Apprenticeship Funding Rates –––– the basicsthe basicsthe basicsthe basics
• 15 bands - all Standards and Frameworks allocated a band value
• £1,500 to £27,000
• £1000 incentives for employer and provider for
• 16-18 year olds
• 19-24 with Education and Health Care Plans
• 19-24 who have previously been in Care
• Additional funding for support, disadvantage, maths & English
3. Apprenticeship Funding 3. Apprenticeship Funding 3. Apprenticeship Funding 3. Apprenticeship Funding ---- Two RoutesTwo RoutesTwo RoutesTwo Routes
• Non-levy – under £3m payroll - Colleges & Providers receive
gov. allocation to support SME apprenticeship training
• Co-investment – Employer has to make a 10% contribution • Co-investment – Employer has to make a 10% contribution
• Levy – over £3m payroll – Employer pays into the DAS account
• Funds available for 24 months, to fund apprenticeship training
Apprenticeship Levy – Payments in
• Paid at 0.5% of UK payroll
• £15,000 allowance means only paid on payroll exceeding £3m
• Paid monthly based on previous month PAYE return
• Government top up by 10%
• Funding available for training is based on Employees living in England
Apprenticeship Levy – Using the Funds
• The band value is the maximum payment from the Levy
• The employer negotiates the best value with the provider
• If price exceeds the band value, employer makes up the full difference• If price exceeds the band value, employer makes up the full difference
• 80% paid in equal monthly instalments, 20% is paid on completion
• If costs exceed the available funds in any month, the co-investment
model applies – employer contributes 10%
Apprentice items Apprentice items Apprentice items Apprentice items ffffunded from Governmentunded from Governmentunded from Governmentunded from Government
Funded directly from the SFA to the Provider:
• English and maths at levels 1 & 2 @£471 each
• Learning support @ £150 month
Example 16-18 on £4k
Framework
£942
£1800• Learning support @ £150 month
• Area uplifts for 27% most deprived areas
• 20% Transition-uplift for 16-18s on frameworks
• Employer and Provider Incentive payments
£1800
£600
£800
£2000
£6142
What can Levy funds be used for?
Levy Funds can be used for:
1. Apprenticeship training
and assessment towards
an approved framework or
standard
Levy Funds Cannot be used
for:
• Wages
• Travel and subsistence costs
Managerial costsstandard
2. With an approved training
provider and assessment
organisation
3. Up to the funding band
limit
• Managerial costs
• Traineeships
• Work placement
programmes
• The costs of setting up an
apprenticeship programme
Apprenticeship Levy – Account Management
• Budget for Payments-in based on annual & monthly payroll
• Profile training, assessment and expenditure based on:
• Price, volumes, duration, start month, retention
• Identify any months where planned training and assessment • Identify any months where planned training and assessment
costs exceed available funds – and co-investment applies
• Identify unused funds at-risk of expiry – based on projected 24
months training and assessment
SGS Apprenticeship Levy Tool
Enter payroll and % of employees living in
England
Select Programme and enter price,
duration, volumes and start dates
View levy balance, funds used, at
risk of expiry, expired, costs
exceeding funds by academic year
and financial year
Trigger a warning if you select a mix
of provision which exceeds
available funds
Summary information on starts, completers, funds used, funds
expired to aid planning for future years
SGS Apprenticeship Levy ToolSGS Apprenticeship Levy ToolSGS Apprenticeship Levy ToolSGS Apprenticeship Levy Tool
• Tailored to employers’ mix of provision
• Accommodates seasonal and annual variations in payroll
• Saved and developed as a working management tool
• Summary reporting to aid future planning
• Reporting can be adapted for your requirements, e.g. financial year
• Unique – no other system offers this bespoke functionality
Thank you and Questions?
Patrick Mcleod
Director of Work-based Learning, SGS College