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How will it affect your business?

ARE CHANGING

APPRENTICESHIPS

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APPRENTICESHIPS ARE CHANGING

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Why Apprenticeships are changing?

What are the main changes?

When are the changes happening?

Apprenticeships are changing in response to the Government’s plans to create three million new apprenticeships by 2020. The independent Richard Review, which took place in 2012, concluded that apprenticeships were no longer fit for purpose and the UK was falling behind its European competitors where, in Germany for example, two-thirds of young people take some form of apprenticeship by the time they are 25.

Summer 2016Clarification expected on eligibility and apprenticeship funding levels, plus government support and co-investment for non-levy payers.

Autumn 2016Final details on funding and eligibility rules, and guidance on how to calculate and pay the levy.

January 2017Levy paying employers will be able to access their Digital Apprenticeship Services (DAS) accounts.

April 2017Levy paying employers will begin to make their levy payments on a monthly basis.

May 2017Levy paying employers will be able to draw down their levy payments and start paying providers for apprenticeship training.

• Standards, designed by employers, will replace the existing frameworks.

• An introduction of two new organisations: The Institute for Apprenticeships (IfA) and the Register of Apprenticeship Assessment Organisations (RoAAO).

• An apprenticeship tax levy of 0.5%, to be paid by employers with a wage bill in excess of £3 million per annum.

• Non-levy paying employers (i.e. those whose wage bill is less than £3 million per annum) will be expected to pay a contribution to help fund their apprentice(s) training. The rate of this contribution and whether incentive payments will be issued has yet to be decided.

• Employers will choose and pay for apprentices’ training and assessment through the online Digital Apprenticeship Service (DAS).

• All apprenticeships will last a minimum of 12 months.

• All apprenticeships will have an independent end-point assessment, to ensure the apprentice can do the job they have been trained to do.

• As well as intermediate (level 2) and advanced (level 3) apprenticeships, there will be higher level apprenticeships (levels 4 to 7).

APPRENTICESHIPS ARE CHANGING

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Moving from frameworks to standards

The Institute for Apprenticeships (IfA)

The Register of Apprenticeship Assessment Organisations(RoAAO)

The current apprenticeship frameworks will be replaced by apprenticeship standards. These employer designed standards will focus on the outcome of an apprenticeship – what the apprentice can do when they finish their apprenticeship, i.e. ensure they can do the job they have been training for.

The IfA is a new independent body, led by employers, that regulates and oversees the quality of apprenticeships.

Moving forward all apprenticeships will have an end point assessment. This will need to be carried out by an independent organisation who will need to be on the Register of Apprenticeship Assessment Organisations (RoAAO).

Standards will be:• Job specific

• Clear and concise (approximately two sides of A4)

• Written by employers

• Include an end-point assessment.

In addition, many of these new standards will be level 4-7:

Level Equivalent

2 5 GCSE grades A*-C

3 2 A-Levels

4 HNC – equivalent to the first year at university

5 HND – equivalent to the second year at university

6 Degree

7 Masters

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The Register of Apprenticeship Assessment Organisations(RoAAO)

Who will pay the apprenticeship Levy? In April 2017 the way the Government funds apprenticeships in England is changing. Employers with a wage bill in excess of £3 million per annum will be required to contribute to a new apprenticeship levy (which represents 2% of UK Employers). There will also be changes to the funding for apprenticeship training for all employers with wage bill less than £3million per annum.

Are you an employer with a pay bill in excess of £3 million per year?

YES NO

From April 2017 you will be paying the apprenticeship levy.

(Find out more on page 6)

You will not pay the apprenticeship levy, however you will need to

make a contribution to fund any apprentice you employ.

(Find out more on page 7)

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Apprenticeship levy payersThe levy is a new tax which aims to fund £3 million new apprenticeships in England by 2020, and will come into effect in April 2017. Employers who pay the apprenticeship levy and will be able to use their levy funds on apprentice training for existing staff or new recruits.

From April 2017 all UK employers who have a total wage bill in excess of £3 million a year will pay the levy. The levy rate will be set at 0.5% of your wage bill offset by a levy allowance of £15,000.

Examples of how much levy payers will pay:

Employer A: £10m annual payroll

Levy charge (0.5% x £10m) = £50,000 Less allowance £15,000 Overall Levy = £35,000 per annum

Employer B: £3m annual payroll

Levy charge (0.5% x £3m) = £15,000Less allowance £15,000Overall Levy = £0 per annun

How much will I pay?

Payments will be collected monthly by HM Revenue & Customs (HMRC) through Pay as You Earn (PAYE), alongside your organisation’s tax and national insurance. The funds will then appear as digital vouchers on your Digital Apprenticeship Service (DAS) Account.

How will the levy be collected?

For existing staff or new recruits. It cannot be used on associated costs such as apprentice wages or travel.

What can the levy be spent on?

The Digital Apprenticeship Service (DAS) is a new online tool for apprenticeships. From January 2017 you will be able to register for and access your Digital Apprenticeships Services (DAS) account.

On your DAS account you will be able to use your digital vouchers to choose the training provider you want to deliver your apprenticeship training and choose who will conduct the end-point assessment.

Our employer training services team will be able to help you set up your DAS account, contact us at training@bedford.ac.uk or call us on 01234 291747.

From May 2017 you will see funds entering your DAS account each month as you pay your levy. Monthly payment will then be taken from your DAS account and sent to the training provider you choose to deliver the training of your apprentices.

How can I spend my digital vouchers?

You will be able to choose who you want to deliver your apprenticeship programme though the Digital Apprenticeship Service using your digital vouchers. Bedford College is the largest provider of apprenticeships in Bedfordshire so choosing us to deliver your apprenticeship training will mean that:

• You will receive a free tailored recruitment service that meets your needs.

• You will be given expert advice by our Business Development Team.

Who can I spend my levy with?

• Your apprentices will be trained by tutors who have all previously worked in the relevant industry sector.

• Your apprentices will have their own dedicated Training Co-ordinator to support them through their training.

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Non-levy payersAll employers that have a wage bill less than £3 million per annum (which represents 98% of UK employers) will not have to pay the levy and will continue to have access to government funding to support their apprentice training. However, going forward non-levy paying employers will be expected to make a financial contribution to the cost of training their apprentices (co-investment). This payment may well be offset by incentive payments from the Government, paid to the employer throughout the length of the apprenticeship programme. In summer 2016 there will be further clarification on the Government support, co-investment and incentives for non-levy payers.

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How Bedford College can help you understand the new changes? We work with over 1,000 employers each year, and as the biggest provider of apprenticeships in Bedfordshire and the surrounding area we have the experience to help you develop and deliver your apprenticeship programmes. We offer over a wide variety of apprenticeships programmes to fit into your business:

If there isn’t an apprenticeship programme listed above which fits your organisation, contact us to discuss your requirements.

• Accountancy

• Agriculture

• Beauty Therapy

• Brickwork

• Business Administration

• Care Leadership & Management

• Children & Young People

• Contact Centre Operations

• Customer Service

• Creative Digital Media

• Decorative Finishing

• Electrical Installation

• Engineering

• Environmental Conservation

• Exercise & Fitness

• Front of House Services

• Graphic Design

• Hairdressing

• Health & Social Care

• Horse Care

• Horse Management

• Horticulture

• IT Application

• IT Software & Web Professionals

• Management Accounting (CIMA)

• Management

• Motor Vehicle Body & Paint Operations

• Motor Vehicle Maintenance & Repair (Light Vehicle)

• Plumbing

• Professional Cookery

• Sport Specialist

• Teaching Assistant

• Team Leading Apprenticeship

• Technical & Professional (Civil Engineering)

• Trees & Timber

• Warehousing & Storage

• Wood Occupations Bench Joinery

• Wood Occupations Site Carpentry

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Why Choose us?

We can offer you free support and guidance on the changes to apprenticeships and support you through the whole process.

‘We successfully work with employers and external agencies to provide a highly responsive curriculum to meet local and regional needs.’

We can set your company up on the Digital Apprenticeship Service and provide training.

We can work with you to identify your training priorities and develop a training solution that meets your precise needs, offering a whole suite of training including apprenticeships.

We can recruit applicants and match the right applicants to your organisations need.

We don’t just deliver technical content to apprentices, we deliver the ‘soft skills’ (personal development) so they are ready to transfer into the working environment.

We are experts in our field and the largest provider of apprenticeships in Bedfordshire and the surrounding area.

You will have a dedicated account manager and training co-ordinater.

Free advice

ofsted

range of skills

experts

Digital ApprenticeshipService

ALL YOUR TRAININGNEEDS in one place

Call our Business Development Team on 01234 291747 or email us on training@bedford.ac.uk

recruitment Service

One point of Contact

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What the employers we are working with say about us…

Organisation: Hybrid Air VehiclesIndustry: AviationEmployer: Niky Jeffries, HR Officer

Organisation: Dalrod Norslo LtdIndustry: AutomotiveEmployer: Stephen Carpenter, Operations Manager

Organisation: Potton Pre-schoolIndustry: EducationEmployer: Zia Stofen, Office Manager

Organisation: CiLEXIndustry: Awarding Body Employer: Janet Bishop, HR Manager

Call our Business Development Team on 01234 291747

Email us on training@bedford.ac.uk

Visit bedford.ac.uk/apprenticeships

“From my point of view the apprenticeship programme has been very successful. It’s fantastic having very engaged apprentices on board and the support we’ve had from Bedford College has been brilliant.”

“We currently have three apprentices with Bedford College and we intend to take on another two very soon. We’ll definitely use Bedford College again as they have provided us with an excellent service, including filling out all the necessary paperwork and regularly visiting us on site.”

“The College ensured all the appropriate Disclosure and Barring Service (DBS) checks were done, as well as completing all the necessary paperwork on behalf of the pre-school.”

“Bedford College has continually supported us and our apprentices from day one. There has always been good communication between us and the training co-ordinator visits at least once a month to see apprentices and other staff. “

contact us

A421

M1

A428

A4280

Bedford CollegeCauldwell Street Campus

Brunel Training Centre

A6

A1

A6

A6

Wilstead

Wixams

Cardington

Cople

Hatch

Sandy

Biggleswade

Old Warden

Renhold

Great Barford

RoxtonRavensden

Clapham

Oakley

NewtonBlossomville

Turvey

Cranfield

Millbrook

AmpthillClophill

Luton

Silsoe

She�ord

Flitwick

Woburn Sands

Woburn

Kempston

Wilden

A1

A421

ShuttleworthCollege

Houghton RegisTraining Centre

LutonTraining Centre

@BedfordCollege

BedfordCollege

BedfordCollege

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We offer apprenticeships at locations right across Bedfordshire and the surrounding area.

A421

M1

A428

A4280

Bedford CollegeCauldwell Street Campus

Brunel Training Centre

A6

A1

A6

A6

Wilstead

Wixams

Cardington

Cople

Hatch

Sandy

Biggleswade

Old Warden

Renhold

Great Barford

RoxtonRavensden

Clapham

Oakley

NewtonBlossomville

Turvey

Cranfield

Millbrook

AmpthillClophill

Luton

Silsoe

She�ord

Flitwick

Woburn Sands

Woburn

Kempston

Wilden

A1

A421

ShuttleworthCollege

Houghton RegisTraining Centre

LutonTraining Centre

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Bedford CollegeCauldwell StreetBedfordBedfordshireMK42 9AH

01234 291747training@bedford.ac.ukwww.bedford.ac.uk/apprenticeships