sarah rice curriculum manager - skills & learning...yes. you will make levy payments of 0.5% of...

Sarah Rice

Curriculum Manager

Improving skills for you, your community, your business.

Changes to apprenticeship training

• Farewell frameworks, hello standards

• What does this mean for your business?

The Apprenticeship Levy

• Why? What is it? Who will pay? How much?

• How do I use it?

Co-investment for non-levy payers

The (Digital) Apprenticeship Service

Improving skills for you, your community, your business

Putting employers in the driving seat

• The content & assessment (standards)

• The funding (levy, fees and negotiation)

• The oversight (Institute for Apprenticeships)


• Frameworks to be replaced by Standards

• End point assessment

• Some apprenticeship standards will be graded

• End of national funding formula – new cost bands

• Extra £1bn for apprenticeship training via a levy

• Non-levy paying employers = co-investment; a

mandatory cash contribution of 10% and government

subsidy of 90%

• More stringent requirement for 20% off-the-job

training


• Apprenticeship levy/co-investment model can pay for

apprenticeship training for new and existing

employees

• More relaxed view on prior achievement

• Degree level apprenticeships

• New registers of Apprenticeship Training Providers

(RoATP) and Apprenticeship Assessment

Organisations (RoAAO)

• Opportunity to become an employer-provider

• Individually negotiated employer/provider contracts

• A digital service for finding & paying for training


https://www.gov.uk/government/publications/apprenticeship-funding-bands

The government’s intention is that Apprenticeships will be

funded by the levy

Each Apprenticeship standard will be placed into one of

15 upper limits ranging from £1,500 to £27,000

Each standard will be allocated to a single funding limit.

Employers and training providers will negotiate costs

within these limits.

The amount of levy funds that can be used or

government co-investment for each apprenticeship will be

capped by the upper limit.








Improving skills for you, your community,

your business

Band Maximum cap

1 £1500

2 £2000

3 £2500

4 £3000

5 £3500

6 £4000

7 £5000

8 £6000

9 £9000

10 £12000

11 £15000

12 £18000

13 £21000

14 £24000

15 £27000

A two sided, A4 document that clearly states the

knowledge, skills & behaviours required for a particular

job role

Designed by employers (trailblazer groups)

May/may not include a qualification

Assessment plan = additional document

Competence confirmed via end point assessment


End-point assessment is a holistic assessment of the

knowledge, skills and behaviours which have been learnt

throughout an apprenticeship standard. The requirements

for end-point assessment are set out in the assessment

plan for the specific standard.

Apprentices will not be able to achieve an apprenticeship standard without

satisfying all the requirements of the assessment plan, including the end-point

assessment.

You will select an organisation to deliver the end-point assessment from the

Register of Apprentice Assessment Organisations (RoAAO). Only those

organisations listed on the RoAAO will be eligible to be funded.


The price for end point assessment (EPA) is determined by

the Apprenticeship Assessment Organisation.

As a guide, it is 20% of the funding cap for the particular

apprenticeship

The payment for EPA is made via the digital account and

has to be paid out of the fee you agree with your training

provider. If you have agreed an overall fee that is below

the funding cap, the EPA cost will still be 20% of the

maximum funding cap* * as a result ,most lower band apprenticeships cannot be delivered for less

than the funding cap as it reduces the amount left for actual training and reduces the quality .


Towards the end of the apprenticeship, employers and providers

will ‘sign-off’ the apprentice as ready for the end-point

assessment – this sign-off is the ‘gateway’.

Signing-off an apprentice indicates the employer and provider

believe their knowledge, skills and behaviours are the level

required to attain an apprenticeship.

Employers may need support from providers to successfully

determine the apprentice’s readiness for end-point assessment.

Providers and employers will need to agree a method to sign-off

the apprentice.


Annual wage bill of £3

million +? Yes. You will make levy

payments of 0.5% of your wage

bill, monthly into a digital

account.

You will have a £15,000

allowance

The Government will top up

your digital account by 10%

When you exhaust your levy

fund, you move to

Annual wage bill of

less than £3 million?

No.

The co-investment model

will apply. You make a

mandatory 10% (min) cash

contribution for training and

the Government pays the

remaining 90%


A wage bill that

fluctuates over the year?

In months where your wage bill

is over £250,000 (equivalent to

an annual £3 million +), you will

pay the levy. No payment

made in the months below

£250,000

You will have a £15,000

allowance.

The Government will top up

your digital account by 10%

Fewer than 50 staff

and employing 16-18

year old or 19–24 with

EHC plan?

No. Apprenticeship training will

be fully funded by the

Government for SME

employers recruiting an

apprentice aged 16-18 or 19-

24 care leaver/ with EHC plan.


1) Work out what your total pay bill is Your pay bill is made up of the total amount of your employees’ earnings that are subject

to Class 1 National Insurance contributions. Employees’ earnings include any money

they make from employment, such as:

•wages

•bonuses

•commissions

•pension contributions

Levy not charged on other payments to employees, such as benefits in kind.

2) Work out what 0.5% of your total pay bill is

3) Subtract the £15,000 allowance


You will receive a cash payment of £1000 towards the

additional costs associated with training if at the start of

the apprenticeship, the apprentice is:

Aged between 16 and 18 years old

Aged between 19 and 24 years old and has either an

Education, Health and Care plan provided by the

local authority, or has been in the care of the local

authority


The following examples are simplified using an approximate

annual levy payment/fund

In reality, you are making monthly payments to the levy and

payments made out to Providers are also monthly

The digital account is the place to monitor your monthly

levy payments, the 10% top up and payments out to

providers

There is a tool to estimate funding: https://estimate-my-

apprenticeship-funding.sfa.bis.gov.uk/


https://estimate-my-apprenticeship-funding.sfa.bis.gov.uk/








Annual pay bill = £6,000,000

0.5% levy payment = £30,000

-

Less levy allowance of £15,000 = £15,000

+

Plus 10% government top up = £1500

=

Total annual levy pot = £16,500


Customer Service Practitioner Standard

Total levy pot = £16500

Cost band of training (6) = £4000

Price agreed with training provider = £3500

4 x apprentices = £14000

Remaining levy pot = £2500

2 of the apprentices recruited are aged 17 so you

receive £1000 cash payment* for each

* Cash incentives; 50% paid at month 3 and 50% at month 12


Annual pay bill of less than £3 million – no levy paid

Team Leading Standard

Cost band of apprenticeship training (7) = £5000

Price agreed with training provider = £4500

10% mandatory employer contribution = £450*

90% Government contribution = £4050**

*Co-investment cash contribution can be paid in instalments if agreed with provider

** Government contribution only paid after employer co-investment is paid


Apprentices will be funded to achieve qualifications in English or

maths, if they do not meet the minimum standards set out by

government; GCSE A* to C (or 4 to 9) in English and maths or

the equivalents detailed in the Apprenticeship funding.

This will not be deducted from your digital account or

require employer co-investment.

If higher levels of English and maths are required for the

apprenticeship, this must be funded within the apprenticeship

funding band and will be funded from your digital account or

through government-employer co-investment.


• If you’re an employer with an annual pay bill of more

than £3 million, you’ll start paying the levy in May

2017.

• Each month, you will have to: •let HMRC know whether you need to pay the apprenticeship levy

•include the levy you need to pay in your usual PAYE payment to HMRC – you should do this by 19 (or 22 if you report electronically) of the following month

• Any apprenticeship levy payment to HMRC will be

allowable for Corporation Tax.


Some organisations already operate similar levy

systems or other collective training arrangements. You

will have to pay the apprenticeship levy even if you

already contribute to another training arrangement.


• Once you have declared the levy to HMRC, you will

be able to access funding for apprenticeships through

a new digital apprenticeship service account.

• Through the (digital) apprenticeship service all

employers will be able to:

select an apprenticeship framework or standard

choose the training provider or providers you want to

deliver the training

choose the organisation that will assess your

apprentices

post apprenticeship vacancies


https://www.gov.uk/government/publications/apprenticeship-frameworks-live-list

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

If you are an employer who pays the levy, you can also

use the apprenticeship service to:

set the price you’ve agreed with your training provider

pay for apprenticeship training and assessment

stop or pause payments (for example, if your

apprentice stops their training, your apprentice takes

a break from training or you haven’t received the

service you agreed with the provider)

• By 2020, all employers will be able to use the digital

apprenticeship service to pay for training and

assessment for apprenticeships.


• Funds from your digital account or government-

employer co-investment can only be used for activity

directly related to the apprenticeship. These funds

can only be used to pay for training, education and

assessment, including end-point assessment to attain

an apprenticeship that is eligible for funding up to the

limit of the agreed funding band.


• On-the-job and off-the-job training through an externally contracted

provider or evidenced costs for employer-provider delivery

• Planned on-programme assessment and the formal end-point

assessment

• E-learning (as part of blended learning that includes practical workplace

learning)

• Registration, materials, examination and certification, where delivered

as part of the apprenticeship programme

• Funding to re-take qualifications or non-accredited elements required

for the apprenticeship, providing additional learning takes place.

• Accommodation costs for learning delivered through residential

modules where the residential learning is a requirement for all

apprentices.

• Participation in a skills competition/event


• Wages

• Re-sits of end point assessment where no further training is

required/taking place

• Management or admin time for operating an apprenticeship

programme

• Accommodation costs related to the apprentice’s job

• Travel costs

• PPE

• Capital purchases

• Additional training costs not specified in the framework/standard

• Training/assessment required in order to obtain a license to

practice unless stated in the framework/standard


There are 5 main employer-facing services which have been

developed.

Estimate apprenticeship funding

Find apprenticeship training

Recruit an apprentice

Manage your apprenticeship funding

Add an apprenticeship

https://www.gov.uk/guidance/manage-apprenticeship-

funds


https://www.gov.uk/guidance/manage-apprenticeship-funds






There must be a genuine job available after the apprenticeship is

completed, unless the apprentice is employed by a recognised

apprenticeship training agency.

Choose a training provider and negotiate a price.

Check the eligibility of the apprentice, which includes, but is not limited to:

• having the right to work in England

• spending at least 50% of their working hours in England

• the apprentice working for you or a connected company as defined by

HMRC

You must have an apprenticeship agreement with the apprentice.

You must have a commitment statement, signed by you, the apprentice and

the main provider.

Make sure you have evidence required for any additional payments.

Record the apprenticeship in your digital account (you can ask the provider

to do this for you).

Choose an end-point assessment organisation.


Make sure the apprenticeship will last for at least one

year, or more if specified in the apprenticeship

standard or framework.

Make sure the apprentice is taking part in learning

throughout the apprenticeship.

Provide evidence to the training provider of the

apprentice’s average weekly hours.

Provide on-the-job training, supervision and support.

Make sure the apprentice spends at least 20% of

their time on off-the-job training


• The Enterprise Act 2016

• The Industrial Strategy

• Vocational Education reforms

• The Institute for Apprenticeships

• The Register of Apprenticeship Training Providers

• From 2018, employers will be able to transfer 10% of

their levy funding to another employer with a digital

account, e.g. an organisation in their supply chain.

• You have 24 months to use your levy fund


Your local training providers

Gov.uk; Apprenticeships


https://www.gov.uk/topic/further-education-skills/apprenticeships

Apprenticeship Training

Vocational Courses

English, Maths & ICT

Distance Learning

Community Projects

Leisure Learning

Traineeships & Study Programmes

Job Clubs

Skills Workshops (Train & Grow)


Contact us:

www.skillsandlearningbdp.co.uk

01202 262300

[email protected]

Like us on Facebook | Follow us on Twitter


http://www.skillsandlearningbdp.co.uk/

mailto:[email protected]

How our employers are

planning and developing their

apprenticeship programmes


Delivery of apprenticeship training is shared between you

and the provider

Reframe your thinking and language:

Move from ‘I’m looking for an apprentice’ to

‘I’d like to develop an apprenticeship programme’

Develop your apprenticeship strategy and name those

responsible within your organisation

What staffing/facilities do you have in place for supporting an

apprentice?


Creating new posts or converting existing posts?

Consider skills gaps, hard to fill posts and current

staffing demographics

Develop your programme to support succession

planning

What salary can you afford? Better quality of

candidates if you can offer above the minimum

apprenticeship wage


Communicate your strategy to your organisation to

establish ‘buy in’ and shared responsibility

Levy paying employer contract with ESFA

Do you have a realistic post for the apprentice when

they complete?

Contract with training provider


What off the job training can you deliver to support the

20% requirement & what do you need the training

provider to do?

How will you backfill the 20% off the job training time of

your apprentice if their work needs covering?

Develop induction programme and name & train

mentors/buddies


What to look for in a training provider:

Locality

Currency

Added value

Support

Access to resources

Communication

Specialisms

Consider established networks, e.g. Dorset & Somerset

Training Provider Network (DSTPN) www.dstpn.co.uk


http://www.dstpn.co.uk/

You’ll need a Government Gateway account

Who will administer? How long will it take?

You could give a training provider the authority to do this on

your behalf

Who will engage with training providers and assessment

organisations?

Who will agree and sign off spend?


https://www.gov.uk/government/publications/using-the-

register-of-apprentice-assessment-organisations

The employer is responsible for choosing the AAO – many

are happy to be guided by the training provider

The cost of EPA is approx. 20% of the funding cap of the

standard: incl in the price you agree with the provider

The payment for EPA is made via the apprenticeship

service account to the AAO


https://www.gov.uk/government/publications/using-the-register-of-apprentice-assessment-organisations















RoATP routes: Main Provider

deliver training to employers’ apprentices, their

own apprentices and as a subcontractor

Employer-Provider

deliver training to their own apprentices

Supporting Provider

subcontracting arrangements up to £500,000


Qualifications and experience of your delivery team

Developing training materials and resources

Ofsted

Education and Skills Funding Agency (ESFA) audit

requirements

MIS – is it apprenticeship ready?

Monthly data submissions to ESFA via Individual

Learner Record (ILR)

Tracking progress and achievement of apprentices

Can you deliver all aspects or will you buy in

Functional Skills/specialist training?


Large levy fund – combined forces over £1.35 million

Model to support succession planning

Apprenticeship opportunities right through from entry

levels to Chief Inspector – 4 year roll out

All areas of the Service


Has been delivering the vocational training element of

Clinical Healthcare apprenticeships for several years

by partnering with a training provider

Now approved to be an Employer-Provider

All new starts in the trust at certain grades will be

apprentices

Will be buying in Functional Skills delivery from a

training provider


Levy payer: approx. £150,000 levy fund

Identifying existing lower grade posts to convert to

apprenticeship posts when they next become vacant:

Adult Care

Healthcare

Business Admin

Catering

Getting support from Provider to map existing jobs to new

standards and develop the programme


Levy payers

Not previously had any apprenticeships

Want to maximise their levy

Domiciliary care so difficult to supervise Adult Care or

Healthcare apprentices

Started with 3 x Business Admin apprentices in regional

offices


Levy payers

Some experience with Teaching Assistant apprenticeships

as progression for school leavers

Now looking at an academy wide programme including

TAs, Facilities Management, IT Technicians, Early Years

Practitioners, Business Admin and eventually apprentice

teachers

Concerns about how to pay the salaries with school funding

cuts


Active apprenticeship employers

Enterprise Act obligations

Entry level posts converted to apprenticeships and internal

progression pathways

Specialist hard to fill posts & demographic time bomb

= grow your own approach

Concern around how to pay salaries with funding cuts and

mergers


Very small, non-levy paying employer

Skills gap around digital marketing and social media

promotion. Hard to fill vacancy.

Not enough marketing focus to justify whole post so

advertised as Business Admin apprentice with a marketing

focus.

Training programme designed to offer marketing content as

well as BA


sarah rice curriculum manager - skills & learning...yes. you will make levy payments of 0.5% of...

Documents