1. Apprenticeships

2. Sussex Council of Training Providers James Corbett Relationship Manager BIS / DfE Apprenticeships Directorate Update on Apprenticeship Reforms Thursday 24 th March 2016

3. Contents  Standards  Assessment  Funding  Quality - IFA

4. Our Commitment to Reform Boosting our nation’s productivity to maintain and consolidate our economic recovery. Raising skill levels through apprenticeships:  reaching 3 million starts in 2020  public sector target (2.3% of workforce). Improving the quality of apprenticeships by:  enabling employers to develop the apprenticeships that fully meet their business needs via Trailblazers – all starts and standards by 2020.  Focusing new apprenticeships on rigorous end-point assessments.  Giving employers more control of the funding.

5. Trailblazers 157 Trailblazers currently developing over 375 standards. Over 40% are higher/degree level 77 of these standards are now approved for delivery. Guidance available at: https://www.gov.uk/government/publications/future-of- apprenticeships-in-england-guidance-for-trailblazershttps://www.gov.uk/government/publications/future-of- apprenticeships-in-england-guidance-for-trailblazers

6. Developing Apprenticeship Standards- Process Employer group bid to become a Trailblazer/develop a new Standard Gateway 1: Greenlight to develop the Standard Gateway 2: Approval of the Standard & assignment of indicative funding cap Gateway 3: Approval of the Assessment Plan Delivery can begin subject to provider readiness Trailblazer develops Standard Trailblazer develops Assessment Plan

7. An Apprenticeship standards should: be short, concise and clear; set out the full competence needed in an occupation in terms of Knowledge, Skills and Behaviour (KSBs); have the support of employers including smaller businesses; be sufficiently stretching so that it will require at least a year of sustained and substantial training to meet the standard; align with professional registration where it exists; contain minimum English and maths requirements; and only include mandatory qualifications under certain circumstances.

8. Transition from frameworks to standards: “….we envisage a migration from apprenticeship frameworks to standards over the course of the Parliament, with as much of this to take place by 2017/18 as possible. We will stagger the withdrawal of public funding for new starts on framework apprenticeships as employers take on apprentices on the new standards, and give reasonable prior notice to training providers of this so that they can review their training offer.” Closing of first 7 frameworks on 1 June 16 announced earlier this month (https://www.gov.uk/government/publications/removal-of-apprenticeship- frameworks/removal-of-apprenticeship-frameworks). No starts on them since 2014.https://www.gov.uk/government/publications/removal-of-apprenticeship- frameworks/removal-of-apprenticeship-frameworks

9. An Apprenticeship Assessment Plan should: Be a short document (we recommend a maximum of 10 pages) which Outline how the Apprenticeship is being assessed. Clarify what is expected of the Apprentice, the Employer and the Assessment Organisation. A Good Assessment Plan will:  assess the Apprentice in a holistic way, across the standard, to ensure they are fully competent.  deliver rigorous, high quality, assessments to maintain standards over time.  ensure that the Apprentice is assessed fairly in an independent and impartial way.  allow each employer the freedom to decide who undertakes the assessment

10. Funding: Trailblazer funding model 15/16 Core Government Contribution (CGC) Cap - £2 for every £1 from employer Cap 1Cap 2Cap 3Cap 4Cap 5 £2,000£3,000£6,000£8,000£18,000 Additional incentive payments Recruiting a 16-18 year old £600£900£1,800£2,400£5,400 For a small business (<50) £500 £900£1,200£2,700 For successful completion £500 £900£1,200£2,700 Maximum total Government contribution £3,600£4,900£9,600£12,800£28,800 For 16/17 – version 1 Funding Rules published in Jan 16: additional £13k cap to be introduced from 1/8/16 16-18 year old incentive payment to be extended to 19-24 care leavers

11. Funding: Apprenticeships Levy The Government is introducing a levy on employers in April 2017 to fund apprenticeships. This will be 0.5% of pay bills in excess of £3m (2% of UK employers), collected through PAYE. Employers who pay the levy and are committed to apprenticeship training will be able to get out more than they pay in through a top up to their digital account. Guidance will be provided in Spring 2016.

12. Funding: Apprenticeship Levy: worked levy examples: Example 1 Employer of 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 = £10,000 annual levy payment Example 2 Employer of 100 employees, each with a gross salary of £20,000. Pay bill: 100 x £20,000 = £2,000,000 Levy sum: 0.5% x £2,000,000 = £10,000 Allowance: £10,000 - £15,000 = £0 annual levy payment

13. Getting out more than you put in Employer has £12,000 annually entering their levy account Monthly account funding = £1,000 Top up: 10% x £1,000 = £100 Levy monthly account increase: £1,000 + £100 = £1,100 £13,200 annually to spend on Apprenticeships Employers who pay the levy and are committed to apprenticeships training will be able to get out more than they pay in to the levy. The government will apply a 10% top-up to monthly funds entering levy paying employers digital accounts, for apprenticeship training in England, from April 2017. Worked example

14. How the Levy will work Government Training Provider Employer Receive training for apprentice Redeem “vouchers” Our objectives: Employer control and simplicity Our objectives: Get the machinery right to provide a quality service while protecting public purse HMRC collect levy (PAYE) Employ Apprentice Offer apprenticeship training Receive vouchers (Digital Service) Timely data on training Pay for training with “vouchers” Employer has online account Provide training to apprentice Check training is complete If funding unlocked: Pay provider Register with SFA (Ofsted) Employer and Provider Identity Assurance Pass data on levy payments from HMRC to BIS Unused vouchers expire Top up

15. Next Steps SPRING 2016 AUTUMN 2016BY END 2016 APRIL 2017 Operation DAS operational New funding model live IfA in place New ITB levy orders in effect

16. Funding: Digital Apprenticeship Service A new simple online portal for employers 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 costs

17. Institute for Apprenticeships Independent employer-led body that will regulate the quality of apprenticeships, set up by April 2017 (shadow form from 2016) An independent Chair will lead a small Board of employers, business leaders and their representatives Outline role: o Approve/reject EOIs, standards and assessment plans o Provide advice and guidance during their development o Determine policy on when standards need to be refreshed or closed o Advise on funding for each standard

18. Any Questions?