1. Train to Gain or Apprenticeship - The employer offer - Nick Linford Director of Planning and Performance 22 nd October 2008

2. The employer-responsive funding pot Presentation contents The products (employer offer) Determining the employer offer (Apprenticeship or Train to Gain?)  The learner age?  The qualification and level?  Most importantly, employee/employer need?  The employer contribution?  The provider structure/supply?  The funding? Will all the new TtG flexibilities crowd out 19+ Apprenticeships?

3. The employer-responsive funding pot Adult (19+) apprenticeships £330.2m (+ 4.5%) 16-18 Apprenticeships £677m (+ 7.1%) Workplace FL1/2/3/4 (e.g. NVQ) and SfL £907m (+ 55.5%) Apprenticeships £1007.2m (+ 6.2%) Employer responsive model 2008/09 Train to Gain £907m (+ 55.5%) “Existing contracts for Train to Gain or Apprenticeships can be renegotiated to include both elements.” “There is an expectation that in 2009/10 a single contract will be issued for colleges and training providers across all Regions.” Train to Gain additional flexibilities v3, LSC, 11/08/2008

4. Vocational ‘full’ quals Nearly always NVQs The products (employer offer) 180+ Apprenticeship frameworks Employment Rights and Responsibilities This element is often covered as part of the NVQ or technical certificate Competence A National Vocational Qualification (NVQ) with assessment methods designed to test competence Transferable, or ‘key’, skills Frameworks include as a minimum, Key Skills in Communication and Application of Number Knowledge Some frameworks have a technical certificate whilst others demonstrate knowledge within the NVQ element Train to Gain Skills for Life“bite-sized chunks” Announced 21/10/08 Set by SSC Flexible

5. The learner age AgeApprenticeshipsTrain to Gain 16-18Eligible and ‘priority group’Ineligible 19-24Eligible and ‘priority group’Eligible 25+Eligible as Apprenticeships for AdultsEligible as ‘priority group’ “Providers recruiting learners to Train to Gain programmes must not conflict with the Apprenticeship policy and recruitment practices. In particular, providers are reminded that the Apprenticeship programme is the preferred option for vocational learners aged between 19 and 25 and they should be recruited onto the Apprenticeship programme wherever possible.” Para 489, LSC Funding Guidance 2008/09, Principals, Rules and Regulations

6. The employer contribution LevelApprenticeshipsTrain to Gain 16-18Fully-funded (free)Ineligible 19+ L2All 19+ co-funded (50% by 2010)All fully-funded (free) 19+ L3All 19+ co-funded (50% by 2010) Fully-funded for first 19-24 first FL3 and FL2 ‘jumpers’ (some free) “Learners, employers or their sponsors are expected to pay a contribution towards the cost of learning (tuition fees) unless they are entitled to fee remission” Para 123, LSC Funding Guidance 2008/09, Principals, Rules and Regulations Train to Gain more attractive route if fully-funded and free? Apprenticeship rates (‘activity cost’) undermined if no charges?

7. The qualification and level LevelApprenticeshipsTrain to Gain NVQ L1IneligibleEligible with LSC permission Full Level 2Eligible as ApprenticeshipEligible (e.g. NVQ) Full Level 3 Eligible as Advanced Apprenticeship Eligible (e.g. NVQ) NVQ L4 & 5IneligibleEligible with LSC permission Basic skills Eligible as Key Skill add quals (minimum of 2) at L1 or 2 Eligible as stand-alone or add qual Skills for Life at E1 to L2 Stand alone short quals Ineligible Soon to be eligible via new flexibilities announced 21/10/08 Train to Gain more flexible/responsive route?

8. The funding As one might expect, many Apprenticeships are funded at higher levels than Train to Gain. However, particularly with the Train to Gain additional flexibilities introduced in 2008/09, this will increasingly not always be the case. Key to following funding slides: SLN: Standard Learner Numbers NFR: National Funding Rate PW: Programme Weighting DU: Disadvantage Uplift TtG U: Train to Gain Uplift FE %: Fee Element percentage FF: Fully-funded CF: Co-funded FFL: First Full Level

9. Funding – L2 example Apprenticeship in Providing Security Services, Skills for Security (230) 19+ ApprenticeshipSLNNFRPWDUFE %Co-funded NVQ 2 in Security Services0.770£2,7751.25140.8%£1,581 Cert for Security Guards L20.067£2,7751140.8%£110 Key Skills in Com L10.080£2,7751117.5%£183 Key Skills in Num L10.080£2,7751117.5%£183 Key Skills in IT L10.080£2,7751117.5%£183 £2,241 Train to GainSLNNFRPWTtG UFE %Fully-funded NVQ 2 in Security Services0.429£2,7751.251.03n/a£1,533 Cert in Lit (any level)0.180£2,7751.51.03n/a£772 Cert in Num (any level)0.180£2,7751.51.03n/a£772 £3,076

10. Funding – L2 example cont. 19+ ApprenticeshipCo-fundedAchieved?Final funding NVQ 2 in Security Services£1,581Y£1,186 (- £395) Cert for Security Guards L2£110Y Key Skills in Com L1£183Y Key Skills in Num L1£183N Key Skills in IT L1£183Y £2,241£1,845 Train to GainFully-fundedAchieved?Final funding NVQ 2 in Security Services£1,533Y Cert in Lit (any level)£772Y Cert in Num (any level)£772N£579 (- £193) £3,076£2,884 0% framework success rate 67% success rate Impact of achievement funding and success (example)

11. Funding – L2 example cont. 19+ ApprenticeshipCo-fundedChange2010 funding NVQ 2 in Security Services£1,581 Fee element rises to 50% for NVQ and Tech Cert £1,335 Cert for Security Guards L2£110£93 Key Skills in Com L1£183 Key Skills in Num L1£183 Key Skills in IT L1£183 £2,241£1,977 Train to GainFully-fundedChange2010 funding NVQ 2 in Security Services£1,533 3% uplift for 2009 and 2010 £1,626 Cert in Lit (any level)£772£819 Cert in Num (any level)£772£819 £3,076£3,264 Impact of changes by 2010/11 (excluding inflation) Funding falls £264 (- 12%) Funding rises £188 (+ 6%)

12. Funding – L2 example cont. Summary of previous Level 2 example £0 £500 £1,000 £1,500 £2,000 £2,500 £3,000 £3,500 App CF TtG FF App CF TtG FF App CF TtG FF Total in 08/09 Non-ach example in 08/09 Key and basic skills Technical Certificate NVQ Total in 2010/11

13. Funding – L3 example Advanced Apprenticeship in Accounting, FSSC (201) 19+ ApprenticeshipSLNNFRPWDUFE %Co-funded NVQ 3 in Accounting1.497£2,7751148.5%£2,139 Key Skills in Com L20.080£2,7751117.5%£183 Key Skills in Num L20.080£2,7751117.5%£183 £2,506 Train to GainSLNNFRPWTtG UFE %Co-funded NVQ 3 in Accounting0.644£2,77511.0342.5%£1,058 Cert in Lit (any level)0.180£2,7751.51.030%£772 Cert in Num (any level)0.180£2,7751.51.030%£772 £2,602 Train to GainFully-funded NVQ 3 in Accounting£1,841 Cert in Lit (any level)£772 Cert in Num (any level)£772 £3,384 Level 3 Entitlement (FFL3 under 25 years of age) or Level 2 ‘jumper’

14. Funding – L3 example cont. Summary of previous Level 3 example Key and basic skills NVQ £0 £500 £1,000 £1,500 £2,000 £2,500 £3,000 £3,500 £4,000 App CF TtG CF TtG FF Total in 08/09 Non-ach example in 08/09 2010/11 App CF TtG CF TtG FF App CF TtG CF TtG FF

15. The provider structure/supply In terms of communication, is your employer offer simple and coherent? Business Dev Unit Apprenticeship Dept Train to Gain Dept Employer And for completeness – full cost recovery? Option 1orOption 2 Apprenticeship Train to Gain

16. The employee/employer need Assessment of employer and employee need is clearly critical  Train to Gain for those over 25?  Train to Gain for those requiring less training and support?  Train to Gain for those requiring more flexible provision? Ultimately, is your employer offer clear why one adult would be an apprentice and another adult would be Train to Gain?  Train to Gain for those employees in short-term work?  Train to Gain for employers that won’t pay fees?  Train to Gain for employers that won’t release employees?  Train to Gain for Skills for Life and ESOL learners?

17. Apprenticeship or Train to Gain? With this knowledge…..  Would the learner age impact on the employer offer?  Would employer fees impact on the employer offer?  Would qualification and level impact on the employer offer?  Would funding levels impact on the employer offer?  Would employee/employer need impact on the employer offer?  Would provider structure/supply impact on the employer offer? If time, discuss at your table and nominate someone to feedback  Will the TtG flexibilities reduce demand for 19+ apprenticeships?

18. The unofficial reading material The hands-on guide to post-16 funding I’ve written this as a reference tool, which should be useful (and even interesting!) for senior managers and governors to curriculum and data/MIS staff www.fundingguide.co.uk There are also free resources (including this presentation) and workshop dates on www.lewisham.ac.uk/pf Let me know what you think!