Young Workers Engagement Project The Apprenticeship Levy I’d like to talk to talk to you about the Apprenticeship Levy, How it will affect workplaces what risks and opportunities it presents the GMB.

Opportunity Growth Support Learning Qualifications What’s the problem? UK productivity lags behind other developed economies… So, some background information. Why is the levy being introduced? figures show that UK Gross Domestic Product is low compared to other developed economi a result of a drop off in investment in training by employers. … and employers are investing less in training

Apprenticeship reforms Opportunity Growth Support Learning Qualifications Apprenticeship reforms The government is committed to significantly increasing the quantity and quality of apprenticeships in England to reach 3 million starts in 2020: Institute for Apprenticeships- a new independent body established by government and led by employers to support and regulate quality apprenticeships Trailblazers- a group of employers who work together to design new apprenticeship standards for occupations within their sectors. To address the problem of skills gaps the government have introduced some significant reforms to Apprenticeships and they aim to increase numbers of new starts to reach 3 million by 2020. Institute for Apprenticeships- An independent body set up by the government to support and regulate the new quality apprenticeships. Trailblazers- WILL include wide range of employers (at least 10), a rep from dept. Business Innovation and Skills. COULD include Professional bodies, Training providers, Awarding or assessment organisations, Sector Skills Councils. Legal Protection- “apprenticeship” can only be used for 12 month min approved standards, stops low quality training and exploitation, xmas working Legal Protection- the definition of an “Apprenticeship” will be legally protected and must meet recognised standards. Targets for public sector bodies – public sector must aim to have 2.3% of its workforce comprised of apprenticeships.

The Apprenticeship Levy Opportunity Growth Support Learning Qualifications The Apprenticeship Levy The Apprenticeship Levy will be a levy on UK employers to fund new apprenticeships Any UK employer, in any sector, with a pay bill of more than £3 million per year is liable to pay the levy. An allowance of £15,000 to offset against levy liability 10% top up will be paid from other employers unused expired funds Employers in England who pay the levy and are committed to apprenticeship training will be able to get out more than they pay into the levy, through a 10% top up to their digital accounts. Funds expire after 24 months.

Levy calculation Opportunity Growth Support Learning Qualifications 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 of £15000: £25,000 - £15,000 = £10,000 annual levy payment £833 per month + 10% top up = £916

Digital Account Opportunity Growth Support Learning Qualifications Find the Apprenticeship Framework / Standard that fits your business. Choose an approved training provider and assessor. Register a secure account and manage your Levy funds. Negotiate cost of training and set up payments to training provider. Advertise Apprenticeship vacancy.

Trade Union Opportunities Opportunity Growth Support Learning Qualifications Trade Union Opportunities Reclaim Training & Development in the workplace as a Trade Union issue through ULRs and Learning Committees. Recruitment of young workers coming in to the workplace through an apprenticeship programme which is approved and supported by GMB reps and ULRs. Recruitment of existing workforce who receive apprenticeship training as a result of GMB involvement. In some workplaces T&D has become a forgotten issue for the union Reclaim T&D by engaging existing Reps, recruiting new ULRs and establishing Learning Committees If GMB is involved in negotiating and organising Apprenticeship schemes we can recruit young workers at induction stage There are opportunities to recruit from existing workforce if they see the GMB negotiating good T&D for them.

Trade Union Opportunities Opportunity Growth Support Learning Qualifications Trade Union Opportunities Ensure that members get a fair share of the training opportunities created by the Levy. Help members to negotiate training opportunities which will improve their employability and self development. We can help workers to have a say in what training is delivered and who receives it. Help workers to improve their employability and self development through training.

If we don’t get involved! Opportunity Growth Support Learning Qualifications If we don’t get involved! Non Apprenticeship training reduced. Unfair distribution of Apprenticeship training. Budget cuts to offset the cost of the Levy. Training that is currently delivered but will not be covered by the levy fund may suffer, employers can sometimes negotiate this as a package from providers. Employers will cherry pick where they want to invest Training Eg Wienerberger 160k levy payment, 77k to be spent on 8 management degree level apprenticeships. Maybe some level 3 for teamleaders, no plans for anyone below teamleader. Claims there are no Standards available for factory production workers, old Frameworks can be used. Budget cuts elsewhere in business to offset levy We need to protect the Terms and Conditions of existing workers as they become apprentices. Potential changes to T&Cs of existing workers as the become Apprentices.