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Liverpool City Region Employment and Skills opportunities 5th July 2016 Rob Tabb
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Outline Skills Context Area Review and Adult Education Budget Apprenticeship Grant for Employers
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City Region Skills Context 89% of school leavers (15,200) go on to further study 1,300 high needs place allocations for those aged 16+ Achievement levels vary across Local Authorities Overall, achievement of L2 qualifications of City Region learners by age 19 is broadly in line with national rates Level 3 achievement rate at age 19 remains below the national level of 57% Attainment gap between disadvantaged learners and peers is higher locally than across England
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Skills for Growth
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Underpinning Challenges Enhancing links between business and education / training Improving careers education and information, advice and guidance Making it easier for business to invest in workforce skills Promoting progression of individuals Tackling long-term worklessness
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Area Reviews Post 16 restructuring of the further education sector Government desire for more financially robust Further Education sector with sustainable institutions An offer that meets local learner and employer need and provides access to high quality and relevant education and training for all The right balance of provision, including greater specialisation and higher level technical skills Supporting economic development Ahead of devolution of adult education funding in 2018/19
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Devolution of adult education budgets The Adult Education Budget aims to engage adults and provide the skills needed for work, an apprenticeship or other learning. It can offer flexible tailored programmes of learning that may not require a qualification In 2016/17 City Region develops outcome agreement measures and agree with providers the mix and balance of provision locally. In 2017/18 following the Area Review, combined authorities may vary provider funding. In 2018/19 –subject to readiness conditions: full devolution of funding
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National Apprenticeships Context 3 Million Apprenticeship target in this parliament (by 2020) Apprenticeship Levy from April 2017 New funding mechanism for non Levy employers Employer financial contributions expected Public Sector Apprenticeship target - 2.3% of workforce Standards replacing Frameworks
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City Region Apprenticeships Context Around 18,000 Apprenticeship starts in 2014/15 An 8% increase on 2013/14 16-18 are around 23% of all starts 57% of all starts at Level 2 (Intermediate): slightly lower than NW and national trends 38% of starts at Level 3 (Advanced): slightly higher than NW and national trends Only 5% of starts are Higher level Apprenticeships
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Apprenticeships Starts in the City Region
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City Region Apprenticeships Context Around 7 out of 10 Apprenticeships are with private providers, 27% with FE colleges Most popular sectors include: o Business Administration and Law o Health, Public Services and Care o Retail and Commercial Enterprise o Engineering and Manufacturing Popular frameworks at Intermediate / Advanced level: o Health and Social care o Business and Administration o Customer Service o Management
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Key Issues –Apprenticeships Challenge to increase number of younger Apprentices and Higher level Apprenticeships Emerging policy means more emphasis on Apprenticeship delivery for colleges Employers need responsive, high quality provision in a broad range of sectors Important for providers to ensure alternative, vocational offer for all learners
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Devolution of Apprenticeship Grant for Employers (AGE) 1 National scheme - £1,500 to employers with under 50 staff who have not recruited a 16-24 year old Apprentice in last 12 months. City Region AGE from 1st August 2016 (until 31 st December 2016 or until all funds spent). Employers will remain eligible for payment after 13 weeks Expansion of AGE to all City Region based SMEs (up to 249 staff) Reduce time period between grant to those who have not recruited an Apprentice in the last 6 months.
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Devolution of Apprenticeship Grant for Employers (AGE) 2 Employers will be required to pay the National Minimum Wage for the age of the learner rather than Apprenticeship Minimum wage. In return for employers paying the National Minimum Wage, after 13 weeks they could expect: – £3,000 grant for 16-18 year old Apprentices – £2,500 grant for 19-24 year old Apprentices – An additional £1,000 for eligible new recruits on an Advanced or Higher Apprentices The City Region Age Grant will support Frameworks rather than new Standards where incentives are built into the funding mechanism
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Apprenticeship Grant for Employers (AGE) – Process 1 Providers are asked to submit to the City Region an estimate of their AGE needs from August until December 2016 to support planning assumptions There will be a calculator on the Employment and Skills Board website for submission to : lcrage@liverpoolcityregion-ca.gov.uk lcrage@liverpoolcityregion-ca.gov.uk Submission does not guarantee funds will be available to providers City Region AGE will be on a strict first come first served basis until funds are expended
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Apprenticeship Grant for Employers (AGE) – Process 2 Providers will enter LDM code 349 on the ILR (same as national AGE) SFA will automatically reject payment for devolved City Region SME postcodes on validation Providers will be able to identify these learners on their monthly AGE provider report Providers will submit an online City Region AGE application on a new eligible start through the Employment and Skills Board website A provider / employer application pack will be on the Employment and Skills Board website shortly
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Apprenticeship Grant for Employers (AGE) – Process 3 Providers will support employers to apply to City Region AGE Employers will complete a LCR AGE Employer Declaration including a state aid form (as per national scheme) Payments will ideally be direct to the employer – final arrangements are still be to confirmed A claim form is required to be signed by the learner, employer and provider on 13 weeks as evidence. Documents and process to be on Employment and Skills Board website. Enquiries to: lcrage@liverpoolcityregion-ca.gov.uklcrage@liverpoolcityregion-ca.gov.uk
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Questions to consider What impact will the Liverpool City Region AGE have on City Region skills priorities e.g. Level 3 and Level 4 skills? Will higher AGE grants to all SMEs have a positive impact on Apprenticeship starts? Will expanding AGE to all SMEs have a positive impact on performance? How can we help ensure the devolution of AEB has a positive effect on Apprenticeship take up? Will more SMEs pay National Minimum Wage for increased levels of grant?
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Liverpool City Region Employment and Skills opportunities 5th July 2016 Rob Tabb
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