1. Modern Apprenticeships
Funding
Paul McGuiness
National Operations Manager

2. Modern Apprenticeships Funding
Agenda
Key Principles
Consultation exercise
Modern Apprenticeship Budget/Target
Funding Support
Occupational Groups and MA frameworks
Funding Elements
Funding of MAs
Examples of Contribution Rates
Rural Uplift
Q&A

3. Modern Apprenticeships Funding
Key Principles
fit with our duty to provide the minimum funding necessary to encourage the provision of apprenticeships by employers
take account of Scottish Government economic and youth employment priorities
promote a quality service, by reflecting the differential levels of training and assessment input required across the occupational groupings and VQ levels
fit with existing and projected budgets as well as existing MA delivery methodologies and frameworks
are sufficiently transparent and uncomplicated
Public funding should represent the minimum contribution necessary to encourage the provision of training – (Parliamentary Audit Committee Review of MA 2000)

4. Modern Apprenticeships Funding
Modern Apprenticeships budget/target
New starts 27,000 MA starts target (2017/18) – increasing year on year ,000 by 2020
In-training carrying over into next financial year (liability) c. 72% of budget spend on this group
New starts across range of occupational groups, age groups and levels of MAs
Greatest focus on year old cohort then cohort (75%+ starts at age group)
Greatest focus on level 3+ (65% of starts at level 3+)
Budget estimated spend - £79 million

5. Modern Apprenticeships Funding
Modern Apprenticeships budget/target

6. Modern Apprenticeships Funding
MA Contracted Volumes by SCQF Level

7. Modern Apprenticeships Funding
MA Contracted Volumes by type of organisation

8. Modern Apprenticeships Funding
Funding Support
Individuals aged 16-24: Individuals in this age group are eligible for support in completing any approved MA frameworks;
Individuals aged 25+: Government support for individuals in this age group is targeted towards specific sectors and only the relevant MA frameworks are eligible for funding
Funding for the Public Sector:-
Government funding for individuals aged who work within the Public Sector is available for any MA framework, with no restriction on the length of time in employment;
Government support for individuals aged 25+ who work within the Public Sector is targeted at eligible Modern Apprenticeship frameworks, with no restriction on the length of time in employment

9. Modern Apprenticeships Funding
Occupational Groups and MA frameworks

10. Modern Apprenticeships Funding
Occupational Groups and MA frameworks

11. Modern Apprenticeships Funding
Occupational Groups and MA frameworks

12. Modern Apprenticeships Funding
Occupational Groups and MA frameworks

13. Modern Apprenticeships Funding
Occupational Groups and MA frameworks

14. Modern Apprenticeships Funding
Funding Elements
Essential elements of an MA
Administration
Formal taught learning as defined in the MA Framework
Assessment
Core skills/career skills
Others relating to SDS Board & Scottish Government priorities
Age at start, prioritising younger participants
Addressing occupational segregation issues
Level of MA framework
Sector – supports key/growth

15. Costing – evidence & calculations for contribution per element
Key Elements
Evidence examined
Administration
Estimated time spent in admin requirements of CTS and SDS inc compliance, QA etc
Registration & Certification process with Awarding bodies and SSCs
Additional taught learning required as per the MA Framework
Formal taught learning, additional to the SVQ which is delivered off the job by the training provider or away from the workplace e.g. college. This is defined in the framework documentation. For engineering the individual must undertake PEO an NC or HNC in addition to the SVQ L3 to achieve the L3MA in Engineering.

16. Costing – evidence & calculation for contribution per element
Key Elements
Evidence examined
Contribution & Calculation
Assessment
Time taken in assessment as reported by Learning providers and in evidence submitted by SIA and compliance.
Three tiers of pricing for assessment relating to the demands of the knowledge and learning required to demonstrate competency.
Core skills/Career skills
Credit values of both converted into learning hours circa 30hrs. Reviewed MA framework requirements for core skills.
Core skills price set at two levels within – higher level payment to reflect complexity of evidencing core skills in more involved MA frameworks. MA core skills paid at one rate to recognise capacity and capability of older apprentices.
Other SG priorities
Age at start by level
SG and SDS Board priority; recognises additional support required to make transition from school /unemployment .
SG has objective justification for enhancing payments based on the age of the participant.
Applied sliding scale across rate and level.
MA Framework level and complexity
Research highlights higher returns to Level 3 plus qualifications. Review of frameworks highlights complexity of competence required to be evidenced.
Applied rate per level and type of framework.
Sector – key/growth
Takes account of key/growth sectors but also sectors considered to be important to the Scottish economy
Applied differential flat rate premiums to key and growth sectors.

17. Modern Apprenticeships Funding
Funding of MAs
Payment Plan model
Each qualification within an MA framework has a payment plan that sets out how SDS will fund and the evidence requirements
16-19 year olds – start payment, milestone payments and outcome payment (paid on completion of the MA)
20-24 and milestone payments and outcome payment (paid on completion of the MA)
Claims
Evidence in line with requirements of payment plan – e.g. progress towards the SVQ, e.g. Achievement of a unit of the SVQ or quarterly progress review model (engineering)
Providers etc claim when they have the evidence as set out within the payment plan

18. Modern Apprenticeships Funding
Business Administration IT
Management
Customer Service
Level age group
£1,700
£2,700
n/a
£1,300
Level age group
£8,200
£4,000
£2,000
Level age group
£2,250
£6,800
Level age group
£1,000
£500
Level age group
£1,500
£4,200
£950
Level age group
£850
£2,650
Level age group
£450
£350
Level age group
£600
Level age group
£2,400
Contribution rates

19. Modern Apprenticeships Funding
Rural Uplift
SDS set up a rural MA working group to examine the issues raised by employers and training providers regarding the costs of accessing training in more remote and rural areas of Scotland
Concerns raised around cost to visit employers in remote locations, additional costs for assessors etc
For 2017/18 a rural support policy has been adopted for apprentices who live in the following Local Authority areas:
Aberdeenshire; Argyll and Bute; Highland; Isle of Arran; Moray; Orkney; Perth & Kinross; Shetland; Western Isles; Dumfries and Galloway and Scottish Borders

20. Modern Apprenticeships Funding
Rural Uplift – How this will be funded

21. Modern Apprenticeships Funding
Q&A