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What is the Apprenticeship Levy

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Presentation on theme: "What is the Apprenticeship Levy"— Presentation transcript:

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2 What is the Apprenticeship Levy
3 million apprentices by 2020 0.5% of paybill Introduced April 2017 for employers with £3 million pay bill + Maintained and voluntary aided schools included in the council levy Enterprise Bill – 2.3% of workforce are apprentices in the public sector All government contracts of £10 million + lasting 12 months+ need to compete on basis of apprenticeship contribution Institute for apprenticeships Converted into “digital credits” in an account to spend on apprenticeship training Non—levy paying employers will have places co-funded by govt, with a mandatory employer cash contribution of 10% (which will be audited.

3 What will be in an Apprenticeship
Framework Public funded ones are OUTGOING By 2020 all will be removed with no new starts First frameworks are being “turned off” now Mandatory qualifications, english, maths and IT. Competence assessed throughout programme Apprenticeship Standards Levy funded ones are INCOMING Designed and owned by employers Funding can start now as part of pilot, but will be compulsory from Aug 17 2 page standard of expected skills, knowledge and attitudes End assessed

4 New Apprenticeship Standards
Developed by employers 2 pages in length Knowledge, skills and behaviours to be achieved Some have mandatory qualifications. Some have optional qualifications. Some have no qualifications. Level 2 to Level 7 hip-standards Must be rigorously END ASSESSED with end assessment organisation Minimum level 2 English and Maths Assigned one of 15 funding caps Minimum 12 and 1 day before end assessment can start

5 End assessment - New standards
Independent end assessment means that those that make a decision on the competency of the apprentice have nothing to gain from the outcome of the assessment. Independent and impartial Register of assessment organisations apprentice-assessment-organisations The provider can recommend an assessment organisation The employer chooses the assessment organisation Employer contracts with the lead provider and the assessment body. The money flows from employer Digital Account to lead provider. The lead provider pays the assessment body.

6 How does Apprenticeship funding work
Payments will be collected monthly into the levy by HMRC in cash. Value is “charged up” as digital credits in the employer’s digital account Employer spends digital account by inputting data into the digital account of the apprenticeships it is delivering and the chosen provider A monthly digital debit for each apprentice is made to the account An equal cash payment is made to the nominated provider Monthly amounts are calculated based on the funding band for the chosen apprenticeship, and the planned length of the programme Covers all training costs, registration and assessment for mandatory qualifications, and apprenticeship end assessment. Provider pays the chosen end assessment organisation. English and maths and additional learning support paid by provider Unused funds expire after 24 months. Employer pays the apprenticeship wages. (Class 1 NI Payments for apprentices under 25 will be abolished)

7 Cash incentives to employer
Funding Bands Cash incentives to employer £1000 for 16-18s, with EHCP or LAC

8 How schools can use the levy

9 Costs

10 Potential Standards for Schools

11 Where are we now Register of Apprenticeship Training Organisations
Digital Account Apprenticeship Frameworks and Standards Working Group North of Tyne Apprenticeship Work Stream End Assessment Apprenticeship Investment: New starts grant assistance and mentoring posts Recruitment Campaign for 200 new starts summer 2017 Schools - Target of 20 starts sharing £44k of grant funding. Can you help? Fully funded vacancies for LAC and SEND learners.

12 Learning and Skills Service Role
Managing the digital account Preferred provider and direct deliver Commission gaps in provision Develop new delivery arrangements where schools / departments can co-deliver under the L & S ATO status Collect £1000 cash incentives and pass to employing department Contract with and organise all end assessment Free recruitment and advice service Contact Education Lead for Apprenticeships and Traineeships

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