Post on 14-Feb-2017
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Apprenticeships now and the proposed plans going forward
EmployerUpdate
October 2016
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
The Skills Funding Agency (SFA) Commitment to Reform
• Boosting our nation’s productivity to maintain and consolidate our economic recovery.
• Raising skill levels through apprenticeships – reaching 3 million starts in 2020. • That is equivalent to more than one apprentice
every minute over the next five years • Putting employers in the driving seat of creating
apprenticeships that fully meet their business needs.• Making sure that apprenticeships are open to all, with
a 20% increase in BAME apprentice starts in 2020.
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
WHY? Rationale for ReformsWHY? Rationale for Reforms
Employer Driven Employers designing
apprenticeships to make them more responsive to
their needs and the future economy, and controlling funding
Simplicity Simplifying
apprenticeship standards so that they are shorter
and more accessible
Quality Improving the quality of apprenticeships so that
they are viewed with the same esteem as
University
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
WHAT : Main Elements of Reform
Employer-led Trailblazers designing apprenticeships
Giving employers the opportunity to set the skills, knowledge and behaviours you need. Aligned to professional recognition where appropriate.
Short, concise standards replace long, complex frameworks
Providing a clear and attractive ‘shop window’ for parents, apprentices and businesses
All apprenticeships have an end point assessment and include grading
Ensuring that apprentices are signed off as fully competent at the end of their apprenticeship
All apprenticeships must last at least 12 months
Continuing to drive up the quality of apprenticeships
Give employers greater control over funding Enabling employers to be intelligent customers, getting the training they want and driving up quality
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Why Employers Engage with Apprenticeships
• 80% Companies take on apprentices have reported a significant increase in employee retention
• 77% of employers consider Apprenticeships make them more competitive;
• 76% of those employers who employ apprentices agree this makes the workplace more productive.
• Around 81% of consumers prefer dealing with a company which employs apprentices.
• Employers who employ apprentices agree that Apprenticeships lead to a more motivated and satisfied workforce.
• Apprenticeships programme to provide Employers with the skilled workers that they need for the future.
• One in five employers are hiring apprentices to help them through the tough economic climate. Giving them employer growth at low cost
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Funding and delivery comparisonThe way it is Now
Proposed Plans
Skills Funding Agency
Training Organisation
Learning / Assessment
Awarding Body
Employer Contribution (Levy)
SME payment
DAS/ Skills Funding Agency
EmployerTraining
OrganisationAwarding
Body
AssessmentLearning
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Apprenticeship Funding and the Changes planned
Provider control
• Provider funded for delivery of Specification of Apprenticeship Standards for England (SASE) framework
• Employer contribution expected but not always collected
Transition
• Employers have more control over content of Standards• Funding partially to employer (incentives) and provider• Employer contribution in cash (£2 for every £1 from employer)
Employer control
• Content and delivery controlled by employer• Large employers pay 0.5% paybill tax as levy with a 10% top-up • Employer uses digital voucher to pay for training and assessment
7
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Apprenticeship Levy: how it will work
• The purpose of the apprenticeship levy is to fund an increase in the number and quality of apprenticeships
• The levy will apply to all UK employers in both the private and public sectors.
• It is payable on annual pay bills of more than £3 million. Employers with an annual pay bill of less than £3 million will not pay the levy. These employers will continue to have access to government funding to support apprenticeships. In June 2016 we will provide further details of what that support is expected to be.
• Less than 2-3% of UK employers will pay the apprenticeship levy.
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
How much you will pay
• The levy will be charged at a rate of 0.5% of an employer’s pay bill. Levy payments will be collected monthly by HM Revenue and Customs (HMRC) through Pay as You Earn (PAYE), payable alongside tax and National Insurance. Pay bill will be based on total employee earnings subject to Class 1 secondary National Insurance Contributions (NICs).
• There will be a £15,000 fixed annual allowance for employers to offset against their levy payment
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Examples
Example 1:• Employer of 250 employees, each with a gross salary of £20,000 would pay:• Pay bill: 250 x £20,000 = £5,000,000 • Levy sum: 0.5% x £5,000,000 = £25,000• Allowance: £25,000 - £15,000 = £10,000 annual levy payment
Example 2:• Employer of 100 employees, each with a gross salary of £20,000 would pay: • Pay bill: 100 x £20,000 = £2,000,000• Levy sum: 0.5% x £2,000,000 = £10,000• Allowance: £10,000 - £15,000 = £0 annual levy payment
• Levy payments will be payable monthly to HMRC
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
What happens to the Levy
• The money will be collected by HMRC will be made available to them via a new Digital Apprenticeship Service (DAS) account. • Employers will be able to use this to pay for training for apprentices.
The service will also support employers to identify a training provider, choose an apprenticeship training course and find a candidate.
• The DAS will also enable employers to:• select an apprenticeship training course• choose the training provider or providers they want to deliver the
training• post apprenticeship vacancies
• The main functions of this service will be in place in 2017.
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Apprenticeship Reforms: Withdrawal of Frameworks
• As part of the apprenticeship reform programme, apprenticeship frameworks will be replaced by New Standards
• This will not affect those apprentices currently completing their apprenticeship on existing frameworks
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Spending the Levy
• Employers will be able to use their funding (up to a cap which will depend upon the standard or framework that is being trained against) to cover the costs of an apprentice’s training, assessment and certification.
• Employers will not be able to use levy funds to cover all the costs associated with taking on an apprentice. For example, overheads, supervision costs and apprentices’ wages will not be funded by the levy.
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Changing Content
What is being removed?
• Employment Rights and Responsibilities disappears• However, apprentices will still need good careers
advice, information and guidance• Personal Learning and Thinking Skills will be
replaced by Behaviours; these will require specific training
• On Programme Assessments will be replaced by independent End Point Assessments
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
SMEs (organisations not qualifying for Levy)
• SMEs to stay on the current funding system until 2019 but will have to make a 10% mandatory contribution to Training
VAT may have to be paid on this 10%
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Comparison of Framework and Standards Funding
Frameworks (current system) Standards (newly planned)
2012/13 listed rates per qualification on LARS not linked to fee charged to employer
Different rates per age group (16-18, 19-24, 25+)
Cost weightings, disadvantage and area cost uplifts
Achievement 20% of funding paid to provider
25% discount for large employers with 1000+ staff
16-24 Apprenticeship Grant for Employers with less than 50 employees
One of 6 capped rates per standard linked to fee
Rate is the same regardless of age with 16-18 employer incentive only
No disadvantage and area cost uplifts
Successful completion payment to employer
No incentive payment to employers with 50+ staff
Small employer (less than 50 employees) incentive paid to employer
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Apprenticeships Standards Proposed 15 funding bands.
• There is a move away from the current system of pricing apprenticeship frameworks at three different levels depending on the age of the learner, and move towards a single funding band for individual framework pathways.
• They are proposing that all employers will benefit from an additional payment to help with the costs of supporting apprentices aged between 16 and 18 years old or where the apprentice is 19 to 24 years old and is a care leaver or has a Local Authority Education, Health and Care plan.
• The suggested rate is !000 for the employer and 1000 for the provider.
17
Number Band Upper Limit 1 £1,5002 £2,0003 £2,5004 £3,0005 £3,5006 £4,0007 £5,0008 £6,0009 £9,00010 £12,00011 £15,00012 £18,00013 £21,00014 £24,00015 £27,000
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Who provides the training
• Employers can only spend their levy funds on apprenticeship training delivered by an approved provider.
• This could be through buying in training from an approved provider or delivering the training themselves.
• To deliver training the employer would need to register as an approved provider and be subject to Skills Funding Agency (SFA) quality arrangements and Ofsted inspection. • This may be onerous for employers tying them down
with red tape
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Revolution in Assessments
• Training Providers will:• have a diminished responsibility for assessing• Increase added value to the Apprenticeship system;
by including the delivery of high quality learning tailored to employers’ needs.
• Training standards will be specific to job families/roles and not sectors
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Institute for Apprenticeships(IfA)
• Over the next year or so the IfA will be working to ensure the organisation is ready to launch in April 2017, ensuring quality apprenticeships that meet the needs of businesses
• The IfA will help police employers as apprenticeship reforms take effect
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
When further information will be available
October 2016• In October 2016 there will be information about apprentices starting from
May 2017, including:• final levels of:
• funding• government support• additional support for 16- to 18-year-olds• English and maths payments
• final detailed funding and eligibility rules
December 2016• In December 2016 there will be information about further employer guidance
from HMRC on how to calculate and pay the apprenticeship levy.
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Keep in Touch:
• https://uk.linkedin.com/in/safaraz
• https://www.facebook.com/pathwaygroup/
• @pathwaygroup @SafarazAliSafaraz Ali (Saf)Safaraz@pathwaygroup.co.uk
Eddie Cottis (Eddie)Eddie.cottis@pathwaygroup.co.uk
Alternatively phone: 0121 707 0550
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
HOW: Delivery so far
• Over 1400 businesses in over 100 sectors involved
• 241 standards published so far • 114 ‘ready to deliver’ –
standard and assessment plan approved, funding Cap allocated
• Over 172 standards in development
• Around 40% of standards so far are for
• Higher and Degree apprenticeships
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
HOW: Delivery so far
• Standards developed/in development so far• 400 starts in 2014/15 across nine standards• Increasing number of starts on standards going
forward - 700 starts in the first quarter of 2015/16
P A T H W A Y S
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Costing template (if
needed)
Trailblazer forms & submits expression of interest
Trailblazer writes new standard
Assessment Plan
Approved by Gov’t
Approved by Gov’t
Approved & funding band
allocated
Register of Assessment
Organisations
Online Consultation
Online ConsultationOnline
Consultation
Delivery
Monthly submission dates and regular publication on direct.gov
HOW: Trailblazers design standards and assessments
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
WHEN: Transitional arrangements
• The government envisage a migration from apprenticeship frameworks to standards over the course of the Parliament, with as much of this to take place by 2017/18 as possible
• There will be dual running in the interim, with potential switch off of some frameworks/pathways earlier than others
• Notice was given to withdraw the first seven frameworks in March 16 - these frameworks have closed to new apprenticeship from 1 June 2016. Since then batch two has been completed and currently consulting on batch three is taking place which closes on 3rd August 2016.
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Standards are
• Designed and written by employers • Clear and concise, typically no more than two pages long• Include occupation title, occupational profile, ‘knowledge,
skills and behaviours,’ typical duration, any mandatory qualifications, entry requirements, professional recognition, level, review date
• The minimum requirements for English and mathematics • A minimum length of 12 months – some standards may
take longer • May include Core and options
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
What is an Assessment Plan?
• A short document (we recommend a maximum of 10 pages) which:
• Outlines how the Apprenticeship is being assessed.
• Clarifies roles and responsibilities - of the Apprentice, the Employer and the Assessment Organisation.
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
A Good Assessment Plan will
• Focus on describing the end point assessment (It should only briefly describe what on-programme elements – which can only be recommended)
• assess the Apprentice in a holistic way, across the standard, to ensure they are fully competent.
• deliver rigorous, high quality, assessments to maintain standards over time.
• ensure that the Apprentice is assessed fairly in an independent and impartial way.
• allow each employer the freedom to decide who undertakes the assessment
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Potential methods of end-point assessment:
• Practical assessments. • A viva to assess theoretical or technical knowledge or discuss
how the apprentice approached the practical assessment and their reasoning
• Production of a project• A portfolio of work with another method of assessment• Observational assessment• Written and multiple choice test • Virtual assessment, such as online tests or
video evidence as appropriate to the content
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Benefits
• Employers in the driving seat – ensuring the apprenticeship really represents the job. So employers get effective employees and apprentices get more relevant transferrable skills for a career
• Occupation specific – this is a key selling point for employers – they do not just have use a generic standard, but can have a bespoke standard for their sector and job role
• Simplified apprenticeship standards – easy ‘shop-front’ for all stakeholders to understand what the apprenticeship is about (unlike length frameworks)
• Increased flexibility for training delivery
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Further Information
• Government hub page on apprenticeship reforms updated with all of the latest information:https://www.gov.uk/government/collections/apprenticeship-changes
• Published standards and those under development:https://www.gov.uk/government/collections/apprenticeship-standards
https://www.gov.uk/government/publications/apprenticeship-standards-in-development
• Guidance for developers of standards:https://www.gov.uk/government/publications/future-of-apprenticeships-in-england-guidance-for-trailblazers
• Online survey for feedback on EOIs, standards and assessments plans:https://www.gov.uk/government/publications/apprenticeship-standards-changes-to-the-process-for-approvals
• Easy reference listing of all standards:https://www.gov.uk/government/publications/apprenticeship-standards-list-of-occupations-available
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Key Changes for Providers
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Key changes for providers
• New apprenticeships funding model using price bands and a simpler funding model
• Expected to move to financial year funding for all employers
• New register of apprenticeship training providers• New contracting model for providers covering levy and
non levy paying employers
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Employer (levy) commitment and contracting
OUTPUT:Levy commitment is
recorded in the digital apprenticeship service and appropriate contracts are
in place.
6April 2017 - HMRC begins collecting the
apprenticeship levy from large employers
The Digital apprenticeship
service goes live.
Digital apprenticeship service registration
verifies the identity of an employer. The
employer registers to create a digital
apprenticeship service account. The
employer verifies & links PAYE scheme(s) to their account. The employer can then
view their levy account balance.
The SFA maintains a library of
apprenticeship standards and a
catalogue of providers’ course offerings helping
employers search and select the right
Provider andstandard. The SFA provides a ‘recruit an apprenticeship’
service for employers.
The employer and provider agrees a
price and the employer records the details in the
digital apprenticeship
service initiating the ‘double-lock’ which will be confirmed by the provider via ILR
returns.
The SFA issues an agreement to the selected provider, with a schedule to cover the value of the deal, or update
the existing agreement if this is not the first deal.
The provider can now begin
delivering the apprenticeship.
The SFA is able to manage the
apprenticeship budget by
monitoring and forecasting levy commitments.
TRIGGER: The digital Employer registration Search and Select Commit levy funds Agree contracts
OUTPUT: Levy commitment is recorded in the
digital
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Employer (non-Levy) ProcessSFA procures
non-levy provision
A contract is agreed with
providers
Employer and provider agree
deal
Provider submits ILR
SFA pays funding
Employer pays contribution
The SFA invite and select those providers on the
register of apprentice
training providers to tender to
deliver co-funded apprenticeship education and skills training.
A contract for services between the SFA and the
provider to deliver non-levy funded apprenticeship
education and skills training is agreed.
A non-levied employer agrees a deal with an SFA-approved provider
to deliver apprenticeship
education and skills training.
The SFA monitors the performance of
a provider delivering non-levy funded apprenticeship
education and skills training through
monthly ILR submissions.
The SFA calculates the funding due to the provider and
payment is made.
The employer pays the agreed
contribution.
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Delivery and achievement
A training provider from the list of pre-approved training providers has an
ancillary agreement in place to provide
training to a levied employer.
Providers submit on a monthly basis an
ILR containing:• Start Date• Employer
• Apprentice Details
• Learning aim code
• Agreed price
SFA checks that the details in the ILR match with the details in
digital apprenticeship
service
The SFA will calculate the funding earnt by
the provider.• SFA pays from
levy at full value• SFA pay any
outstanding balance at co-
funded rate
The provider will submit evidence of completion to
the SFA.
The SFA are able to track government
funding being used to pay providers for
apprenticeship training.
Trigger: Apprenticeship
Start Provider submits ILR Double Lock Calculate funding&
payment
Achievement Payment.End point
assessment if required
OUTPUT: Apprenticeship
certification completed
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
View the current balanceof your levy and expiringfunds that you might lose
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Key funding policy decisions
• Single funding model• 10% monthly top-up• Approach to co-investment• Funding of 16-18 year olds• Funding for additional needs• Funding for English and maths training• Incentives
Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup
Key funding policy decisions – in discussion
• Approach to funding equivalents and lower level qualifications
• Level of co-investment• Transfer of funds between employers• Setting of price bands