Apprenticeship ReformsTransitioning Plans

8-Step Guide Webinar

Paula Gibson

Business Solutions Manager

23 November 2016

AGENDA

• Welcome and purpose of the webinar

• Quick re-cap on the reforms and new funding

• Dual funding systems and timelines

• 8-step guide to transitioning to the new standards

• Support for you

• Questions

UPDATE ON KEY FACTS

• The government is committed to increase the quantity

and quality of apprenticeships in England – reaching

three million starts in 2020.

• An employer apprenticeship levy will be introduced

by the government in April 2017.

• The levy applies to any employer with a pay bill

over £3m – 0.5% of pay bill.

• At the same time, the DfE have reformed the

funding and learning delivery arrangements.

• Any provider that wishes to continue to

deliver apprenticeships from May 2017

will need to be on the RoATP.

DUAL FUNDING SYSTEMS

Dual system, dual processes:

Levy

Paying

Employers

Levy paid

Price agreed

Monthly deductions

paid to provider

Co-investment top up – if insufficient

funds

Non-Levy

Paying

Employers

Employer’s own funds

Agreed priceand payment

schedule

Invoicedby provider

Co-investment with government

MAY 2017 IS COMING:

TIMELINE

November

2016

December

2016

January

2017

February

2017

March

2017

April

2017

May

2017

Applications

to RoATP

•

Respond to ITT

for supply of

provision to

non-levy paying

employers

HMRC publish

guidance for

levy paying

employers

•

Input course

data into provider

portal Course

Directory – Find

Apprenticeships

search facility

Employers

can register

on the DAS

Non-levy ITT

outcome published

•

First successful

applications

to RoATP

published

Second round

of applications

to RoATP?

•

Employers start

paying the levy

First apprenticeship

delivery under new

arrangements to

non-levy and levy

paying employers

Do you have the

ability to deliver

apprenticeships?

Are you

marketing your

apprenticeships

offer?

Are you

demonstrating a

commitment to

help employers?

How much do

your employers

know about

the DAS

(if levy-payers)?

Are you

engaging with

levy and non-

levy employers?

What funds will

your employers

have in their levy

account and will

this impact cash

flow?

Are you ready

to deliver?

MAY 2017 IS COMING:

YOUR 8-STEP GUIDE

Have you defined and

developed your full offer

on programme and end

assessment?

Is your pricing confirmed

and have you checked

affordability?

Have you evaluated your

internal capability and

capacity to deliver?

Do you have systems

and processes in place

to deliver?

Has your Senior Leadership

Team signed off a business

apprenticeships strategy?

Your apprenticeship strategy1

Have you done a health

check of your current

offer and researched

Occupational Standards?

Review your current offer2

Do you have a finance model

for your apprenticeship

delivery from May 2017?

Financialplanning3

Have you engaged with

employers to evaluate

future customer needs and

predicted learner volumes?

Engaging with employers4

Defining your offer5

Pricing andaffordability6

Capabilityand capacity7

New systems and processes8

STEP 1

YOUR APPRENTICESHIP STRATEGY

• Do you have a five-year plan?

• Does your future strategy align

with government priorities?

• Will you specialise in specific

occupations or do you plan to

engage a large employer and

support theirs?

• Are you aware of the financial

implications beyond May 2017?

What’s your strategic direction

per industry area?

Defend existing business and

revenue

Grow business in the apprenticeship

market

Reduce delivery of

apprenticeships

STEP 2

REVIEW YOUR CURRENT OFFER

• Current delivery model review –

what’s working and what isn’t?

• What’s your predicted growth

of apprenticeships over the

next five years?

• Do you have an approach to target

more 16-18 year olds?

• What occupations will grow?

• Where would you like

to sustain and grow?

ProgrammeType

Framework Name

Approximate Annual Recruitment

Level 2 Catering & Professional Chefs 50

Level 2 Health & Social Care 20

Level 3 Health Dental Nursing 5

Level 2 Hospitality Services 25

Level 2 Plastering 10

Level 2 Plumbing & Heating 75

Level 3 Science Lab Tech 22

Level 3 Supporting Teaching & Learning in Schools 15

Level 2 Vehicle Maintenance & Repair 10

Level 2 Warehousing & Storage 5

STEP 3

FINANCIAL PLANNING

• Have you mapped your existing apprenticeship framework

volumes to the new standards?

• Have you linked this to the new funding rules from May 2017?

• Which standards can you start to pilot now?

• What are the financial implications of offering

the new Standards early?

ProgType

Framework name Approx. Annual Recruitment

Current Funding Based on Average between 16-18 and 19+

New Proposed Funding (FRMW)

Standard name

New Proposed Funding (Standard)

Standard Approved

End Point Assessment

Level 2 Catering & Professional Chefs 50 £4,975 £2,500 Commis Chef £6,000 ✓✓✓ City & Guilds

Level 2 Health & Social Care 20 £4,133 £1,500 Adult Care Worker £2,000 ✓✓ City & Guilds

Level 3 Health Dental Nursing 5 £5,074 £2,500 Dental Nurse £6,000 ✓✓✓ City & Guilds

Level 2 Hospitality Services 25 £3,940 £1,500 Hospitality Team Member £3,000 ✓✓✓ City & Guilds

Level 2 Plastering 10 £8,798 £6,000 Plasterer (Only Level 3 Now Available)

✓✓ City & Guilds

Level 2 Plumbing & Heating 75 £6,847 £5,000

Level 3 Science Lab Tech 22 £12,420 £9,000 Laboratory Technician £18,000 ✓✓✓

Level 3 Supporting Teaching & Learning in Schools

15 £5,825 £2,500 City & Guilds

Level 2 Vehicle Maintenance & Repair

10 £8,344 £7,028 Motor Vehicle Service and Maintenance Technician (Light Vehicle)

£18,000 ✓✓✓ City & Guilds

Level 2 Warehousing & Storage 5 £2,736 £1,500 Warehouse Operator ✓ City & Guilds

STEP 3 MAPPING THE

NEW STANDARDS EXAMPLE

Scenario 1 – stay with SASE Framework

Current funding available on SASE

Framework, for cohort of 10 = £83,440

Compared with…

SASE funding change (post May 2017)

for cohort of 10 = £70,280

Potential Funding Reduction = £13,160

Scenario 2 – change to New Apprenticeship Standard

Funding available on New Standard (post May 2017)

for cohort of 10 = £180,000

Compared with…

SASE Funding change (post May 2017)

for cohort of 10 = £70,280

Positive Income Uplift = £109,720

ProgType

Framework name Approx. Annual Recruitment

Current Funding Based on Average between 16-18 and 19+

New Proposed Funding (FRMW)

Standard name

New Proposed Funding (Standard)

Standard Approved

End Point Assessment

Level 2 Vehicle Maintenance & Repair

10 £8,344 £7,028 Motor Vehicle Service and Maintenance Technician (Light Vehicle)

£18,000 ✓✓✓ City & Guilds

STEP 3

WHICH APPRENTICESHIPS TO OFFER

SASE or New Standards?

Evaluate which new standards are in development and the business opportunity for transitioning now or later.

Example: Grow business in the healthcare sector following initial research

I ALREADY DELIVER SASE APPRENTICESHIPS

What will be covered by the new standards?

What are the financial advantages of moving to the new standards?

If I choose to continue delivering SASE until the funding is switched off, what are the risks?

STEP 3

DECISIONS YOU NEED TO MAKE

OLD VERSUS NEW

Stay with SASE Frameworks

• Funding may not be enough to deliver.

• Potential for loss in revenue.

Stay with SASE Frameworks for now

• Short term financial challenges but time to plan

for embedding the new Standards.

Move to new Standards now

• Potential for more funding after May 2017.

Switch off delivery

• Loss of income until you implement a new plan.

STEP 3

DELIVERING THE NEW STANDARDS

Benefits of delivering the new Standards

• More funding available

• A more attractive proposition for employers

• New Standards may better meet small business requirements

• More attractive programme for learners

• Staying ahead of competitors by establishing your

centre as a leader in new apprenticeships

STEP 4

ENGAGING WITH EMPLOYERS

• Evaluate your relationship with your employers.

• Set out your employer engagement plan for levy fee-paying

and non levy fee-paying employers.

• Understand their business – what are their skills gaps now

and in the future?

• Shift from transaction to strategic.

• Analyse future inward investment and plans to target employers

not already engaged.

• Examine what sets your offer apart from your competitors.

• Consider full-time prior learning such as City & Guilds

TechBac or Technical Certificates.

STEP 4 ARE YOU WORKING

WITH THE RIGHT EMPLOYERS?

Does the employer have:

• the capability, capacity and ability to deliver the apprenticeship?

• the appropriate support staff?

• the commitment to deliver in time and within budget?

Note: Quality employers should have a clear understanding of

Organisational Needs Analysis and the related Training Needs

Analysis for their business.

STEP 5

DEFINING YOUR OFFER

Undertake Research and Analysis and examine:

• Where the future skills gaps are in your area

and how this maps to the new standards.

• Which standards are ready to deliver and

if you can begin to pilot now.

• Which occupational areas you should pilot.

• If your offer is qualification-based or a

bespoke programme.

STEP 5

DEFINING YOUR OFFER

On-Programme Gateway End-point assessment

Property maintenance L2

Logbook / Portfolio of evidence

Research assignment

Employer and assessor review ‘Record of Achievement’ to ensure requirements are met.

Synoptic knowledgeassessment

Synoptic practicalassessment

Synoptic interview

Motor Vehicle Service and Maintenance Technician (Light Vehicle) L3

Skills test

Logbook review

Knowledge test

Skills test

Logbook review

Knowledge test

Logbook review Skillstest

Logbookreview

Knowledge test

Behaviourtest

Gate

way 1

Gate

way 2

Gate

way 3

Software Developer L4

Vendor / Professional Qualification

Portfolio Based on ongoing assessment, readiness deemed by employer and provider.

SummativePortfolio

Synoptic project

Structuredinterview

Actuarial L4

Logbook Institute exam & knowledgeassessment

Real work product

IFoA exam the only pre-requisite to getting through the gateway to final assessment.

Summative showcase

Interview

STEP 5 DEFINING AND

DEVELOPING YOUR OFFER

Consider the following options:

• Qualification-based: A delivery model that

includes the learning and practical training

to prepare for the mandatory assessments

specified by the Trailblazer group.

• Bespoke programme: A provider or employer

may develop their own bespoke programme

of learning and training that prepares the

apprentice for end assessment.

• A bespoke programme with accreditation:

A provider can chose to accredit their

programme with an awarding organisation.

Add value to your offer for employers

• Awareness days

• Employer support and training

• Employer engagement

• Support in initial assessment

• Support in recruitment

• Publicity

STEP 5 CHOOSING AN

ASSESSMENT ORGANISATION

Who selects an Assessment Organisation?

• Providers can recommend a listed organisation

but the final choice is down to the employer.

• The lead provider will pay the assessment

organisation as part of their overall agreement

with the employer. The confirmed cost must be

agreed with the employer.

• Refer to the Register of Apprentice

Assessment Organisations (RoAAO):

https://www.gov.uk/government/publications

/register-of-apprentice-assessment-

organisations

City & Guilds is a Registered Assessment

Organisation for 17 new apprenticeship

Standards.

Find out more here.

STEP 5 DELIVERY OF

END ASSESSMENT

• City & Guilds will deliver end-point assessment in a variety of ways, as required by the sector’s model

of assessment and partly by operational considerations such as volumes, peaks and troughs.

• Our delivery options might be:

Contracting

freelance

assessors

only.

1

Arranging for release

and contracting

assessors from

employers, partner

providers and colleges

(to assess apprentices

that they’ve had no

part in training).

2

Subcontracting for

use of assessors

from partner providers

and colleges.

3

Hiring venues from

partner organisations.

4

To discuss partnering with City & Guilds in the delivery of end assessment, please contact: apprenticeships@cityandguilds.com

STEP 6

PRICING AND AFFORDABILITY

When reviewing pricing and affordability,

ensure that you consider:

• Overheads

• Programme content

• End assessments

• Economy of scale

What is your apprenticeship offer?

Which apprenticeships you can deliver

and what’s the minimum amount

you can deliver them for?

Cost for End-Point Assessment:

• Your pricing structure must give you the flexibility

to negotiate with employers and contractors.

• This must fall within the maximum funding

available, unless employers wish to contribute

more towards training.

• If an employer wants you to deliver 10-20

apprenticeships, how much discount can

providers afford to offer?

• What and how many apprenticeships

can the employer get for their levy?

• When do you walk away?

STEP 7

CAPABILITY AND CAPACITY

Examine your current

capacity and capability

versus your target

capacity and capability.

• Experience

• Technology

• Internal capabilities

• Business development

training

• Resources

• Schedule

• New contractual agreements

with employers

• Evaluation

CURRENT CAPABILITY

GAPS IN CURRENT

CAPABILITY

Ensure key staff understand

the changes to apprenticeships

Up-skilling internal staff

Undertake any relevant CPD

Use of DAS –who will manage

the system?

TARGET CAPABILITY

Changes in current work

practices

Employer engagement

Resource implications

Investment implications

Marketing strategy

DEVELOP AND DELIVER A CHANGE

PROGRAMME

ACTIONPLAN

STEP 7

DEVELOPING A MARKETING PLAN

You will need to develop a marketing plan that is

in line with your business objectives.

• What is your customer value proposition?

(consider features, products, processes etc.)

• What makes you different from your competitors?

• What is your USP? (Unique Selling Point)

• How will you engage with customers?

What marketing channels are most appropriate?

(consider direct marketing, events, advertising,

websites, social media, partnerships etc.)

STEP 8

NEW SYSTEMS AND PROCESSES

• Who will lead on negotiation with employers around price and content?

• Employers can specify which end assessment organisation they want the provider to use.

• The Apprenticeship Agreement establishes a clear contract for the above. Statement

of Commitment signed by all parties makes roles and responsibilities clear (employer,

provider, parent – if U18 apprentice).

Key administrative points to consider:

• Are you on the ITT and RoATP?

• Have you finalised all written agreements?

• Payment schedules need to be clear.

• Does the employer need to pay for any extras like qualifications or modules?

STEP 8

TAKING THINGS FURTHER WITH US

AREAS OF APPRENTICESHIP

CONSULTANCY AND TRAINING

Apprenticeship ReadinessReview your organisational readiness for the reforms, taking into consideration skills and capabilities, local and national position and future funding requirements.

Defining your Apprenticeship OfferDesigned to help you identify employer demand against local skills gaps now and in the future. Determine how this can be used to help shape your Apprenticeship offer for the new occupational standards.

Employer Engagement CPDSpecifically designed for sales and business development managers within further education, to help develop strategic relationships with levy and non levy paying employers, including developing a USP and pitch preparation.

Support for Teaching and Learning CPDTraining to support assessors moving towards a more Teaching and Learning based role. This will improve Teaching and Learning practices with a clear focus on the apprentice learning experience.

THE APPRENTICESHIP

CONSULTANCY PROCESS

Understanding your needs

Research and review

Define and develop solutions

Implement change

Evaluate impact

For more in-depth

support we can

offer a range

of paid for

consultancy

services.

UPCOMING

WEBINARS

Monday 28 November, 3.30 – 4.30pm

An Employer Engagement

Master-Class

To register now please visit

www.cityandguilds.com/apprenticeships/news-events/webinar

Any questions?