Apprenticeship Reforms: Funding update (3 Nov 2016)
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Transcript of Apprenticeship Reforms: Funding update (3 Nov 2016)
Apprenticeship ReformsFunding update
Bryony Kingsland
UK Funding Manager
November 2016
AGENDA
• Quick update and overview
• Register of Apprenticeship Training Providers (RoATP)
• Sub-contracting
• Digital Apprenticeship Service (DAS)
• Procurement process to deliver
to non-levy paying employers
• Funding arrangements
QUICK UPDATE
ON THE REFORMS
• The government is committed to significantly increase the quantity and quality
of apprenticeships in England to reach 3 million starts in 2020, they have put
employers at the heart of that requirement.
• To enable this, government are introducing an employer apprenticeship levy in April 2017.
• The levy applies to any employer with a pay-bill over £3million – 0.5% of pay-bill.
• At the same time, the Dept for Education and Skills Funding Agency have reformed the
funding and learning delivery arrangements - to meet the needs of the apprenticeship
changes.
• Any provider that wishes to continue to deliver apprenticeship from May 2017
will need to meet the new requirements.
SO WHAT’S NEW?
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
WHAT ARE THE NEW
REQUIREMENTS?
• To access funding to deliver apprenticeships from May 2017, nearly all providers
will have to be on the new Register of Apprenticeship Training Providers (RoATP).
• Providers will also need to submit their details and apprenticeship offer to the new
Digital Apprenticeship Service (DAS), via the provider portal.
• If a provider wishes to deliver apprenticeships to non-levy paying employers, they will
need to respond to the Skills Funding Agency procurement that is currently taking
place on Contracts Finder.
• Providers may need to develop new internal processes to meet the new
funding arrangements.
REGISTER OF APPRENTICESHIP
TRAINING PROVIDERS
The first application process for entering the new register opened on 25 October 2016
and will close on 25 November 2016 at 5pm.
There are three routes for application:
Main route
Eligible for selection by levied
employers, or selection by
another main provider to
work as a subcontractor.
Supporting route
Entry route to the
apprenticeship market
for organisations that
offer a specialism, and
providers who only want to
deliver as a subcontractor.
Employer-provider route
Employers who want to
provide training to their
own staff. They will have
the flexibility to lead their
own programme, or act
as a subcontractor to their
appointed main provider.
RoATP
RoATP AND
SUB-CONTRACTING
There has been a relaxation of the proposals made in August for sub-contracting
apprenticeship delivery:
• Smaller providers may now act as sub-contractors with a main provider. They are not
required to be on RoATP – as long as they do not hold cumulative contracts above a
threshold of £100k.
• Main providers may sub-contract full delivery to smaller and supporting/specialist
providers, but there are rules on thresholds that apply here.
• Supporting/specialist providers, who have successfully applied to the register, cannot
receive more than £500,000 annually of apprenticeship funding for their sub-contracted
delivery.
SUB-CONTRACTING
Specialist/supporting
providers on RoATP, up to
threshold of £500k per year.
Small provider with
cumulative contracts of
less than £100k per year
Apprentice’s employer
or a connected company
(as defined by HMRC),
who are on the RoATP
Main
provider can
sub-contract to
the following:
SUB-CONTRACTING –
SOME OF THE RULES
• Funding for each apprenticeship will be routed through a single provider.
• Main providers can sub-contract to complement their own delivery
if employer requests this.
• The main provider must have a written agreement with the employer
that agrees the sub-contract arrangements, including:
• the amount of funding retained for direct delivery,
• management fees,
• how much each sub-contractor will receive.
• There are extensive due diligence and monitoring requirements to be met,
for any provider considering sub-contracting.
DIGITAL APPRENTICESHIP
SERVICE (DAS)
• A key aspect of DAS, will be the online search facility for employers, showing approved
apprenticeship providers.
• Providers who are successful in applying to the Register of Apprenticeship Training
Providers (RoATP), will be able to upload information about their offer, to the Digital
Service search tool.
• The portal will open for submissions of providers apprenticeship offer between
5 December and 13 January
• If you are a main provider and will offer apprenticeships through sub-contractors,
you may want to include the curriculum offer from sub-contractors on the DAS also.
But…
DAS – FIND APPRENTICESHIP
TRAINING TOOL
Provider trading name.
Overview of provider – introduction giving info about your
organisation – free text box on DAS – what will you include?
Apprenticeship Framework or Standard type of level.
Contact information, website details.
Delivery locations and modes available.
A brief description of how you deliver the apprenticeship.
Performance data for providers from – FE Choices, ILR
Achievement data, OfStEd – this information is populated
automatically.
https://www.gov.uk/government/publications/find-
apprenticeship-training-how-to-submit-data
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DELIVERY TO NON-LEVY
PAYING EMPLOYERS
• SFA is running a procurement exercise for the delivery of apprenticeship training
to employers who will not have a digital account.
• The Invitation to Tender (ITT) for the procurement opened on Contracts
Finder on Tuesday, 25 October and will close at 5pm on Friday, 25 November.
• To submit a bid to the ITT your organisation must have applied to join the RoATP
beforehand. If this is not done, your tender response bid will be invalidated.
Contracts Finder link
https://www.gov.uk/contracts-finder
DELIVERY TO NON-LEVY PAYING
EMPLOYERS CONTINUED
• The SFA are tendering a minimum value of £440m in this round for the period May 2017-
July 2018.
• This is split into £213m for 16-18 year olds and £227m for 19+.
• There will be a £100k minimum and £5million maximum on awards in this round, this figure
is for STARTS ONLY.
• The SFA will extend existing contracts to cover carry in – providers are not required to bid
for carry over funding.
• The Invitation To Tender (ITT) indicates that further awards during the term of the contract
are possible, e.g. for growth – so the £5m figure is not intended to be a cap.
• The results of the tender and RoATP applications will not be known until March 2017 -
delivery starts in May!
Fundingarrangements
FUNDING –
BEYOND APRIL 2017
Employers with a pay-bill
under £3million
(non-levy paying)
Continue to co-invest on 1:9 ratio
with government for the delivery
of Trailblazer standards and begin
to co-invest for the delivery of
ALL apprenticeships
Employers with a pay-bill
over £3million
(levy paying)
Pay an apprenticeships levy via PAYE
and HMRC – funds go into the DAS account.
With 10% additional top-up from government.
The DAS can only be spent on training
and assessment of apprenticeships.
APPRENTICESHIP
FUNDING OVERVIEW
• Levy paying employers will pay 100% of the costs of an apprenticeship to providers, out of
their digital account.
• Non-levy paying employers will contribute 10% of the cost of an apprenticeship and the
government will contribute 90% of the cost, in a co-investment arrangement.
• Levy paying employers who have exhausted their levy funds, but who wish to take on more
apprentices, will co invest with the government at the same 1:9 ratio.
• Employers with less that 50 (49 or less), employees will pay no contribution if they take on
a 16-18yr old apprentice, or 19-24 year olds who were formerly in care or who have
an Education and Health Care plan. These are fully funded by the government.
• From 2018, employers will be able to transfer 10% of their levy funding to another employer
with a digital account, e.g. an organisation in their supply chain.
APPRENTICESHIP FUNDING
OVERVIEW CONTINUED
• Government will contribute £2000 towards the costs of 16-18 apprenticeships –
£1000 for the employer, £1000 for the provider.
• But for Frameworks only, there is additional transitional funding to support for providers
with 16-18 yr old apprenticeship delivery.
• Further funding support and incentives for care leavers, and those with Education
and Healthcare plans.
• Payment for English and maths – £471 per qualification, not taken from employers
levy – paid for by government direct to provider.
• All existing apprenticeship frameworks and standards have been put into one of 15
funding bands from 1st May 2017
• There will no longer be any age restrictions to apprenticeship delivery after May 2017.
2017 FUNDING BANDS AND
CURRENT FUNDING CAPS
New Funding Bands from May 2017
for Standards and Frameworks
Current Funding Caps
for Standards
Band Band Upper Limit
1 £1,500
2 £2,000
3 £2,500
4 £3,000
5 £3,500
6 £4,000
7 £5,000
8 £6,000
9 £9,000
10 £12,000
11 £15,000
12 £18,000
13 £21,000
14 £24,000
15 £27,000
Funding
Band
Core Government
contribution cap (£)
Employer
contribution (£)
6 18,000 9,000
5 13,000 6,500
4 8,000 4,000
3 6,000 3,000
2 3,000 1,500
1 2,000 1,000
ADDITIONAL FUNDING
SUPPORT FOR FRAMEWORKS
Providers will receive payments towards the additional cost associated with training
16-18 year old apprentices and those requiring extra support. The amount will be 20%
of the full cost of a framework for apprentices:
• aged between 16 and 18 years old (or 15 years of age if the apprentice’s 16th birthday
is between the last Friday of June and 31 August).
• aged between 19 and 24 years old with either an Education, Health and Care plan
provided by the local authority, or those that have been in the care of the local authority.
• undertaking an apprenticeship Framework and recorded on the ILR as having
a postcode listed within the 27% most deprived areas of the country.
16-18 AND EHCP
FRAMEWORK INCENTIVES
Framework
name
Level Framework
pathway name
Funding
band
16-18
Employer
incentive
16-18
Provider
Incentive
Provider
uplift for
16-18 and
ECHP at
20%, for
framework
only
Total 16-18
and ECHP
provider
incentive
(inc £1000)
Maximum
possible
total
provider
funding
Business and
Administration3
Business and
Administration£2,500 £1,000 £1000 £500 £1,500 £4,000
Vehicle Maintenance
and Repair2
Light
Vehicle£5,000 £1,000 £1000 £1,000 £2,000 £7,000
Construction
Specialist3
Wall and
Floor Tiling£9,000 £1,000 £1000 £1,800 £2,800 £11,800
Electro-technical3
Electrical
Maintenance£12,000 £1,000 £1000 £2,400 £3,400 £15,400
DISADVANTAGE FUNDING
SUPPORT FOR FRAMEWORKS
As an interim measure, until SFA/DfE have reviewed, providers will receive
additional payments to support students from deprived area (as per the Index
of Multiple Deprivation).
£600 for training on a
Framework an apprentice
who lives in the top 10%
of deprived areas.
£300 for any apprentice
who lives in the next
10% of deprived areas
(the 10-20% range).
£200 for those living
in the next 7% of
deprived areas
(the 20-27% range).
£600Top 10%
£30010-20%
£20020-27%
SOME FUNDING
EXAMPLES
16-18 Framework apprentice from top 10
deprived areas, plus uplift
Apprenticeship
Framework = £3000
16-18 Framework
uplift at 20% = £600
Disadvantage uplift
– top 10% = £600
16-18 incentive at £1000
£5200
+
+
+
Apprenticeship Standard 16-18 – small employer –
disadvantaged area
Apprenticeship
Standard = £3000
16-18 apprenticeship
uplift = £1000
No disadvantage uplift for
apprenticeship standard = £0
£4000
+
+
Example Framework plus Disadvantage
support
Apprenticeship
Framework = £5000
Disadvantage uplift
10-20% IMD = £300
£5300
+
=
=
=
MATHS AND
ENGLISH
• Funding is for apprentices who have not previously attained a GCSE grade A*- C
and will support;
• GCSE English Language or maths
• Functional Skills English or maths
• In exceptional circumstances SFA will fund approved stepping stone qualifications
to support progression to GCSE or Functional Skills.
• Maths and English are funded at £471 per qualification – not out of levy. Direct to provider
from government, claimed via ILR.
• Maths and English quals above a level 2, if required for an apprenticeship,
must be funded out of the levy or by the employer.
WHAT CAN
BE FUNDED
Funds from an employer digital account or government co-funded investment
can only be used for delivery directly related to the apprenticeship, e.g.
• On and off the job training.
• On programme assessment or formal end point assessment.
• E-learning as part of blended learning.
• Registration, materials, examination and certification related to the apprenticeship.
• Re-sit of qualifications or non-accredited elements – as long as additional learning
takes place.
• Accommodation for residential learning or taking part in skills competitions.
WHAT CANNOT
BE FUNDED
• Enrolment, induction, prior assessment, initial diagnostic testing or similar.
• Accommodation if apprentice is away due to requirement of the job.
• Travel costs for apprentices under an circumstances.
• Capital purchases.
• Apprentices’ wages.
• Educational trips, trips to professional events no specified in the standard.
• Re-sits where no additional learning is required or undertaken.
• Training/assessment, exams, tests or certification for licence to practice.
• Time spent by employees or managers mentoring the apprentice
(unless an employer/provider).
END POINT ASSESSMENT
COSTS AND RULES
• End point assessment costs are included in the funding band for each apprenticeship.
• Providers must ensure prices negotiated with an employer include the amount needed
for end assessment and EQA.
• End assessment payment arrangements will follow one of the following options:
• Either levy paying employer EPA costs come out of the levy payment to the provider
from DAS
• Or as part of the written agreement and payment contract between a provider
and non-levy paying employer.
SFA AND LEVY PAYMENTS
TO PROVIDERS
• Levy payment from DAS, and government co-investment payments, will hold back 20%
of funding to pay for end assessment.
• Providers must ensure they have sufficient information showing in their financial systems
to visibly evidence employer co-investment (payment, not just invoices).
• Apprentices must be on programme for a minimum of 42 days before they qualify for
funding from DAS or co-investment.
• VAT is chargeable to employers on co-investment funding – but take advice from HMRC!
TIMELINE
FOR ACTIONS
November
2016
December
2016
January
2017
February
2017
March
2017
April
2017
May
2017
By 5pm on
25 November
•
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 Digital
Apprenticeship
Service
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
LINKS TO RELEVANT
DOCUMENTS
Provider apprenticeship funding rules 2017/18
https://www.gov.uk/government/publications/apprenticeship-funding-and-performance-
management-rules-2017-to-2018
Apprenticeship funding policy and dunding bands sheets
https://www.gov.uk/government/publications/apprenticeship-funding-from-may-2017
Register of Apprenticeship Training Providers
https://www.gov.uk/government/collections/register-of-apprenticeship-training-providers
Contracts finder – non-levy procurement portal
https://www.gov.uk/contracts-finder
Apprenticeship funding from May 2017 – policy paper
https://www.gov.uk/government/publications/apprenticeship-funding-from-may-2017
CITY & GUILDS
SUPPORT
City & Guilds will be offering the following:
• Webinar on RoATP – 9 November, 11am-12pm
• Employer Support Webinars – November and December
• Advance Support CPD Workshops –
January through to March 2017
• Support for successful RoATP application
• Support for apprenticeship set up
(new providers and employer providers)
• Regularly updated guidance on our
dedicated apprenticeship web pages
• http://www.cityandguilds.com/
what-we-offer/centres/email-updates
FURTHER SUPPORT
FROM CITY & GUILDS
We can also offer:
• Advice and guidance on the RoATP.
• Reviewing your RoATP application and
recommendations for improvement.
• Test the rigour of your organisation's
processes and systems against best
practice due diligence requirements.
• Identify gaps in current processes and
systems, including management
information and reporting.For further details please contact
Early in 2017, we will be running
workshops covering:
• Funding arrangements in detail.
• Planning for delivery.
• ILR changes.
• Performance management arrangements.
Q&A
We will now respond to your questions.
Thank youfor participating