Apprenticeship Reforms

Update

March 2017March 2017

Patrick Mcleod

Director of Work-based Learning, SGS College

Putting Employers in Control Putting Employers in Control Putting Employers in Control Putting Employers in Control ---- 3 key Aspects to the Reforms3 key Aspects to the Reforms3 key Aspects to the Reforms3 key Aspects to the Reforms

1. Reshaping of What constitutes an Apprenticeship

2. Reform of Funding Methodology – simplified Funding Rates

3. Reform of Funding Routes

• College allocations to support Small & Medium Employers

• The Apprenticeship levy for employers with payroll exceeding £3m

• And Employer oversight via the Institute of Apprenticeships

1. Redefining of Apprenticeships1. Redefining of Apprenticeships1. Redefining of Apprenticeships1. Redefining of Apprenticeships

• “Apprenticeship” term enshrined and protected in law

• Employer-devised Standards replacing Frameworks

• Discreet occupations, competency based, no qualifications

• Holistic, Independent, End-Point-Assessment

• Graded; Pass, Merit, Distinction

• 20% off-the-job training – Frameworks and Standards

2. New Apprenticeship Funding Rates 2. New Apprenticeship Funding Rates 2. New Apprenticeship Funding Rates 2. New Apprenticeship Funding Rates –––– the basicsthe basicsthe basicsthe basics

• 15 bands - all Standards and Frameworks allocated a band value

• £1,500 to £27,000

• £1000 incentives for employer and provider for

• 16-18 year olds

• 19-24 with Education and Health Care Plans

• 19-24 who have previously been in Care

• Additional funding for support, disadvantage, maths & English

3. Apprenticeship Funding 3. Apprenticeship Funding 3. Apprenticeship Funding 3. Apprenticeship Funding ---- Two RoutesTwo RoutesTwo RoutesTwo Routes

• Non-levy – under £3m payroll - Colleges & Providers receive

gov. allocation to support SME apprenticeship training

• Co-investment – Employer has to make a 10% contribution • Co-investment – Employer has to make a 10% contribution

• Levy – over £3m payroll – Employer pays into the DAS account

• Funds available for 24 months, to fund apprenticeship training

Apprenticeship Levy – Payments in

• Paid at 0.5% of UK payroll

• £15,000 allowance means only paid on payroll exceeding £3m

• Paid monthly based on previous month PAYE return

• Government top up by 10%

• Funding available for training is based on Employees living in England

Apprenticeship Levy – Using the Funds

• The band value is the maximum payment from the Levy

• The employer negotiates the best value with the provider

• If price exceeds the band value, employer makes up the full difference• If price exceeds the band value, employer makes up the full difference

• 80% paid in equal monthly instalments, 20% is paid on completion

• If costs exceed the available funds in any month, the co-investment

model applies – employer contributes 10%

Apprentice items Apprentice items Apprentice items Apprentice items ffffunded from Governmentunded from Governmentunded from Governmentunded from Government

Funded directly from the SFA to the Provider:

• English and maths at levels 1 & 2 @£471 each

• Learning support @ £150 month

Example 16-18 on £4k

Framework

£942

£1800• Learning support @ £150 month

• Area uplifts for 27% most deprived areas

• 20% Transition-uplift for 16-18s on frameworks

• Employer and Provider Incentive payments

£1800

£600

£800

£2000

£6142

What can Levy funds be used for?

Levy Funds can be used for:

1. Apprenticeship training

and assessment towards

an approved framework or

standard

Levy Funds Cannot be used

for:

• Wages

• Travel and subsistence costs

Managerial costsstandard

2. With an approved training

provider and assessment

organisation

3. Up to the funding band

limit

• Managerial costs

• Traineeships

• Work placement

programmes

• The costs of setting up an

apprenticeship programme

Apprenticeship Levy – Account Management

• Budget for Payments-in based on annual & monthly payroll

• Profile training, assessment and expenditure based on:

• Price, volumes, duration, start month, retention

• Identify any months where planned training and assessment • Identify any months where planned training and assessment

costs exceed available funds – and co-investment applies

• Identify unused funds at-risk of expiry – based on projected 24

months training and assessment

SGS Apprenticeship Levy Tool

Enter payroll and % of employees living in

England

Select Programme and enter price,

duration, volumes and start dates

View levy balance, funds used, at

risk of expiry, expired, costs

exceeding funds by academic year

and financial year

Trigger a warning if you select a mix

of provision which exceeds

available funds

Summary information on starts, completers, funds used, funds

expired to aid planning for future years

SGS Apprenticeship Levy ToolSGS Apprenticeship Levy ToolSGS Apprenticeship Levy ToolSGS Apprenticeship Levy Tool

• Tailored to employers’ mix of provision

• Accommodates seasonal and annual variations in payroll

• Saved and developed as a working management tool

• Summary reporting to aid future planning

• Reporting can be adapted for your requirements, e.g. financial year

• Unique – no other system offers this bespoke functionality

Thank you and Questions?

Patrick Mcleod

Director of Work-based Learning, SGS College

Patrick.mcleod@sgscol.ac.uk