Higher Apprenticeship Funding
Rebecca Rhodes Head of Apprenticeship Funding Policy Implementation November 2015
Apprenticeship Reforms
Simplicity Simplifying
apprenticeship standards
so that they are shorter and more accessible
Employer driven Employers designing
apprenticeships to make them more responsive to their needs and the future economy, and controlling
funding
Quality Improving the quality of apprenticeships so that they are viewed
with the same esteem as University
Current Direction
SFA operates all Apprenticeship funding from one budget but there are two types of apprenticeships with their linked funding models :
• Existing suite of approved SASE apprenticeship frameworks
• 353 new apprenticeship standards• 195 approved and published
of which 60 available for delivery (26 at L4-6)• 158 in development
• Apprenticeship frameworks replaced by apprenticeship standards over time
• To significantly increase the quantity and quality of apprenticeships in England to 3 million starts this Parliament, putting control of funding in the hands of employers.
• Employers at the heart of designing new Apprenticeships Standards through
the Trailblazer programme
• Employer-routed funding reforms, such as the digital apprenticeships voucher, is putting control of funding directly into hands of employers
• Apprenticeships will be given legal treatment equal to degrees
• The government is abolishing employer NICs for apprentices under the age of 25 from April 2016
• The government will set apprenticeship targets for public sector bodies
Apprenticeship Reform Commitments
Apprenticeship Levy Announcement
But a step change in the scale and quality of the apprenticeship programme also needs a step change in funding.
The government will introduce a levy collected from larger employers which in England will be spent by the employer on apprenticeships
Employers will access levy funds through the digital apprenticeship voucher
Government consultation on levy implementation closed on 2 October 2015
Getting Involved
1. Have your provision included in an apprenticeship framework or Standard
2. Apply to join the SFA Register of Training Organisations
3. Apply through an SFA procurement round for funding
4. Prepare for the opportunities presented by the levy
Apprenticeship Delivery
Lead Providers
Are an existing SFA account holder with an apprenticeship budget
• Are on the Register of Training Organisations
• Lead relationship with employers
• Arrange & manage subcontracted delivery
• Arrange end-point assessment
• Make the employer incentive payments to employersSubcontractorsWork to a lead provider and deliver elements of the apprenticeship
Higher Apprenticeship Funding
• Qualifications that make up Higher Apprenticeships can be FE, HE or a combination of the two.
• Only approved SASE apprenticeships can be delivered • Apply to the Issuing Authority who governs the framework to include your
provision (http://www.afo.sscalliance.org/)
• FE qualifications - these have national “rates” published by the SFA• https://hub.imservices.org.uk/Learning%20Aims/Pages/default.aspx• HE qualification ‘rates’ / prices are agreed with the SFA as part of
contracting • Funding is either paid on a standard Agency profile
or on actual delivery depending on provider type• Apprenticeship Grant for Employers available
Funding Model - Frameworks
Funding
Price agreed for Training &
Assessment
Employer 1/3 contribution
Government 2/3 contribution
Employer Incentive Payments
English & Maths Additional Learner Support
Trailblazer Funding Model – Standards
Co-Payment Government Pays
Trailblazer Funding Model for Standards
Maximum Core Government contribution (£2 for every £1 from employer)
Cap 1 Cap 2 Cap 3 Cap 4 Cap 5
£2,000 £3,000 £6,000 £8,000 £18,000
Employer contribution if the maximum cap is claimed £1000 £1,500 £3,000 £4,000 £9,000
Minimum Co-funding for training and assessment at the cap
£3,000 £4,500 £9,000 £12,000 £27,000
Additional incentive payments
Recruiting a 16-18 year old
£600 £900 £1,800 £2,400 £5,400
For a small business (<50)
£500 £500 £900 £1,200 £2,700
For successful completion
£500 £500 £900 £1,200 £2,700
Maximum total Government contribution £3,600 £4,900 £9,600 £12,800 £28,800
Trailblazer Standards - Employer Incentive Payments
16-18 Incentive£1,800
• 50% at 3 months
• 50% at 12 months
Small employer Incentive
£900
• < 50 employees
• 100% at 3 months
Completion Incentive
£900
• 100% on completion
• Lead provider is paid at 90 and 365 days by the SFA automatically
• Cannot be ‘offset’ against employer cash contribution
For Further Information on Higher Apprenticeships
For General Higher Apprenticeship Queries: [email protected]
For trailblazer standards in development: https://
www.gov.uk/government/publications/apprenticeship-standards-in-development
For trailblazer standards available for delivery: https://
www.gov.uk/government/publications/apprenticeship-standards-ready-for-delivery
Higher apprenticeship webpage: https://
www.gov.uk/government/collections/sfa-higher-and-degree-apprenticeships
Advice for employers on trailblazer standards: https://
www.gov.uk/government/publications/employers-guide-to-trailblazer-apprenticeships
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