register of apprenticeship training providers

register of apprenticeship training providers

Apprenticeship
Reforms
APPRENTICESHIP
REFORMS
Bryony Kingsland
UK Funding Manager
8 December 2016 | BRYONY KINGSLAND
November 2016
AGENDA
• Overview of the apprenticeship reforms and what is changing
• Funding for apprenticeship training
• Funding for non-levy payers
• The apprenticeship levy – what can and cannot be funded
• The Register of Apprenticeship Training Providers – is it right for you?
• The funding process and working with providers
• Preparing for delivery – a checklist
• Using the Digital Apprenticeship Service (DAS)
• Q&A
QUICK OVERVIEW OF THE REFORMS
• The government is committed to significantly increase the quantity and quality
of apprenticeships in England to reach 3 million starts in 2020.
• 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 have reformed the funding and learning delivery
arrangements – apprenticeship Frameworks are transitioning to Standards.
• Employers can work with local providers to deliver apprenticeships, or they can choose to
deliver the apprenticeship themselves by becoming an employer-provider, or sub-contractor
to a main provider.
4 MAIN THINGS ARE CHANGING
Employers have more control in designing apprenticeships
• Employer led Trailblazer groups are developing new occupational Standards which will
replace SASE Frameworks.
• An increase from approximately 250 SASE Frameworks to potentially over
800 Standards.
• Each new Standard is consulted on before ‘Approval for Delivery’ is given
• Note - some of the earlier published Standards are being re-assessed and updated.
4 MAIN THINGS ARE CHANGING
New apprenticeships are designed to be more flexible and more effective
• Qualifications are no longer mandatory – providers and employers can design a programme to
meet new apprenticeship Standard specification (this could include any relevant qualification of
any size, unless a specific qualification is mandatory and written into the apprenticeship
Standard).
• Introduction of end-point assessment – once the apprentice has completed the on-programme
phase and passed their gateway criteria they will move on to end-point assessment.
• End Point Assessment (EPA) must be carried out independently.
Employers will benefit because apprenticeships will be more relevant and meet business
needs.
4 MAIN THINGS ARE CHANGING
Employers with a pay-bill
under £3million
(non-levy paying)
Employers with a pay-bill
over £3million
(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
Pay an apprenticeships levy via PAYE
and HMRC – funds go into the Digital
Apprenticeship Service account.
With 10% additional top-up from government.
The DAS can only be spent on training
and assessment of apprenticeships.
4 MAIN THINGS ARE CHANGING
There are new funding arrangements that give employers a basis for negotiations
with providers.
New Funding Bands from May 2017
for Standards and Frameworks
Band
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Band Upper Limit
£1,500
£2,000
£2,500
£3,000
£3,500
£4,000
£5,000
£6,000
£9,000
£12,000
£15,000
£18,000
£21,000
£24,000
£27,000
Current Funding Caps
for Standards
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
A DUAL SYSTEM:
LEVY AND NON LEVY PROCESS
Dual system, dual processes:
Levy
Paying
Employers
Levy paid shows in
DAS account
Non-Levy
Paying
Employers
Employer’s
own funds
Price
agreed
Monthly
deductions
paid to
provider
Co-investment
top up – if
insufficient
funds
9:1
Agreed price
and payment
schedule
Employer
Invoiced
by provider
Co-investment
with government
9:1
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.
CO-INVESTMENT FUNDING
(NON-LEVY PAYERS)
Co-investment funding for new Digital Standards from May 2107
Standard name
Funding band
Government
contribution
Employer
contribution
£1,800
16-18
employer
incentive
£1,000
16-18
Provider
incentive
£1,000
Network Engineer (4) /
Software Developer (4)
Infrastructure Technician (3)
Band 12:
£18,000
Band 11: £15,000
£16,200
£13,500
£1,500
£1,000
£1,000
Note:
• Micro-businesses (49 employees or less) will not be required to co-invest if they take on a 16 – 18 year old or
a 19-24 year old apprentice formerly in care or with an Education and Health Care plan.
• £1,000 incentive payment received by both the employer and provider for each 16-18 year old apprentice.
• Additional funding available for 19-24 year old apprentice formerly in care or with an Education and Health
Care plan.
• Additional funding for apprenticeship training in deprived areas.
LEVY – MAIN POINTS
• The levy applies to any employer with a pay-bill over £3 million – 0.5% of pay-bill.
• The levy payment process will operate on a monthly basis, alongside PAYE processes. Levy
monthly amounts will accumulate in employers DAS account throughout the year.
• Monthly levy payments will go up or down according to employer payroll amount (fluctuations
in staffing and seasonal employment), with overpayment rebated at year end.
• The Government will contribute an extra 10% to employers levy accounts monthly as an
additional incentive.
• Any unused allowance will be carried from one month to the next.
• Funds will expire 24 months after they enter an employers Digital Apprenticeship Service
account and be removed.
LEVY – MAIN POINTS
• It is employers responsibility to declare via PAYE that they are a levy paying organisation.
• Government will contribute £2000 towards the costs of 16-18 apprenticeships and for 19-24
yr olds with local authority Education Health and Care Plans. £1000 for the employer, £1000
for the provider.
• Levy amounts in the employer account will reflect the workforce of the employer based in
England in the previous year. Percentage amounts for non-English employees will be
removed and passed to the relevant nations – based on the employees home address.
• HMRC will publish Levy Guidance this month for finance/PAYE departments
LEVY PAYMENT EXAMPLES
Example 1: An employer with a pay-bill of £2,000,000
•
•
Levy sum: 0.5% x £2,000,000 = £10,000
Subtract Allowance: £10,000 - £15,000 = £0 annual levy payment (as total levy sum amounts to less than the £15,000
allowance)
Example 2: An employer with a pay-bill of £5,000,000
•
•
•
Levy sum – 0.5% of £5,000,000 = £25,000
Allowance: £25,000 - £15,000 = £10,000 levy to pay
After 10% top-up = £10,000 + £1,000 = £11,000 levy funds available to spend
Example 3. An employer with a £20 million paybill
•
•
•
Levy sum: 0.5% x £20,000,000 = £100,000
Allowance: £100,000 - £15,000 = £85,000 annual levy payment
After 10% top-up = £85,000 + £8,500 = £93,500 levy funds available to spend
The allowance is not an amount paid to an employer, it is a percentage amount of allowed pay-bill funding before the levy is
due.
PLANNING YOUR APPRENTICESHIP
PROGRAMME
Company paybill of £13,000,000
Levy sum: 0.5% x £13,000,000 = £65,000
Allowance: £65,000 - £15,000 = £50,000 annual levy payment.
Total annual levy fund with 10% government uplift = £55,000
Standard name
Cohort
size
Funding
band
Total employer
cost
Band 12:
£36,000
£18,000
Band 11:
£15,000
£15,000
TOTAL EMPLOYER COST: £51,000
Network Engineer (4) /
2
Software Developer (4)
Infrastructure Technician (3) 1
16-18 Employer
Incentive (£1,000 per
apprentice)
16-18 Provider
incentive (£1,000 per
apprentice)
£2,000
£2,000
£1,000
£1,000
Notes:
• If levy funds are exhausted and the employer requires additional apprentices, the employer enters the coinvestment model (Government will contribute 90% of non-levy provision)
• Incentive payment paid to employer in cash by the provider who will claim it on their behalf
• Funds will expire after 24 months
• Employers can allocate 10% of their levy funding to their supply chain?
MATHS AND ENGLISH
• Funding is available 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 directly to the provider, not out of the employer levy.
• Maths and English quals above a level 2 – if employers want their apprentice to take these
qualifications as part of their learning, the employer will have to pay.
WHAT CAN BE FUNDED
Funds from a DAS 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 license to practice.
• Time spent by employees or managers mentoring the apprentice
(unless an employer/provider).
REGISTER OF APPRENTICESHIP
TRAINING PROVIDERS
REGISTER OF APPRENTICESHIP
TRAINING PROVIDERS
The first application process for entering the new register closed at the end of November. The
register will open again for further applications in March/April 2017
There are three routes for application. You should apply to one route only and choose
the most appropriate for your needs:
Supporting route
Main route
Employer-provider route
Entry route to the
apprenticeship
market for
organisations that
offer a specialism or
providers who only
wish, or have the
capacity, to deliver as
a sub-contractor.
Eligible for selection by levied employers, or
selection by another main provider to work
as a subcontractor.
Employers who want to
deliver apps to their own
staff. They will have the
flexibility to lead their own
programme, or act
as a sub-contractor to
their appointed main
provider.
RoATP
WHICH ROUTE IS RIGHT FOR YOU?
Employer Provider Route:
For levy paying employers who wish to:
 Deliver apprenticeship to their own staff.
 Act as a sub-contractor to a main provider to deliver to their own staff.
 Sub-contract a proportion of their funds to a provider to deliver part or full
apprenticeships
• Employer providers cannot deliver outside of their organisation, e.g. to a company
in their supply chain.
• Will not be included on the DAS search Tool.
• Will be inspected by Ofsted.
• Will need to make data returns to the Skills Funding Agency and maintain evidence for SFA
audits.
EMPLOYER-PROVIDER
SUB-CONTRACTING RULES
Employer- provider
can
sub-contract to
the following:
Small provider with
cumulative contracts of
less than £100k per year
Specialist/supporting
providers on RoATP, up to
threshold of £500k per year.
A connected company
(as defined by HMRC),
who are on the RoATP(unless
contracting less than £100k)
SUB-CONTRATING DUE DILIGENCE
• Employers must take their own legal advice - Public Contracts Regulations 2015 re use of
delivery subcontractors, and have this advice available for inspection by the SFA and employers.
• You must have a legally binding contract with each sub-contractor
• Delivery subcontractors can be used to complement your own delivery if you are an
employer/provider. Information must included in the written agreement.
• The written agreement must include –




Management fees
Amounts sub-contracted (both funds and delivery)
The monitoring you undertake (quality of delivery etc.)
Any conflicts of interest
EMPLOYER PROVIDERS
• All employer-providers will need to return monthly data to the SFA through the Individualised
Learner Record (ILR) data collection. You will need management information systems in place
to collect and manage this data.
• Be ready for Ofsted Inspections
• The SFA, via the National Apprenticeship Service has a helpline for advice about becoming an
employer-provider. Call them on 08000 150 600.
• The support available includes:
 Free workshops for large employers about becoming an employer-provider
 A named contact from the National Apprenticeship Service for each large employer-provider.
Becoming and Employer-Provider Guidance document
https://www.gov.uk/government/publications/apprenticeships-become-a-training-provider
PREPARING FOR DELIVERY
AND END POINT ASSESSMENT
OVERVIEW OF INITIAL AGREEMENT
PROCESS
1
• Employer
recruits/flags
apprentice (new
recruit or internal
staff member)
• Employer selects
provider from DAS or
flags to chosen
provider
• Initial negotiations
take place inc. when
non-levy paying
providers will
contribute and who
the EPA will be.
2
3
• Provider and employer
agree pricing and
delivery arrangements
- sign written
agreement – legal
contract
• Provider/Employer
Provider establishes
learner evidence
pack and onprogramme
resources
• Levied employer flags
new apprentice/s on
DAS – prompts
payment to provider
• Sets up ILR
registration, including
cash contribution
(from non-levy
paying employers)
• Non-levy – invoicing
process between
provider and employer
– evidence trail for
SFA audit.
• ILR and DAS
changes prompts
SFA funding
4
• End point
assessment (EPA)
when apprentice
reaches gateway
• Provider pays EPA
organisation from
levy funds
• EPA organisation
certificates
apprenticeship
• Possible EQA
requirements
• Provider pays
employer any final
remaining incentives
WRITTEN AGREEMENT
• Agreements entered into by you and the main provider are legal agreements and dispute
resolution should be in accordance with the terms of the written agreement and ultimately
would be enforceable through the courts.
• The written agreement should include :
 Details of any subcontracting, including management fees, amount subcontracted, what
monitoring the main provider will carry out to ensure apprenticeship quality for the
employer
 End Point Assessment details (who, when, where)
 When non-levy paying employers will make payment contributions – payment in kind no
longer an option.
 Dispute resolution details.
BEFORE YOU START –
EMPLOYER CHECKLIST
 There must be a genuine job available after the apprenticeship is completed.
 Choose a training provider and negotiate a price.
 You must have an apprenticeship agreement with the apprentice.
 https://www.gov.uk/government/publications/apprenticeship-agreement-template
 You must have a commitment statement, signed by you, the apprentice and the main provider.
 Record the apprenticeship in your digital account (you can ask the provider to do this for you).
 Choose an end-point assessment organisation.
 https://www.gov.uk/government/publications/using-the-register-of-apprentice-assessmentorganisations
BEFORE YOU START –
EMPLOYER CHECKLIST
Check the eligibility of the apprentice and apprenticeship
 Do they have the right to work in England?
 Do they spend at least 50% of their working hours in England?
 Is the apprentice working for you or a connected company as defined by HMRC?
 Give evidence of the apprentice’s employment to the provider for them to keep.
 Make sure the apprentice spends at least 20% of their time on off- the- job training.
 Is the apprentice in a new job role, or an existing job role, where the individual needs
significant new knowledge and skills?
SIX KEY STEPS DEVELOPING AN
APPRENTICESHIP PROGRAMME
1. Understand the funding
2. What is your people plan?
3. Review current training programmes
and where occupations can be mapped
to apprenticeships
4. Decide which programmes to deliver
5. Decide how to deliver an
apprenticeship programme
Download your full length Employers’ Guide
to Apprenticeship Reforms today at:
www.cityandguilds.com/employers
6. Ensuring readiness to deliver
DIGITAL APPRENTICESHIP
SERVICE
DIGITAL APPRENTICESHIP
SERVICE
DIGITAL APPRENTICESHIP
SERVICE
• DAS will show all the employers
apprentices, but employers will
have to input the information on
each apprentice, or your
provider can do this for you.
• Funding spent and available,
both current and future – based
on current levy payments.
• Enable employers to plan spend
going forward
• See government contributions
for 10% and co-investment
arrangements
HOW DOES FUNDING ON DAS WORK
Employer-providers will received funds from their digital account via ILR returns sent to the SFA monthly.
Employer-providers must ensure they have evidence to show spend of funds on delivery of apprenticeships.
You must evidence how all costs are calculated; this can include payroll, pay slips, expense claims, hourly
pay rates and training plans that include the hours of training delivered.
The SFA Funding Rules for Employer-Providers is a key document and can be found on this link https://www.gov.uk/government/publications/apprenticeship-funding-and-performance-management-rules2017-to-2018
When each apprenticeship is added to the DAS, it will be automatically allocated a priority order. This priority
order will be used to identify which apprenticeships are funded first from funds in an employer’s digital
account.
DAS – FIND APPRENTICESHIP
TRAINING TOOL
• A key aspect of DAS, will be the online search facility for employers, showing approved
apprenticeship providers.
1
Provider trading name.
2
Overview of provider – introduction giving info about their
organisation and what they can offer employers
3
Apprenticeship Framework or Standard type of level.
4
Contact information, website details.
4
5
Delivery locations and delivery modes available.
5
6
A brief description of how the provider delivers the
apprenticeship.
7
Performance data for providers from – FE Choices, ILR
Achievement data, OfStEd – this information is populated
automatically.
1
2
3
6
7
https://www.gov.uk/government/publications/findapprenticeship-training-how-to-submit-data
END POINT ASSESSMENT
COSTS AND RULES
• You must select an organisation to deliver the end-point assessment from the Register of
Apprentice Assessment Organisations (RAAO). Only those organisations listed on the RAAO will
be eligible to be funded.
• End point assessment costs are included in the funding band for each apprenticeship.
• Employers must ensure prices negotiated with a provider include the amount needed
for end assessment
• Levy payment from DAS to the provider, and government co-investment payments, will hold back
20% of funding to pay for end assessment.
• End assessment payment arrangements for non-levy paying employers must be included in the
written legal agreement between employer and provider
• End assessment assures quality and currency for learners and employers.
TIMELINE FOR ACTIONS
December
2016
January
2017
HMRC publish
guidance for
levy paying
employers
Employers
can register
on the Digital
Apprenticeship
Service
•
Input course
data into provider
portal Course
Directory – Find
Apprenticeships
search facility
February
2017
March
2017
April
2017
May
2017
Non-levy ITT
outcome published
Second round
of applications
to RoATP?
First
apprenticeship
delivery
under new
arrangements
to non-levy and
levy paying
employers
•
First successful
applications
to RoATP
published
•
Employers start
paying the levy
LINKS TO RELEVANT DOCUMENTS
Provider/ Employer apprenticeship funding rules 2017/18
https://www.gov.uk/government/publications/apprenticeship-funding-and-performancemanagement-rules-2017-to-2018
Apprenticeship funding policy and funding 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
Apprenticeship funding from May 2017 – policy paper
https://www.gov.uk/government/publications/apprenticeship-funding-from-may-2017
Apprenticeship Standards
https://www.gov.uk/government/collections/apprenticeship-standards
CITY & GUILDS SUPPORT IN 2017
Early in 2017, we will be running workshops covering:
• Funding arrangements in detail.
• Planning for delivery.
• ILR changes.
• Performance management arrangements
For further details, check our consultancy and events pages on the following links • http://www.cityandguilds.com/what-we-offer/centres/what-is-advance
• http://www.cityandguilds.com/what-we-offer/centres/improving-teaching-learning/events
THANK YOU,
ANY QUESTIONS?
Contact me with any further funding enquiries:
[email protected]
For information on how we can support your business, contact:
[email protected]