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Apprenticeship Funding Outlook
and Opportunities
Updated January 2017
Highlights: 2015 to 2020
• Spending Review in Nov 2015, stated core skills budget was
protected.
• SFA ASB cut 2014 - 16 r...
Highlights: 2015 to 2020
• Introduction of the 10% top-up and rule for employers
turning over £3m annually in April 2017.
...
Apprenticeship Under Reform: April/May 2017,
Onwards
• Funds set to expire 24 months after entering digital
account if rem...
Apprenticeship Under Reform: April/May 2017,
Onwards
• Introduction of Register of Apprenticeship Training Providers
(RoAT...
Apprenticeship Under Reform: April/May 2017,
Onwards
• Every app framework and standard placed in funding band.
• Non levy...
Apprenticeship Under Reform: April/May 2017,
Onwards
• 16-18 year olds: Employers and training providers receive an
additi...
Apprenticeship Funding Bands
Number 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 £6,0...
Register of Apprenticeship Training Providers
• Effective from 1st May 2017
• Needs to be registered to deliver an app. Se...
Register of Apprenticeship Training Providers
• Effective from 1st May 2017
• Needs to be registered to deliver an app. Se...
Procurement for Employers Not Using a Digital
Account
• Open for applications from 25/10/16 to 25/11/16, results
out on Ma...
Procurement for Employers Not Using a Digital
Account
• Open for applications from 25/10/16 to 25/11/16, results
out on Ma...
Traineeship
 Work preparation/placement, English/Maths, plus flex
to deliver vocational qualification.
 Changes since st...
Advanced Learning Lessons
 For Level 3 and 4 stand alone qualifications.
Extended to 19+ and L5 and 6 from August 2016.
...
RPA: Raising Participation Age
 Must remain in education to age 18 (currently 17) from August 2015
(includes school 6th f...
Post 16 Skills Plan
 Accepts Sainsbury Report
 15 technical routes, only covers 43% of jobs covered e.g. no retail
 One...
Area Reviews of Post 16 Education & Training
Institutions (completed by April 2017)
• Area-based reviews of post-16 educat...
Fixing the Foundations: Creating a More Prosperous
Nation. The Government’s Productivity Plan (further
emphasis post Brexi...
Future Opportunities
 New ESF Rounds:
• Bidding Dec 2015 to July 2016
• £650m
• Delivery period of 18 months
 Growth cas...
Everything starts with a conversation, so let’s talk:
Safaraz Ali
Linkedin: https://uk.linkedin.com/in/safaraz
Twitter Han...
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Apprenticeship Funding Outlook & Opportunities

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A comprehensive presentation of the apprenticeship reform, changes to funding and funding opportunities.

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Apprenticeship Funding Outlook & Opportunities

  1. 1. Apprenticeship Funding Outlook and Opportunities Updated January 2017
  2. 2. Highlights: 2015 to 2020 • Spending Review in Nov 2015, stated core skills budget was protected. • SFA ASB cut 2014 - 16 replaced by AEB. Growth of 2016/17 onwards and allocations for apprentices, and 16- 18 Traineeship. • No workplace learning supported. • App funding arrangements for 2016/17 onwards were announced in April 2016. Further details followed in June, October, and December 2016. • App funding protected 3 million starts in the parliament.
  3. 3. Highlights: 2015 to 2020 • Introduction of the 10% top-up and rule for employers turning over £3m annually in April 2017. • Retender of ITP AEB contracts from 2017/18, affected by localism. • Retender of ITP apps contracts for non levy paying employers, and for starts from 1st May 2017. • Funding contract year to move to April/March. • Government funding focus for FE - App, Traineeships, English and Maths, (Effectiveness/Simplicity/Localisation)
  4. 4. Apprenticeship Under Reform: April/May 2017, Onwards • Funds set to expire 24 months after entering digital account if remained unspent. • Funding for apprenticeship at same or lower level than qualifications held. • Evidence required of 20% off job training. • Trailblazers: Employers leading development of new standards. First standard based app’s delivered from 2014/15. 4,400 enrolled on standards in 2015/16. • End point Assessment: New regulated assessment organisations.
  5. 5. Apprenticeship Under Reform: April/May 2017, Onwards • Introduction of Register of Apprenticeship Training Providers (RoATP). Approved providers get direct funding from May 2017. • Digital Apprenticeship Service:  Select an apprenticeship framework or standard  Choose the training provider or providers you want to deliver the training  Choose an assessment organisation  Post apprenticeship vacancies • Institute for Apprenticeships from April 2017 – governance and standards approval. • Non levy employers wont need to use DAS until at least 2018.
  6. 6. Apprenticeship Under Reform: April/May 2017, Onwards • Every app framework and standard placed in funding band. • Non levy paying employers pay 1/10 contribution for standard or framework from May 2017. • Employers with more than 50 employees don’t pay 1/10 contribution for 16-18 year- olds. • Commitment to transfer of 10% of funding from levy paying employers to other employers/ATA from 2018. • Digital Apprenticeship Service, levy paying employers are able to:  View the funds available to spend in England  Set the price, as agreed with the training provider  Pay for app training and assessment through the DAS.
  7. 7. Apprenticeship Under Reform: April/May 2017, Onwards • 16-18 year olds: Employers and training providers receive an additional £1,000, paid 3+12 month. • Frameworks Only:  16-18 year olds: 20% uplift of band max, transitional measure  Disadvantage uplift: £600/£300/£200 10%/10-20%/20-27%, paid 3 + 12 month.  STEM uplift of 40% for L2 and 80% for L3 • Additional learning needs continues to be funded at £150 per month. • English and Maths funded direct to provider at £471. • Funding for app at same or lower level than a qualification they already hold.
  8. 8. Apprenticeship Funding Bands Number 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
  9. 9. Register of Apprenticeship Training Providers • Effective from 1st May 2017 • Needs to be registered to deliver an app. Separate to RoTO • Opens up whole provider market to directly access funds, £100k limit remains. • Subcontract allowed if main provider has ended relationship at programme level. • 3 application routes:  Main Route: an also be subcontractor  Supporting Route: £500k limit  Employer Route: Delivery of app to own employees and/or act as subcontractor • Application tests:  Due diligence test.  Financial health test.  Quality, capacity and capability tests • Grade 4 Ofsted for app provision ineligible. • Open for applications from 25.10.16 to 25.11.16, result March 17. • Parent company guarantees accepted in first year. • Reopens every 3 months, refresh every 12 months.
  10. 10. Register of Apprenticeship Training Providers • Effective from 1st May 2017 • Needs to be registered to deliver an app. Separate to RoTO • Opens up whole provider market to directly access funds, £100k limit remains. • Subcontract allowed if main provider has ended relationship at programme level. • 3 application routes:  Main Route: an also be subcontractor  Supporting Route: £500k limit  Employer Route: Delivery of app to own employees and/or act as subcontractor • Application tests:  Due diligence test.  Financial health test.  Quality, capacity and capability tests • Grade 4 Ofsted for app provision ineligible. • Open for applications from 25.10.16 to 25.11.16, result March 17. • Parent company guarantees accepted in first year. • Reopens every 3 months, refresh every 12 months.
  11. 11. Procurement for Employers Not Using a Digital Account • Open for applications from 25/10/16 to 25/11/16, results out on March 17th • Period covered May 2017 to July 2018, option to increase to 2020 • Sections to be completed include: Readiness to deliver from the contract commencement date, track record, management, reporting and quality assurance, engaging with and meeting the needs of employers, delivery of wider apprenticeship training, support for employers and their apprentices and delivery plan.
  12. 12. Procurement for Employers Not Using a Digital Account • Open for applications from 25/10/16 to 25/11/16, results out on March 17th • Period covered May 2017 to July 2018, option to increase to 2020 • Sections to be completed include: Readiness to deliver from the contract commencement date, track record, management, reporting and quality assurance, engaging with and meeting the needs of employers, delivery of wider apprenticeship training, support for employers and their apprentices and delivery plan.
  13. 13. Traineeship  Work preparation/placement, English/Maths, plus flex to deliver vocational qualification.  Changes since start: Extended to 16-24, min/max work placement time removed, pre level 3 harmonised for 16-18/19-24, further JCP flexibilities to ease delivery/benefit conflict, combined work prep/placement from 8/15, Grade 3 providers can deliver from 8/16.  16-18 and 19-24 funding growth challenging.
  14. 14. Advanced Learning Lessons  For Level 3 and 4 stand alone qualifications. Extended to 19+ and L5 and 6 from August 2016.  Growth area and further opportunities here – 2019/20 £480 million budget – budget always underspent.  No subcontracting from 2017/18
  15. 15. RPA: Raising Participation Age  Must remain in education to age 18 (currently 17) from August 2015 (includes school 6th form, FE College courses, apprenticeships, traineeships). LEP’s: (Local Economic Partnerships)  Increasing in importance, responding to local needs.  City Deals, Devolution, Combined Authorities.  AGE/ESF/SFA (AEB) contractual requirement to have dialogue.
  16. 16. Post 16 Skills Plan  Accepts Sainsbury Report  15 technical routes, only covers 43% of jobs covered e.g. no retail  One awarding org for each technical route  Renaming of the Institute for Apps to the Institute for Apps and Technical Education  Pilots from 2019 SFA Changes • Further restructuring of agency with large staff reductions. • PFA audits increasing in importance and rigour. • Grade 2 Ofsted is the minimum level of expectation • New Outcome Based Success Measures being introduced • BIS dissolved, FE now under DfE • SFA possibly to disappear in March 2018
  17. 17. Area Reviews of Post 16 Education & Training Institutions (completed by April 2017) • Area-based reviews of post-16 education and training will examine economic and educational needs in local areas and how current provision must change to meet these needs, involving Local Enterprise Partnerships. Following these reviews and the introduction of the levy funding, we expect to see fewer, larger and higher quality colleges. • By 2020, we will expect to see further education colleges taking a greater share of the apprenticeship training market (including Institutes of Technology and National Colleges), alongside employers offering apprenticeship training directly, universities providing higher and degree apprenticeships, and independent providers. • We will streamline processes to reduce barriers to new providers entering the market and getting on the RTO. • The arrangements for subcontracting between providers to be reviewed.
  18. 18. Fixing the Foundations: Creating a More Prosperous Nation. The Government’s Productivity Plan (further emphasis post Brexit) • A highly skilled workforce with employers in the driving seat • Skills (FE) will play a critical role in improving ULPLC productivity • Apprenticeships the driver
  19. 19. Future Opportunities  New ESF Rounds: • Bidding Dec 2015 to July 2016 • £650m • Delivery period of 18 months  Growth case opportunities with SFA for Apprenticeships and Traineeship  LEP linked opportunities e.g. Big Lottery Fund, Communities  Local Growth Fund £12bn - £1.8bn for economic growth and job creation. LEP’s need to bid by summer 2016  Increase of contracted providers for apprenticeship from 985 to 3,420 – how will PFA and Ofsted cope?
  20. 20. Everything starts with a conversation, so let’s talk: Safaraz Ali Linkedin: https://uk.linkedin.com/in/safaraz Twitter Handle: @SafarazAli Tel: 0121 707 0550

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