A presentation outlining the current situation of apprenticeships, as well as the proposed plans going forward.

1. Apprenticeships Now and the Proposed Plans
Going Forward

2. Apprenticeships being Delivered
More than half (55%) of all apprenticeship starts in 2014/15 were in two sectors:
Business, Administration & Law and Health, Public service & Care. Including Retail
& Commercial Enterprises, the top three sectors made up almost three-quarters
(73%) of apprenticeship starts

3. Key Facts
• There were 499,900 apprenticeship starts in the 2014/15
academic year, 59,500 (14%) more than the previous year.
• The Top 3 Frameworks being:
• Health and Social Care 85,000
• Business Administration 49,000
• Management 43,000
• In 2014/15, 21,500 (4.3% of all starters) apprenticeship
starters were Asian/Asian British; 17,200 (3.5%) were
Black/African/Caribbean/Black British; and 10,900
(2.2%) were of mixed/multiple ethnic background.

4. So What Next for Apprenticeships?
The Government Requires
The boosting our nation’s productivity to maintain and consolidate our economic recovery
by:
• Raising skill levels through apprenticeships – reaching 3 million starts in 2020.
• That is equivalent to more than one apprentice every minute over the next four
years
• Putting employers in the driving seat of creating apprenticeships that fully meet their
business needs.
• This means we NEED to develop opportunities for Engaging Employers
At Every Opportunity
• Making sure that apprenticeships are open to all, with a 20% increase in BME
apprentice starts in 2020.
• Continue and Build on our BME
• To increase sector coverage with an emphasis in Science, Technology, Engineering, and
Mathematics (STEM) apprenticeships- this being reflected in their funding model

5. WHY? Rationale for Reforms
Rationale for Reforms
Employer Driven
Employers designing
apprenticeships to make
them more responsive to
their needs and the future
economy, and controlling
funding
Simplicity
Simplifying apprenticeship
standards so that they are
shorter and more accessible
Quality
Improving the quality of
apprenticeships so that
they are viewed with the
same esteem as University

6. Funding and delivery comparison
The way it is Now
Proposed Plans
Skills Funding
Agency
Training
Organisation
Learning /
Assessment
Awarding
Body
Employer
Contribution (Levy)
SME payment
DAS/ Skills Funding
Agency Employer
Training
Organisation
This could be the
Employer
Awarding
Body
Assessment
20% of the
Funding
Learning
80% of the Funding
to also include Awarding Body fees for
any qualification within the new
Standards
Employer Pays LEVY to HMRC no mater if they access apprenticeships or not

7. Funding Example - The way it is Now
Skills Funding
Agency
Training
Organisation
Learning /
Assessment
Awarding
Body
Apprenticeship Business Administration Level 2 16-18 19-23 24+
Drawdown (Per Learner)
Pearson Edexcel FS English Level 1 £776.35 £362.00 £289.60
Pearson Edexcel Functional Skills qualification in Mathematics at Level 1 £776.35 £362.00 £289.60
Pearson BTEC Level 2 Diploma in Business Administration (​QCF) £4,270.97 £1,991.50 £1,593.20
Drawdown £5,823.66 £2,715.50 £2,172.40
Total Drawdown (Inc. Avg Uplift of 10%) £6,406.03 £2,987.05 £2,389.64
Apprenticeship Customer Service Level 2 16-18 19-23 24+
Drawdown (Per Learner)
Pearson Edexcel FS English Level 1 £776.35 £362.00 £289.60
Pearson Edexcel Functional Skills qualification in Mathematics at Level 1 £776.35 £362.00 £289.60
Pearson BTEC Level 2 Diploma in Customer Service (​QCF) £3,594.35 £1,676.00 £1,340.80
Drawdown £5,147.04 £2,400.00 £1,920.00
Total Drawdown (Inc. Avg Uplift of 10%) £5,661.74 £2,640.00 £2,112.00
Funding Drown Down by the Provider from the Skills Funding Agency
Awarding Body
Registration and
Certification Fee
£175
Awarding Body
Registration and
Certification Fee
£175
English Mathematics
Main
Learning Aim
Area and
Disadvantage
Uplift
Multipliers
= Total
Funding
Drawn Down

8. Funding Example
Proposed Plans
Employer
Contribution (Levy)
SME payment
DAS/ Skills
Funding
Agency
Employer
Training
Organisation
This could be
the Employer
Awarding
Body
Learning
£1,200 of the Funding
to also include Awarding Body fees for
the embedded qualification which is
anticipated to be Circa £150 leaving
£1,050 for Training
Employer Pays LEVY to HMRC no mater if they access apprenticeships or not
Learning
£1,600 of the Funding
to also include Awarding Body fees for
the embedded qualification which is
anticipated to be Circa £150 leaving
£1,400 for Training
End Point
Assessment
c£400 of the
Funding (this will
have to be paid out
before you can draw
down funding
Customer Service Level 2 £1,500
there is no additional uplifts for
learner age or being within London
Note: Fees dependant on individual awarding body and assessment organisation fees
End Point
Assessment
c£300 of the
Funding (this will
have to be paid out
before you can draw
down funding
Administration Level 2 £2,000
there is no additional uplifts for
learner age or being within London
Maths and English Additional Funding
Outside of employer contribution £471
for each
Maths and English Additional Funding
Outside of employer contribution £471
for each

9. SME’s With Less Than a
£3,000,000 Pay Bill
• Employers with fewer than 50 People working for
them will be able to train 16-18 year olds apprentices
at no Cost. This will also include those 16-24 who
were formally in care or who have a local Authority
Education , Health and Care Plan
Employer
Contribution SME
payment
DAS/ Skills Funding
Agency Employer
Training
Organisation
This could be the
Employer
Awarding
Body
Employer Pays 10% of training Fee to the Provider
The Provider Draws Down 90% of the funding from
the Skills Funding Agency
The Provider Pays for the End Point
Assessment and delvers the training
Example: Administration
Band £2,000
Employer Pays £200+VAT
Government Pays £1,800

10. Funding Comparison
The Hard Facts
Business Administration Level 2
How it is
Now
Post April
2017
English £475.98 £471.00
Maths £475.98 £471.00
Diploma in Administration £2,618.56 £2,000.00
Uplift (Average) £357.05 £0.00
Drawdown £3,927.57 £2,942.00
Loss of Funding £985.57
Income Reduction 25%
Awarding Body Fee -£175.00 -£150.00
End Point Assessment £400.00
Left for Delivery of Training £4,102.57 £2,692.00
Loss of Funding Going into Training £1,410.57
Drop in Funding
Available for Training
(average)
34%
Customer Service Level 2
How it is
Now
Post April
2017
English £475.98 £471.00
Maths £475.98 £471.00
Diploma in Customer Service £2,203.72 £1,500.00
Uplift (Average) £315.57 £0.00
Drawdown £3,471.25 £2,442.00
Loss of Funding £1,029.25
Income Reduction 30%
Awarding Body Fee -£175.00 -£150.00
End Point Assessment £300.00
Left for Delivery of Training £3,646.25 £2,292.00
Loss of Funding Going into Training £1,354.25
Drop in Funding
Available for Training
(average)
37%
For 16-18 year olds the position is worse however, this is offset by
Employer and Training Providers each being paid £1,000 in the form
off an age grant for this group (SMEs Only) . (Although we can not confirm all
the eligibility criteria at this stage)

11. Apprenticeship Funding and the
Changes planned
Provider
control
• Provider funded for delivery of Specification of Apprenticeship
Standards for England (SASE) framework
• Employer contribution expected but not always collected
Transition
• Employers have more control over content of Standards
• Funding partially to employer (incentives) and provider
• Employer contribution in cash
Employer
control
• Content and delivery controlled by employer
• Large employers pay 0.5% paybill tax as levy with a 10% top-up
• Employer uses digital voucher to pay for training and assessment
11

12. Current Position
Employer AGE Grants
Current Position
• AGE Grants
• Apprenticeship grant for employers of 16 to 24 year olds £1,500
• However,
• Employer have to employ fewer that 50 employees
• Is issued on a first-come, first-served basis within a training
organisation’s allocation of Grants
• You can only claim up to 5 Grants during the time the Grant is
available.
• commit to employ your apprentice(s) for a minimum of 12
months on the apprenticeship programme or the time it takes
them to complete their apprenticeship, whichever is the greater

13. Current Position
Employer Grants
Local Schemes
• Many Councils including London offer incentives to
employers an example is Birmingham City Council
• £1,500 for recruiting in to an apprenticeship vacancy for
SME’s
• Learners must be
• 16 to 18 years old and not in employment, education
or training (NEET) (self declared): or
• 18 to 24 years old unemployed for at least 1 day (self
declared).
• Many other areas offer incentives and you should ask your
provider or local council for more information

14. • Choosing a Provider
• You will be committing to a business relationship lasting at least 12 Months
therefore like any other business transaction:
• Focus on Due Diligence
• Use Social media such as LinkedIn to investigate their staff
• High turnover of staff could indicate a problem
• Access Employer and Learner Voice - this is free to access and gives you
the views of both learners and employers views for a training provider
https://learnerview.ofsted.gov.uk/results
https://employerview.ofsted.gov.uk/results
• Do a credit check using a site such as Creditsafe – you need to know that
the training provider has a solid track record and is financially sustainable
• Ask for References from current employers they deal with
• Check Companies House – Directors backgrounds; have they been
involved in insolvent companies

15. • Choosing a Provider
• Ask for Performance Data you should also ask how this
compares to the national average for the subject area
• This is measured as the
• Success Rate and
• Timely Success Rate (how many learners achieved
their qualification within the timeframe of the
apprenticeships)
How will they delver the qualification how will this be
assessed and how this fits in to your business needs

16. Keep in Touch:
• https://uk.linkedin.com/in/safaraz
• https://www.linkedin.com/company/pathwaygroup
• https://www.facebook.com/pathwaygroup/
• @pathwaygroup @SafarazAli
Safaraz Ali (Saf)
Safaraz@pathwaygroup.co.uk
Telephone: 0121 707 0550