Funding
Apprenticeship Reform
Since the general election in 2015, apprenticeships have been a major government priority to improve skills and productivity in the UK. In order to support this the government are making significant changes to how apprenticeships are funded and what an apprentice will actually do.
From Apprenticeship Frameworks to Apprenticeship Standards
Historically Apprenticeships have been made up of frameworks, developed by sector skills councils to meet business needs. A framework covered a host of qualifications, skills and competencies which could then be applied to a variety of job roles within a specific sector/occupation. Apprentices have been internally assessed by their training provider on an ongoing basis throughout their apprenticeship and dependent upon the framework, there may have been some additional end testing involved.
Under the reform frameworks will be replaced by “standards”. This comprises of a two page document detailing the generic skills, competencies, behaviours and attitudes required by an individual to carry out a job role supported by a more detailed assessment plan as to how these will be achieved. The requirements of the standard may or may not be qualification-based but the standard itself and the achievement of the standard will be independently assessed at the end of the programme.
The standards are being written by employer groups, made up of large employers through to SMEs, in order to get a cohesive standard that meets sector needs.
Change in control of funding and funding methodology
A key part of the reform is putting employers in the driving seat in terms of funding. Previously funding has gone directly to the providers. Now, the government is putting control of the funding directly in the hands of employers. As a result of such a key policy change, the funding landscape for the next 2 years will be complicated. York College will support employers through this process by:
- providing information updates
- providing direct support to access funding
- supporting employers with any challenges that come from this transition period.
The Employer is in the driving seat
The reforms are generating an open competitive business market for the procurement of apprenticeship training provision by employers. Employers are clearly in the driving seat of who they choose to deliver their apprenticeship training with. There is scope to negotiate fees and content around the standard they choose as most appropriate for their individual staff member and business needs.
Widening of participation
The reforms are opening up participation. Apprenticeship standards are being developed at higher levels of learning than previously. Standards are now available at levels 4, 5, 6 and 7 and will continue to be developed. This places apprenticeship study on a level playing field with university and degrees.
Employer Levy April 2017
The Government is doubling the level of spending on Apprenticeships by 2019-20 in cash terms, as part of the reforms, and will be introducing the Apprenticeship Levy from April 2017.
The levy will be payable by all employers, regardless of sector, if they have a payroll bill in excess of £3million per annum. The Levy rate will be 0.5% of the employer pay bill and will be collected through Pay As You Earn (PAYE). The government will pay a 10% top-up for your apprenticeship training funds each month, meaning that for every £1 that enters your account for spending on apprenticeship training, you’ll get £1.10.
There will also be changes to funding for apprenticeship training for employers whose payroll bill is less than £3m a year – the majority of UK business. When the new funding system starts, you can you can continue to train apprentices and choose the appropriate standard or framework Approved Training Provider.
You will agree a price for the apprenticeship with the training provider and will be able to spread it over the lifetime of the apprenticeship. Employers will be asked to make a contribution to the cost of this training and the government will pay the rest, up to the maximum amount of government funding available for that apprenticeship. As both you and the government make a payment, we call this ‘co-investment’.
The government has confirmed it will pay 90% towards the cost of training and assessment, and employers will pay the remaining 10%.
Every individual apprenticeship framework and standard will be allocated to a funding band. The upper limit of the funding band will cap the maximum price that government will ‘co-invest’ towards. The new apprenticeship funding system will have 15 funding bands, with the upper limit of these bands ranging from £1,500 to £27,000. All existing and new apprenticeship frameworks and standards will be placed within one of these funding bands.
A new Digital Apprenticeship Service is being created which will allow employers to open online accounts so that they can directly access apprenticeship funding. This digital system will allow employers to:
• search for relevant standards/frameworks to match their job roles
• search for providers who deliver
• advertise their vacancy
• receive applications from people interested in the role
• claim the money to pay/support the delivery of the apprenticeship programme.
Your Questions Answered
An apprenticeship is a training development programme tied to a job role. It allows the apprentice to gain technical and functional knowledge, and real practical experience, required for their immediate job. On completion of the apprenticeship the apprentice must be able to undertake the full range of duties, in the range of circumstances appropriate to the role, confidently and competently to the standard set by the industry.
Apprenticeships have been designed by industry experts (Sector Skills Councils) to ensure candidates receive relevant practical and knowledge training that is focused on making your new/existing employee as competent as possible within their role in a relatively short amount of time. 96% of employers who have taken on an apprentice have reported benefits to their business. 82% of businesses report improved productivity and employee satisfaction as a result of employing an Apprentice and offering further qualifications to their workforce*.
Apprentices need to have a contract of employment and have the same rights as any other employee. As such they will also need to be paid a wage like other employees. The cost for the Apprenticeship training would usually cost anything from £5000-£15,000. However, the government executive agency (Skills Funding Agency) will fully fund the cost of training a 16-18 year old apprentice, and part fund any apprentices aged 19 or over.
The more you are prepared to pay, the higher the calibre of candidate you will attract and the more likely they will be to stay with you. On average, apprentices earn £170 net pay per week*, however, the Apprentice National Minimum Wage for those on an intermediate or advanced level apprenticeship currently stands at £3.40 per hour for 16 to 18 year olds and those aged 19 and over in the first year of their programme. For apprentices aged 19 or over, who have completed the first year of their programme, the full National Minimum Wage for their age applies. The Apprenticeship National Minimum Wage rate does not apply to Higher Apprenticeships.
Apprentices must be issued with a contract of employment for a minimum of 30 hours per week (including time spent at College). Employers must also be covered by valid Employers Liability insurance. Apprentices cannot be self-employed. Apprentices may not necessarily have the experience or skills required when they first start the programme and will need to be supported in their new role and given the correct responsibilities to complete their programme. They must also be given time to complete their work and to come to the college when required.
Yes. Businesses with less than 50 employees, who are new to Apprenticeships or haven’t enrolled a new recruit or existing employee on an Apprenticeship programme within the last 12 months, can currently apply for a £1,500 grant to help cover the costs of the apprentice (aged 16 to 24), available until 31st July 2017. You can apply for up to 5 grants at a time if you wish to take on more than one apprentice.
Yes, Apprenticeships are a great way to reward existing staff members who would benefit from a structured training programme.
The duration of an apprenticeship depends on several factors including the subject, the level undertaken and the apprentice’s existing skills and qualifications. They can take between one and four years to complete.
This varies depending on the framework, however an apprentice would typically spend one day a week in college and the rest of the time would be spent in the workplace. Some of our frameworks are conducted fully in the workplace.
City College Nottingham’s Apprenticeship Hub offers a full and comprehensive recruitment service free of charge. Your vacancy will advertised on various recruitment sites, including the National Apprenticeship Service, and the College website. The Apprenticeship Hub ensures all potential candidates are fully vetted and shortlisted for you to then decide who you would like to interview.
If you would like to recruit an apprentice please complete our online vacancy form.
Once submitted we will give you a call to go through the next steps you are happy as clear about us advertising your position