Bristol Post-16 Conference Apprenticeship Reforms Update Patrick Mcleod Director of Work-based Learning SGS College 6 th July 2016

Current Position - Frameworks Apprenticeship Frameworks all designed to a template (SASE) Owned and written by Sector Skills Councils Competency element (NVQ type qualification) Knowledge element (technical certificate) English, maths, & sometimes IT Personal Thinking and Learning Skills Employment Rights and Responsibilities

Current Funding Methodology Government funded (SFA) through provider & college allocations Funding based on qualifications size and sector weightings Frameworks, thousands of pathways & funding values Fully funded training for 16-18s Co-funded for 19+ & Employer expected to contribute All ages - employer covers wages and other costs

Apprenticeships Participation Trend

Apprenticeships Success Rates Trend

Apprenticeship Reforms 3 distinct policy areas: Employer-devised Standards to replace Frameworks Funding reforms A drive to 3 million apprenticeship starts in this parliament

Employer-devised Standards replacing Frameworks 2 sides of A4 – akin to a job description Qualifications not normally included Very detailed Assessment Strategy testing competency and skills Independent Assessment Organisation Extensive synoptic end-loaded assessment Graded Pass, Merit, Distinction

Standards replacing Frameworks 1500 employers involved in development 117 Standards ready for delivery 2200 starts (out of 500,000 starts per year) 16 Independent Assessment Organisations registered to assess 30 different Standards No achievements yet

Funding Reforms – From April 2017 All Standards and Frameworks given a cap value (up to 17 caps) Employers with a payroll exceeding £3million – funded through a new Apprenticeship Levy Non-levy employers funded through provider allocations – for the time being Two-tier methodology with a government contribution to non-levy apprenticeships

Apprenticeship Levy – From April % hypothecated tax on payroll over £3m Applies to all employer types & all sectors Managed through an on-line account – Digital Apprenticeship Service Dependent on new software and linkage with HMRC Funds have an 18 month shelf-life – use it or loose it Can fund apprenticeship training, up to a cap value Cannot be used to cover apprentice employment costs

Funding for non-Levy Apprenticeships – From April 2017 Employers with payroll under £3m Levy-paying employers who have used all their levy Funded through provider and college allocations Mandatory cash contribution for all age groups Government picks up largest proportion of costs, up to matrix cap value

Employer Incentives – From April 2017 Expected incentives for Small & Medium Employers Taking on Apprentices Achievement Expected that incentives can exceed the mandatory cash contribution Cash-flow, administration and audit challenges

Drive to 3 million – Growth targets 3 million equates to 30% - 40% growth Emerging technologies low carbon cyber Advanced, Higher and Degree apprenticeships Triple volumes in Land-based

Drive to 3 million Apprentices - Strategy Quality – through putting employers in the driving seat Public sector quota 2.3% of workforce Large employers engaged through the Levy SMEs engaged through incentives 3 million target will “trump” the other reforms

Implications for Post-16 Providers 3 million apprentices = 30% - 40% growth 240+ Apprenticeship Providers in Bristol Very diverse delivery models and programmes 6 th Forms, Academies, Colleges, UTCs, Institutes of Technology Declining demographic until 2019, & not reaching 2015 levels until 2024 Increased Ofsted focus on CEIAG and Apprenticeships Higher Apprenticeships cost effective route to Level 4 and Highers

Opportunities for Employers Free recruitment Excellent retention of entry-level staff Funded training Embedding workplace practices and procedures Bolt-on qualifications Structured training and progression routes New recruits and existing employees Cost effective route to Higher quals Motivate and reward existing staff Upskilling in literacy and numeracy Bespoke delivery models Cost effective & low-risk growth Address age profile First-line –management for mentors and supervisors

Apprenticeship Frameworks in Schools Supporting Teaching and Learning STLS Physical Education Pathway Customer Service Business Administration Accountancy IT Professional Team Leading Higher Apprenticeships Levels 4+ Management HR Management Social media and digital marketing Business and Professional Accountancy Facilities management

Bristol Post-16 Conference Thank you and Questions? 6 th July 2016