Regional Network Update November 2016

Key changes since August 2016: Levy funding in an employer’s DAS account will now expire in 24 months 16-18 year olds – providers will now receive an additional payment equivalent to 20% of the maximum funding band cap for frameworks only on top of original incentives Disadvantage uplifts retained for frameworks only for one year (revised and simplified system) Disadvantage uplifts: £600 for training on a framework for an apprentice who lives in the top 10% of deprived areas (as per the Index of Multiple Deprivation) £300 for any apprentice who lives in the next 10% of deprived areas (the 10 – 20% range) £200 for those in the next 7% (the 20 – 27% range) Payments will come direct from the Government and will not be deducted from an employer’s digital account

Prime providers must directly deliver some element of any standard or framework but there is no longer a fixed percentage set Organisations that only deliver sub-contracted delivery will not have to apply if the aggregated value of their delivery is less than £100,000 Parent company guarantees will now be accepted as part of financial due diligence

New Documents (Issued 25th October 2016) A total of 12 documents were released as follows: Apprenticeship funding in England from May 2017 Apprenticeship frameworks: funding bands from May 2017 Apprenticeship standards: funding bands from May 2017 Supporting quality and employer choice through a new register of apprenticeship training providers Apprenticeship funding: how it will work Equality analysis: apprenticeship funding policy from May 2017 Costs and behaviours in the 16 to 18 apprenticeship system: a report by Frontier Economics and CFE Research The apprenticeship levy: how will employers respond? Apprenticeship funding: rules and guidance for levy-paying employers Apprenticeship funding: draft rules for employer-providers Apprenticeship funding: draft rules for training providers Draft apprenticeship performance management rules 2017 to 2018 

Maths and English Maths and English delivery will be paid directly to the provider by the SFA - £471 for each qualification up to Level 2 Maths and English higher than Level 2 will be subject to a price negotiation with the employer, and will be funded by the employer from their DAS account or as part of their co-investment contribution as appropriate Full guidance pages 23 – 25 (Apprenticeship Funding: draft rules for training providers)

End Point Assessment (EPA) The Apprenticeship Assessment Organisation (AAO) is to be contracted by the provider, not the employer, but the employer must approve them The AAO must be selected before the apprenticeship starts Negotiated prices with an employer must include potential price of any retakes of exams or assessments Full guidance see pages 25 – 26 (Apprenticeship Funding: draft rules for training providers)

Sub-contracting Subcontractors to complement delivery must be agreed with the employer at the start of the apprenticeship The main provider must directly deliver some of the apprenticeship training/and or on-programme assessment associated with each employer’s apprenticeship programme There must be a written agreement in place with each employer where subcontractors are used Full guidance - see pages 27 – 32 (Apprenticeship Funding: draft rules for training providers)

Register of Apprenticeship Training Providers (RoATP) Register will open four times per year for new applications and will be refreshed annually For those wishing to apply to the register, please see the following further documents: Register of apprenticeship training providers: application instructions Find apprenticeship training: how to submit data 

RoATP Application overview Register with UKRLP To obtain a UKPRN to include on your application. Register with ICO Register with Information Commissioners Office (ICO) for education and training. Register for an account on the bravo e-tendering portal Read the registration guidance on our website. Complete your application SFA slide from webinar on 3rd November delivered by Samantha Rye – recording and slides available from the FA portal Read Joining the Register of Apprenticeship Training Providers – application instructions to help you. Ensure you sense check your application and upload the right information.

RoATP Timeline Publication of RoATP SFA Evaluates Applications Open for Applications March 2017 Nov - Feb 25 October 2016 2016 October November December January February March April May June July 2016 July Today 25 November 2016 May 2017 Close for Applications Delivery can begin SFA slide from webinar on 3rd Nov March 2017 Launch of RoATP Feedback to Applicants

Non-levy procurement Details of the procurement round for delivery to non-levy paying organisations after 1st May 2017 have now been released. The exercise is now open and closes on 25th November 2016 £100k min - £5 million max on awards in this round (starts only) You must have applied to join the RoATP at the time you submit any ITT to this round Results will not be known until March 2017 ITT indicates that further awards during the term of the contract are possible – for this reason the SFA have told us they do not consider the £5m figure to be a cap SFA have also told us that they intend to extend existing contracts to cover carry in- providers are therefore not required to bid for carry over

Procurement timeline Activity Deadline Publication of ITT 25 October 2016 Applicant briefing by narrated presentation From 25 October 2016 Last day to send clarification messages on the e-tendering portal 5pm on 23 November 2016 PQQ 28910: Main Route - Register of Apprenticeship Training Providers closes 5pm on 25 November 2016 ITT 30190 : Apprenticeship training delivery for employers not using the digital account closes Notification of tender results 14 March 2017 Day 1 of mandatory standstill period Day 10 of mandatory standstill period 24 March 2017 Contracts issued from 31 March 2017 Delivery commences 01 May 2017 SFA slide from webinar on 3rd November

SFA e-tendering portal This is the ONLY means by which the ITT documents can both be accessed and responded to! https://fasst.bravosolution.co.uk

SFA YouTube presentations: The SFA have published on YouTube two presentations which explain the process for registration and the invitation to tender, they can be accessed using the links below: Register of apprenticeship training providers Invitation to tender (ITT): apprenticeship training delivery for employers without a digital account 

Non-levy paying employer How the Levy will work Government Training Provider Paid by SFA and balance by employer HMRC collect levy (PAYE) Employs Apprentice. Commits to training Provides training to apprentice Timely data on training Employer views funds in digital account to spend in England Check training is complete If funding unlocked: Pay provider Registers with SFA Employer and Provider Identity Assurance Pass data on levy payments from HMRC to BIS Unused levy funds expire after 24 months Receives training for apprentice SFA draws down levy funds monthly Offers apprenticeship training 10% Top up Levy paying employer Employs Apprentice. Commits to training Receives training for apprentice Employer pays for proportion of cost direct to training provider SFA pays proportion to the training provider Non-levy paying employer Provides info via ILR to SFA that training has taken place & that employer has made contribution SFA slide

Funding bands Number Band 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 Every apprenticeship will be placed in a funding band The upper limit of each funding band will cap the maximum: amount of digital funds an employer who pays the levy can use towards an individual apprenticeship. that government will ‘co-invest’ towards, where an employer does not pay the levy or has insufficient digital funds Employers can negotiate the best price for the training they require If employers want to spend more than the funding band limit, using their own money, then they will be free to do that. Funding bands do not have a lower limit. SFA slide

Additional support in areas of disadvantage Funding bands for frameworks We will allocate each individual framework pathway to: the nearest funding band based on the current rate of funding the government pays providers for training adult apprentices but with some extra support… 16-18 uplift Transitional support of 20% of funding band maximum paid directly to training providers Also applies to 19-24 year olds formerly in care or have Education and Health Care plan STEM Support For all STEM framework pathways we will increase the current government-funded adult rate by 40% at Level 2 and 80% at Level 3 and above, and then allocate these frameworks to the nearest funding band. SFA slide Additional support in areas of disadvantage Training providers receive: An additional £600 for training an apprentice from top 10% of deprived areas, £300 for next 10% range and £200 for the next 7% range

Funding bands for standards Apprenticeship standards are employer-designed and offer employers and apprentices a more robust and relevant training experience. Recognised in the funding system by allocating higher funding bands to apprenticeship standards, relative to equivalent frameworks, where appropriate. Existing apprenticeship standards have been allocated to new funding bands according to the following principles: Principles Lower cost standards should be allocated to the nearest funding band Those standards currently assigned to the widest and highest cost funding band will be allocated to a new band within this range. Taking into account: Actual prices employers have negotiated with providers. Evidence from Trailblazer employers on the estimated costs eligible apprenticeship training The funding bands set for equivalent frameworks The level and nature of the training, and consistency across similar types of apprenticeship standard. SFA slide

Funding rules Prior qualifications Cross-border funding Applying a single test for funding through the English system: based on whether the apprentice’s main place of employment is England. ‘Workplace’ is where the apprentice is expected to spend the majority of their time during their apprenticeship. Prior qualifications Now and in the future, you can train any individual to undertake an apprenticeship at a higher level than a qualification they already hold. From May 2017, an individual can be funded to undertake an apprenticeship at the same or lower level to acquire substantive new skills Transferring funding During 2018 we will introduce means for employers to transfer up to 10% of the levy funds to another employer with a digital account, or to an ATA. New employer steering group to design this system so that it meets their needs SFA slide

The Digital Apprenticeship Service NOTE Employers who don’t pay the levy will not need to use the digital apprenticeship service to pay for apprenticeship training and assessment until at least 2018. SFA slide

Future Apprenticeships Support Programme Theme Support Employer engagement and business development A package of support (two one-day workshops, a webinar and resources) to maximise opportunities and develop consultative sales skills Organisational action planning and change management Two one-day workshops plus follow up activities looking at team structures, skills requirements, systems and processes (including contracting and invoicing) Delivering apprenticeship standards Face-to-face and online support from technical subject specialists and end point assessment organisations helping to prepare staff to deliver specific standards

Future Apprenticeships Theme Support Provider Readiness Groups (PRGs) Self-managed PRGs for standards through the Future Apprenticeships portal Information sharing One day ‘everything you need to know about apprenticeships’ workshops A series of webinars covering key policy updates End Point Assessment Support for individuals and organisations wanting to deliver high quality end point assessment. A series of sector focussed professional dialogues to inform CPD materials and workshops for organisations looking to deliver end point assessment. Innovative Apprenticeship Delivery X 3 Masterclasses to be delivered January - March 2017

NEW! End Point Assessment Workshops For organisations considering becoming an AAO or getting involved in delivering end-point assessment for apprenticeship standards and who would like the opportunity to discuss the detail, issues and opportunities to help to decide One day workshop and follow up call with action planning – for dates and booking please click the link below: https://booking.etfoundation.co.uk/course/details/81?return=browse&ci_id=165 Delegates should be in a leadership position that will allow you to understand how the opportunity to get involved with end-point assessments fits with your organisation’s strategy

Future Apprenticeships More information (including dates and booking details) is available on the Future Apprenticeships website http://futureapprenticeships.org.uk/