The Apprenticeship Reforms - What you need to know David Warnes Vice Principal Innovation & Enterprise

Key questions to consider Are you a Levy or Non-Levy employer? Will depend on your annual wage bill and will determine which how you pay for Apprenticeship training What training do you need and who needs it? Will determine the provider you choose and whether you are looking to up-skill existing staff or recruit new Apprentices or both What are your workforce Development Plans? How do you currently fund training and development, how do you plan your CPD and use succession planning to fill skill gaps or skills shortages What support do you need? Financial incentives Workforce Planning HMRC / Payroll Finding the right provider

Employers in the driving seat What is changing? Employers in the driving seat Introduction of the Apprenticeship Levy for some (2%) of employers Non-levy employers contributing 10% of the funding Apprenticeships can now be undertaken by those with higher level qualifications 20% of Apprenticeship training has to be off the job and must last min 12 months

What is the apprenticeship levy and who pays it? Starts on 6 April 2017, at a rate of 0.5% of pay bill, paid through PAYE Applies to all UK employers in all sectors £15,000 allowance is not a cash payment Only 2% of employers will pay the levy

What can funds be used for? Digital funds and government funding can be used for: Digital funds and government funding can not be used for apprenticeship training and assessment against an approved framework or standard with an approved training provider and assessment organisation up to the funding band maximum for that apprenticeship wages travel and subsistence costs managerial costs traineeships work placement programmes the costs of setting up an apprenticeship programme

How much will it cost? Levy employer 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 Levy employer Employer invest 100% of the band limit from their levy Non-Levy Employers pay 10% of the band limit to the provider (Govt pays the other 90%) Employers can negotiate on price 20% should be retained for the End point assessment Incentives for age, size of business, characteristic of Apprentice, Framework or Standard, exist

Purchasing training – both groups New funding system comes into effect on 1 May 2017 Apprenticeships started before 1 May will be funded through to completion according to the existing rules Levied employers buying training from May 2017 Can commit to apprenticeship starts from the beginning of May Funds will automatically leave the digital account on a monthly basis The cost will be spread over the lifetime of the apprenticeship We will hold back 20% of the total cost, to be paid on completion of the apprenticeship. Non-levied employers buying training from May 2017 Continue to make payments direct to providers Move onto the digital system at a later date

The Apprenticeship Service

Apprenticeship Workforce Development Planning

Workforce Development Planning Implementation Plans Workforce Development Planning Upskill and re-skill existing staff Recruit new Apprentice positions

Who needs training? Succession planning Individual CPD and performance plans Plugging skills gaps Addressing skills shortages Brining ‘new blood’ into the organisation

Support & Advice from London South East Colleges

Levy Support Free Workforce Development Planning consultation Levy Calculator & Resources Levy / Non-Levy Workshops & Training Data management /AS support In-house administrative support

Associate Partner network Capacity to deliver Associate Partner network STEM Health, Care, Children’s Services Business & Management Construction & built Environment Digital, Media, ICT Entry level jobs (level 2,3) Supervisory jobs (Level 3,4) Management jobs (Level 5, 6 – Higher / Degree Apprenticeships) Pre-employment/ pre- Apprenticeship & Traineeships Employability support

Recruitment Online Induction programme Advert design & JD writing Dedicated recruitment open days Online Induction programme Advert design & JD writing Screening and shortlisting services Talent Management

Flexible delivery all year round (20% off the job requirement) The Virtual College & Smart Rooms 100 + courses + VRQ’s E-learning materials and resources CPD certified

Questions? david.warnes@lsec.ac.uk 020 8295 7000 0779 6695741