Speaker: Simon Ashworth A Time of Transition: The New Skills Landscape. The provider and employer perspective. CMI Partner Conference 2017 Speaker: Simon Ashworth Chief Policy Officer Association of Employment & Learning Providers (AELP) @sashworth80 @AELPUK

Association of Employment and Learning Providers (AELP) AELP is a national trade association, representing the interests of 800+ organisations delivering vocational learning, assessment, sustainable employment & employability support. AELP membership includes Independent Training Providers (ITPs), FE Colleges (FECs), Higher Education Institutions (HEIs), employers, Awarding Bodies (ABs), Apprentice Assessment Organisations (AAOs) and employers. AELP members deliver over 75% of England's apprenticeships plus other skills & employment programmes.

Holistic overview of the Apprenticeship Reforms Funding: The way that apprenticeships are funded has changed… the Apprenticeship Levy and a new co-investment model for non-levy. Frameworks to standards: Mid-transition from apprenticeship frameworks to employer led apprenticeship standards. Delivery: Significant change in the actual make-up of apprenticeships. Moving to a model of independent third party End Point Assessment (EPA) for standards. Open-Market: Over 2,200 organisations approved by government for delivery of apprenticeship training. Governance: The new Institute for Apprenticeships (IfA), formally started last month in April 2017.

Early market behaviour and headlines Significant appetite from employers for higher and degree level programmes. Expecting a boom in Leadership & Management. Expecting to see the current split of new / existing staff enrolled on apprenticeships to further swing towards existing staff, primarily driven what levy employer are telling us. Weakening of demand and opportunities for 16-18 (the guarantee group as was) due to equalisation of funding and limited value in the new incentive package. Flexibility around relaxed prior attainment, a big win for employers. Early signs of sharp decline in demand for non-levy paying employers on existing programmes due to the need to co-invest.

Addressing the Skills gaps. Building a coherent skills escalator of progression. Not all gaps start at high levels – the importance of well planned and coherent career pathways cannot be underestimated: Leadership & Management Team Leader: Level 3 Advanced Operations Manager: Level 5 Higher Chartered Manager: Level 6 Degree Senior Leader: Level 7 Degree TBC: Level 8 Also seen some excellent examples of programme mapping and utilisation of RPL to map into Leadership & Management programme from other avenues.

Funding… money makes the world go round AELP positon: welcome the principle of the levy and the commitment of employer contributions, but 16-18 Apprenticeships should remain as a fully-funded commitment by government. All the major party manifestos continue to have Apprenticeships at the very heart of the skills agenda. They levy is very clearly here to stay, however, early concerns around the possible degradation of funding generated by the levy to be spent directly on apprenticeships. Growing concerns about the planned consumption of a number of levy paying employers and the wider implications this.

Funding… money makes the world go round Levy employer position – clear and transparent. We’re off and running! Non-levy employers (98% of employers) – a troubled start: Pause in the ITT for new provider allocations. Contract extensions for legacy prime contractor allocations (May-December 2017) for new non-levy starts. Limited funding in allocations. Very significant impact on existing subcontractors, with taps running dry. Very few HEIs approved on RoATP have access to any funding non-levy employer starts.

Funding… what's on the horizon? All employers move to the TAS. No further allocations systems and truly a system of employer choice. Jan 2018?... April 2019? Awareness of the different levers and mechanisms to manage future funding flows. Important to know and recognise: £3m levy threshold. 0.5% apprenticeship levy. Standards and frameworks funding band allocations. Co-investment methodology (90:10) 24 months levy period. % of funding levy paying employers get to spend.

Post-16 Skill Plan and Technical and Professional Education (TPE) / T-Level some observations Expansion of the IfA next year to become the IfATE. Initial Lord Sainsbury Review: Recommendations the Post-16 programmes should be delivered by “FE Colleges and not-for profit organisations”. Not included in the Post-16 Skills Plan, but not rejected either… AELP view that TPE is currently passing “under the radar” of many providers, who are focused on the current Apprenticeship Reforms. Timing of wider reforms clearly rushed on implementation with un-intended consequences which we are busy still sorting out! Impact on the focus of a number of AOs and the impact on AAOs and EPA. Still much work to do and more information is required from the DfE! Watch this space.

In summary and to conclude The Apprenticeship Reforms represent the most significant change the sector has ever experienced. While there is significant risk, there are also significant rewards for providers, employers and not forgetting the apprentices - the reason we are all here today. The only constant thing in our sector is change and it is the change that is constant. Importance of being agile and employer-led more so now than ever will see many flourish and unfortunately some perish.