Higher Apprenticeship Funding Rebecca Rhodes Head of Apprenticeship Funding Policy Implementation November 2015

Apprenticeship Reforms Simplicity Simplifying apprenticeship standards so that they are shorter and more accessible Employer driven Employers designing apprenticeships to make them more responsive to their needs and the future economy, and controlling funding Quality Improving the quality of apprenticeships so that they are viewed with the same esteem as University

Current Direction SFA operates all Apprenticeship funding from one budget but there are two types of apprenticeships with their linked funding models : Existing suite of approved SASE apprenticeship frameworks 353 new apprenticeship standards 195 approved and published of which 60 available for delivery (26 at L4-6) 158 in development Apprenticeship frameworks replaced by apprenticeship standards over time

To significantly increase the quantity and quality of apprenticeships in England to 3 million starts this Parliament, putting control of funding in the hands of employers. Employers at the heart of designing new Apprenticeships Standards through the Trailblazer programme Employer-routed funding reforms, such as the digital apprenticeships voucher, is putting control of funding directly into hands of employers Apprenticeships will be given legal treatment equal to degrees The government is abolishing employer NICs for apprentices under the age of 25 from April 2016 The government will set apprenticeship targets for public sector bodies Apprenticeship Reform Commitments

Apprenticeship Levy Announcement But a step change in the scale and quality of the apprenticeship programme also needs a step change in funding. The government will introduce a levy collected from larger employers which in England will be spent by the employer on apprenticeships Employers will access levy funds through the digital apprenticeship voucher Government consultation on levy implementation closed on 2 October 2015

Getting Involved 1.Have your provision included in an apprenticeship framework or Standard 2.Apply to join the SFA Register of Training Organisations 3.Apply through an SFA procurement round for funding 4.Prepare for the opportunities presented by the levy

Apprenticeship Delivery Lead Providers Are an existing SFA account holder with an apprenticeship budget Are on the Register of Training Organisations Lead relationship with employers Arrange & manage subcontracted delivery Arrange end-point assessment Make the employer incentive payments to employers Subcontractors Work to a lead provider and deliver elements of the apprenticeship

Higher Apprenticeship Funding

Qualifications that make up Higher Apprenticeships can be FE, HE or a combination of the two. Only approved SASE apprenticeships can be delivered Apply to the Issuing Authority who governs the framework to include your provision ( FE qualifications - these have national “rates” published by the SFA HE qualification ‘rates’ / prices are agreed with the SFA as part of contracting Funding is either paid on a standard Agency profile or on actual delivery depending on provider type Apprenticeship Grant for Employers available Funding Model - Frameworks

Funding Price agreed for Training & Assessment Employer 1/3 contribution Government 2/3 contribution Employer Incentive Payments English & Maths Additional Learner Support Trailblazer Funding Model – Standards Co- Payment Government Pays

Trailblazer Funding Model for Standards Maximum Core Government contribution (£2 for every £1 from employer) Cap 1Cap 2Cap 3Cap 4Cap 5 £2,000£3,000£6,000 £8,000 £18,000 Employer contribution if the maximum cap is claimed £1000£1,500£3,000 £4,000 £9,000 Minimum Co-funding for training and assessment at the cap £3,000£4,500£9,000 £12,000 £27,000 Additional incentive payments Recruiting a year old £600 £900£1,800 £2,400 £5,400 For a small business (<50) £500 £900 £1,200 £2,700 For successful completion £500 £900 £1,200 £2,700 Maximum total Government contribution £3,600£4,900£9,600 £12,800 £28,800

Trailblazer Standards - Employer Incentive Payments Incentive £1,800 50% at 3 months 50% at 12 months Small employer Incentive £900 < 50 employees 100% at 3 months Completion Incentive £ % on completion Lead provider is paid at 90 and 365 days by the SFA automatically Cannot be ‘offset’ against employer cash contribution

For Further Information on Higher Apprenticeships For General Higher Apprenticeship Queries: For trailblazer standards in development: development development For trailblazer standards available for delivery: delivery delivery Higher apprenticeship webpage: higher-and-degree-apprenticeshipshttps:// higher-and-degree-apprenticeships Advice for employers on trailblazer standards: apprenticeships apprenticeships