apprenticeship funding update with the...

18/08/2016

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Apprenticeship funding update with the SFA

#levyconsult

18/08/16

Agenda10.30 Welcome and introduction to apprenticeship funding reformsNick Linford, author of the Complete Guide to Funding Apprenticeships

11.00 New update on levy funding for small and large employersKirsty Evans, SFA’s Director of Funding and Programmes

12.10 Break for refreshments

12.20 Entry into the ‘market’ – revealing the new apprenticeship provider registerKirsty Evans, SFA’s Director of Funding and Programmes

13.00 Break for lunch

13.50 Paying the apprenticeship levyNick Linford

14.30 Modelling the impact of the new levy systemNick Linford

15.30 Workshop end#levyconsult

18/08/2016


Thank you to our exhibitor today

#levyconsult

Introduction to apprenticeship funding reforms

#levyconsult

Nick Linford

18/08/2016


What four?

2. Four skills ministers so far

3. Four consultations so far

1. Four years so farIn June 2012 Doug Richard was asked by the governmentto review apprenticeship content and funding

John Hayes Matt Hancocktook over Sept 2012

Nick Bolestook over July 2014

Robert HalfonTook over July 2016

2013 2014 2015

Published last Friday and closes in three weeks

#levyconsult

4. Key changes1. All frameworks to be replaced by standardsKey changes: Standards are being designed by employer groups, require an end-point-assessment and often don’t require any qualifications. Frameworks being switched off in phases through to 2019/20.

2. National funding rates replaced by ‘negotiated’ ratesKey changes: From April 2017 the SFA will no longer determine apprentice funding values using a formula. Instead, providers and employers will negotiate a level of subsidy within one of 15 upper limits.

3. Extra £1bn for apprenticeship via a levyKey changes: From April employers will pay an extra 0.5% of their payroll above £3m into their levy pot. It’s expected this will generate £2.5bn per year for England and providers will access this pot via a new Digital Apprenticeship System.

4. A 90% subsidy when the employer levy pot is emptyKey changes: If an employer has no levy pot (98% of employers) or it runs out, the SFA are consulting on paying 90% of the negotiated rate on condition the employer has paid 10% in cash first. In the pilot, running since 2014, the subsidy was only 67% once 33% paid in cash first (concern over introduction of a mandatory cash contribution). #levyconsult

18/08/2016


What’s the reform really for?Reforms intended to be the solution to the problem of a lack of employer demand

Employer demand will go up as will ‘be in the driving seat’ and have ‘ownership’ of:

> The content & assessment (standards)

> The funding (levy, fees and negotiation)

> The oversight (Institute for Apprenticeships)

But not everyone is convinced an employer owned model is also good value for the apprentice nor the public purse

#levyconsult

All published by DfE last Friday> How it will work [5,800 words] – webpage

http://tinyurl.com/jglfzyj

> Proposals for apprenticeship funding in England from May 2017 [23 pages] – PDFhttp://tinyurl.com/zsrv67m

> Proposed funding bands for individual apprenticeship frameworks – spreadsheethttp://tinyurl.com/j7k3ddw

> Proposed funding bands for individual apprenticeship standards – spreadsheethttp://tinyurl.com/jxmwef5

> Apprenticeship employer-provider guide [31 pages] – PDFhttp://tinyurl.com/h9fbsde

> Proposals for a Register of Apprenticeship Training Providers (RoATP) [18 pages] – PDFhttp://tinyurl.com/jkve4h2

> Information on apprenticeship levy payers [9 pages] – PDFhttp://tinyurl.com/h4ff4b9

> Apprenticeship Funding Proposals online survey running until 5 Septemberhttp://tinyurl.com/j9bwxqa

> Estimate my apprenticeship funding – online toolhttp://tinyurl.com/gt54ju4 #levyconsult

18/08/2016


Apprenticeship Funding

Funding reform

Lots of information about the new funding system has already been confirmed.

Here’s a recap…

18/08/2016


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 employers in all sectors.

• Levy allowance is not a cash payment and cannot be used to purchase apprenticeship training.

• The allowance means only 2% of employers will pay the levy.

• Employers in England who pay the levy will be able to get out more than they pay into the levy, through a 10% top‐up to their digital accounts.

Paying the levy

• Employer of 250 employees, each with a gross salary of £20,000

• Pay bill: 250 x £20,000 = £5,000,000

• Levy sum: 0.5% x £5,000,000 = £25,000

• Allowance: £25,000 ‐ £15,000 = £10,000 annual levy payment

• Employer of 100 employees, each with a gross salary of £20,000

• Pay bill: 100 x £20,000 = £2,000,000

• Levy sum: 0.5% x £2,000,000 = £10,000

• Allowance: £10,000 ‐ £15,000 =£0 annual levy payment

LEVIED EMPLOYER NON‐LEVIED EMPLOYER

• Employers pay their levy to HMRC, through the Pay As You Earn (PAYE) process.

• Single employers with multiple PAYE schemes will only have one allowance.• Connected companies can share one allowance.

18/08/2016


Accessing levy funds to spend on training

• Levy funds will be available through a new digital service on gov.uk – initially for levied employers.

• First funds appear in account in late May 2017 after the employer has completed their RTI submission for April 2017.

How funds in the account will be calculated• How much will each employer will have to spend through the English system?

o If 100% of pay bill is in England 100% of levy payment in digital account

o If 80% of pay bill is in England 80% of levy payment in digital account

• 10% government top up to monthly funds entering an employer’s account.

• Funds will expire 18 months after they appear in the employer’s digital account unless spent on apprenticeship training.

Purchasing training

Levied employers buying training from May 2017:• employers can commit to apprenticeship starts from the beginning of May after

selecting a provider and an apprenticeship programme

• funds will automatically leave the employer’s digital account monthly, spread over the lifetime of the apprenticeship

• proposal to hold back 20% of the total cost, to be paid on apprenticeship completion.

Non‐levied employers buying training from May 2017:• employers that don’t pay the levy will make payments for training direct to

providers.

• The new funding system comes into effect on 1 May 2017

• All apprenticeships started before 1 May will be funded through to completion according to the existing rules.

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Purchasing training

Digital funds and government funding can 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.

Digital funds and government funding can not be used for:• wages• travel and subsistence costs• managerial costs• traineeships• work placement programmes • the costs of setting up an apprenticeship programme.

Funding reform – more details

On 12 August, Government published further proposals on detailed funding model.

Employers and providers invited to feed back by 5 September.

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Provisional funding bands for frameworks

Proposals• We propose to allocate each individual framework pathway to:

• a single funding band, regardless of the age of the learner, or geographic location.

• the nearest funding band based on the current rate of funding the government pays providers for training adult apprentices.

For all STEM framework pathways we propose to 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.

For this purpose, we propose to determine STEM frameworks by sector subject area.

We invite feedback from employers and providers about this proposal, including how STEM should be defined.

Provisional funding bands for standards

Proposals• Apprenticeship standards are employer‐designed and offer a more robust

and relevant training experience.

• Recognised in current and future funding system by allocating higher funding bands to apprenticeship standards, relative to equivalent frameworks.

• We propose that existing apprenticeship standards are allocated to new funding bands as follows:

18/08/2016


Provisional funding bands

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.

• price 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.

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

Provisional funding bands for standards

• Lower cost standards should be allocated to the nearest funding band to current band.

• Standards currently assigned to the widest and highest cost funding band will be allocated to a new band within this range. Taken into account:i. actual prices employers have negotiated with providersii. evidence from Trailblazer employers on estimated costs of eligible apprenticeship

trainingiii. funding bands set for equivalent frameworksiv. the level and nature of the training, and consistency across similar types of

apprenticeship standard.

We invite feedback from employers and providers on these proposals.

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Co‐Investment

There are two types of employers who will benefit from government support towards the cost of their apprenticeships training:

1. Employers who haven’t paid the levy and want to purchase apprenticeship training from a provider

2. A levy‐paying employer with insufficient funds in their digital account to pay for the cost of training and assessment they want to purchase.

We propose that:• the government pays 90% of the costs of training and assessment• the employer will be responsible for paying 10% of the costs.

Government90%

Additional support for small employers

Proposals• Employers with fewer than 50 people working for them will be able to train

16 to 18 year old apprentices at no cost.

• The government will pay 100% of the apprenticeship training costs for these individuals.

• The government will extend this to small employers who take on a 19 to 24 year old apprentice who was formerly in care or has a Local Authority Education, Health and Care plan.

• The government will pay 100% of the apprenticeship training costs for these individuals.

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Additional support for apprentices

Funding for 16‐18 year oldsGovernment proposes to pay

£1,000 to employers, and a further £1,000 to training providers if they train a 16‐18 year old apprentice.

Disadvantaged young peopleGovernment proposes to pay £1,000 to employers, and a further £1,000 to training providers if they train 19‐24 year olds leaving care or who have

a Local Authority Education and Healthcare plan.

Funding for additional learning support

We propose to pay training providers up to £150 a month to

support these learners, plus additional costs based on evidenced

need.

Funding for English and Maths training

To meet minimum standard of English and maths we propose to pay training providers £471 for each of these qualifications (Level 1 and 2).

Funding rules

Transferring funding • During 2018, we propose to

introduce means for employers to transfer up to 10% of the levy funds, to another employer with a digital account, or to an ATA.

Prior qualifications• Employers will be able to train any

individual to undertake an apprenticeship at a higher level than an existing qualification.

• An individual can be funded to undertake an apprenticeship at the same or lower level to acquire substantive new skills.

Cross‐border funding• Propose to apply a single test for whether apprenticeship training can be

funded through the English system: 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.

• Continuing to work with Devolved Administrations on the scope for reciprocal funding.

18/08/2016


Next Steps

25

In August we published apprenticeship funding proposals and are inviting feedback.

You can provide feedback through GOV.UK.

October 2016

• The final funding bands that will apply in the new system.• The final, full set of technical rules that underpin the funding system.• Confirmation of how the proportion of pay bill that is paid to employees living in

England will be calculated.

December 2016

• Further employer guidance from HM Revenue and Customs (HMRC) on how to calculate and pay the apprenticeship levy.

26

ANNEXES

18/08/2016


Government

Training

Provider Paid by SFA

and balance by employer

HMRC collect levy (PAYE)

Employs apprentice and 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 funds expire after 18

months

Receives training for apprentice

Payments to providers taken from digital account

Commits to provide

apprenticeship training

How the funding system will work

10% Top up

Levy paying

employer

Non‐levIED

employer Employs

apprentice and commits to training

Provides info via ILR to SFA that training has taken place & that employer has made contribution

Employer pays for proportion of cost direct to training

provider

Receives training for apprentice

SFA pays govtproportion of costs to the

training provider

27

28

The Digital Apprenticeship Service

NOTEEmployers 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. When we ask them to start using the digital apprenticeship service to pay for apprenticeship training, we will help them to prepare.

18/08/2016


Funding limits– how they work• Example funding band limit = £6,000

• Price you negotiate with your training provider = £5,000

• The cost is within the funding band limit

• Example funding band limit = £6,000


• The cost is above the funding band limit

WITHIN THE FUNDING BAND LIMIT OVER THE FUNDING BAND LIMIT

£5,000 will be deducted from your digital accountover the life of the apprenticeship.

With enough funding in your

account

Without enough funding in your

account

If you have £0 in your account we will pay 90% (£4,500) and you will need to pay 10% (£500).

If you have digital funds available, these will be used first, and then we will pay 90% of the remaining costs, and you will pay 10%.

£6,000 will be deducted from your digital accountover the life of the apprenticeship.

You will be responsible for paying £1,500. This payment can’t be made from your digital account

With enough funding in your

account

Without enough funding in your

account

If you have £0 in your account we will pay 90% (£5,400) and you will need to pay 10% (£600). This is the maximum payable within the limit of the band.

You will also be responsible for paying the additional £1,500. This payment can’t be made from your digital account

Funding limits– how they work• Example funding band limit = £6,000


• The cost is within the funding band limit

• The training is for a 16‐18 year old apprentice

• Example funding band limit = £6,000


• The cost is above the funding band limit

• The training is for a 16‐18 year old apprentice

WITHIN THE FUNDING BAND LIMIT OVER THE FUNDING BAND LIMIT

Employer of under50 people

Government will fund 100% of the cost of apprenticeships training and assessment for employers who employ fewer than 50 people.

In this case:• We will pay 100% (£5,000)• You will pay 0% (£0).

Employer of under50 people

Government will fund 100% of the cost of apprenticeships training and assessment for employers who employ fewer than 50 people.

In this case:• We will pay 100% (£6,000)• You will pay 0% (£0).

You will be responsible for paying in full the amount above the funding band limit (£1,500).

18/08/2016


Proposals for a Register of Apprenticeship Training Providers

Summary of discussion paper

Kirsty EvansDirector: Programme Delivery and Implementation

August 2016

Transition

• All SFA funding agreements end 31 July 2017

• Apprenticeship funding for 2017 in 3 parts:• Existing learners• Funding for employers who will pay the levy• Funding for employers who will not be paying the levy

• SFA commitment to learners completing their programmes

• No transfer to the new register from Register of Training Organisations (RoTO)

• RoTO continues for Adult education Budget and loans

18/08/2016


Content

• Background to apprenticeship reforms

• Why a new register is needed for apprenticeships

• Key proposals and questions for discussion

• Key dates

33

Background to apprenticeship reforms

The aim:

A high quality, employer‐led apprenticeship system…..

…..underpinned by a high quality, flexible and responsive provider base.

Leading to:

• Significant change in the apprenticeship provider base

• Significant investment in, and demand for, apprenticeships over the next few years

Supported by:

• The apprenticeship levy

• The digital apprenticeship service

18/08/2016


A new register for apprenticeships

• To support an employer‐led system, a new register will:

o Provide assurance to employers and government specifically for apprenticeships

o Allow employers who wish to deliver training to their own employees to do so

o Set a high bar for providers to meet if they want to deliver apprenticeships in the

future.

• Any provider wanting to deliver apprenticeships to any employer

from May 2017 must apply to join the new Register

• Procurement to work with employers who will not be paying the levy

• Launch date ‐ October

Eligibility to apply: proposals

• We propose that any organisation that wants a role in delivering

apprenticeship training from May 2017 must apply to the Register

• We also propose that intermediary bodies or other body that does

not itself deliver education and training to apprentices should not be

eligible to apply to the RoATP

Q1. Do you agree with the proposal that all organisations wanting to deliver

apprenticeship training must apply to the new RoATP, and that they must directly

deliver some apprenticeship training themselves?

Q2. In what instances do you think it might it be difficult to move to this and why?

36

18/08/2016


Subcontracting: proposals

• Our proposal is that sub‐contracting should only be used to complement the main provider’s offer, in order to meet employers’ needs

• The main provider would always need to deliver a significant majority of each framework or standard they contract with the employer to deliver, and would need to get the employer’s agreement to sub‐contract parts of it

Q3. Do you agree with the proposition that sub‐contractors and supporting providers should be limited to delivering significantly less than half of each apprentice’s training and therefore receiving significantly less than half of the agreed price for each apprenticeship?

Q4. Do you agree that this proposition should apply to all providers, including employer‐providers wishing to act as a supporting/sub‐contracted provider to a main provider?

Application routes: proposals

• The majority of organisations will apply through a main application route

• The ‘supporting’ route

• The route for employers who only want to train their own staff

Q5. What merit is there of having a separate ‘supporting’ application route for providers who only have capacity and capability to deliver parts of apprenticeships on a small scale, in support of the main provider’s delivery?

Q6. Do you agree with the proposal for a separate application route for employers wishing to deliver to their own staff?

18/08/2016


Applicant tests: proposals

• Due diligence test

• Financial health test

• Quality, capacity and capability tests

Q7. Do you agree with our proposals for the financial health test? If not, in what areas would you suggest we amend our approach?

Q8. What specific questions should we ask providers to determine whether they are a high quality apprenticeship training provider?

Q9. What evidence of quality, capacity and capability should organisations who are newly established, have no previous experience of delivering apprenticeships or do not have an Ofsted inspection or QAA review on record be asked to provide?

Eligibility and timeline: proposals

• Eligibility to apply

• Timeline for applications

Q10. How do we ensure there is sufficient, high quality apprenticeship provision for all employers to access through this register process?

Q11. Do you agree with our proposal to open the RoATP four times a year? If not, how often should it be open and why?

18/08/2016


Significant dates

• 5 September: survey closes

• 3 October: Register opens for applications

• February 2017: first edition of the RoATP published

• October 2016: we will invite applications in for apprenticeship delivery to non‐levied employers. Successful organisations will be told the outcome by March 2017.

Q12. Are there any ‘unintended consequences’ of our planned approach and, if so, what are they and how can we avoid them?

Q13. Do you have any final comments about our planned approach?

Paying the apprenticeship levy

#levyconsult

Nick Linford

18/08/2016


Paying the levy

https://www.gov.uk/government/publications/apprenticeship‐levy‐how‐it‐will‐work/apprenticeship‐levy‐how‐it‐will‐work#paying‐the‐apprenticeship‐levy

“In December 2016 there will be information about further employer guidance from HMRC on how to calculate and pay the apprenticeship levy.”

DigitalApprenticeshipSystem calculator

https://estimate-my-apprenticeship-funding.sfa.bis.gov.uk/

18/08/2016


Digital ApprenticeshipSystem calculator




18/08/2016






18/08/2016


The DigitalApprenticeshipSystem

[Not online yet, I got these screen shots emailed to me from the SFA]

18/08/2016


Modelling the impact of the new levy system

#levyconsult

Nick Linford

Calculating funding for apprenticeshipsThere are now three active funding methodologies

#levyconsult

Framework starts before 1st May 2017Listed rates unchanged from 2012/13, with 20% for achievement, double payment in month one and variations for: delivery location; disadvantage; age at start; size of employer and no mandatory employer cash contribution.

Standards starts before 1st May 2017Pilot upper limits worth 2/3rd of provider income with mandatory employer cash contribution (1/3rd) substantial employer incentives for 16-18, small employers and end-point assessment achievement

Framework and standards starts from 1st May 201715 upper limits worth 100% for levied employers based on negotiation up to the upper limit, 100% of upper limit for SMEs with 16-18s from SFA for 16-18 as SMEs and 90% of negotiated upper limit for non-levied employers.

18/08/2016


Framework starts before May 2017 funding (per qual)

PW Weighting

A (Base) 1B (Low) 1.12

C (Medium) 1.3D (High) 1.6

E (appren only) 1.72G (Specialist) 1.72/1.92

H (appren only) 1.2J (appren only) 1.25K (appren only) 1.5L (appren only) 1.15

x x x =PW

Programme Weighting

DU

Disadvantage uplift

ACU

Area cost uplift

Discounts

Co-funding & employerdiscounts

Funding

xBR

Base rate

Cash rate listed on LARS for fully-funded

19-23 based on 12/13 SLN &

National Funding Rate (NFR)

Weighting for sector type, listed on LARS

16-18 NFR

£2,804

19-23 NFR

£2,615

24+ NFR

£2,092

16-18 is 7.23% more than 19-2320% less than 19-23

Weighting based on learner home

postcode in the ILR.

Could be as much as 32% (1.32) extra

in most deprived

area. When planning use a historical

average

A south east (mainly London)

weighting based on

main delivery location. E.g. Up to 20% (1.2) extra if

delivered in central London

19+ co-funding

means the funding is

halved (0.5)

19+ large employer

(1000+ employees)

discount reduces

funding by a further 25%

(0.75)

80% for monthly on-programme payments (double in

month one)

20% for achievement of Eng and Maths and rest when

fully achieved framework

Unweighted funding example in 14/15 and 15/16

L2 accountingSLN from 2012/13

5010004X Level 2 Certificate in Accounting 1.477

50123257 Level 1 Functional Skills in Mathematics 0.168

50116605 Level 1 Functional Skills in English 0.168

Total

Compared to 16-18 total

19+ co-funding discount = 50%

Large employer discount (LED) = 25%

16-18 19-2319-23 LED

24+ 24+ LED

£4,142 £1,931 £1,448 £1,545 £1,159

£471 £362 £272 £290 £217

£471 £362 £272 £290 £217

£5,084 £2,655 £1,991 £2,124 £1,593

52% 39% 42% 31%

Level 2 accounting framework (excl. DU & ACU)

L2 accounting

60069090 Level 2 Certificate in Accounting

50123257 Level 1 Functional Skills in Mathematics

50116605 Level 1 Functional Skills in English

LARS rate

£3,862

£724

£724

LARS x

1.0723

LARS x

0.5

LARSx

0.5 x

0.75

LARSx

0.5 x

0.8

LARSx

0.5 x

0.8x

0.75

Not on LARS (but same as 12/13). ICT is £224 for 16-18 and ICT 19-23 rate on LARS is £345 (before 50% taken off for co-funding)

18/08/2016


Standards starts before May 2017 funding

Employer contribution for training and

assessment (to achieve max cap)£1,000 £1,500 £3,000 £4,000 £6,500 £9,000

Core Government Contribution (CGC) £2,000 £3,000 £6,000 £8,000 £8,000 £18,000

‘Co‐payment' : Provider income (excluding Eng & maths @ £471 each)

£3,000 £4,500 £9,000 £12,000 £14,500 £27,000

Large employer (50+ staff) with completed 19+ keeps

£500 £500 £900 £1,200 £1,950 £2,700

Large employer (50+ staff) with completed 16‐18 keeps

£1,100 £1,400 £2,700 £3,600 £5,850 £8,100

Small employer (<50 staff) with completed 19+ keeps

£1,000 £1,000 £1,800 £2,400 £3,900 £5,400

Small employer (<50 staff) with completed 16‐18 keeps

£1,600 £1,900 £3,600 £4,800 £7,800 £10,800

Net cost to large employer (50+ staff) with completed 19+

‐£500 ‐£1,000 ‐£2,100 ‐£2,800 ‐£4,550 ‐£6,300

Net cost to large employer (50+ staff) with completed 16‐18

£100 ‐£100 ‐£300 ‐£400 ‐£650 ‐£900

Net cost to small employer (<50 staff) with completed 19+

£0 ‐£500 ‐£1,200 ‐£1,600 ‐£2,600 ‐£3,600

Net cost to small employer (<50 staff) with completed 16‐18

£600 £400 £600 £800 £1,300 £1,800

Funding cap band 1 2 3 4 5 6

Core Gov Contribution (CGC) [max] £2,000 £3,000 £6,000 £8,000 £13,000 £18,000

16‐18 employer incentive [fixed] £600 £900 £1,800 £2,400 £3,900 £5,400

Small employer incentive [fixed] £500 £500 £900 £1,200 £1,950 £2,700

Completion employer incentive [fixed] £500 £500 £900 £1,200 £1,950 £2,700

Maximum total government contribution £3,600 £4,900 £9,600 £12,800 £20,800 £28,800

DfE or BISpayments via SFA

New for 2016/17

Provider income

Total employer incentives

Employer contributiongreater than fee?

56

Funding for 16‐18 year oldsGovernment proposes to pay

£1,000 to employers, and a further £1,000 to training providers if they train a 16‐18 year old apprentice.

Disadvantaged young peopleGovernment proposes to pay £1,000 to employers, and a further £1,000 to training providers if they train 19‐24 year olds leaving care or who have

a Local Authority Education and Healthcare plan.

Funding for additional learning support

We propose to pay training providers up to £150 a month to

support these learners, plus additional costs based on evidenced

need.

Funding for English and Maths training

To meet minimum standard of English and maths we propose to pay training providers £471 for each of these qualifications (Level 1 and 2).

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

Framework and standards starts from 1 May 2017 (proposed)

18/08/2016


Document simply says: “We propose to allocate individual framework pathways to the nearest funding band based on the current rate of funding the government pays providers for training adult apprentices.”

The SFA told me this morning:

“In the calculation we take into account co-funding for both 19-23 and 24+; this means the rates are 50% of the overall published rate for 19-23 and 40% of the published rate for 24+.

We weight the rates according to the volumes of 19-23 and 24+ starts; therefore in framework pathways where there are 24+ starts the calculated rates will be lower than the 50% in the example.

We also assign the pathway to the closest band, not the next bandabove the rate. For example; a calculated rate of £1,700 is assignedto the £1,500 band but a rate of £1,800 is assigned to the £2,000 band.”

Assigning upper limits to frameworks

Example impact on 16-18 framework funding

Framework (Level 2)

Upper limit +

£1k incentive

to provider

Combined LARS 19-23 weighted

rate

Current 16-18

fundingVariance Shortfall

Current 16-18 fundingin central London

Variance Shortfall

Health and Social Care

£2,500 £4,199 £4,503 -£1,699 -44% £5,404 -£2,904 -54%

Business Administration

£3,000 £3,983 £4,272 -£983 -30% £5,126 -£2,126 -41%

Hospitality and Catering

£2,500 £3,953 £4,240 -£1,453 -41% £5,088 -£2,588 -51%

Management £2,500 £3,640 £3,904 -£1,140 -36% £4,685 -£2,185 -47%

Customer Service

£2,500 £3,352 £3,595 -£852 -30% £4,314 -£1,814 -42%

18/08/2016


Final Q&A

#levyconsult

Nick Linford

apprenticeship funding update with the...

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