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
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Thank you to our exhibitor today
#levyconsult
Introduction to apprenticeship funding reforms
#levyconsult
Nick Linford
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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
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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
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Apprenticeship Funding
Funding reform
Lots of information about the new funding system has already been confirmed.
Here’s a recap…
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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.
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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:
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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.
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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
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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.
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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
• Price you negotiate with your training provider = £7,500
• 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
• Price you negotiate with your training provider = £5,000
• The cost is within the funding band limit
• The training is for a 16‐18 year old apprentice
• Example funding band limit = £6,000
• Price you negotiate with your training provider = £7,500
• 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).
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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
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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
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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
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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?
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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?
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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
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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/
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Digital ApprenticeshipSystem calculator
https://estimate-my-apprenticeship-funding.sfa.bis.gov.uk/
Digital ApprenticeshipSystem calculator
https://estimate-my-apprenticeship-funding.sfa.bis.gov.uk/
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Digital ApprenticeshipSystem calculator
https://estimate-my-apprenticeship-funding.sfa.bis.gov.uk/
Digital ApprenticeshipSystem calculator
https://estimate-my-apprenticeship-funding.sfa.bis.gov.uk/
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The DigitalApprenticeshipSystem
[Not online yet, I got these screen shots emailed to me from the SFA]
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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.
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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)
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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
For more training and events visit lsect.com 29
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
For more training and events visit lsect.com 30
Final Q&A
#levyconsult
Nick Linford