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Welcome

Engagingwithappren2ceshipsFriday20thMay2016

 Purpose  To bring key intermediary to business, up to speed with regards to the various changes within the world of apprenticeship reforms. There will be plenty of opportunity to raise questions, discuss the changes and network with other key intermediaries across Hertfordshire.

 Agenda  Skills & Labour Market update

 Progress against Apprenticeship Plan

Welcome – Norman Jennings

09.00 Registra-on&Networking

09.30 WelcomefromNormanJennings

09.45 Overviewofthelatestappren2ceshippolicychangesincludingthelevy,thenewDigitalAppren2ceshipService,fundingandincen2vechangesfromApril2017andtheimpactforsmallbusinessesinHerIordshire.

10:30 Introducingthenewappren2ceshipreferralsystem

10:45 Refreshmentbreak

11:00 DevelopinganIntermediariestoolkitforHerIordshire

11:50 Nextstepsandroundup

12:00 Lightlunchandnetworking

Agenda

 Herts Productivity rate improvement – 3.1% increase in 2013

  Jobs growth has strengthened – 3.1% increase in 2014

  Strong employment rate – 80% of working age residents

  Strong employment growth in PST, ICT, Construction, Hospitality & admin/support services

 Greater % of employment in higher skilled occupations – 59% at L3 & above

 Highly qualified working age residents – 44% at L4 and above

  JSA claimants continue to fall – 1% of working age residents

  Skills gap more prevalent in Hertfordshire – 3.7% increase in 12 months

 NEETs rate remain low – circa 3.5%

 Overall growth in Apprenticeship starts although issues re 19-24

Skills & labour Market Review

  Revisions to LEP area apprenticeship plan to reflect changes i.e. Levy, funding etc.

  Three key themes remain – Employer, Apprentice & sharing best practice

  Progress being made against 3 of 5 targets

Hertfordshire Apprenticeship Plan

Target 1: Increased numbers of 16-18 year old Hertfordshire residents starting on the Apprenticeship programme.

Between 2013/14 and 2014/15 increased to 1682 from 1597 - target of 1865 by 2017.

Target 2: Increased numbers of Hertfordshire residents starting on Higher Apprenticeships.

Between 2013/14 and 2014/15 increased to 321 from 124 - target of 400 by 2017.

Target 3: Increased numbers of 19-24 year old Hertfordshire residents starting on the Apprenticeship programme.

Between 2013/14 and 2014/15 decreased from 2305 to 2109 - target of 2830.

Target 4: Improved balance between intermediate/advanced/higher starts.

Between 2013/14 and 2014/15 balance improved to 56.8% (Inter)/43.2 %(Adv+High) - target of 55% (Inter)/45% (Adv+High).

Setting the scene   Public Sector targets   The levy   The new Digital Apprenticeship Service

Considerations for SMEs

  Funding and incentive changes from April 2017   Act now or wait until April?   Activity: Priorities for negotiating the cost of training

Apprenticeships update

•  Thegovernmentiscommi<edtosignificantlyincreasingthequan-tyandqualityofappren-ceshipsinEnglandtoreach3millionstartsin2020:

•  NewIns-tuteforAppren-ceshipsledbyemployerstosupportqualityappren2ceships

•  EmployersattheheartofdesigningnewAppren-ceshipsStandardsthroughtheTrailblazerprogramme

•  Appren2ceshipswillbegivenequallegalprotec-ontodegrees•  SecondaryClass1NICsabolishedforappren2cesundertheageof25fromApril2016

•  Butastepchangeinthescaleandqualityoftheappren-ceshipprogrammealsorequiresastepchangeinfunding.

Broader apprenticeship reforms

  The Bill

•  The Enterprise Bill received Royal Assent on 4 May and became the Enterprise Act

•  Secretary of State has powers to set targets for prescribed public bodies in relation to the number of apprentices working for them in England.

  The 2.3 % Target

•  The Act includes a duty on all public bodies (250+) which are set a target to ‘have regard’ to that target and report annually.

•  Bodies in scope /the target itself will be set out in regulations debated in autumn 2016.

•  The target period for the duty is the financial year, 1 April to 31 March.

•  Implementation to be set out in the Government Response to the consultation published in June

Public sector targets

•  The Apprenticeship Levy will be a levy on all UK employers to fund new apprenticeships.

•  The levy will be 0.5% of the pay bill, paid through PAYE.

•  Any UK employer, in any sector, with a pay bill of more than £3 million per year is liable to pay the levy.

•  An allowance of £15,000 will offset against levy liability. The levy allowance is not a cash payment and cannot be used to purchase apprenticeship training.

•  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.

•  Levy and top up payments will be made monthly and will expire after 18 months

•  Providers will be paid monthly via the employer’s digital account. The Digital Apprenticeship Service (DAS)

The levy

The Digital Apprenticeship Service

An online service for employers of all sizes from April 2017 To facilitate the management of apprenticeships, including:

Information

Finding a standard / framework / training provider

Recruiting apprentices

Managing levy and funding

Digital apprenticeship service screenshots

Before April 2017 Current frameworks £0 cost of training for 16-18 yr olds Employer contribution for 19+ (includes payment in kind) Access to AGE grant £1500 for 16-24 (criteria apply)

New standards £2 for £1 funding methodology Mandatory employer contribution for all ages Significant incentives available

Funding pre-April 2017

Maximum Core Government contribution (£2 for every £1 from employer)

Cap 1 Cap 2 Cap 3 Cap 4 NEW Cap 5

NEW Cap 6*

£2,000 £3,000 £6,000 £8,000 £13,000 £18,000

Employer contribution if the maximum cap is claimed

£1000 £1,500 £3,000 £4,000 £6,500 £9,000

Co-funding for training and assessment if the maximum cap is claimed

£3,000 £4,500 £9,000 £12,000 £19,500 £27,000

Additional incentive payments

Recruiting a 16-18 year old

£600 £900 £1,800 £2,400 £3,900 £5,400

For a small business (<50)

£500 £500 £900 £1,200 £1,950 £2,700

For successful completion

£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

PilotFundingCapsStandards-August16–April17*IncludesStandardsautoma-callyre-designatedintocap6on1stAugust

•  Examplefundingbandlimit=£6,000

•  Priceyounego2atewithyourtrainingprovider=£5,000

•  Thecostiswithinthefundingbandlimit

•  Examplefundingbandlimit=£6,000

•  Priceyounego2atewithyourtrainingprovider=£7,500

•  Thecostisabovethefundingbandlimit

WITHINTHEFUNDINGBANDLIMIT OVERTHEFUNDINGBANDLIMIT

£5,000willbedeductedfromyourlevyaccountoverthelifeoftheappren2ceship.

Levypayers Non-levypayers*

Youwillberequiredtocontributeasmallpropor-onofthe£5,000cost.ThelevelwillbeannouncedinJune.

*Employerswhohavenotcontributedtothelevy,orwhohaveusedallthefundingintheiraccounts

£6,000willbedeductedfromyourlevyaccountoverthelifeoftheappren2ceship.

Youwillberesponsibleforpaying£1,500.Thispaymentcan’tbemadefromyourdigitalaccount

Levypayers Non-levypayers*

Youwillberequiredtocontributeasmallpropor-onofthe£6,000cost,and

Youwillberesponsibleforpaying£1,500.

Funding limits – how they work

Knowns All apprenticeship training allocated into a cap of funding Caps likely to increase from 6 to 10 Mandatory cash employer contribution for all ages In time, all employers will move to DAS (but not 2017) Additional payments for 16-18/19-24 EHCP, English & Maths and ALS Not knowns What the funding ratio will be (unlikely to be 2:1…it could be better) Incentives likely to only be for 16-18 and 19-24 with EHCP AGE grant might remain in some form (tbc)

Funding post-April 2017

Go for it now or wait until April?

Goforitnow Waitun-lApril2017

Thereiscertaintyoffundingandincen2ves

Thereisuncertaintyaroundfundingandincen2ves…itcouldbebe[er?

Itcouldbefree(for16-18)Norealcostnego2a2on(somefor19+)

Employerwillhavetomakeacashcontribu2on

Itisthecurrentsystem–familiarandeasy

Thepriceoftrainingcanbenego2ated

Weknowwhoourlocalprovidersareandwhattheyareoffering

Theofferwillbemorecompe22ve–newproviders?Differentdeliverymodels?Employerswillbeabletoshapethetrainingandinfluencethecontentanddelivery

Negotiating – What are SME priorities?

Break

10:45–11:00

Hertfordshire Growth Hub is a partnership between:

Working together to support SMEs in Hertfordshire with their skills requirements


 Are employers you work with struggling to recruit and retain skilled staff?

 Do they need to upskill their existing workforce?  Do they need to scale up their workforce to support the future growth of their business?  Could they be more effective at recruiting young talent?

Defining skills needs


1. Overview of Hertfordshire Growth Hub 2. Skills Advisory Support 3. Process for referring employers to the Skills network

Skills Support in Hertfordshire


•  A small team of 4 highly experienced Business Advisers providing specialist support in Skills, Finance, Sales and Marketing and Innovation

•  Support is provided to established Hertfordshire businesses that have growth potential

•  Established business – one that has been trading for over 2 years

•  Growth potential – New markets, job creation, new products, innovation, external environment creating new conditions where the business could expand

1. Overview of the Herts Growth Hub


Businesswith

growthpoten2al

Skills

SalesandMarke2ng

Finance

Innova2on

Impact and Adding Value


•  Developing the infrastructure for people development – ensuring the Business Plan is integrated with the People Plan.

•  Skills audits – current & future requirements; providing progression opportunities.

•  Developing the management and leadership team.

•  Securing your long term talent pipeline – engaging school leavers, providing work experience and internships, Apprenticeships and accessing graduates via the University.

•  Sector-based advice – understanding job roles and skills gaps in specific industries – engaging with the Sector Skills Councils and trade associations.

•  Funding – understanding how to access funding to support Apprenticeships, graduate internships, work-based qualifications, local, regional and national funding programmes.

2. Growth Hub Skills Advisory Work


•  Business details – employee numbers, introduction to right contact

•  Details of the employer’s training needs which might include Apprenticeships, work-based qualifications, leadership and management

•  If the organisation is interested in Apprenticeships:

What are the job roles of the potential Apprentices? (job description if available)

Is the apprenticeship for a new or existing post?

What is the hourly wage expectation for the apprenticeship role?

Has the organisation any experience of recruiting and supporting apprentices and if so has the organisation employed an apprentice in the past 12 months

•  Any further background information which would support the training provider’s contact and discussions with the employer

3. Intermediary to Provider Referral Process


  The Hertfordshire Growth Hub helps businesses find the right support they need, from the right provider, at the right time to enable their business to grow.

  Skills Adviser Support could include L&D planning to Apprenticeships

  Intermediary to Provider Referral process developed to support ease of referral

 Contact details – Caroline Cartwright 01707 398113, 07767 481 084, [email protected]

In summary

DevelopingtheintermediariestoolkitforHerIordshire

ExampleofaHerIordshirespecificversion

  Basic powerpoint & script covering key topics An introduction to apprenticeships (levels, subjects, standards vs frameworks) Levy / Digital Apprenticeship Service Using Apprenticeship Training Agencies Funding and incentives

  Pre-recorded 15 minute webinar e.g. https://www.youtube.com/watch?v=IGPh7Sj7bLQ&list=PLaWOtGcX1byGstnNZ-N8o5hgDttHYJneV

 NAS literature Employer guide Apprenticeships and traineeships

 CIPD – Employing young people a step by step guide http://www.cipd.co.uk/binaries/employing-young-people-sme.guide_2015.pdf

  Apprenticemakers journey http://apprenticemakers.org.uk/journey/

Developing the intermediaries toolkit

 How to book an apprenticeship speaker e.g. apprentice / employer / provider / expert

 How to invite training providers to attend an event

 How to use the Apprenticeship Ambassadors (employers)

  Local case studies / articles

  Levy section on gov.uk

  Supporting your employers to negotiate with their providers

 Calendar of events

 Monthly webinar update / newsletter

Factsheets / guides

  Which of the ideas listed do you like / dislike?

  What else would you like / need?

  What would be useful to you?   When would you want it?   How would you want to access it? E.g. paper based / online?

How else can we help you?

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