City College Nottingham

Employers are you ready for the Apprenticeship reforms?

Latest news 12th August 2016

Important updates released on the proposed changes to Apprenticeship delivery from April 2017.

You can read the latest information at:

https://www.gov.uk/government/publications/apprenticeship-levy-how-it-will-work/apprenticeship-levy-how-it-will-work

You can also download the latest released documents at:

https://www.gov.uk/government/publications/apprenticeships-proposals-for-funding-from-may-2017

City College Nottingham provide a range of options already for current and future Apprenticeships, you can contact the team on:

The government has set a target of recruiting 3 million Apprentices by the year 2020. The introduction of the Apprenticeship Levy, due to start in April 2017, will support this initiative. Not all employers will be effected but those that are will have to pay the levy at a rate of 0.5% of their payroll.

The Levy will fund the recruitment of enthusiastic young people into the UK workforce as well as support the skills development of your existing employees. We can help you minimise the risk and maximise the benefits of this Levy.

City College Nottingham are currently preparing for the changes to the Apprenticeship delivery that will be applied from 2017.

Changes to the apprenticeship system

The apprenticeship system is being radically reformed, but the steps you need to complete to employ an apprentice will remain broadly the same.

Major changes include:

  • The current training ‘frameworks’ are changing to ‘standards’ designed by groups of employers
  • The funding formula is changing, which will make it even more affordable to hire apprentices
  • The Apprenticeship Levy of 0.5% of larger employers’ wage bills will be introduced in April 2017
  • The new digital apprenticeship service will allow employers to pay for training via digital voucher

Download – How to guide – Apprentices (1)

The Apprenticeship Levy was announced at Summer Budget 2015. It will be a Levy on employers to fund new apprenticeships.

Download Apprenticeship Levy –Apprenticeship_levy_Explanatory_notes

Download – Factsheet on changes to the Apprenticeship System

What does this mean for me?

The change from existing to the new standards are being led through Trailblazers the term refers to a group of employers working together to design new Apprenticeship Standards for occupations within relevant sectors.

Current apprenticeship frameworks will be replaced by clear and concise Standards, defined by employer groups and recognised by industry.

Each occupation will have a different Apprenticeship Standard, linked to a specific occupational level. The Standards are rigorous, challenging and require a minimum of one year training.

Apprenticeships are no longer defined by qualifications:

There will be no mandatory requirement for qualifications within new apprenticeships unless they are required for a Licence to Practice (LTP), or used widely as a sift by employers.

So how will the new Apprenticeships look like?

Initial Assessment – recruitment to the Apprenticeship position

On-the-job and off-the-job training:

  • Qualifications are not mandatory – however if qualifications are not written into a Standard, providers can still build them into the apprenticeship programme.
  • Maths and English – levels will be determined by the level of the Apprenticeship; learners may need to complete levels up to a level 2 standard in Functional Skills for both Math and English or GCSE at a grade C or higher.
  • Formative assessment of behaviours – this will cover Apprenticeship Standards, core behaviour as well as skills and knowledge, the expectations of behaviour will come from the Assessment Plan:
  1. Categories of behaviour specified in the Standard
  2. The role behaviour has in the Assessment Plan
  3. Whether behaviour will be assessed separately or integrated into other areas of assessment
  4. The extent to which grades are influenced or determined by behavioural performance.

The delivery will come through your chosen provider in partnership with you the employer.

At a designated point the learner (Apprentice) will be signed off by the provider and the employer as being ready for an end assessment.  The end assessment must be conducted by an Independent body separate from the training provider.

The Independent End Assessment must show that they can perform in the occupation in a fully competent, holistic and productive way.  on top of this, the assessment must be graded (in some cases).

Changes to the Funding of Apprenticeships

Apprentices under the age of 19 will be funded through (DfE) Department for Education.

Apprentices over 19 will be funded through (BIS) Business Innovation and Skills.

So how does it work?

Current funding models are still under construction. An interim Trailblazer Funding System is in place.

For every £1 spent on training by an employer, the Government contributes £2 – up to a maximum cap.

There are five caps, these depend on the apprenticeship being undertaken.  Each new Standard has an allocated cap in place.

Funding Band Core Government cap (£) Employer contribution (£)
5 £18,000 £9,000
4 £8,000 £4,000
3 £6,000 £3,000
2 £3.000 £1,500
1 £2,000 £1,000

There are three additional incentive payments available:

Recruiting a 16 -18 year old

Small Businesses (<50)

Successful completion (£)

The Government will fully fund English and Maths

So how do I pay the provider?

The (SFA) has stated that by April 2017 a Digital Apprenticeships System should be in place for employers.

This will inform them how much funding is available for their desired apprenticeship programme.  The digital service will allow employers to purchase from the providers portal in a virtual environment the voucher that you pass to the provider as payment.

In real terms, the cash would still flow to providers from the SFA.

Apprenticeships-Levy-v2-300x173

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