1. Want to learn more about partnering with us?
See our company page: https://www.linkedin.com/company/pathwaygroup
Apprentices for SMEs - funding and hiring
2. Want to learn more about partnering with us?
See our company page: https://www.linkedin.com/company/pathwaygroup
Background
• Safaraz (Saf) co-founder and Head of Pathway
Group
• Pathway Group has delivered a very wide
range of programmes over a period of 15 years
starting off as an ESOL provider as well as
delivering Train to Gain. Pathway now delvers
Apprenticeships, Traineeships, Advance
Learning Loans and Employability Programmes
across a wide range of sectors.
I love Social Media and Connecting
https://uk.linkedin.com/in/safaraz
@SafarazAli
3. Want to learn more about partnering with us?
See our company page: https://www.linkedin.com/company/pathwaygroup
WHY? Rationale for Reforms
Rationale for Reforms
Employer Driven
Employers designing
apprenticeships to make
them more responsive to
their needs and the future
economy, and controlling
funding
Simplicity
Simplifying apprenticeship
standards so that they are
shorter and more accessible
Quality
Improving the quality of
apprenticeships so that
they are viewed with the
same esteem as University
4. Want to learn more about partnering with us?
See our company page: https://www.linkedin.com/company/pathwaygroup
Funding Example - The way it is Now
Skills Funding
Agency
Training
Organisation
Learning /
Assessment
Awarding
Body
Apprenticeship Business Administration Level 2 16-18 19-23 24+
Drawdown (Per Learner)
Pearson Edexcel FS English Level 1 £776.35 £362.00 £289.60
Pearson Edexcel Functional Skills qualification in Mathematics at Level 1 £776.35 £362.00 £289.60
Pearson BTEC Level 2 Diploma in Business Administration (QCF) £4,270.97 £1,991.50 £1,593.20
Drawdown £5,823.66 £2,715.50 £2,172.40
Total Drawdown (Inc. Avg Uplift of 10%) £6,406.03 £2,987.05 £2,389.64
Apprenticeship Customer Service Level 2 16-18 19-23 24+
Drawdown (Per Learner)
Pearson Edexcel FS English Level 1 £776.35 £362.00 £289.60
Pearson Edexcel Functional Skills qualification in Mathematics at Level 1 £776.35 £362.00 £289.60
Pearson BTEC Level 2 Diploma in Customer Service (QCF) £3,594.35 £1,676.00 £1,340.80
Drawdown £5,147.04 £2,400.00 £1,920.00
Total Drawdown (Inc. Avg Uplift of 10%) £5,661.74 £2,640.00 £2,112.00
Funding Drown Down by the Provider from the Skills Funding Agency
Awarding Body
Registration and
Certification Fee
£175
Awarding Body
Registration and
Certification Fee
£175
English Mathematics
Main
Learning Aim
Area and
Disadvantage
Uplift
Multipliers
= Total
Funding
Drawn Down
5. Want to learn more about partnering with us?
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Funding and Delivery Comparison for
SMEs
The way it is Now
Proposed Plans
Skills Funding
Agency
Training
Organisation
Learning /
Assessment
Awarding
Body
Employer
Contribution SME
payment
DAS/ Skills Funding
Agency Employer
Training
Organisation
This could be the
Employer
Awarding
Body
Employer Pays 10% of training Fee to the Provider
The Provider Draws Down 90% of the funding from
the Skills Funding Agency
The Provider Pays for the End Point
Assessment and delvers the training
Example: Administration
Band £2,000
Employer Pays £200+VAT
Government Pays £1,800
6. Want to learn more about partnering with us?
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Funding Comparison
The Hard Facts
Business Administration Level 2
How it is
Now
Post April
2017
English £475.98 £471.00
Maths £475.98 £471.00
Diploma in Administration £2,618.56 £2,000.00
Uplift (Average) £357.05 £0.00
Drawdown £3,927.57 £2,942.00
Loss of Funding £985.57
Income Reduction 25%
Awarding Body Fee -£175.00 -£150.00
End Point Assessment £400.00
Left for Delivery of Training £4,102.57 £2,692.00
Loss of Funding Going into Training £1,410.57
Drop in Funding
Available for Training
(average)
34%
Customer Service Level 2
How it is
Now
Post April
2017
English £475.98 £471.00
Maths £475.98 £471.00
Diploma in Customer Service £2,203.72 £1,500.00
Uplift (Average) £315.57 £0.00
Drawdown £3,471.25 £2,442.00
Loss of Funding £1,029.25
Income Reduction 30%
Awarding Body Fee -£175.00 -£150.00
End Point Assessment £300.00
Left for Delivery of Training £3,646.25 £2,292.00
Loss of Funding Going into Training £1,354.25
Drop in Funding
Available for Training
(average)
37%
For 16-18 year olds the position is worse however, this is offset by
Employer and Training Providers each being paid £1,000 in the form
off an age grant for this group (SMEs Only) . (Although we can not confirm all
the eligibility criteria at this stage)
7. Want to learn more about partnering with us?
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SME’s With Less Than a
£3,000,000 Pay Bill
• Employers with fewer than 50 People working for
them will be able to train 16-18 year olds apprentices
at no Cost. This will also include those 16-24 who
were formally in care or who have a local Authority
Education , Health and Care Plan
8. Want to learn more about partnering with us?
See our company page: https://www.linkedin.com/company/pathwaygroup
Apprenticeship Funding and the
Changes planned
Provider
control
• Provider funded for delivery of Specification of Apprenticeship
Standards for England (SASE) framework
• Employer contribution expected but not always collected
Transition
• Employers have more control over content of Standards
• Funding partially to employer (incentives) and provider
• Employer contribution in cash
Employer
control
• Content and delivery controlled by employer
• Large employers pay 0.5% paybill tax as levy with a 10% top-up
• Employer uses digital voucher to pay for training and assessment
8
9. Want to learn more about partnering with us?
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Current Position
Employer AGE Grants
Current Position
• AGE Grants
• Apprenticeship grant for employers of 16 to 24 year olds £1,500
• However,
• Employer have to employ fewer that 50 employees
• Is issued on a first-come, first-served basis within a training
organisation’s allocation of Grants
• You can only claim up to 5 Grants during the time the Grant is
available.
• commit to employ your apprentice(s) for a minimum of 12
months on the apprenticeship programme or the time it takes
them to complete their apprenticeship, whichever is the greater
10. Want to learn more about partnering with us?
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Current Position
Employer Grants
Local Schemes
• Many Councils including London offer incentives to
employers an example is Birmingham City Council
• £1,500 for recruiting in to an apprenticeship vacancy for
SME’s
• Learners must be
• 16 to 18 years old and not in employment, education
or training (NEET) (self declared): or
• 18 to 24 years old unemployed for at least 1 day (self
declared).
• Many other areas offer incentives and you should ask your
provider or local council for more information
11. Want to learn more about partnering with us?
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Employing an Apprentice
• You must pay the apprentice at least the minimum wage during
their placement with you.
Apprentices
• Apprentices are entitled to the apprentice rate if they’re either:
aged under 19
aged 19 or over and in the first year of their apprenticeship
• Example An apprentice aged 22 in the first year of their
apprenticeship is entitled to a minimum hourly rate of £3.40
• After this first year they must be paid the Minimum Wage i.e. it
would be £6.95 for the 22 year old.
Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice
October 2016
(current rate)
£7.20 £6.95 £5.55 £4.00 £3.40
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• Your apprentice must:
• work with experienced staff
• learn job-specific skills
• study for a work-based qualification during their
working week, eg at a college or training
organisation
13. Want to learn more about partnering with us?
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• Choosing a Provider
• You will be committing to a business relationship lasting at least 12 Months
therefore like any other business transaction:
• Focus on Due Diligence
• Use Social media such as LinkedIn to investigate their staff
• High turnover of staff could indicate a problem
• Access Employer and Learner Voice - this is free to access and gives you
the views of both learners and employers views for a training provider
https://learnerview.ofsted.gov.uk/results
https://employerview.ofsted.gov.uk/results
• Do a credit check using a site such as Creditsafe – you need to know that
the training provider has a solid track record and is financially sustainable
• Ask for References from current employers they deal with
• Check Companies House – Directors backgrounds; have they been
involved in insolvent companies
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• Choosing a Provider
• Ask for Performance Data you should also ask how this
compares to the national average for the subject area
• This is measured as the
• Success Rate and
• Timely Success Rate (how many learners achieved
their qualification within the timeframe of the
apprenticeships)
How will they delver the qualification how will this be
assessed and how this fits in to your business needs
15. Want to learn more about partnering with us?
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Apprenticeship Funding and the
Changes planned
Provider
control
• Provider funded for delivery of Specification of Apprenticeship
Standards for England (SASE) framework
• Employer contribution expected but not always collected
Transition
• Employers have more control over content of Standards
• Funding partially to employer (incentives) and provider
• Employer contribution in cash
Employer
control
• Content and delivery controlled by employer
• Large employers pay 0.5% paybill tax as levy with a 10% top-up
• Employer uses digital voucher to pay for training and assessment
15
Notes de l'éditeur
To ensure apprenticeships are more rigorous and responsive to the needs of employers following Richard Review. The Reform programme is set out in The Future of Apprenticeships in England; Implementation Plan, published in October 2013.
The main aims:
Put employers in the driving seat. Apprenticeships will be based on standards designed by employers.
Increase the quality of apprenticeships. An apprentice will need to demonstrate their competence through rigorous and synoptic assessment. This will focus on the end of the apprenticeship to ensure that the apprentice is ready to progress.
Simplify the system. The new employer-designed standards will be short and easy to understand. They will describe the skills and knowledge that an individual needs to be fully competent in an occupation.