Supporting skills recovery in a post-covid labour market An overview and update: October 2020

1. Supporting skills recovery in a
post-covid labour market
An overview and update: October
2020

2. What we are going to cover?
▪ Summary of the Changes
▪ Update on the procurement to support the growth of
Traineeships
▪ Update on the Employer Incentive Payment
▪ Engagement with Providers
▪ Engagement with Employers
▪ Engagement with young people
▪ Discussion Q & A

3. Summary of the Changes
▪ Change in the eligible population
▪ Introducing occupational training content
▪ Extending maximum length of stay
▪ Introducing incentive payments for employers for work
placements
▪ Increasing funding for providers
▪ Introducing new in-year growth points, and of course
preparing for a procurement for new providers

4. Update on Procurement to support the
growth of Traineeships
▪ Launched a Performance Management Review for current 16
– 19 providers and providers with 16 – 18 standalone
contracts
▪ Published guidance for 16 to 18 traineeship in-year growth
for 2020 to 2021 (mainstream providers)
▪ Issued the OJEU notice for the 19 to 24 procurement process
▪ Not able to take questions as the procurement has started
▪ Invitation to Tender will be issued next week
▪ Planning for the launch of a market entry exercise for new
16 – 18 providers

5. Update on Employer Incentive
Payment
▪ £1000 per trainee
▪ Cap of 10 incentive payments per employer per government
region (cap of 90 payments or £90k per employer on that
basis)
▪ Timing of the end to end process will be set out in the
detailed process guidance, which will be covered in the next
slide.
▪ Important that the employers see the wider benefits of
traineeships and not just offer work placements to receive
the incentive payment

6. Update on the Employer Incentive
Payment
▪ Currently developing the process
▪ Will publish an overview of the process in the Traineeships Framework
for Delivery in the coming weeks for employers and providers
▪ We will be paying employers directly
▪ We will ask Providers to ensure the ILR is correct. This will be based on
existing fields with no new requirements
▪ Expect employers to be able to apply for the incentive from late
Autumn
▪ Employer can apply for the funding once they have completed the work
placement
▪ Full guidance will be published in the Traineeship Framework for
Delivery once the process is signed off

7. Engagement with Providers
▪ Engaging through a series of webinars with AELP/AOC and
direct with providers
▪ Engaging through the provider reference group
▪ Engaging through a deep dive supported by the DfE
Delivery Unit
▪ Keen to identify best practice models for aligning
traineeships with apprenticeships, particularly where there
has been a sector focus
▪ Our intelligence suggests providers have the capacity to
deliver this rapid expansion of traineeships, but we need to
do more to raise awareness with employers – do you/don’t
you agree with that statement?

8. Engagement with Employers
Engaging with employers is one of our key challenges:
▪ Providers have flagged that employers have limited
understanding of the traineeship programme
▪ Employer engagement with Traineeships varies
considerably across different sectors
▪ Employers who have an awareness of the programme may
choose not to engage due to not understanding its
purpose, value, or because of competing calls on their time
▪ Employers may not have the capacity to support the
programme due to the impact of Covid

9. Engagement with Employers
So what are we doing and planning to do to raise awareness?
▪ Have developed a robust communications plan to engage with
employers during October – December to raise their awareness
and understanding of Traineeships
▪ Have developed a communications product that explains what all
of the options are (next slide)
▪ Joined up and working with other DfE and DWP colleagues
▪ Engaging through a series of webinars direct with employers,
intermediaries and trade bodies
▪ Exploring some best practice models for developing sector
specific traineeships
▪ Developing Case Studies

10. Employer Costs Incentives Training Duration Eligibility Progression
Route
More Information
Apprenticeships
Apprenticeships provide a real job with substantive,
sustained high quality training in order to become
occupationally competent in the chosen industry
with a broad range of industries on offer.
ACT NOW
Wages of the apprentice – at least £4.15
/hour
A % of the cost of training for apprentices for
employers who do not pay the
apprenticeship levy at a rate of 10% for
starts prior to 01/04/19 and 5% from that
date, (note this can be supported by a levy
transfer, where an employer who pays the
apprenticeship levy transfers some of their
funding to an employer who does not pay
the apprenticeship levy)
No cost to employer for apprenticeship
training if they have less than 50 employees,
and an apprentice (on the first day of their
apprenticeship) is aged 16-18 or 19-24 with
an Education, Health and Care plan (EHC)
or has been in the care of their local
authority
Available from 1 August 2020 until 31
January 2021 for new hires:
£2000 - 16-24
£1500 – 25+
Payment is in addition to wider funding
support for apprenticeship training/
assessment, and other existing
payments to support specific groups of
apprentices.
Incentive payment can be spent on
wide range of costs to support an
apprentice e.g. wages, travel,
mentoring. The incentive payment has
been created to help more people build
skills whilst working by becoming an
apprentice, employers can choose how to
spend the incentive to best support their
apprentices
Off-the-job (OTJ) training is required
for the purpose of achieving the
knowledge, skills and behaviours of
the approved apprenticeship.
OTJ training can include training that is
delivered at the apprentice’s normal
place of work. It can also include
regular day release, block release and
special training days/workshops.
At least 20% of an apprentice’s normal
working hours, over the planned
duration of the apprenticeship training
period must be spent on OTJ.
At least 12
Months
Any age from
16+, but must be
a new hire to be
eligible for the
incentive. A 15
year old can start
an
apprenticeship
providing the
start is after the
the last weekend
in June and they
will be 16 before
the end of the
academic year in
which they start
Longer term
employment, training
or Higher level or
Degree
Apprenticeships
dependent on
role/occupation and
standards available
Vacancies advertised on find an apprenticeship
https://www.gov.uk/apply-apprenticeship
Apply directly to vacancies and FE / independent
training providers https://www.apprenticeships.gov.uk/
https://lab.nationalcareersservice.org.uk/careers-
advice/careerchoices-at-16
https://lab.nationalcareersservice.org.uk/careers-
advice/career-choices-at-18
https://www.gov.uk/guidance/apprenticeship-funding-
rules
Kickstart
High quality six-month work placements in ‘new’
jobs, aimed at those aged 16 to 24 who are
currently out of work and are deemed to be at risk
of long-term unemployment
Employers can apply direct if they are able to offer
30 or more job placements, or otherwise through a
gateway organisation who will manage an
application from a group of employers.
PLAN FOR AN AUTUMN START
No Cost 100% of wages are subsidised at
NMW for up to 25 hours, NI
Contributions and auto enrolment cost.
Funding for on the job start up costs
for example uniform, hard hat, IT
equipment and other practical
materials
In work training to develop transferable
skills to increase chances of longer
term work
26 weeks 16-24 year olds
who are currently
out of work and
are deemed to be
at risk of long-
term
unemployment
Young person could
progress to longer
term employment or
training provision
which includes an
apprenticeship
Through job centre plus work coaches
https://www.gov.uk/government/collections/kickstart-
scheme
Traineeships
Designed to help young people who want to get an
apprenticeship or job but don’t yet have appropriate
skills or experience. Study based programmes,
combined with work placements, which give young
people the opportunity to develop workplace skills
and experience; putting them in a better position to
compete for future vacancies and opportunities
ACT NOW
No cost
(Optional whether employer pays the young
person including payment for things like
travel and subsistence)
£1000 (limit of 10 incentive payments
per employer)
▪ Work preparation training with a
training provider
▪ English and maths, if qualified
below level 2, and digital training
with a training provider
▪ A work experience placement
lasting 70-240 hours with an
employer
▪ They are also flexible so young
people can access additional
support such as mentoring and
do additional qualifications
▪ Can include optional technical
and professional qualifications to
help learners prepare for
occupational standards within
apprenticeships
Duration can be
between 6
weeks and 12
months
Minimum 70
hours work
experience. No
more than 240
hours for benefit
claimants
16-24 year olds
with a level 3 or
below and up to
age 25 for those
with an EHCP
Apprenticeship,
sustainable
employment and
further learning
1.Apply directly to college/training provider.
2.Through Jobcentre plus advisors after making a
claim for benefits.
3.Through National Careers Service
4.GOV.uk – being updated to reflect new programme
https://lab.nationalcareersservice.org.uk/careers-
advice/careerchoices-at-16
https://lab.nationalcareersservice.org.uk/careers-
advice/career-choices-at-18
https://www.gov.uk/guidance/adult-education-budget-
aeb-funding-rules-2020-to-2021
https://www.gov.uk/guidance/16-to-19-education-
funding-guidance
Industry Placements as part of T
Levels
Form part of a Level 3 technical qualification,
equivalent to 3 A Levels and based on the same
employer designed standards as Apprenticeships.
Offers a broader course content across an
occupational route, and students will also develop
knowledge and skills that are required for an
individual occupation
ACT NOW
No cost (optional whether employer pays the
young person)
Up to £750 through some providers, in
selected regions only, for the 2020/21
Academic Year as part of a pilot
Two – year occupational specific
course equivalent to 3 A’ Levels
Minimum of 315
hours (roughly
45 days) over 2
years. This can
include up to 35
hour of work
taster activities.
The only
exception is the
Early Years
Educator
occupational
specialism,
within the
Education and
Childcare T
Level, that must
be for a
minimum of 750
hours.
16-19 year olds
Young person
must be studying
a T Level
programme.
Young person could
progress directly into
employment, a
higher or degree
apprenticeship or
further study
https://www.tlevels.gov.uk/
https://www.gov.uk/government/publications/t-level-
industry-placements-delivery-guidance
https://www.gov.uk/guidance/t-levels-next-steps-for-
providers
https://lab.nationalcareersservice.org.uk/careers-
advice/careerchoices-at-16
https://lab.nationalcareersservice.org.uk/careers-
advice/career-choices-at-18
16+/18+ Choices Overview

11. Engagement with Young People
Engaging with young people is one of our key challenges:
▪ Have developed a robust communications plan to engage
with schools, colleges, parents , career advisers, LEPs etc.
during October – December to raise their awareness and
understanding of Traineeships
▪ Engaging with organisations that represent young people
(e.g. Youth Employment Group, Youth Employment UK)
▪ Have developed a communications product that explains
what all of the options are
▪ Exploring some best practice models and developing case
studies

12. Discussion Q& A
Some prompts
▪ What can we do to increase the demand for Traineeships in
the next year?
▪ What could we do to showcase the benefits of the
Traineeship programme?
▪ What are the biggest barriers to growth?
▪ What steps could be taken to build provider capacity and
capability?

13. Summary of changes
Current programme Reformed programme from September 2020
Eligibility
▪ 16-24 (25 with EHCP) qualified
up to Level 2
▪ 16-24 (25 with EHCP)
▪ Qualified up to Level 3, which opens the programme up to more 19 to 24 year
olds who require significant support to find an apprenticeship or employment.
Duration
▪ Min 6 weeks, max 6 months
▪ Extended to 12 months from
23 March to support delivery
during covid-19
▪ Min 6 weeks, max 1 year for those who need more time.
▪ Expectation most 19-24 complete within 6 months
▪ Learners who are further away from the labour market or need more significant
support would benefit from the longer duration to give them more support and
basic skills that employers need.
Referrals
▪ Self-referral, provider referral
or JCP
▪ As now, but built on stronger local joint working with JCP referral and career
advisors.
Content
▪ Strong vocational content with
100 hours work placement
alongside employability
training.
▪ English and maths
▪ Vocational learning
▪ Maintain strong vocational offer of between 70 and 240 hours work
placement, undertaken with multiple employers as needed.
▪ English, maths and digital
▪ Sector focused vocational learning that prepares the trainee for occupational
standards. Flexible and does not replace 20% OTJ training once they start an
apprenticeship but with recognition of learning
▪ Greater collaboration with JCP and other partners to link to job opportunities
19 to 24 AEB funded
learning aim
▪ The current 19 to 24
traineeship aim unit cost is
£970
▪ Increased 19-24 AEB traineeship learning aim unit cost to £1500.
▪ This increase is to reflect the additional costs for planning and coordinating the
work preparation and work placement/s.
Employer Incentive
▪ None ▪ £1000 per trainee (up to 10 trainees per region) for employers offering
traineeship work placements between 1 September 2020 and 31 July 2021.
▪ The full guidance and process is being developed and will be published within
the Traineeship framework for delivery.

14. Signposting to Traineeships
Our GOV.uk Traineeship pages have been updated for providers, employers
and young people: https://www.gov.uk/government/collections/traineeships--2
How do young people access a traineeship?
❑ by asking their local college or training provider if they have opportunities or
visiting https://www.gov.uk/government/publications/traineeship-providers for a
list of organisations currently providing traineeships
❑ some vacancies are advertised on www.gov.uk/find-traineeship
❑ by speaking to their school careers advisers if 16 to 18 years old
❑ by speaking to their Jobcentre Plus adviser if you’re in receipt of benefits
More information
▪ on https://www.gov.uk/guidance/traineeship-information-for-trainees
▪ Call 08000 150 400 for more information on traineeships.
▪ Get career advice from the National Careers Service on 0800 100 900