apprenticeships- how your organisation can get in and go far

CIMSPA Conference – February 2016

The Apprenticeship Revolution:A new era for the Sport and Physical Activity Sector?

David SampsonHead, Standards Development TeamBIS / DfE Apprenticeships Directorate

Contents

The benefits of apprenticeships

Our commitment to reform

Trailblazers

Funding

Helping employers to offer apprenticeships

How to get involved

Questions?

The Benefits of Apprenticeships

• Higher qualifications lead to improved employment prospects, productivity and wages for apprentices.

• Apprenticeships also offer excellent returns to employers and the taxpayer.  See the employer perspective here: https://youtu.be/zXh40e9Ba_g

Our Commitment to Reform

• Boosting our nation’s productivity to maintain and consolidate our economic recovery.

• Raising skill levels through  apprenticeships – reaching 3 million starts in 2020. 

That is equivalent to more than one apprentice every minute over the next five years 

• Improving the quality of apprenticeships by:

enabling employers to develop the apprenticeships that fully meet their business needs via Trailblazers.

Focusing new apprenticeships on rigorous end‐point assessments. 

Giving employers more control of the funding.

Trailblazers

Trailblazers

• Around 150 Trailblazers currently developing over 350 standards

• Each Trailblazer is supported by a BIS/DfE/SFA Relationship Manager.

• Sport & Physical Activity Trailblazer has had two standards approved so far: Level 3 Personal Trainer Level 3 Leisure Duty Manager

• …and has bid to develop two more covering: Fitness Instructor Leisure Recreation Assistant

• All starts to be on standards by 2020

Apprenticeship Funding: Trailblazer funding model

Core Government Contribution (CGC) Cap ‐£2 for every £1 from employer*

Cap 1 Cap 2 Cap 3 Cap 4 Cap 5

£2,000 £3,000 £6,000 £8,000 £18,000

Additional incentive payments

Recruiting a 16‐18 year old £600 £900 £1,800 £2,400 £5,400

For a small business (<50)

£500 £500 £900 £1,200 £2,700

For successful completion

£500 £500 £900 £1,200 £2,700

Maximum total Government contribution £3,600 £4,900 £9,600 £12,800 £28,800

*additional £13k cap to be introduced for AY16/17 from 1/8/16

Apprenticeships Levy

• The Government is introducing a levy on employers in April 2017 to fund apprenticeships. 

• This will be 0.5% of pay bills in excess of £3m (2% of UK employers) , collected through PAYE. 

• Employers who pay the levy and are committed to apprenticeship training will be able to get out more than they pay in through a top up to their digital account.

• Guidance will be provided in Spring 2016.

Apprenticeship Levy: worked levy examples:

Example 1

• 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 

Example 2

• 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 

Helping Employers to Offer Apprenticeships

• Employers design apprenticeship standards so that they meet the needs of their industry.

• Find an Apprenticeship offers a free online recruitment tool.

• The National Apprenticeship Service provides account management for large employers and an online and telephone helpline for small businesses.

• The new Digital Apprenticeship Service will provide a new simple online portal for employers.

• The Apprenticeship Grant for Employers currently provides £1,500 for up to the first five  (framework‐based) apprentices in small businesses. 

How to Get Involved

If you want to advertise an apprenticeship or find out about apprenticeships in your area you can visit https://www.gov.uk/apply‐apprenticeship + see latest guidance for Trailblazers at: https://www.gov.uk/government/publications/future‐of‐apprenticeships‐in‐england‐guidance‐for‐trailblazers

CIMSPA Conference – February 2016

Any Questions?