Winter 2013SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION

news

In his Autumn Statement on 5th December Chancellor George Osborne announced that in future apprenticeships will be funded directly to employers via HMRC. No further details were released but we anticipate a PAYE based system, coming into effect from 2017.

The current Apprenticeship funding system – worth £1.5bn annually – sees approved Training Providers claim monies direct from the Government. Skills Minister Matthew Hancock and Business Secretary Vince Cable argue that this revision will “put employers in the driving seat”, giving them the freedom to purchase the training they need.

The change follows the recommendations of The Richard Review of Apprenticeships published in 2012 which suggested a number of improvements to the existing Apprenticeship provision aimed at raising standards and bridging the skills gap.

Review author (and former Dragon) Doug Richard suggested a possible ‘tax-based’ funding option, allowing companies to claim the government’s contribution through their tax return, much like the current system under which businesses get tax relief in return for investment in research and development.

As The Financial Times reported on 17th November, leaking the story ahead of Mr Osborne’s statement, Matthew Hancock wants to move away from a top down approach to commissioning apprenticeships, but is aware that a new employer-led approach could be a real challenge for small companies. “Mr Hancock is understood to be looking at ways of tailoring the system so that smaller companies are not put off” said The FT.

Elsewhere, opinion seems divided. The Association of Employment and Learning Providers, which represents 75 per cent of the apprentice market, has warned that small companies with only one or two trainees would struggle to find their way around the new system. However, the CBI and other employer groups have long supported greater incentives for apprenticeship schemes.

Here at SETA, we await further information with interest. As always, we will be on hand to guide our members and customers through the transition period.

What is becoming clear is that Apprenticeships will no longer be ‘fully funded’, even for 16 to 18 year olds, and that employers will be expected to contribute. As the majority of the employers we work with already make a contribution to their Apprenticeship training in some way – usually for off-the-job teaching – we are confident that the principle of paying for Apprenticeship training will not come as a surprise. What may be the challenge for some, however, could be the need to pay out monies in advance before being able to claim contributions back through PAYE returns. If those who hold the Training Budget purse strings own crystal balls, now might be the time to consult them!

PAYE: THE fUTURE Of APPRENTICESHIP

fUNdING?

CONTENTS

PAYE: The future of apprenticeship funding cover

Another new intake of future engineers 2

BTEC delivery goes from strength to strength 2

Engineering Traineeships at SETA 2

SETA supports Skills festival again in 2013 3

National Apprenticeship Week 2014 3

Course dates 2014 4

Further information to follow via SETA’s bulletins and our annual Customer Conference.

SETA welcomed a brand new intake of engineering Apprentices in September. And the number staying at least a full year at the training centre is on the rise.

As many of our customers’ will know, SETA offer a number of options for teaching practical skills, with the majority of employers choosing to take up either 22 or 44 weeks full time off-the-job training in centre during the first year of the Apprenticeship. For the first time in many years, around 75% of our September 2013 intake will be at SETA for the full 44 weeks’ training.

An increase in the percentage of students staying longer formore advanced training at SETA is an encouraging sign thatbusinesses are continuing to plan for the long term. And they are demonstrating their commitment by paying extra for employees to gain extra skills and expertise, according to Chief Executive, Richard Heighington.

“Apprentices are sent to us from companies across the region and beyond,” he said. “They are choosing SETA because they know the level of training we provide is of the highest quality and is tailored to meet their needs. Apprentices leave us with everything they need to continue their training skilfully and safely within the workplace.

“Leading businesses like Pall Aerospace, ExxonMobil, Perenco, Jacobs, SSE Contracting and GEO Specialty Chemicals have all returned to us this year. And we are delighted to report that Schneider Electric, TUV and Harwin have also decided to use our services.”

ANOTHER NEW INTAkE Of fUTURE ENGINEERS

2 SETA can now accept payment by credit card

Small and medium-sized businesses may be eligible to claim a Government grant of £1500 towards the cost of taking on a new Apprentice; the grant is expected to be available to December 2014. Talk to SETA for more details.

SETA’s second cohort of BTEC learners completed their courses back in July and the results make very pleasing reading.

Of the 48 Apprentices in that cohort who completed the full (two year) BTEC Diploma with us, 100% passed, 79% got at least a merit – and an impressive 31% scored a double Distinction (or higher).

Owen Hansford, BTEC course leader, explains how the grading system works. “BTEC results give students Pass, Merit or Distinction (P, M or D) grades, with PP being the lowest pass grade and D*D* being the highest.”

“To achieve Merits and Distinctions, learners have to demonstrate that they have used their initiative to develop their own learning, doing additional research and completing additional assignment elements.” Owen continues “That so many of them have done this is really rewarding for us as their tutor team but a real credit to them in terms of their commitment to their Apprenticeship.”

Traineeships are a new scheme, introduced in the summer, with the aim of assisting young people into Apprenticeships or other employment. A Traineeship can run for up to six months and includes:

• Work preparation training provided by the training organisation (anything from CV writing to practical training)

• English and maths support if required, provided by the training organisation

• A work experience placement with an employer

SETA currently have eight Trainees, who joined us in September, looking for work placements – or Apprenticeships! They have spent their time at SETA doing practical training, including electrical wiring, benchfitting/hand skills and welding and are now eager to experience the real world of engineering. We are also recruiting for another batch to start a Traineeship with us in February 2014. If you would be interested in offering a Trainee some work experience, please contact Claire on 023 8087 8309. If you know anyone who would be interested in becoming a Trainee, please contact Tracy on 023 8087 8319.

ENGINEERING TRAINEESHIPS AT SETABTEC dElIvERY GOES fROM STRENGTH TO STRENGTH

We look forward to celebrating the seventh National Apprenticeship Week in March as an opportunity to showcase all that is great about apprenticeships.

The highlight of the week in our area looks set to be an event aimed at promoting Apprenticeships to as wide a range of audiences as possible, including school leavers and their parents

and potential employers. The event will be hosted at Southampton Solent University’s Conference Centre (the old Plummers building, for those of you who are long-time Southampton residents!).

Full details are yet to be confirmed but employers wishing to come along – either to exhibit or speak, or to find out more – would be very welcome.

There is also likely to be a similar event in Portsmouth, as well as lots of media coverage. If you’d like to be involved in celebrating National Apprenticeship Week, attending an event or to organise your own, please speak to Claire Sutton at SETA.

Representatives from SETA joined other businesses and training providers at the Solent EBP SkillsFestival again this year.

The event promotes the importance of considering the wide range of career options now available to school leavers – and asks exhibitors to provide a hands on activity so young visitors can ‘Have a Go’.

The annual event at Southampton’s City Cruise Terminal gives pupils the opportunity to actually try out their skills and discover how they might be suited to a variety of different roles.

Representing engineering skills on behalf of its customers, SETA was encouraged by the number of young people playing an active part in the event. The SkillsFestival grows more popular with schools every year and saw a record 2676 pupils attending this year from across Hampshire and the Isle of Wight – and beyond.

SETA’s Claire Sutton, who sits on Solent EBP’s Steering Group for the event, said feedback from schools who attended was excellent and that plans are already afoot for the 2014 SkillsFestival. “Solent EBP do a heroic job in organising this event and it’s gone from strength to strength over the 8 or 9 years that SETA has supported it,” said Claire.

“In typical style, they are already planning greater things for SkillsFestival 2014, with talk of a greater focus on Apprenticeships and even live competitions for current Apprentices to showcase their growing skills. We will be doing everything we can – as SETA and through the ALPHI providers network – to support their plans; watch this space!”

NATIONAl APPRENTICESHIP WEEk 2014 – 3rd-7th MARCH

Web: www.seta-training.co.uk Telephone: 023 8077 1908 Email: info@seta-training.co.uk 3

SETA SUPPORTS SkIllSfESTIvAl AGAIN IN 2013

COURSE dATES 2014

Telephone: 023 8077 1908 Facsimile: 023 8087 8317

first Avenue, Millbrook Southampton, SO15 0lJ

Unit 2, Second Avenue Millbrook Southampton, SO15 0lP

4 SETA can now accept payment by credit card

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