Over1000

Employersalready involved in redesigningApprenticeships

Over1.9m

Apprenticeshipstarts this Parliament. We are committed to delivering at least 2 million.

96% Employers who take on an apprentice say their business benefited.

£117kExtra income earned by someone who completes a Level 3 Apprenticeship

Amount we invested in Apprenticeships last year

Return for every pound that Government invests in Apprenticeships

£1 £28

Number of ‘full Apprenticeships’ has trebled since 2009/10

£1.5 bn

Over 220,000

Workplaces already offeringApprenticeships

At least 12 monthsDuration for Apprenticeships

11 out of 11

Industrial Strategy sectors covered by our Trailblazers

NewHigherApprenticeshipsIn occupations like space engineer and pilot

68,000Apprenticeships in smaller businesses supported by our Grant for Employers

Over 20,000Apprenticeships pledged during National Apprenticeships Week 2014

Over 50 sectors involved in developing new Apprenticeships

Organisations representing half a million businesses support our reforms

The previous system was inflexible and didn’t lend itself to innovation

– overly detailed specifications, huge number of qualifications.

Richard Review (2012) suggestions: Hand purchasing power over to the employers

Give apprentices real, transferable skills

An apprenticeship must make someone competent and

employable in that occupation – not a stepping stone to another

apprenticeship

The final test should be holistic, real-world based, and at the end

of the apprenticeship

How (and why) it all started

We are committed to employer routed funding and

growing and improving apprenticeships. In the current

interim trial, funding will be routed to employers via their

lead provider. However, we are investigating mechanisms

to give the funding directly to the employer.

We are taking the time to consider the responses to the

recent funding reform technical consultation on employer

routed payment methods and will publish our

consultation response before the end of the year.

What about the funding?

Payment schedules will be agreed between employer and provider in the current trial.

Employers will only be eligible for incentive payments (for taking on a 16-18 year old apprentice; for being an SME; for completion) if they have co-invested.

We will continue to consider all options to ensure that the current reforms are a success.

Funding - continued

AY14/15 Funding Model for Trailblazers

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

It’s simple! This one grid replaces the pages and pages of different costing formulas that were part of the previous system.

The first starts on the new employer-led standards are taking place in 2014/15 = we have 300+ starts already!

We will continue to learn lessons from the Trailblazers.

As the new standards are developed and agreed, we will cease funding Apprenticeships under former frameworks.

There will be further opportunities for employers to apply to develop new standards. In 2015 these will be:

12 February, 5 June, 2 October

What is the timetable for reform?

Relationship managers – support and guidance

Employer-led system – you decide: ways of working, standards, assessment plan…

Lesson learnt - taking on board TBs views: 2/3rds end-point; Grading; Behaviours in standards

Working with Trailblazers