Train to Gain or Apprenticeship - The employer offer -

Nick LinfordDirector of Planning and Performance22nd October 2008

• The employer-responsive funding pot

Presentation contents

• The products (employer offer)

• Determining the employer offer (Apprenticeship or Train to Gain?)

The learner age?

The qualification and level?

Most importantly, employee/employer need?

The employer contribution?

The provider structure/supply?

The funding?

• Will all the new TtG flexibilities crowd out 19+ Apprenticeships?

The employer-responsive funding pot

Adult (19+) apprenticeships

£330.2m (+ 4.5%)

16-18 Apprenticeships

£677m (+ 7.1%)

Workplace FL1/2/3/4 (e.g. NVQ) and SfL

£907m (+ 55.5%)

Apprenticeships

£1007.2m (+ 6.2%)

Employer responsive model

2008/09

Train to Gain

£907m (+ 55.5%)

“Existing contracts for Train to Gain or Apprenticeships can be renegotiated to include both elements.”

“There is an expectation that in 2009/10 a single contract will be issued for colleges and training providers across all Regions.”

Train to Gain additional flexibilities v3, LSC, 11/08/2008

Vocational ‘full’ quals

Nearly always NVQs

The products (employer offer)

180+ Apprenticeshipframeworks

EmploymentRights and ResponsibilitiesThis element is often covered aspart of the NVQ or technical certificate

Competence A National Vocational Qualification (NVQ) with assessment methods designed to test competence

Transferable, or ‘key’, skills Frameworks include as a minimum, Key Skills in Communication and Application of Number

Knowledge Some frameworkshave a technical certificate whilst others demonstrateknowledge within the NVQ element

Train to Gain

Skills for Life

“bite-sized chunks”Announced 21/10/08

SetbySSC

Flexible

The learner age

Age Apprenticeships Train to Gain

16-18 Eligible and ‘priority group’ Ineligible

19-24 Eligible and ‘priority group’ Eligible

25+ Eligible as Apprenticeships for Adults Eligible as ‘priority group’

“Providers recruiting learners to Train to Gain programmes must not conflict with the Apprenticeship policy and recruitment practices.

In particular, providers are reminded that the Apprenticeship programme is the preferred option for vocational learners aged between 19 and 25 and they should be recruited onto the Apprenticeship programme wherever possible.”

Para 489, LSC Funding Guidance 2008/09, Principals, Rules and Regulations

The employer contribution

Level Apprenticeships Train to Gain

16-18 Fully-funded (free) Ineligible

19+ L2 All 19+ co-funded (50% by 2010) All fully-funded (free)

19+ L3 All 19+ co-funded (50% by 2010)Fully-funded for first 19-24 first FL3

and FL2 ‘jumpers’ (some free)

“Learners, employers or their sponsors are expected to pay a contribution towards the cost of learning (tuition fees) unless they are entitled to fee remission” Para 123, LSC Funding Guidance 2008/09, Principals, Rules and Regulations

Train to Gain more attractive route if fully-funded and free?

Apprenticeship rates (‘activity cost’) undermined if no charges?

The qualification and level

Level Apprenticeships Train to Gain

NVQ L1 Ineligible Eligible with LSC permission

Full Level 2 Eligible as Apprenticeship Eligible (e.g. NVQ)

Full Level 3Eligible as Advanced

ApprenticeshipEligible (e.g. NVQ)

NVQ L4 & 5 Ineligible Eligible with LSC permission

Basic skillsEligible as Key Skill add quals

(minimum of 2) at L1 or 2Eligible as stand-alone or add qual

Skills for Life at E1 to L2

Stand alone short quals

IneligibleSoon to be eligible via new

flexibilities announced 21/10/08

Train to Gain more flexible/responsive route?

The funding

As one might expect, many Apprenticeships are funded at higher levels than Train to Gain.

However, particularly with the Train to Gain additional flexibilities introduced in 2008/09, this will increasingly not always be the case.

Key to following funding slides: SLN: Standard Learner NumbersNFR: National Funding RatePW: Programme WeightingDU: Disadvantage UpliftTtG U: Train to Gain UpliftFE %: Fee Element percentageFF: Fully-fundedCF: Co-fundedFFL: First Full Level

Funding – L2 example

Apprenticeship in Providing Security Services, Skills for Security (230)

19+ Apprenticeship SLN NFR PW DU FE % Co-funded

NVQ 2 in Security Services 0.770 £2,775 1.25 1 40.8% £1,581

Cert for Security Guards L2 0.067 £2,775 1 1 40.8% £110

Key Skills in Com L1 0.080 £2,775 1 1 17.5% £183

Key Skills in Num L1 0.080 £2,775 1 1 17.5% £183

Key Skills in IT L1 0.080 £2,775 1 1 17.5% £183

£2,241

Train to Gain SLN NFR PW TtG U FE % Fully-funded

NVQ 2 in Security Services 0.429 £2,775 1.25 1.03 n/a £1,533

Cert in Lit (any level) 0.180 £2,775 1.5 1.03 n/a £772

Cert in Num (any level) 0.180 £2,775 1.5 1.03 n/a £772

£3,076

Funding – L2 example cont.

19+ Apprenticeship Co-funded Achieved? Final funding

NVQ 2 in Security Services £1,581 Y £1,186 (- £395)

Cert for Security Guards L2 £110 Y £110

Key Skills in Com L1 £183 Y £183

Key Skills in Num L1 £183 N £183

Key Skills in IT L1 £183 Y £183

£2,241 £1,845

Train to Gain Fully-funded Achieved? Final funding

NVQ 2 in Security Services £1,533 Y £1,533

Cert in Lit (any level) £772 Y £772

Cert in Num (any level) £772 N £579 (- £193)

£3,076 £2,884

0% framework

success rate

67% success

rate

Impact of achievement funding and success (example)

Funding – L2 example cont.

19+ Apprenticeship Co-funded Change 2010 funding

NVQ 2 in Security Services £1,581 Fee element

rises to 50%

for NVQ and Tech

Cert

£1,335

Cert for Security Guards L2 £110 £93

Key Skills in Com L1 £183 £183

Key Skills in Num L1 £183 £183

Key Skills in IT L1 £183 £183

£2,241 £1,977

Train to Gain Fully-funded Change 2010 funding

NVQ 2 in Security Services £1,533 3% uplift for

2009 and 2010

£1,626

Cert in Lit (any level) £772 £819

Cert in Num (any level) £772 £819

£3,076 £3,264

Impact of changes by 2010/11 (excluding inflation)

Funding falls £264 (- 12%)

Funding rises £188 (+ 6%)

Funding – L2 example cont.

Summary of previous Level 2 example

£0

£500

£1,000

£1,500

£2,000

£2,500

£3,000

£3,500

AppCF

TtGFF

AppCF

TtGFF

AppCF

TtGFF

Total in 08/09 Non-ach example in 08/09

Key and basic skillsTechnical CertificateNVQ

Total in 2010/11

Funding – L3 example

Advanced Apprenticeship in Accounting, FSSC (201)

19+ Apprenticeship SLN NFR PW DU FE % Co-funded

NVQ 3 in Accounting 1.497 £2,775 1 1 48.5% £2,139

Key Skills in Com L2 0.080 £2,775 1 1 17.5% £183

Key Skills in Num L2 0.080 £2,775 1 1 17.5% £183

£2,506

Train to Gain SLN NFR PW TtG U FE % Co-funded

NVQ 3 in Accounting 0.644 £2,775 1 1.03 42.5% £1,058

Cert in Lit (any level) 0.180 £2,775 1.5 1.03 0% £772

Cert in Num (any level) 0.180 £2,775 1.5 1.03 0% £772

£2,602Train to Gain Fully-funded

NVQ 3 in Accounting £1,841

Cert in Lit (any level) £772

Cert in Num (any level) £772

£3,384

Level 3 Entitlement (FFL3 under 25 years of age)

or Level 2 ‘jumper’

Funding – L3 example cont.

Summary of previous Level 3 example Key and basic skills

NVQ

£0

£500

£1,000

£1,500

£2,000

£2,500

£3,000

£3,500

£4,000

AppCF

TtGCF

TtGFF

Total in 08/09 Non-ach example in 08/09

2010/11

AppCF

TtGCF

TtGFF

AppCF

TtGCF

TtGFF

The provider structure/supply

In terms of communication, is your employer offer simple and coherent?

Business Dev Unit

Apprenticeship Dept

Train to GainDept

Employer EmployerEmployer

And for completeness – full cost recovery?

Option 1 or Option 2

Apprenticeship Train to Gain

The employee/employer need

Assessment of employer and employee need is clearly critical

Train to Gain for those over 25?

Train to Gain for those requiring less training and support?

Train to Gain for those requiring more flexible provision?

Ultimately, is your employer offer clear why one adult would bean apprentice and another adult would be Train to Gain?

Train to Gain for those employees in short-term work?

Train to Gain for employers that won’t pay fees?

Train to Gain for employers that won’t release employees?

Train to Gain for Skills for Life and ESOL learners?

Apprenticeship or Train to Gain?

With this knowledge…..

Would the learner age impact on the employer offer?

Would employer fees impact on the employer offer?

Would qualification and level impact on the employer offer?

Would funding levels impact on the employer offer?

Would employee/employer need impact on the employer offer?

Would provider structure/supply impact on the employer offer?

If time, discuss at your table and nominate someone to feedback

Will the TtG flexibilities reduce demand for 19+ apprenticeships?

The unofficial reading material

The hands-on guide to post-16 funding

I’ve written this as a reference tool, which should be useful (and even interesting!) for senior managers and governors to curriculum and data/MIS staff

www.fundingguide.co.uk

There are also free resources (including this presentation) and workshop dates on www.lewisham.ac.uk/pf

Let me know what you think!