24+ Loans; Impact and Actions for Independent Training Providers The Babington Group

Transcription

1 24+ Loans; Impact and Actions for Independent Training Providers The Babington Group

2 Carole Carson Managing Director Corrina Hembury National Projects and Integration Manager

3 The Babington Group The Babington Group consists of 2 Independent Training Providers, Babington Business College and Training for today. Delivery comprises EFA, SFA and privately funded provision across 11 sites in the Midlands and North West and nationally in employer premises. Programmes offered range from school delivery, Foundation Learning, Apprenticeships and Professional qualifications in Financial Services, Accountancy, Business Administration, Hair, Beauty and Care. Currently around 30% of our Apprenticeship delivery is to 25+ learners.

4 Aims of the Session Describe the actions Babington have taken to prepare for 24+ Loans. An opportunity to review your own preparations and identify any further actions needed. Share experiences with other providers.

5 5 Stage Readiness Process 1. Information gathering and analysis 2. Decision Making 3. Action Planning 4. Implementation 5. Review

6 1. Information Gathering and Analysis Analysis of potential impact of loans on the business Financial viability of each programme Impact on income of the loss of grant funding Programme offer

7 1. Information Gathering and Analysis Analysis of impact of loans on business

8 1. Information Gathering and Analysis Learner and Employer Attitude Internal questionnaire developed and issued to current 24+ Learners and their employers. External reports from BIS/SFA etc.

9 2. Decision Making Examples of Learner Feedback Would decide not to undertake [qualification] as the benefit in increasing salary would not compensate the cost although the experience and qualification would be of personal benefit. Whilst I am always interested in increasing my expertise I have to balance todays economical climate with cost and thus additional cost to me is not viable.

10 2. Decision Making Learner Feedback Don t think it will have that much of a difference as I am willing to pay for my further education. Employer Feedback We would be more likely to offer further education to younger staff that we could obtain funding for, rather than older staff that we couldn t.

11 1. Information Gathering and Analysis Review of Market Place Competitor Analysis Sector Analysis

12 1. Discussion Points Have you spoken to your learners to gain feedback? Have you used the LSIS toolkits? Have you carried out a financial viability study on each of your programmes?

13 2. Decision Making Which programmes to offer? Accountancy Financial Services Business Administration level 4 Health and Social Care Think carefully about the sector

14 2. Decision Making VAT implications Not a fair playing field with FE colleges/ Not- For-Profit providers Private providers at a huge disadvantage Loan cannot cover VAT If assume an average Apprenticeship cost to be 3000 then a learner will borrow 50% of cost of Apprenticeship (remainder to come from employer) at 1500, VAT payment expected from learner will be 250 which is a substantial up-front investment

15 2. Decision Making Impact on income of the loss of grant funding: Current level of 24+ income Loan allocation from the SFA Assume a % of take up of loans based on oapprenticeships vs stand alone quals osector oage of learner oethnicity of learner Sub-contracting of loans

16 2. Decision Making Payment options for the learners Loan Learner payment Employer payment Payment by instalment o How many payments? o When consider implications of rollon-roll-off programmes o Administrative costs

17 2. Decision Making Partners/sub-contractors As a Prime Provider, will we use the full allocation ourselves? If not will we sub-contract? What fees will be charged?

18 2. Decision Making Marketing and Sales strategies Will you actively market loan provision? Who will be your main target learners or employers?

19 2. Discussion Points Have you considered the business impact of the loss of grant funding do you have alternative plans? Have you set your fees and considered your approach to VAT and payment options? As a sub-contractor do you have an agreement in place with your prime? OR As a prime contractor have you decided on your approach to subs and management fees?

20 3. Action Planning Full timeline action plan with SMT responsibility. This included key milestones around: Surveys Sales Strategy IAG processes Competitor analysis Administration processes

21 4. Implementation Communication with: Staff Learners Partners

22 4. Implementation Keeping up to date: SFA meetings LSIS webinars Student Loan Company support National Implementation Group

23 4. Implementation Bursary To support Vulnerable and Disadvantaged learners 3 rates available to be claimed per learner, per month 50, 150, 250 Evidence is key

24 4. Implementation Development of new processes Development of new literature

25 4. Discussion Points Have you developed new administration processes? Have you established a Communications Strategy? Have you developed a Sales Strategy?

26 5. Review Formal reviews of effectiveness of our approach scheduled at: 1 Month 3 Months 6 Months after August implementation

27 5. Discussion Points What questions do you still have?