Making the apprenticeship levy work for your business. Lancashire Skills and Employment Hub 11 March 2016

Transcription

1 Making the apprenticeship levy work for your business Lancashire Skills and Employment Hub 11 March 2016

2 Welcome and introductions Amanda Melton Chair of the Lancashire Skills and Employment Board

3 The Lancashire Context Dr Michele Lawty-Jones Director of the Lancashire Skills and Employment Hub

4 The Lancashire Context Dr Michele Lawty-Jones Director of the Lancashire Skills and Employment Hub

5 Strategic Context Private-public sector partnership driving economic growth in the Lancashire area 50,000 new jobs; 40,000 new homes and 3bn additional economic activity Raising the profile and visibility of Lancashire Inward investment and strategic development Business support Supply chain and sector development Skills for growth!

6 Lancashire Skills and Employment Strategic Framework Identify the key priorities and actions required to drive up skills and employment in Lancashire. Align our pipeline of skills with the needs of businesses now and into the future. Inform and underpin local investment decisions. Influence the use of the mainstream funding and help define our future asks of Government. Channel energy of businesses, providers and partners at areas of priority.

7 Range of studies: Methodology Comprehensive evidence for base for Lancashire data and statistics. 6 Sector Studies baseline data / discussions with employers and providers. City Deal skills and employment plan bringing in the 7 th sector (Construction). Extensive consultation with employers, providers and partners.

8 Lancashire issues An ageing workforce / reducing working age population. Slower employment recovery post-recession. Varying school attainment levels. 29% of residents qualified to Level 4+ compared to 32% nationally. Fragmented Careers Advice and Guidance / engagement with the world of work. Graduate attraction and retention. Employer engagement with workforce planning / learning and development. Work programme performance.

9 7 Priority Sectors Sectors with growth potential and high replacement demand Health and Social Care Energy and Environmental Technologies Construction Creative and Digital Finance and Professional Services Visitor Economy Advanced Manufacturing

10 Sectors: common issues A need to promote industries with high replacement and growth demands to young people and promote vocational and academic routes. Tackle diversity gender balance in STEM related industries. Attract professionals and graduates to Lancashire. Improve work readiness, softer skills and enterprising skills. Up-to-date equipment and technology in our learning infrastructure. Leadership and management capacity, innovation and entrepreneurialism. Alignment of programmes aimed at the unemployed with sectors with high replacement demand.

11 Skills and Employment Strategic Framework FUTURE WORKFORCE Inspiring young people! Improving employability skills and aligning curriculum. Investing in our learning infrastructure. SKILLED & PRODUCTIVE WORKFORCE Apprenticeship growth routes to higher levels of professional and technical skills. Professional / Graduate attraction & retention. Workforce planning. Leadership and Management / Innovation capacity in SMEs. INCLUSIVE WORKFORCE Enabling an inclusive workforce; supporting unemployed & inactive into work. Digital inclusion. Incorporating social value into public procurement processes. INFORMED APPROACH Employer engagement to inform our approach. Maintain our evidence base and insight. Influence, prioritise and direct the use of funding maximise impact. Connect with other LEPs.

12 Apprenticeships: an opportunity for Lancashire Our data has identified areas of high replacement demands and growth: how can we best use apprenticeships to help grow our talent? Attracting talent to Lancashire: the alternative is to grow our own loyal and committed workforce! Ensuring apprenticeship provision meets your needs: opportunity to lead the development of new apprenticeship standards? Strategic workforce planning: entry and intermediate to higher level and degree apprenticeships an opportunity for greater succession planning?

13 Lancashire Skills Hub contacts: @LancsSkillsHub

14 Why Rowley s value apprenticeships Lindsay Campbell Partner/Director Rowley Catering & Events Ltd and Campbell Rowley Cumbria Ltd

15 National apprenticeship reforms and call to action Cat Settle Head of Employer and Delivery Services, Liverpool, Cumbria and Lancashire Ian Ryan Employer & Delivery Services Manager NW Skills Funding Agency

16 English Apprenticeships: Our 2020 Vision

17 A Programme of Reforms The government is committed to significantly increase the quantity and quality of apprenticeships in England to reach 3 million starts in 2020: New Institute for Apprenticeships led by employers to support quality apprenticeships Employers at the heart of designing new Apprenticeships Standards through the Trailblazer programme Apprenticeships will be given equal legal protection to degrees Abolishing employer NICs for apprentices under the age of 25 from April 2016 Apprenticeship targets for public sector bodies consulting on new duty on public sector to have 2.3% of its workforce comprised of apprenticeships But a step change in the scale and quality of the apprenticeship programme also requires a step change in funding and the introduction of an apprenticeship levy

18 Indexed, UK = 100 UK productivity lags behind other developed economies GDP per hour worked for the UK and comparator countries, 2013 G7 exc. UK 117 G7 116 US 130 UK 100 Japan 85 Italy 109 Germany 129 France 128 Canada

19 and employers are investing less in training 200, , , , , ,000 80,000 60,000 40,000 20,000 0 Number of employees who worked fewer hours than usual because they attended a training course away from their workplace

20 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.

21 A Sustainable Long-Term Apprenticeship System The Institute for Apprenticeships will be an independent employer-led body that will regulate the quality of apprenticeships. It will be set up by April 2017 (shadow form from 2016). An independent Chair will lead a small Board of employers, business leaders and their representatives. The Institute will approve apprenticeship standards. Our reforms and the introduction of the levy will lead to an increased demand from employers. This provides new opportunities for agile providers. Outline role: o Approve/reject EOIs, standards and assessment plans o Provide advice and guidance during their development o Determine policy on when standards need to be refreshed or closed o Advise on funding for each standard

22 Digital Apprenticeship Service The new Digital Apprenticeship Service will provide a new simple online portal for employers Proceeding with the Digital Apprenticeship Voucher To be implemented from 2017 as part of a broader end-to-end service that simplifies the employer journey and supports them to employ apprentices. Simplified solution Enabling employers to make decisions about taking on apprentices (for all apprenticeships and all employers including the smallest) Giving employers greater purchasing power and oversight of providers available Giving transparency on apprenticeship standards and their costs

23 GATEWAY Requires employer sign-off Trailblazer Standards NEW APPRENTICESHIP MODEL APPRENTICESHIP PROGRAMME CONFIRMATION On-the-job training Off-the-job training (minimum 20%) Independent End Assessment (graded) Completion and Certification Employer groups can identify specifications which lead to qualifications (work-based learning and/or underpinning knowledge) Formative assessment of behaviours Maths & English

24 How Trailblazers Design Standards and Assessments Online Consultation Online Consultation Online Consultation Trailblazer forms & submits expression of interest Trailblazer writes new standard Assessment Plan Costing template/cap allocation Register of Assessment Organisations Delivery Approved by Gov t Approved by Gov t Approved & funding band allocated Monthly submission dates to BIS, and regular publication on gov.uk

25 Progression Routes Higher and Degree Apprenticeships

26 Funding Apprenticeships The Levy We have already increased the minimum wage for apprentices by over 20% to 3.30 in October The Government is introducing a levy on employers to fund apprenticeships. This will be collected through PAYE. Guidance will be provided in Spring Employers who pay the levy and are committed to apprenticeship training will be able to get out more than they pay in. Employers will be able to choose where to direct the funds in their digital account. Where employers choose not to, we will make these available more widely. Guidance on funding for frameworks and standards in 2016/17 will be published in January.

27 Two worked examples Employer of 2500 employees, each with a gross salary of 20,000. Pay bill: 250 x 20,000 = 50,000,000 Levy sum: 0.5% x 50,000,000 = 250,000 Allowance: 250,000-15,000 = 235,000 annual levy payment 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

28 Provider Employer How the Levy will work HMRC collect levy (PAYE) Employer has online account Employ Apprentice Pay for training with vouchers Receive training for apprentice Unused vouchers expire Our objectives: Employer control and simplicity Government Training Register with SFA (Ofsted) Pass data on levy payments from HMRC to BIS Employer and Provider Identity Assurance Offer apprenticeship training Receive vouchers (Digital Service) Timely data on training Our objectives: Get the machinery right to provide a quality service while protecting public purse Provide training to apprentice Check training is complete Redeem vouchers If funding unlocked: Pay provider

29 Apprenticeship Standards Pilot Funding Model

30 Next Steps for the Levy SUMMER 2015 AUTUMN 2015 TO IMPLEMENTATION Formal Consultation on implementation Response to Consultation On-going stakeholder discussion Design and governance frameworks Interaction with existing levies A blueprint for delivery A timetable for implementation Detailed mechanism design Transition arrangements Employer/Provider testing

31 How to Get Involved If you want to advertise an apprenticeship or find out about apprenticeships in your area you can visit If you want to provide any feedback on the apprenticeship levy, you can

32 Call to Action 1) Do you know the cost of the levy on your business? 2) Do the right people in your business know about the Apprenticeship Levy? 3) What further information and support do you need? 4) What will you do next?

33 Forbes journey and the development of their apprenticeship offer Lisa Hale Applications and Apprenticeship Trainer Forbes Solicitors Forbes

34 Apprenticeships Lisa Hale Applications and Apprenticeship Trainer 11 March 2016

35 Forbes Journey Delivering BTEC Diploma (Business & Administration) Level II since 2000 in house! + touch typing to 50wpm + LTP Legal Text Processing 62 staff within the firm who have completed the above and progressed 10 on Intermediate Apprenticeship

36 Intermediate Apprenticeship Recruitment criteria minimum 5 GCSEs A to C including Math & English Language Interview + Work Based Assessment Commence on Minimum wage for age eg ; ; not minimum Apprentice rate 3.30ph Increments to salary - 3 months, 30wpm Touch Typing, BTEC

37 Delivery 1 day / month Forbes Training Centre Blended learning via elearning & face to face Learning on the job, supported by Supervisor (50% been Apprentices) Internal Assessors monitor progress / completion of portfolio of evidence Encouraged to provide suggestions continuous improvements

38 Benefits to all. Individual - earn while learn - a role with training, leading to a career - Intermediate great foundation for next step Team - keen staff wanting to learn - delegate work more efficient team - developing interpersonal skills of all team

39 Benefits to all Firm - offer roles with training = enables recruitment of higher calibre employees - recruitment via NAS website = saves time & money - developing a skilled workforce for the future = expansion by organic growth - Investors in People = supports / evidence - Tenders - Training Awards = LSC 2004; BIBA 2009 Makes good business sense!

40 Challenges Linking with 6 potential training providers Initial buy-in from Partnership benefits & good business case proves successful Not all Apprentices have completed systems in place to support / monitor

41 The Stories.. Nseem Commenced November 2002 as an Office Assistant, now a Secretary in PI Dept Further training undertaken: - NVQ II Business Administration - Forbes Diploma for Legal Secretaries, Level III, Accredited by CILEX Paralegal Programmes

42 The Stories.. Manny Commenced August 2003, as an Office Assistant, then a Police Station Accredited Clerk, now a Trainee Solicitor Further training undertaken: - NVQ II Business & Administration - Police Station Accreditation Scheme - LLB Law Degree - LPC Legal Practice Course

43 The Stories. Lisa Commenced January 2003, as Trainee Secretary, now Firm-wide Applications Trainer & Apprenticeship Trainer Further training undertaken: - NVQ Level II Business & Admin - CIPD Training Certificate Level III - NVQ Internal Assessor - CILEX Assessor - Secretarial Diploma - NVQ Level IV in Business & Admin

44 Next Steps For Forbes - have two Advanced Legal Apprentice Level III Trainee Paralegals - currently advertising for a third - Summer deliver Level III BTEC Business Admin to existing staff, under the Apprenticeship framework

45 Next Steps For You! - Do you have a vacancy / role which could be offered as an Apprenticeship? - Do you have employee who could develop their skills via an Apprenticeship? - What area / field Admin / Engineering? - Do you have someone who will supervise / support the Apprentice? => contact Lisa Mozier for further information / support

46 Please be brave, please recruit your first / next Apprentice! Thank you.

47 Why I chose to be an apprentice Frankie Haggerty Apprentice Forbes

48 My apprenticeship journey Frankie Haggerty Level 2 Business Administration March 11 th 2016 Stanley House

49 Overview Today I am going to speak to you about What I was doing before my apprenticeship Why I chose to do the apprenticeship and what I enjoy about the process What opportunities the apprenticeship has presented me with

50 What I was doing before I started my apprenticeship Sales at leisure centre and studying at University Lack of career progression No positive opportunities for development Found the role frustrating and wanted more of a challenge I was not aware of the opportunity to do an apprenticeship whilst at college

51 Why I chose to do the apprenticeship and what I enjoy about the process The apprenticeship is better suited to my preferred learning style Like to earn while learning Enjoy the opportunity to learn within a group of like minded individuals Enjoy the on the job training aspect of the apprenticeship and being able to put what I learn into practice

52 What opportunities does the apprenticeship present me with? I have the opportunity to do the Level 3 Business Administration course which is a pathway to developing supervisory and management skills. I could pursue a legal apprenticeship. This would start at level 2 and would enable me to develop my legal skills. If I chose this route, the ultimate achievement would be to qualify as a solicitor.

53 Overview Great way to develop my skill sets Nurturing learning environment Gives me diverse careers opportunities and clear means of progression

54 Q&A Panel

55 Final thoughts and call to action Lisa Moizer Co-ordinator of the Lancashire Skills and Employment Hub

56 What happens next Series of events to support you up to the launch of the levy Contact the Hub for information, follow us on Support from the Skills Funding Agency Support from Lancashire apprenticeship providers How else can we help you? Are you already engaged, can we use your business as a case study to encourage and share best practice?

57 Key messages Make the levy work for your business Attract new talent: people who are motivated, loyal and committed. The ambition is to maximise the levy in Lancashire for Lancashire business and residents The opportunity for Lancashire to use the levy and address the skills and employment issues in Lancashire

58 Lancashire Skills Hub contacts: @LancsSkillsHub