Trailblazer Funding Rules and Standard Workshop November / December 2014 Rebecca Rhodes, Head of Apprenticeships Funding Policy and Programmes Mary Evans, Head of Funding Systems Benita Notley, Head of Apprenticeship Reform and Standards Diane Wilford, Apprenticeship Relationship Manager Welcome
Agenda Apprenticeship Reform and Trailblazer Standards Principles of the reform programme Trailblazer Standards Provider Readiness Trailblazer Apprenticeships 2014 to 2015: The Funding Model Overview of the Trailblazer funding model Principles of funding, co-funding and employer incentive payments Eligibility Trailblazer Apprenticeships 2014 to 2015: The Delivery Model Overview of the Trailblazer delivery model The lead provider role Payment Processes The Apprenticeship Journey Session 1 Agreeing a price for training and assessment The written agreement The Apprenticeship Journey Session 2 Claiming funding and managing payments The lead provider role and subcontracting Summary and Close
Apprenticeship reforms Skills Funding Agency Welcome
Background - why reform apprenticeships? Delivering the reforms Getting ready
Apprenticeship reforms Background and overview
Why reform apprenticeships? To meet the needs of the future economy and businesses To ensure apprenticeships are more rigorous and responsive to the needs of employers following Richard Review So apprenticeships are viewed with the same esteem as University To build on existing strengths
What are the main aims? High quality Higher expectations of English and maths, more assessment at end of apprenticeship and introducing grading Simple Complex frameworks to be replaced by standards of around two pages written by employers Employer driven Ensuring rigorous training that will support economic growth
What are the changes? Standards designed by employers will replace existing frameworks New standards will be clear and concise, written by employers and no more than two pages long All apprenticeships will have a synoptic end-point assessment Apprenticeships will be graded for the first time All apprenticeships will last a minimum of 12 months
Assessment plans Potential methods of assessment: Practical assessments A viva Production of a project A portfolio of work Observational assessment Written and multiple choice test Virtual assessment, such as online tests or video evidence as appropriate to the content
Apprenticeship standards reforms Delivering the reforms
Employer groups Trailblazers have led the way in implementing the reforms Large and small employers developing new apprenticeship standards and assessment approaches for key occupations in their sectors More than 1,000 employers are directly involved so far, others responding to consultations Training organisations, awarding organisations and professional bodies also supporting the groups
Development phases Phase 1 8 employer groups 20 standards and 13 assessment plans published Starts in 14/15 Phase 2 29 groups 31 standards, now developing assessment plans Potential starts in 14/15 Phase 3 37 groups announced in Oct 14 76 more standards being developed These were prioritised from 100+ EOIs Ongoing rounds of development thereafter
Phase 1 Aerospace Automotive Digital Industries Electrotechnical Energy & Utilities Financial Services Food and Drink Manufacturing Life &Industrial Sciences 20 standards and 13 assessment plans published Starts in 14/15
Example: Financial Services Administrator level 3 On-going formative assessment based on performance management systems, one qualification from six options End-point assessment: work-based project, portfolio, panel interview/viva (third party assessor), co-ordinated by provider Pass or distinction English and mathematics at level 2 Pathway to professional recognition
Example: Electrotechnical - level 3 Two occupations: Installation Electrician, Maintenance Electrician New qualification with some on-going assessment, prerequisite to AM2 synoptic end-point assessment Eligible for EngTech registration (professional body) Grading English and mathematics at level 2
Phase 2 employer groups Accountancy Actuary Adult Social Care Airworthiness Automotive Retail Aviation Butchery Cinema Civil Service Construction Conveyancing Craft Dental Health Early Years Emerging Technologies Hair and Beauty Horticulture Hospitality and Tourism Housing Insurance Land-based Engineering Property Services Law Maritime Media Nursing Rail Design Retail Travel
Phase 3 employer groups Non-destructive Testing Bus, Coach & HGV Civil Service Commercial Furniture Engineering Design & Drafting Plumbing & Heating Maritime - Defence Electronic Systems Defence Nuclear Rail Engineering Boatbuilding Surveying Recruitment Business Management Consultancy Human Resources Education & Training TV production & broadcasting HM Armed Forces Renewable Energy Police NHS Ambulance Fire Services Security Pharmacy Fashion Physical Activity Logistics & Supply Chain Transport Agriculture & Horticulture Horticulture & Trees Equestrian Port Operations Courier Services Healthcare Welding
Transitional arrangements The Trailblazers will pave the way for full implementation of the reforms during 2015/16 and 2016/17 The aim is that all new apprenticeship starts from 2017/18 will be on the new programme Dual running in the interim, with potential switch off of some frameworks/pathways earlier
More information Keep up to date: Published standards and in-development: http://www.apprenticeships.org.uk/standards http://www.apprenticeships.org.uk/standardsindevelopment Guidance: https://www.gov.uk/government/collections/apprenticeship-changes www.gov.uk/government/publications/future-of-apprenticeships-in-englandguidance-for-trailblazers
Get involved Employers interested in getting involved, can email: apprenticeship.trailblazers@bis.gsi.gov.uk Providers interested in getting involved, can email: trailblazers@aoc.co.uk (AoC, AELP and UVAC co-ordinating support)
Apprenticeship standards Reforms Getting ready
Getting ready Curriculum development to deliver training to enable apprentices to meet the new standard not all qualification driven Understand the requirements for the independent, synoptic end-point assessment and grading Devise marketing strategies and materials Understand the funding model, training organisations responsibilities and funding rules Develop business models to respond to employers needs funding in the hands of employers
Support Utilise training and support: Education and Training Foundation, Apprenticeship Staff Support Programme Agency workshops Provider networks Trailblazer events and product launches
Apprenticeship Funding Reform
Funding Reform Government is committed to employer routed funding and growing and improving apprenticeships. It is important we don t rush this process which is why we are taking the time to consider the response to the recent consultation and to the feedback that employers and providers are providing. We will publish our consultation response later this year. We appreciate the concerns of small businesses and are committed to addressing these in the design of any new funding approach. We are giving careful thought to how we ensure that any off-putting administrative and financial burdens are avoided. Compulsory cash contributions are a feature of the model that we are trialling in the 2014/15 academic year and there are no plans to change this. We will be learning from these pilots and we will continue to consider all options to ensure that the current reforms are a success.
Timetable for Funding Reform Final model for mainstream not yet decided (implementation 2016/17) Minister committed to current Trailblazer model for 2014/15 starts The Trailblazers funding model for AY 2014/15 is a commitment for starts up to 31 July 2015 only. Full implementation of the funding reforms is currently planned for 2016/17. The aim is that all new Apprenticeship starts from 2017/18 will be on the new programme. Queries to: trailblazerfundingenquiries@sfa.bis.gov.uk
Trailblazer Apprenticeships 2014 to 2015: Funding Model
Trailblazer Funding Model Trial 2014 to 2015 Employers must invest financially in their apprenticeship Employers agree a price for their delivery with their chosen providers Agency does not set rates, but allocates each standard into one of five funding caps which set the ceiling on government investment Government will match employer investment up to this cap - One third employer investment is matched by two thirds government investment Employers will select a lead provider to co-ordinate their training and assessment delivery. Providers can include many of the services they offer as part of their price.
Funding Elements-3 Blocks Key Principle two thirds Government investment to one third employer investment A - Funding that will go directly to employers (to use as they wish) Support for employers <50 employees who take an apprentice of any age (paid at 3 months) Support for any employers who employ young people aged 16-18 (paid 50% 3 months, 50% 12 months) Success payment after completion (paid at confirmation of full achievement) Employers decide how to use this payment B - Agency / employer co-funding for provision (Maximum Gov Contribution) 66% via Agency 33% cash from Employer to be used for: Pays for training and assessment required to meet the Apprenticeship standard C - Agency Funding paid directly to providers - no employer contribution Pays for English and Maths L1/L2 471 for each, no 19+ reduction Pays for support for learners with learning difficulties or disabilities Drawn down as now by the lead provider.
Funding Model for Trailblazers Maximum Core Government contribution ( 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 Employer contribution if the maximum cap is claimed 1000 1,500 3,000 4,000 9,000 Additional incentive payments Recruiting a 16-18 year old For a small business (<50) For successful completion 600 900 1,800 2,400 5,400 500 500 900 1,200 2,700 500 500 900 1,200 2,700 Maximum total Government contribution 3,600 4,900 9,600 12,800 28,800
Standards Available for delivery now: Industry Sector Occupation Cap Employer Contribution Government Co-Investment Cap Aerospace Aerospace Manufacturing Fitter 5 9,000 18,000 Automotive Mechatronics Maintenance Technician 5 9,000 18,000 Automotive Control /Technical Support Engineer 5 9,000 18,000 Automotive Electrical /Electronic Technical Support Engineer 5 9,000 18,000 Automotive Manufacturing Engineer 5 9,000 18,000 Automotive Product Design & Development Engineer 5 9,000 18,000 Automotive Product Design & Development Technician 5 9,000 18,000 Digital Industries Network Engineer 5 9,000 18,000 Digital Industries Software Developer 5 9,000 18,000 Electrotechnical Installation / Maintenance Electrician 5 9,000 18,000 Energy & Utilities Power Network Craftsperson 5 9,000 18,000 Financial Services Relationship Manager (Banking) 5 9,000 18,000 Financial Services Financial Services Administrator 4 4,000 8,000
Delivery Model - three options Employers contract out all their assessment and training One-third employer cash contribution matched by two-third government investment Employer where eligible receives all incentive payments Employers contract out some of their assessment and training Contracted out element ONLY paid by one-third employer cash and matched by two-thirds government co-investment through a lead provider for 2014/15 Employer where eligible receives all incentive payments Agency Direct Grant Employers hold a direct contract for delivery with the Agency One-third employer investment in cash but can also include evidenced costs of direct delivery where delivery takes place through an in-house team Employer where eligible receives all incentive payments
Similarities & Differences In Line with Mainstream: e.g. Specific for Trailblazers: e.g. Apprentice eligibility Apprentice must be employed and paid a wage Apprenticeship Agreements Learning Agreements Principles of Subcontracting Principles of ILR completion Based on an agreed price, not a funding rate Employer incentives and eligibility 12 months minimum duration Removal of English & maths 5 year Funding for progression applies to all learners including graduates Written agreement
Trailblazer Apprenticeships 2014 to 2015: Delivery Model
2014 to 2015 Delivery Model Payment through current Skills Funding Agency infrastructure - interim route payment must be to an existing Skills Funding Agency account holder (employer, provider, other) Lead Provider must be appointed manages payments to all (subcontracted) providers and incentive payments to employers must be on the Agency s Register of Training Organisations and hold a current Agency contract Employer chooses subcontractors working with lead provider
2014 to 2015 Delivery Model Normal ILR completed for 2014/15 starts using Trailblazer ILR codes All current Agency audit and monitoring arrangements apply Additional Agency monitoring for 2014/15 includes monitoring of distribution curve and outliers on e.g. early leavers January Funding Rules version will expand on evidence requirements for providers and employers
Funding Flow & Dual Running Dual Running 2014/15 Mainstream Frameworks & Trailblazer standards both funded through current systems: 1. Learner separately identified as a Trailblazer on the ILR 2. Lead provider will administer all funding for all (employer chosen) providers including the assessment organisation. Payment by employer to lead provider specifically/only to their agreed payment schedule 3. Lead provider, on receipt of employer contribution, updates ILR to confirm amount received 4. Agency pays lead provider the linked government co-investment once the ILR has been received and validated 5. Lead provider invoiced by other providers and makes incentive payments to the employer
Recording Trailblazer Apprenticeships in the ILR Data returned by single lead provider Earlier ILR return required for learners on Trailblazer standards Lead provider records total agreed cost per apprentice in the ILR Lead provider records details of each payment made by the employer (employer cash contribution) which releases the core government contribution up to two-thirds of the total agreed price or the maximum cap set for the standard (whichever is the lower) Full details are available in the Guidance for recording Trailblazer apprenticeships in the Individualised Learner Record for 2014 to 2015
English, Maths & Learning Support Maths and English recorded as usual on the ILR Earn monthly funding payments for maths and English spread between learning start date and planned end date Learning support funding recorded on Apprenticeship programme aim as normal with date applies from and to If you have any queries relating to the completion of the ILR please contact: trailblazerfundingenquiries@sfa.bis.gov.uk
Trailblazer Apprenticeships Discussion and Scenario Reviews
Implications The delivery of training and assessment is a commercial agreement between employer and provider Government 2 payment is a triggered payment - by provider receipt of employer 1 contribution Delivery milestones and payment schedules agreed need to reflect balance and timing of cost/expenditure Provider services for employers, particularly for SMEs remain an important part of the provider offer Payment schedules will differ from employer to employer
Discussion & Scenario Review Consider and share your own employer, apprenticeship and provision models Review the questions to explore on screen Review the scenarios on your tables Four Topics 1.Agreeing a Price 2.The Written Agreement 3.Lead Provider Role 4.Managing Funding and Payments Discuss on your tables Seek answers in the Funding Rules documents and write unanswered queries or questions on flip charts
Agreeing a Price for Training & Assessment 1. Is the training and assessment provision you would include in the co-investment price eligible? 2. Which services will you include in your offer and price? 3. What provision or services must the employer pay for outside the joint government/employer co-investment? 4. Who is eligible to receive the incentive payments?
Agreeing a Price for Training & Assessment Key Points 1. The employer can choose what relevant provision and qualifications they wish to use in addition to anything mandatory in the standard 2. Services in support of the delivery of training and assessment can be included in the overall price and be funded through the co-investment 3. The employer is accountable for their eligibility declaration. Employers will want to ask your advice on eligibility (para 77 & 133) 4. Eligible and ineligible elements of training and assessment (para 92) 5. The cap is not a rate - this is the maximum level of government contribution that will be paid (table on p.14) 6. You must consider and explain the new minimum duration, maths 5 year rule removal, prior learning and level 2 tests in particular when agreeing a price (para 59, 139 & 100) 7. Some elements must be paid for by the employer (para 94) 8. There must be a degree of objectivity in the end test (para 111)
The Written Agreement 1. What is the purpose of the written agreement? 2. What do you want included in the written agreement between you and your employer? 3. What factors will you need to check to ensure that employer and apprentice are eligible for funding? 4. How do you want to structure your payment schedule?
The Written Agreement Key Points 1. This is a commercial service contract between you and your employers (para 44 & 187) - it needs to enforceable through the courts 2. It may be raised by you or the employer but must include the terms set out at paragraph 187 3. Employer and apprentice eligibility declaration can be included here 4. The document must list all of the services you will offer in the price and what is additional/outside 5. It must set out all of the providers involved in the delivery and provide resolution for disputes with subcontractors 6. This will set out your agreed payment/invoicing schedule - this needs to reflect yours and any subcontractors delivery schedule 7. You must confirm if any other learning support is available (and if accessed what this is used for) 8. This is where arrangements for dispute resolution are set out and signed (para 188). It must include terms to enable recovery for employer breach of the rules keep it up to date if major elements change
The Lead Provider Role Who can be a lead provider? What are the responsibilities of the lead provider? Who chooses, appoints and contracts with any subcontractors? What documentation and evidence will you need to keep?
The Lead Provider Role Key Points 1. Every employer chooses and must appoint a lead provider (from ROTO) 2. Lead provider is responsible for all claims and payments to subcontractors and employers and for contracting with providers chosen by the employer in 2014/15 3. All apprentices must be registered on the ILR at the start of their apprenticeship 4. Lead provider is accountable for documentation and evidence holds the learning agreement checks that apprenticeship agreement exists negotiates the written agreement for services with the employer subcontracts with the employers chosen providers 5. Lead provider must notify the Agency in any change of circumstances 6. Lead provider is responsible for dispute resolution with subcontractors and employer
Claiming Funding & Managing Payments 1. How and when should incentive payments be paid to employers? 2. What is the process for claiming the two-thirds government contribution? 3. How and when should subcontractor payments be made? 4. What happens when the employer is late in paying their contribution?
Claiming Funding & Managing Payments Key Points 1. Learner separately identified as a Trailblazer on the ILR at the start of their apprenticeship ILR MUST be kept up to date in change of circumstances 2. Payment by employer to lead provider specifically/only to their agreed payment schedule 3. Agency pays lead provider the linked government co-investment once the ILR has been received and validated 4. Lead provider will be invoiced by other providers and make incentive payments to the employer based on invoice 5. The incentive payments are not contingent on the employer making their contribution payments - incentive payments are triggered by milestone dates 6. If the employer is late in making payments, you must seek redress through your written agreement 7. The written agreement with subcontractors will need to contain new terms to reflect your written agreement with the employer and enable redress for disputes with the employer and with you
Trailblazer Apprenticeships 2014 to 2015: Timeline and Next Steps
Timeline 2014 to 2015 1. First group of standards published: September 2. First Trailblazer employer starts: October 3. First payments to lead providers: November 4. First set of standards available for general delivery: NOW 5. Trailblazer Funding Rules available: NOW 6. ILR Guidance: November 7. Provider Briefings: November/December 8. Second set of standards available for general delivery: Spring 2015
Questions Queries: trailblazerfundingenquiries@sfa.bis.gov.uk Funding Rules: Funding Rules for Apprenticeship Trailblazer Standards 2014 to 2015 is published on gov.uk at: https://www.gov.uk/government/publications/sfa-funding-rules Trailblazer Apprenticeship Funding 2014 to 2015 Requirements for Employers is published at apprenticehips.org: http://www.apprenticeships.org.uk/employers/steps-to-make-ithappen/apprenticeship-standards.aspx