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APPRENTICESHIPS

ARE CHANGING How will it affect your business?

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APPRENTICESHIPS ARE CHANGING Why Apprenticeships are changing? Apprenticeships are changing in response to the Government’s plans to create three million new apprenticeships by 2020. The independent Richard Review, which took place in 2012, concluded that apprenticeships were no longer fit for purpose and the UK was falling behind its European competitors where, in Germany for example, two-thirds of young people take some form of apprenticeship by the time they are 25.

What are the main changes? • Standards, designed by employers, will replace the existing frameworks. • An introduction of three new organisations: The Institute for Apprenticeships (IfA), Register of Apprenticeship Assessment Organisations (RoAAO) and Register of Apprenticeship Training Providers (RoATP). • An apprenticeship tax levy of 0.5%, to be paid by employers with a wage bill in excess of £3 million per annum. • Non-levy paying employers (i.e. those whose wage bill is less than £3 million per annum) will be expected to pay a contribution to help fund their apprentice(s) training. The Government will pay 90% of the negotiated rate on condition of the employer paying 10%.

• Employers will choose and pay for apprentices’ training and assessment through the online Digital Apprenticeship Service (DAS). • All apprenticeships will last a minimum of 12 months. • All apprenticeships will have an independent endpoint assessment, to ensure the apprentice can do the job they have been trained to do. • As well as intermediate (level 2) and advanced (level 3) apprenticeships, there will be higher level apprenticeships (levels 4 to 7).

When are the changes happening? Summer 2016

April 2017

Clarification expected on eligibility and apprenticeship funding levels, plus government support and co-investment for non-levy payers.

Levy paying employers will begin to make their levy payments on a monthly basis.

Autumn 2016 Final details on funding and eligibility rules, and guidance on how to calculate and pay the levy.

May 2017 Levy paying employers will be able to draw down their levy payments and start paying providers for apprenticeship training.

January 2017 Levy paying employers will be able to access their Digital Apprenticeship Services (DAS) accounts.

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Moving from frameworks to standards The current apprenticeship frameworks will be replaced by apprenticeship standards. These employer designed standards will focus on the outcome of an apprenticeship – what the apprentice can do when they finish their apprenticeship, i.e. ensure they can do the job they have been training for.

Standards will be: • Job specific • Clear and concise (approximately two sides of A4) • Written by employers • Include an end-point assessment. In addition, many of these new standards will be level 4-7: Level

Equivalent

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5 GCSE grades A*-C

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2 A-Levels

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HNC – equivalent to the first year at university

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HND – equivalent to the second year at university

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Bachelors Degree (BA, BSc)

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Masters Degree (MA, MSc)

The Institute for Apprenticeships (IfA) The IfA is a new independent body, led by employers, that regulates and oversees the quality of apprenticeships.

The Register of Apprenticeship Assessment Organisations (RoAAO) Moving forward all apprenticeships will have an end point assessment. This will need to be carried out by an independent organisation who will need to be on the Register of Apprenticeship Assessment Organisations (RoAAO).

The register of Apprenticeship Training Providers (RoATP) The RoATP is a list of all training providers who will be authorised to deliver apprenticeships to any employer from May 2017. 4


Who will pay the apprenticeship Levy? In April 2017 the way the Government funds apprenticeships in England is changing. Employers with a wage bill in excess of £3 million per annum will be required to contribute to a new apprenticeship levy (which represents 2% of UK Employers). There will also be changes to the funding for apprenticeship training for all employers with wage bill less than £3million per annum.

Are you an employer with a pay bill in excess of £3 million per year?

YES

From April 2017 you will be paying the apprenticeship levy. (Find out more on page 6)

NO

You will not pay the apprenticeship levy, however you will need to make a contribution to fund any apprentice you employ. (Find out more on page 7)

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Apprenticeship levy payers The levy is a new tax which aims to fund three million new apprenticeships in England by 2020, and will come into effect in April 2017. Employers who pay the apprenticeship levy will be able to use their levy funds on apprentice training for existing staff or new recruits.

What can the levy be spent on? For existing staff or new recruits. It cannot be used on associated costs such as apprentice wages or travel.

How much will I pay? From April 2017 all UK employers who have a total wage bill in excess of £3 million a year will pay the levy. The levy rate will be set at 0.5% of your wage bill offset by a levy allowance of £15,000. Examples of how much levy payers will pay: Employer A: £10m annual payroll

Employer B: £3m annual payroll

Levy charge (0.5% x £10m) = £50,000 Less allowance £15,000 Overall Levy = £35,000 per annum

Levy charge (0.5% x £3m) = £15,000 Less allowance £15,000 Overall Levy = £0 per annun

How will the levy be collected? Payments will be collected monthly by HM Revenue & Customs (HMRC) through Pay as You Earn (PAYE), alongside your organisation’s tax and national insurance. The funds will then appear as digital vouchers on your Digital Apprenticeship Service (DAS) Account.

How can I spend my digital vouchers? The Digital Apprenticeship Service (DAS) is a new online tool for apprenticeships. From January 2017 you will be able to register for and access your Digital Apprenticeships Services (DAS) account. On your DAS account you will be able to use your digital vouchers to choose the training provider you want to deliver your apprenticeship training and choose who will conduct the end-point assessment. Our employer training services team will be able to help you set up your DAS account, contact us at training@bedford.ac.uk or call us on 01234 291747. From May 2017 you will see funds entering your DAS account each month as you pay your levy. Monthly payment will then be taken from your DAS account and sent to the training provider you choose to deliver the training of your apprentices.

Who can I spend my levy with? You will be able to choose who you want to deliver your apprenticeship programme though the Digital Apprenticeship Service using your digital vouchers. Bedford College is the largest provider of apprenticeships in Bedfordshire so choosing us to deliver your apprenticeship training will mean that: • You will receive a free tailored recruitment service that meets your needs. • You will be given expert advice by our Business Development Team.

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• Your apprentices will be trained by tutors who have all previously worked in the relevant industry sector. • Your apprentices will have their own dedicated Training Co-ordinator to support them through their training.


Non-levy payers All employers that have a wage bill less than ÂŁ3 million per annum (which represents 98% of UK employers) will not have to pay the levy and will continue to have access to government funding to support their apprentice training. However, going forward non-levy paying employers will be expected to make a financial contribution to the cost of training their apprentices (co-investment). The employer will need to co-invest 10% of the agreed price and the Government will pay the remaining 90%. For small employers (fewer than 50 employees) who take on younger apprentices (aged 16-18) the Government will pay 100% of the apprenticehsip costs.

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How Bedford College can help you understand the new changes? We work with over 1,000 employers each year, and as the biggest provider of apprenticeships in Bedfordshire and the surrounding area we have the experience to help you develop and deliver your apprenticeship programmes. We offer over a wide variety of apprenticeships programmes to fit into your business: • Accountancy

• Horse Management

• Agriculture

• Horticulture

• Beauty Therapy

• IT Application

• Brickwork

• IT Software & Web Professionals

• Business Administration

• Management Accounting (CIMA)

• Care Leadership & Management

• Management

• Children & Young People

• Motor Vehicle Body & Paint Operations

• Contact Centre Operations

• Motor Vehicle Maintenance & Repair (Light Vehicle)

• Customer Service • Creative Digital Media • Decorative Finishing • Electrical Installation • Engineering • Environmental Conservation • Exercise & Fitness • Front of House Services • Graphic Design • Hairdressing • Health & Social Care • Horse Care

• Plumbing • Professional Cookery • Sport Specialist • Teaching Assistant • Team Leading Apprenticeship • Technical & Professional (Civil Engineering) • Trees & Timber • Warehousing & Storage • Wood Occupations Bench Joinery • Wood Occupations Site Carpentry

If there isn’t an apprenticeship programme listed above which fits your organisation, contact us to discuss your requirements.

Coming soon Higher Apprenticeships in Agriculture (Level 4) and Human Resources Management (Level 5)

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Why Choose us?

Free advice We can offer you free support and guidance on the changes to apprenticeships and support you through the whole process.

Digital Apprenticeship Service We can set your company up on the Digital Apprenticeship Service and provide training.

recruitment Service We can recruit applicants and match the right applicants to your organisations need.

experts We are experts in our field and the largest provider of apprenticeships in Bedfordshire and the surrounding area.

ALL YOUR TRAINING NEEDS in one place We can work with you to identify your training priorities and develop a training solution that meets your precise needs, offering a whole suite of training including apprenticeships.

ofsted ‘We successfully work with employers and external agencies to provide a highly responsive curriculum to meet local and regional needs.’

range of skills We don’t just deliver technical content to apprentices, we deliver the ‘soft skills’ (personal development) so they are ready to transfer into the working environment.

One point of Contact You will have a dedicated account manager and training co-ordinater.

Call our Business Development Team on 01234 291747 or email us on training@bedford.ac.uk

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What the employers we are working with say about us… Organisation: Hybrid Air Vehicles Industry: Aviation Employer: Niky Jeffries, HR Officer

“From my point of view the apprenticeship programme has been very successful. It’s fantastic having very engaged apprentices on board and the support we’ve had from Bedford College has been brilliant.”

Organisation: Dalrod Norslo Ltd Industry: Automotive Employer: Stephen Carpenter, Operations Manager

“We currently have three apprentices with Bedford College and we intend to take on another two very soon. We’ll definitely use Bedford College again as they have provided us with an excellent service, including filling out all the necessary paperwork and regularly visiting us on site.”

Organisation: Potton Pre-school Industry: Education Employer: Zia Stofen, Office Manager

“The College ensured all the appropriate Disclosure and Barring Service (DBS) checks were done, as well as completing all the necessary paperwork on behalf of the pre-school.”

Organisation: CiLEX Industry: Awarding Body Employer: Janet Bishop, HR Manager

“Bedford College has continually supported us and our apprentices from day one. There has always been good communication between us and the training co-ordinator visits at least once a month to see apprentices and other staff. “

contact us Call our Business Development Team on 01234 291747 Email us on training@bedford.ac.uk Visit bedford.ac.uk/apprenticeships @BedfordCollege BedfordCollege BedfordCollege 10


Wilden Ravensden

We offer apprenticeships at locations right across Bedfordshire and the surroundingRoxton area. Oakley Clapham

Renhold Great Barford

A1

Brunel Training Centre A4280

Bedford College Cauldwell Street Campus Kempston

A6

Cople Hatch

Cardington

A1

A421

Wixams Old Warden

Wilstead

Shuttleworth College

A6

Millbrook

Shefford

Clophill

Ampthill

A6

Silsoe Flitwick

Houghton Regis Training Centre Luton Training Centre 11 Luton


Bedford College Cauldwell Street Bedford Bedfordshire MK42 9AH 01234 291747 training@bedford.ac.uk www.bedford.ac.uk/apprenticeships

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Appprenticeship Levy