Apprenticeship Levy Guide

SOME THINGS TO CONSIDER ...

• An apprentice cannot be too overqualified to start an Apprenticeship - they can have successfully completed a Degree and still join a programme.

• Apprentices must have a contract of employment and work a minimum of 30 hours a week (which includes any hours where they attend the College).

• Apprentices aged 16-17 are not allowed to work more than 40 hours per week.

• Pay must be a minimum of £3.50 per hour.

• Those aged over 19 may be paid the Apprenticeship wage for their first year of study when they start training, but must move to the National Minimum Wage as soon as 12 months have elapsed, whenever that may be within their Apprenticeship programme.

“The Apprenticeship has helped in many ways, predominately the apprentices’ confidence in their ability in a managerial role, then ultimately the business, with transferring their knowledge in their everyday life as a deputy manager.

We have found that many have put their knowledge towards helping in projects to support the business grow and further their experience to add to their CVs; this is something some wouldn’t attempt before the Apprenticeship! Recently, with the new apprentices I’ve seen a keen interest to get involved and have received requests to be part of engagement activities within the workplace to boost their evidence and network with others.”

Sonya Arcos, Shift Manager Royal Mail Plymouth

Find out about the Apprenticeship Levy and how it may affect your business

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APPRENTICESHIPS MAKING A SUCCESSFUL BUSINESS

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If you require this guide in a larger type or different format please telephone 01752 305026.

CONTENTS Apprenticeships Deliver

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Award-winning Provision

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Pre-Apprenticeships 3 The Apprenticeship Levy

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Apprenticeship Frameworks

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Assessments 6 How the Levy Will Work

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Taking on an Apprentice

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“What’s great about the Apprenticeship programme is that all the training modules are done in-house, so we can maximise the apprentices’ time in the workplace and make sure the learning is relevant to the legal business. Because they are training on-the-job, they are going to pick things up quickly and give real value to the business from day one.”

Trevor Worth, CEO and Founder Portcullis Legals

01752 305026 employers@cityplym.ac.uk

APPRENTICESHIPS DELIVER ...

Would your business benefit from an individual who is committed, enthusiastic and keen to learn new skills? An apprentice could be the answer! Apprentices bring many benefits to employers and can help make your organisation more effective, productive and competitive by directly addressing skills gaps and succession planning.

Apprentices are not just aged 16-18 and are not only found across traditional industries, such as construction and engineering. Apprentices can be any age and can be employed across all sectors, from customer service to media and digital industries.

The College offers Apprenticeships in the following areas: • business, administration and customer service • childcare, and health and social care • construction and the building trades • digital media • engineering, automotive and marine • hair and beauty • hospitality and catering • logistics • marketing • performing arts and music • science • sport • stores and distribution • team leading and management • travel and tourism.

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PRE-APPRENTICESHIPS Pre-Apprenticeships, also known as Traineeships, are a formalised work trial or work experience placement that allows businesses to recruit the next generation of employees with minimal financial risk.

Employers tell us that young job applicants lack the skills and experience they need to be effective at work. Pre-Apprenticeships offer employers the opportunity to: • carry out an ‘extended interview’ with a potential employee • shape a young person’s training and experience • work with a young person for a significant period • benefit from a simple training programme with minimal ‘red tape’.

AWARD-WINNING PROVISION City College Plymouth is one of the largest Apprenticeship providers nationally and has been offering Apprenticeships since 1995. The College works with over 1,300 employers and has been recognised

by Ofsted in each of its last two inspections as ‘outstanding’. The College continues to expand and has gone from delivering across four sectors to nine due to employer needs.

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In 2015/16 the College had 1,638 apprentices. Overall achievement is 83% - 13% above national rates. The College is in the top 10% of high performing colleges nationally* and won the Beacon Award for Promotion and Delivery of Successful Apprenticeships in 2015.

To take on a young person on a PreApprenticeship programme you will need to provide a purposeful work experience placement for the trainee, lasting a minimum of six weeks to a maximum of three months. You will not be required to pay the young person, however, you are encouraged to support them with expenses such as transport and meals.

Once the young person has completed their Pre-Apprenticeship, ideally, you will need to give them: • an interview for a position within your business if one is available - this could be a permanent position or an Apprenticeship, or • if no Apprenticeship or job opportunity exists within your business, provide a meaningful exit interview together with a reference.

Ensuring you have a workforce which has a range of skills and abilities is crucial in ensuring business success - staff with higher level skills can provide your business with the edge it needs to stand out from the crowd! * National Achievement Rate Tables: April 2016

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APPRENTICESHIP FRAMEWORKS Current frameworks are being gradually phased out and replaced with employer-led standards, with the Government stating they’ll be “staggering the withdrawal of public funding for new starts on the current framework Apprenticeships as employers take on apprentices on the new standards”.

THE APPRENTICESHIP LEVY The levy will completely change the way Apprenticeships are funded, as spending power will be in the hands of the employer!

The levy only applies to businesses whose payroll costs exceed £3million; this will be offset by a £15,000 allowance for each business contributing to the levy. The levy is a payment of 0.5% of the employers’ total wage bill and will be paid through PAYE. The levy paid will be placed into a digital account which the business can then use to pay the College to deliver an Apprenticeship.

Levy funds cannot be used for: • wages • statutory licences to practise • travel and subsidiary costs • managerial costs • traineeships • work placement programmes • the costs of setting up an Apprenticeship programme.

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01752 305026 employers@cityplym.ac.uk

Non-levy payers If your payroll costs are under £3million then you will not have access to the levy fund. However, you will be able to access Government support for Apprenticeships - the Government will pay 90% of the training and assessments costs, with you paying the remaining 10%.

The deadline for the withdrawal of the frameworks is the end of August 2018.

This will allow training providers to continue to deliver existing frameworks and give more time for the new standards to be developed. At City College Plymouth, we will continue to deliver frameworks until the new standards have been developed and approved.

The Government has given employers much authority over the content of the new Apprenticeships (the employers are in the driving seat!) to support the Government’s aims of: • increasing productivity • achieving their target of three million apprentices by 2020 • reducing public funding • reducing Government responsibility.

Incentive payments Small employers (those with less than 50 employees) may be exempt from paying for Apprenticeship training. Employers may also receive a further incentive of £1,000 for training apprentices if they are: • aged 16-18 • a 19-24 year old care leaver • a 19-24 year old with a Local Authority Education, Health and Care Plan.

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If funding unlocked, pay provider

Paid by SFA* and balance to employer

Check training is complete

** Business Innovation & Skills

Employer and Provider Identity Insurance

Registers with SFA*

Timely data on training

Provides training to apprentice Offers Apprenticeship training

Confirms to SFA* that training has taken place & that employer has made contribution

SFA* pays proportion to the training provider Employer pays for proportion of cost direct to training provider Receives training for apprentice

Receives training for apprentice Employs apprentice or trains existing team member & commits to training Employer views funds in digital account to spend in England

Pass data on levy payments from HMRC to BIS**

Government

* Skills Funding Agency

01752 305026 employers@cityplym.ac.uk

Training provider

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Non-levy paying employer (payroll costs under £3million)

Suzi Cumberland, Head of Operations Devon Chamber of Commerce

HMRC collects levy (PAYE)

“We’ve found that, by taking on an apprentice, you are able to mould them to suit the business and, in our experience, everyone that we have taken on has fitted really well into the team. You can ease them into the things that you would like them to do whilst giving them that vital on-the-job experience.”

Levy paying employer (payroll costs exceed £3million)

Apprentices will not be able to achieve an Apprenticeship standard without satisfying all the requirements of the assessment plan, including end-point assessment.

10% top-up

Potential assessment may include: • written exams • interviews or assessments on the content of an apprentice’s portfolio of work • production of a ‘showpiece’ • observation of the apprentice in the workplace • simulated activities.

An apprentice can only take an endpoint assessment once they have met the minimum duration of the Apprenticeship, satisfied the gateway requirements (the suite of qualifications, training and achievement agreed at the start of the Apprenticeship), and that you (their employer), in consultation with the College, is content they have attained sufficient skills, knowledge and behaviours.

HOW THE LEVY WILL WORK

The end-point assessment of Apprenticeships will be changing, with the Government insistent on rigorous end-point testing in order to assess the skill, knowledge and behaviours set out in the standard to ensure the apprentice is occupationally competent in their role.

Employs apprentice or trains existing team member & commits to training

Unused levy funds expire after two years SFA* draws down levy funds monthly

ASSESSMENTS

TAKING ON AN APPRENTICE You can take on an apprentice in a number of ways. You could offer an Apprenticeship to an existing member of staff, or you could recruit a new member to your team via a PreApprenticeship or an Apprenticeship.

Whichever route you choose to take, we will work with you throughout the process, and wherever possible help you access any available funding. See our easy step-by-step guide below to taking on an apprentice.

TRAINING A MEMBER OF YOUR EXISTING TEAM AS AN APPRENTICE If you have an employee who would like to complete an Apprenticeship, follow these steps to make it happen.

Step 1 Contact the College on 01752 305026 and speak with one of our experienced Account Managers who will ask you to provide a copy of the job description - this will enable the current role being undertaken to be matched to the appropriate Apprenticeship.

Step 2 Your member of staff will need to complete and submit an application form to the College.

(We can help with this!) On receipt of the application form we will process it within three working days.

Step 3 Your member of staff will then be invited to the College for assessments to check their skills in maths, English, ICT and the vocational skills related to the Apprenticeship. The invitation will be sent out within five working days of receipt of the application form.

Please note these assessments are intended to ensure the Apprenticeship is the right course for the right person. They are usually delivered over two sessions, which last up to five hours each.

Step 4 On successful completion of the assessments, and once a standard has been agreed, the member of staff will be assigned a Reviewing Officer who will be your main point of contact for the duration of the Apprenticeship.

Step 5 If you are a levy payer you will need to set-up an online account with the Digital Apprenticeship Service (www.gov.uk/guidance/manage-apprenticeship-funds) to access your training funding.

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01752 305026 employers@cityplym.ac.uk

RECRUITING A NEW MEMBER OF STAFF AS AN APPRENTICE Looking to increase the size of your workforce by recruiting a new member of staff as an apprentice? Our step-by-step guide below shows just how easy it is!

Step 1 Contact the College on 01752 305026 and speak with one of our experienced Account Managers. Provide us with a job description so that the role can be matched to an appropriate Apprenticeship standard (we have samples available which you can easily adapt).

Step 2 After notifying us of your vacancy, we will match it to any candidates that have applied to the College and will also advertise it on the National Apprenticeship Service’s website, the College website and through Careers South West. In order to attract a wide range of applicants, we recommend that you also advertise the vacancy as widely as possible through your own recruitment channels, signposting applicants to the College.

Step 3 You will be provided with an update on the level of interest in your vacancy and a shortlist of potential candidates for interview, following rigorous screening and sifting from our experienced Work-based Learning team.

Step 4 The College will co-ordinate interviews with the candidates on your behalf and, if you require, provide guidance on selection methods and interviewing.

Step 5 Your apprentice will then be employed as per your organisation’s terms and conditions.

Otherwise, steps two to four are repeated until a suitable candidate is found.

Step 6 If you are a levy payer you will need to set-up an online account with the Digital Apprenticeship Service (www.gov.uk/guidance/manage-apprenticeship-funds) to access your training funding.

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