Higher Apprenticeship
Funding
Higherapprenticeships@sfa.bis.gov.uk
Rebecca Rhodes
Head of Apprenticeship Funding Policy Implementation
November 2015
Apprenticeship Reforms
Employer driven
Employers designing
apprenticeships to make them more
responsive to their needs and the
future economy, and controlling
funding
Simplicity
Simplifying
apprenticeship
standards
so that they are shorter
and more accessible
Quality
Improving the quality
of apprenticeships so
that they are viewed
with the same esteem
as University
Current Direction
SFA operates all Apprenticeship funding from one
budget but there are two types of apprenticeships with
their linked funding models :
• Existing suite of approved SASE apprenticeship
frameworks
• 353 new apprenticeship standards
• 195 approved and published
of which 60 available for delivery (26 at L4-6)
• 158 in development
• Apprenticeship frameworks replaced
by apprenticeship standards over time
Apprenticeship Reform Commitments
• To significantly increase the quantity and quality of apprenticeships in
England to 3 million starts this Parliament, putting control of funding in the
hands of employers.
• Employers at the heart of designing new Apprenticeships Standards through
the Trailblazer programme
• Employer-routed funding reforms, such as the digital apprenticeships voucher,
is putting control of funding directly into hands of employers
• Apprenticeships will be given legal treatment equal to degrees
• The government is abolishing employer NICs for apprentices under the age of
25 from April 2016
• The government will set apprenticeship targets for public
sector bodies
Apprenticeship Levy Announcement
But a step change in the scale and quality of the
apprenticeship programme also needs a step change in funding.
The government will introduce a levy collected from larger employers
which in England will be spent by the employer on apprenticeships
Employers will access levy funds through the digital apprenticeship
voucher
Government consultation on levy implementation closed on 2 October
2015
Getting Involved
1. Have your provision included in an apprenticeship
framework or Standard
2. Apply to join the SFA Register of Training
Organisations
3. Apply through an SFA procurement round for funding
4. Prepare for the opportunities presented by the levy
Apprenticeship Delivery
Lead Providers
Are an existing SFA account holder with an apprenticeship budget
• Are on the Register of Training Organisations
• Lead relationship with employers
• Arrange & manage subcontracted delivery
• Arrange end-point assessment
• Make the employer incentive payments to employers
Subcontractors
Work to a lead provider and deliver elements of the apprenticeship
Higher Apprenticeship Funding
Funding Model - Frameworks
• Qualifications that make up Higher Apprenticeships can be FE, HE or a
combination of the two.
• Only approved SASE apprenticeships can be delivered
• Apply to the Issuing Authority who governs the framework to include your
provision (http://www.afo.sscalliance.org/)
• FE qualifications - these have national “rates” published by the SFA
• https://hub.imservices.org.uk/Learning%20Aims/Pages/default.aspx
• HE qualification ‘rates’ / prices are agreed with the SFA as part of
contracting
• Funding is either paid on a standard Agency profile
or on actual delivery depending on provider type
• Apprenticeship Grant for Employers available
Trailblazer Funding Model –
Standards
Funding
Price agreed for
Training &
Assessment
CoPayment
Employer
Incentive
Payments
English & Maths
Employer 1/3
contribution
Government Pays
Government 2/3
contribution
Additional
Learner Support
Trailblazer Funding Model for
Standards
Cap 1
Cap 2
Cap 3
Cap 4
£2,000
£3,000
£6,000
£8,000
Employer contribution if the
maximum cap is claimed
£1000
£1,500
£3,000
£4,000
£9,000
Minimum Co-funding for
training and assessment at
the cap
£3,000
£4,500
£9,000
£12,000
£27,000
Recruiting a
16-18 year
old
£600
£900
£1,800
£2,400
£5,400
For a small
business
(<50)
£500
£500
£900
£1,200
£2,700
For
successful
completion
£500
£500
£900
£1,200
£2,700
£3,600
£4,900
£9,600
£12,800
£28,800
Maximum Core Government
contribution (£2 for every £1
from employer)
Additional
incentive
payments
Maximum total Government
contribution
Cap 5
£18,000
Trailblazer Standards Employer Incentive Payments
16-18 Incentive
£1,800
Small employer
Incentive
£900
• 50% at 3 months
• < 50 employees
• 50% at 12 months
• 100% at 3 months
Completion
Incentive
£900
• 100% on completion
•
Lead provider is paid at 90 and 365 days by the SFA automatically
•
Cannot be ‘offset’ against employer cash contribution
For Further Information on
Higher Apprenticeships
For General Higher Apprenticeship Queries: higherapprenticeships@sfa.bis.gov.uk
For trailblazer standards in development:
https://www.gov.uk/government/publications/apprenticeship-standards-indevelopment
For trailblazer standards available for delivery:
https://www.gov.uk/government/publications/apprenticeship-standards-ready-fordelivery
Higher apprenticeship webpage: https://www.gov.uk/government/collections/sfahigher-and-degree-apprenticeships
Advice for employers on trailblazer standards:
https://www.gov.uk/government/publications/employers-guide-to-trailblazerapprenticeships