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Introduction to apprenticeship funding

Nick LinfordManaging Director of LsectManaging Editor of FE Week

Webinar 14 May 2012

Agenda

14.00 Webinar registration

14.05 The apprenticeship funding formula

14.45 Use of LARA, monthly funding, profiling and managing

apprenticeship performance.

15.20 Minimum durations and other changes next year and beyond

15.40 Question and answer session

16.00 End

If you have any audio problems please dial in using the phone number on the automated email. You will be emailed a copyof the slides after the webinar

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Demand Led Funding formula

Apprenticeship elements in the demand-led funding formula:

> Programme Weighting Factor (PWF)

Apprenticeships are funded using the DLF funding formula,

which is an enrolment based funding methodology

Therefore, every enrolment has an individual value

> Standard Learner Number (SLN)

> Disadvantage Uplift (DU)

> National Funding Rate (NFR)Formula elements

multiplied together

equals maximum

funding for the

enrolment> Area Cost Uplift (ACU)

> Employer Contribution Percentage (ECP)

> Large Employer Discount (LED)

Sources of the DLF funding formula

NFRSet each year nationally2011/11 and 2012/13:

SLNAlways ‘listed’ on the online Learning Aim Reference

Application (LARA)

• 16-18 = £2,862, then £2,805

• 19-24 = £2,615

• 25+ = £2,092

PWF On the LARA, under ER APP

DUBased on an postcode file and the learner home

postcode (no uplift, or between 8 and 32%)

ACUSouth East England weighting based on the

delivery location (as much as 20% extra)

ECPEmployer Contribution Percentage for 19+ (50% for all

quals, except functional qualification which are 17.5%)

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http://www.afo.sscalliance.org/

165 ‘current’ in the frameworks library (as at 27/04/12, England only)

Activity Leadership at Level 2

Short descriptionThis is a multi pathway framework, catering for the

UK outdoors sector as well as providing opportunities

for development of fitness leaders, coaches and

activity leaders.

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Learning Aim Reference Application

https://gateway.imservices.org.uk/sites/lara/Pages/AimsSearch.aspx

A 1

B 1.12

C 1.3

D 1.6

E 1.72

F 1.4

G 1.92

H 1.2

J 1.25

K 1.5

L 1.15

PWFs

Framework ID FR01152 SLN NFR PW ACU DU Funding

Level 2 NVQ Certificate in

Activity Leadership1.095 £2,862 1 (A) 1 1.025 £3,212

Level 2 Certificate in

Coaching Water

Skiing/Wakeboarding

0.18 £2,8621.12

(B)1 1.025 £591

Functional Skills Maths (L1) 0.08 £2,862 1 (A) 1 1.025 £235

Functional Skills English (L1) 0.08 £2,862 1 (A) 1 1.025 £235

Total £4,273

16-18 year-old funding in 2011/12 (Note: 19-24 NFR = £2,615)

SASE Apprenticeship Funding example

Note: All 19+ Apprenticeships are co-funded (50%) and 25+

have a 20% (NFR £2,092) rate reduction and large employers

(1000 staff+) have a further 25% rate reduction

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The on-programme funding for Apprenticeships is the total funding

less the funding for achievement*

The SFA pay monthly on-programme funding instalments based on

submitted ILR data

The first month instalment will be worth twice as

much as each of the remaining months (n+1 approach)

So, if 12 month course then each month is worth total on-programme

funding divided by 13 (with month 1 paid twice)

e.g. £10,000 on-programme funding over 9 months would be

in first month and for the remaining 8 months£2,000 £1,000

ER on-programme funding instalments

* Achievement is 25% of total main apprenticeship

qualification funding

Framework ID FR01152 SLN NFR PW ACU DU Funding

Level 2 NVQ Certificate in

Activity Leadership1.095 £2,862 1 (A) 1 1.025 £3,212

Level 2 Certificate in

Coaching Water

Skiing/Wakeboarding

0.18 £2,8621.12

(B)1 1.025 £591

Functional Skills Maths (L1) 0.08 £2,862 1 (A) 1 1.025 £235

Functional Skills English (L1) 0.08 £2,862 1 (A) 1 1.025 £235

Total £4,273

16-18 year-old funding in 2011/12 (Note: 19-24 NFR = £2,615)

OP Instal Month 1

OP Instal Month 2

OP Instal Month 3

Achievement

Total funding £4,273

SASE Apprenticeship Funding example

Note: All 19+ Apprenticeships are co-funded (50% or 82.5% for functional skills) and 25+ have a 20%

(NFR £2,092) rate reduction and large employers (1000 staff+) have a further 25% rate reduction

£1,735

£867

£867

£803

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19-24 year-old funding in 11/12 or 12/13

OP Instal Month 1

OP Instal Month 2

OP Instal Month 3

Achievement

Total funding £2,091

SASE Apprenticeship Funding example

£862

£431

£431

£367

Framework ID FR01152 SLN NFR PW ACU DU ECP Funding

Level 2 NVQ Certificate in

Activity Leadership1.095 £2,615 1 1 1.025 50% £1,468

Level 2 Certificate in

Coaching Water

Skiing/Wakeboarding

0.18 £2,615 1.12 1 1.025 50% £270

Functional Skills Maths (L1) 0.08 £2,615 1 1 1.025 17.5% £177

Functional Skills English (L1) 0.08 £2,615 1 1 1.025 17.5% £177

Total £2,091

25+ year-old funding with a large employer in 11/12 or 12/13

SASE Apprenticeship Funding example

Framework ID FR01152 SLN NFR PW ACU DU ECP LED Funding

Level 2 NVQ Certificate

in Activity Leadership1.095 £2,092 1 1 1.025 50% 25% £881

Level 2 Certificate in

Coaching Water

Skiing/Wakeboarding

0.18 £2,092 1.12 1 1.025 50% 25% £162

Functional Skills Maths 0.08 £2,092 1 1 1.025 17.5% 25% £106

Functional Skills English 0.08 £2,092 1 1 1.025 17.5% 25% £106

Total £1,255

Age and employer size

Funding in

example above % of the

16-18 funding16-18 (any employer size) £4,273

19-24 (not large employer) £2,091 49%

19-24 large employer £1,796 42%

25+ (not large employer) £1,673 39%

25+ large employer £1,255 29%

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Profiling and quarterly performance review

£100

£200

£300

£400

£500

£0

Feb Mar Apr May Jun Jul Aug

Monthly instalments

Cumulative instalments

£0

£400

£800

£1,200

£1,600

£2,000

Feb Mar Apr May Jun Jul Aug

Example single qual profile

New academic year

Official apprenticeship funding documents

For 2011/12 For 2012/13

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Funding Rules 2012/13

http://readingroom.skillsfundingagency.bis.gov.uk/sfa

/funding_rules_201213_-_published_3_april_2012.pdf

Published early April (95 pages)

Expect an audit update in May 2012

No comment on what’s changed

Access to Apprenticeships

Minimum 16-18 & 19+ durations

Apprenticeship principles

Apprenticeship principles

An Apprenticeship Framework is a programme of learning aims as defined by

Specification for Apprenticeship Standards in England (SASE), approved by

the relevant Issuing Authority.

Apprenticeships are designed for people of any age starting work or starting

a new job role. The apprentice must be working towards a recognised Issued

Framework that relates to and meets the needs of their specific job role (or

occupation). This is the basis on which government funding is allocated.

Government policy is to prioritise Apprenticeships for those aged 16-24

years of age.

Page 22

In order to receive funding Providers must link every Apprenticeship to an

eligible individual undertaking a new or changed job role

Para 51.1

Further clarification being sought…..

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Apprenticeship durations

“Providers must not enter an expected length of duration of

fewer than twelve months and will not be paid the achievement element of a 16-18 Apprenticeship with a

duration of fewer than twelve months in any circumstances”

Para 84

“Providers should not claim the full amount of funding available for

an Apprenticeship completing in fewer than 12 months and will not

ever be able to claim the achievement element of an

Apprenticeship not withstanding proven and documented prior

learning with a duration of fewer than six months in any

circumstances.”

Para 88

“record in the Learning Agreement how they have adjusted

funding claimed to reflect this prior attainment and use ILR

field ‘Proportion of Funding Remaining’ to reduce the

funding claimed for that individual.”

Para 86

Para 85 For 19+ is will be a 12 month minimum unless prior attainment

(then 6 month minimum)

Access to Apprenticeships

Providers must not recruit more than ten per cent of their

Apprenticeship starts onto the Access to Apprenticeship pathway

Para 61

Access to Apprenticeships is a pathway to a full Apprenticeship. The

main difference is that the Learner on this pathway is not required to

be in employment on the first day of their learning.

Page 23

The Access to Apprenticeship pathway and the Apprenticeship are

delivered in one continuous programme from beginning to end. The

time a learner spends on Access, up to a maximum of six months,

will contribute to the minimum duration of 12 months for the full

Apprenticeship. Any learner undertaking fewer than 30 hours per

week on Access will have the minimum duration time extended

accordingly.

Para 64

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Access to Apprenticeships

If the Provider fails to secure employment for less than 90 per cent of

all the individuals that it has enrolled on the Access to

Apprenticeship pathways in a given year, they will no longer be

automatically eligible to deliver the pathway in subsequent years.

Para 66

If the Provider fails to secure an employer for an apprentice on an

Access to Apprenticeship pathway by the six-month point they will

not qualify for the achievement element of the funding if the

apprentice achieves the Apprenticeship.

Para 65

Any or all of the elements of an Apprenticeship Framework can be

started during the period on the Access to Apprenticeship pathway;

however, the Learner cannot complete the competence or technical

knowledge learning aims during the time spent on the Access to

Apprenticeship pathway. They are required to complete these

elements of the framework whilst in a full Apprenticeship with a

contract of employment.

Para 68

Subcontracting ~ do your homework

~ Allocations spreadsheetshttp://skillsfundingagency.bis.gov.uk/providers/programmes/

~ FE Choiceshttp://fechoices.skillsfundingagency.bis.gov.uk/Pages/home.aspx

~ Ofsted www.ofsted.gov.uk

~ UK Register of Learning Providers www.ukrlp.co.uk

~ Companies Housewww.companieshouse.gov.uk

~ Register of Training Organisations http://skillsfundingagency.bis.gov.uk/providers/programmes/register/

~ Subcontracting registerhttp://skillsfundingagency.bis.gov.uk/providers/Subcontracting/

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2013/14 ~ FE Loans ~ the plan

All 24+ LR (classroom) and ER (workplace)

funding L3+ to be funded out of loans allocation

E.g. Apprentice takes out the income contingent

loan, and pays back 9% of all earnings above £21k +

3% RPI (written off after 30 years)

Plans for new national funding

methodology as well

Providers to liaise with Student Loans Company

Learners will be able to apply from April 2013

161-165 Greenwich High Road

London, SE10 8JA

Tel: 020 8123 4778

Q&ANext webinars : book via www.lsect.co.uk/webinars

Date: Wednesday 16th May 2012 : 2pm

Topic: Subcontracting funding webinar

Date: Wednesday 30th May 2012 : 11am

Topic: Introduction to FE and Funding for governors

Date: Wednesday 30th May 2012 : 2pm

Topic: Subcontracting funding webinar

Date: Friday 1st June 2012 : 11am

Topic: Summer funding briefing for governors

Date: Thursday 7th June 2012 : 11am

Topic: Summer funding briefing for governors

Date: Saturday 9th June 2012 : 11am

Topic: Introduction to FE and Funding for governors