Asked by: Lord Aberdare (Crossbench - Excepted Hereditary)
Question to the Department for Education:
To ask Her Majesty's Government whether they plan to review the current cap of 10 per cent on the proportion of apprenticeship levy funds that can be transferred by levy-paying employers to other employers; and if so, when the results of such a review will be published.
Answered by Lord Agnew of Oulton
This planned change has come about through listening to employers concerns about increased flexibility in this area. We want to introduce transfers in a gradual and well-managed way, allowing levy payers to benefit from added flexibility whilst protecting the integrity and affordability of the programme and the interests of non-levied employers. We will carefully monitor the implementation of transfers after April 2018, including how the 10% limit is working.
Asked by: Lord Aberdare (Crossbench - Excepted Hereditary)
Question to the Department for Education:
To ask Her Majesty's Government how they have determined the level of funding available to existing training providers from non-levy apprenticeship funds; whether there is a cap on such funding for individual training providers; if so, how that cap is determined; whether (1) the level of funding available, and (2) the cap, have been changed from previously announced plans; and if so, how.
Answered by Lord Agnew of Oulton
Providers of services to employers who do not pay the apprenticeship levy are funded through existing contract extensions, covering the period from May to December 2017.
The overall level of funding for new apprenticeship starts made available during this period was based on forecasts of demand. The Education and Skills Funding Agency (ESFA) determined individual providers’ allocation on their historical delivery to all employers and an estimate of the proportion of that delivery which related to non-levy paying employers.
The ESFA set a minimum threshold allocation value of £3,000. There is no cap for individual training providers. However, public contracting regulations set a limit on the value of an individual providers’ contract extension relative to the value of their original contract.
In July and October, there were opportunities for providers to bid for additional funding above their non-levy allocations to take account of growth in demand.
Asked by: Lord Aberdare (Crossbench - Excepted Hereditary)
Question to the Department for Education:
To ask Her Majesty’s Government whether an organisation has been approved to carry out the end-point assessment for apprenticeship standards; and if not, which organisation will be approved.
Answered by Lord Nash
All end-point assessments must be carried out by an independent assessment organisation on the Skills Funding Agency’s Register of Apprentice Assessment Organisations to ensure they are high-quality. Each assessment organisation is approved to deliver the end-point assessment for a specific apprenticeship standard, rather than for all apprenticeship standards.
The assessment market has been adjusting rapidly for most new apprenticeship standards. 61% of all apprentice starts on standards have an end-point assessment organisation available to them, whether they are close to needing end-point assessment or not. This rises to 94% coverage of all apprentice starts, including those who are expected to approach their end-point assessment within the next 12 months, for which an organisation is about to be put on the register.
There are a small number of standards that already have starts, but for which an assessment organisation has not yet been confirmed. We are examining those lower-volume apprenticeships to resolve this and ensure there is always end-point assessment provision by the time apprentices complete their apprenticeship. This includes working with apprenticeship Trailblazer groups and potential assessment organisations to fill gaps in provision and put contingency plans in place.
Asked by: Lord Aberdare (Crossbench - Excepted Hereditary)
Question to the Department for Education:
To ask Her Majesty’s Government what estimate they have made of the amount, if any, which (1) registered charities, and (2) private sector employers, paying the Apprenticeship Levy will lose as a result of funds in their digital account expiring because the employer was unable to spend them.
Answered by Lord Nash
We have made a commitment to allow employers to transfer digital funds to other employers in their supply chains, sectors or communities in 2018. We have suggested that this should initially be set at 10 per cent.
We have created a new employer working group, including the Charities Finance Group, to help us further develop proposals for a transfers system that works for employers. Alongside detailed research into the needs of employers of all sizes, this group will help us design how transfers should work, the level of funds that could be transferred and what controls are needed to protect the integrity of the apprenticeship system.
Unlike other taxes, levied employers can get back their contributions if they are committed to training sufficient numbers of high-quality apprentices. They will also receive a top up of 10 per cent on their digital funds.
There has been no specific assessment of the amount registered charities and private sector employers paying the Apprenticeship Levy will lose as a result of funds in their digital account expiring because the employer was unable to spend them. Last month we announced an extension to the period employers will have to spend their digital funds, from 18 to 24 months.
We have published estimates of levy payments, and apprenticeship spending, by sector in the attached document.
Asked by: Lord Aberdare (Crossbench - Excepted Hereditary)
Question to the Department for Education:
To ask Her Majesty’s Government what steps they have taken to ensure that registered charities paying the Apprenticeship Levy will receive benefits from the scheme at least equivalent to the cost of the Levy.
Answered by Lord Nash
We have made a commitment to allow employers to transfer digital funds to other employers in their supply chains, sectors or communities in 2018. We have suggested that this should initially be set at 10 per cent.
We have created a new employer working group, including the Charities Finance Group, to help us further develop proposals for a transfers system that works for employers. Alongside detailed research into the needs of employers of all sizes, this group will help us design how transfers should work, the level of funds that could be transferred and what controls are needed to protect the integrity of the apprenticeship system.
Unlike other taxes, levied employers can get back their contributions if they are committed to training sufficient numbers of high-quality apprentices. They will also receive a top up of 10 per cent on their digital funds.
There has been no specific assessment of the amount registered charities and private sector employers paying the Apprenticeship Levy will lose as a result of funds in their digital account expiring because the employer was unable to spend them. Last month we announced an extension to the period employers will have to spend their digital funds, from 18 to 24 months.
We have published estimates of levy payments, and apprenticeship spending, by sector in the attached document.
Asked by: Lord Aberdare (Crossbench - Excepted Hereditary)
Question to the Department for Education:
To ask Her Majesty’s Government what assessment they have made of the impact on the charity sector of the proposal to limit the proportion of the annual value of a qualifying employer's Apprenticeship Levy funding pot that can be transferred to another employer to 10 per cent.
Answered by Lord Nash
We have made a commitment to allow employers to transfer digital funds to other employers in their supply chains, sectors or communities in 2018. We have suggested that this should initially be set at 10 per cent.
We have created a new employer working group, including the Charities Finance Group, to help us further develop proposals for a transfers system that works for employers. Alongside detailed research into the needs of employers of all sizes, this group will help us design how transfers should work, the level of funds that could be transferred and what controls are needed to protect the integrity of the apprenticeship system.
Unlike other taxes, levied employers can get back their contributions if they are committed to training sufficient numbers of high-quality apprentices. They will also receive a top up of 10 per cent on their digital funds.
There has been no specific assessment of the amount registered charities and private sector employers paying the Apprenticeship Levy will lose as a result of funds in their digital account expiring because the employer was unable to spend them. Last month we announced an extension to the period employers will have to spend their digital funds, from 18 to 24 months.
We have published estimates of levy payments, and apprenticeship spending, by sector in the attached document.
Asked by: Lord Aberdare (Crossbench - Excepted Hereditary)
Question to the Department for Education:
To ask Her Majesty’s Government what support they have given or will give to enable charities to engage with the Trailblazer process to develop charity-specific apprenticeship standards, including in fields such as financial management and governance.
Answered by Lord Nash
The Trailblazer process is open to any employer group that wishes to come forward to develop a new apprenticeship standard, provided it can meet the Department’s published criteria. Once a new standard is approved for development, a dedicated Relationship Manager is provided to support employers throughout the Trailblazer process.
We welcome any proposals for new standards from the charity sector, where they feel a specific occupation exists that is not already covered by a standard and would meet our criteria. We have recently received a proposal from a group of employers to develop a standard in the occupation of Voluntary and Community Sector Worker. We are currently reviewing the proposal and a decision will be made shortly on whether it meets our criteria to be approved for development.
Asked by: Lord Aberdare (Crossbench - Excepted Hereditary)
Question to the Department for Education:
To ask Her Majesty’s Government what efforts they have made to ensure appropriate representation of the charity sector on the board of the Institute for Apprenticeships.
Answered by Lord Nash
The Chair and Board members are being appointed in accordance with the public appointments process. It is expected that the members of the Institute’s board will be comprised primarily of persons with a background as employers and business leaders. This is to ensure that employers continue to drive apprenticeship quality. Applications to join the Institute’s board, which have now closed, were open to representatives of all organisations, including those from the charitable sector.
Asked by: Lord Aberdare (Crossbench - Excepted Hereditary)
Question to the Department for Education:
To ask Her Majesty’s Government what assessment they have made of the likely increase or decrease in the numbers of small and medium-sized enterprises taking on apprentices following the introduction of the apprenticeship levy.
Answered by Lord Nash
We are committed to supporting small and medium-sized employers to take on apprentices. We know that nearly 95% of current employers with apprentices are small or medium-sized and that around 60% of all apprentices are employed by small and medium-sized employers https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/555052/Size_and_Industry_of_Businesses_with_Apprentices_Final_Pdf.pdf).
Under new funding policy from May 2017, smaller employers that don't pay the apprenticeship levy will pay a co-investment rate of only 10% towards the costs of apprenticeship training. We are waiving this co-investment requirement for employers with fewer than 50 employees, when they recruit a 16-18 year old or a 19-24 year old formerly in care or with an Education and Health Care plan
As part of the development of funding policy we have considered the potential impact that requiring co-investment will have on starts at small and medium-sized employers. This may cause a small initial fall in demand until employers adapt to the new system. By making sure smaller employers understand the benefits of apprenticeships; that the process of accessing them is simple and easy; and additional financial support is available for younger apprentices or those with additional needs, we believe that small and medium sized employers can and will continue to play a critical role in growing apprenticeship opportunities.
Asked by: Lord Aberdare (Crossbench - Excepted Hereditary)
Question to the Department for Education:
To ask Her Majesty’s Government what action they are taking to increase awareness of the available post-16 apprenticeship options among parents, teachers and pupils.
Answered by Lord Nash
The Government is undertaking a range of activities to increase awareness of the available post-16 apprenticeship options among parents, teachers and pupils.
The four-year ‘Get In Go Far’ campaign, which launched in May 2016, aims to influence public perceptions, awareness and attitudes towards apprenticeships as a route into a successful career. It also aims to help young people aged 14-24 get the skills they need and encourage more young people to apply and more employers to offer apprenticeship opportunities.
Schools have a statutory duty to provide independent careers guidance for 12-18 year olds, including information about apprenticeships. The National Careers Service provides independent, professional advice on careers, skills and the labour market, including information on the benefits of apprenticeships and how to apply for vacancies. The Careers and Enterprise Company has a lead role in transforming the provision of careers, enterprise and employer engagement experiences for young people to inspire them and prepare them for the world of work. Apprenticeships are an essential part of this inspiration and preparation, which the Company are promoting through its nationwide Enterprise Adviser Network, which now has almost 1200 Advisers in place, and other programmes including its £5m 'Careers and Enterprise Investment Fund’.
The Skills Funding Agency (SFA) engages with schools to promote apprenticeships, including through the ‘Apprenticeship Support and Knowledge for Schools project’; ‘Apprenticeship Champions’ in schools across England, and the ‘Amazing Apprenticeships’ schools’ resources portal. The SFA Young Apprenticeship Ambassador Networks and Employer Ambassadors raise awareness of apprenticeships, partnering with UCAS to test the early advertising of higher and degree vacancies to Year 13 students applying for university.