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SME Offer

SME Offer. Background. John Denham announcement 21 Oct set out how SMEs would be a priority for £350m of TtG funds over the next 2 years One of a number of Government announcements to handle economic downturn DWP announced additional funds to help people facing redundancy and for retraining.

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SME Offer

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  1. SME Offer

  2. Background • John Denham announcement 21 Oct set out how SMEs would be a priority for £350m of TtG funds over the next 2 years • One of a number of Government announcements to handle economic downturn • DWP announced additional funds to help people facing redundancy and for retraining

  3. Train to Gain – what is it now? • Brokerage support • Core offer remains the same: • all employers • all sectors • all sizes • Contribution to wage costs for under 50s (?)

  4. Core Offer (1) Fully funded • First Level 2 • Repeat Level 2 from SSC agreed list ( up to 30% of total) • Skills for Life qualifications at all levels • First Level 3 for 19-24 year olds • First Level 3 for individuals without a first Level 2 • First Level 4 for 19-24 year olds without a first Level 3

  5. Core Offer (2) Shared investment for • First Level 3 • Repeat Level 3 from SSC agreed list ( up to 20% of total) • English for Speakers of Other Languages (ESOL) • Apprenticeships • Leadership and Management Full cost bespoke training

  6. SME Offer • Core offer is now enhanced through the offer to SMEs with a range of further flexibilities: • L2 – all fully funded, including repeats on SSC agreed list • L3 – for 19-24s, all fully funded; 25+ co-funded as with core offer including repeats on SSC agreed list • Units/Thin qualifications in business critical areas • Leadership and management extended to 5+ employees

  7. SME definition • For the purposes of the flexibilities, the SME definition will only relate to the number of FTE employees. Financial information will not be used. • Full-time workers within the enterprise, or on its behalf, for the entire year count as one annual work unit. • Part time staff and staff not working for the whole year count as fractions of a unit. • One Full-time worker is considered to be a person working 35 hours or more per week

  8. SME Package Units/thin qualifications at Level 2, 3 and 4 in ten business critical areas: • Business Improvement including business systems and processes • Customer Service including communications • New Product Design • IT Pro specialist function where IT is at the heart of the business & IT User generic use across all businesses • Management including risk management, team working, communication • Marketing and Sales • Risk Management • SME Finance including risk management, finance and credit, cashflow, profit management A total of 138 units/thin qualifications in total available from January 2009 • List will expand in response to identified need

  9. Funding Arrangements • Each unit/Thin qualification given a funding band • Based on size/Guided Learning Hours • Six funding bands • Each funding band has a financial value • Each individual allowed a package of support equal to a maximum number of 15 funding bands • Funding follows current Train to Gain rules including expected employer contribution at Level 3

  10. Clustering • Support for groups of SMEs working together • Business parks • Supply chains • RDA clusters • Two phases (Existing groups/ new groups) • Short-term capacity building funding (?) • Proposed Targets • Phase 1 - 5 clusters/region x 30 SMEs/cluster - 5 supply chains • Phase 2 – 250 clusters nationally

  11. Timetable

  12. Response to Redundancy • Ministerial Submission – 3/11/08 • Regional action in a national context • Ministerial leadership – DWP/DIUS/DBERR • Communication – Regional Ministers and MPs • ESF Windfall and leverage of mainstream • Labour market intelligence & communications • Timeline • Closely linked to Train to Gain SME Package • Targeted at newly redundant, those under threat and those further from the workforce

  13. In every region • Overall Joint Plan by mid December – 3 key target groups • ESF as a ‘springboard’ • £79m ESF revaluation & match from Train to Gain • Mass redundancy plan • Funding, roles and responsibilities, ways of working, protocols driven by Regional Directors JCP/LSC and RDA/ • Newly Redundant • DWP Offer – Modular eg CV writing, confidence building etc • JCP Screening – Nextsteps Skills Health Check • LSC provision – 2-8 weeks – LEP type activity, travel, workplace entry support, business start up?, No ‘First’ or ‘Full’ restrictions for ESF, flexible to fit around interviews, benefit regulations and ongoing once in work • IAG via Nextsteps, diagnostics, action plan, referral

  14. In every region • Long Term Unemployed • DWP Offer – 6 months+ or disadvantaged eg life challenges, using resources etc • LSC Offer - mainstream? Original ESF? • More creative e.g. • Skills Hubs – including public service hub for newly redundant • Pre-redundancy wage support – 4 weeks IAG and training • Linked to SME package – free, intensive, unit based training in return for commitment to retain to the end of the training • Free TtG training for every JCP client entering work (linked to SME package) ……and subject to availability • Apprenticeship clearing houses

  15. Timing

  16. Comms and consultation • Leadership and Management extension – already available • Rest of package available from Jan 09 • £30m was announced at the AoC conference in November • Consultation with key partners on implementation issues, especially on units • DIUS keen to emphasise SME offer in the context of the whole – i.e. core Train to Gain offer, NES, NAS, redundancy package, strategic skills • And that all offers are easy to access and non-bureaucratic

  17. A non contractual 3 year agreement (with volumes) LSC, DIUS, SSC To drive up employer engagement though Train to Gain Through specific delivery arrangements or new eligibility for support for skills Needed to deliver a step change in employer demand over and above current levels of engagement Formally reviewed quarterly and annually Embedded within Train to Gain service incl skills brokerage but NOT ‘new’ money Train to Gain branded Focus on increasing employer engagement with aspiration volumes for learners LSC lead region develops implementation model before offer is ‘Live’ Skills broker briefing delivered and guidance developed Compacts : Key Principles

  18. Repeat qualifications at L2 and L3 Limited to qualifications in SSC Sector Qualification Strategy or compact Different rules 08/09 and 09/10 All Train to Gain eligibility and employer contribution rules apply Indirect employer Engagement Resource Marketing materials and events (LSC led) Support for online diagnostic and skills matching tools Training for Lead Brokers Compacts : Key Flexibilities Direct Employer engagement resources • Delivering Skills Pledge and/or sector diagnostic • Must work with and as part of skills brokerage service • Will have direct relationships with ‘Lead Brokers’ • Must target employers in agreed plan with regions through shared data • Must refer all employers engaged through skills brokers • No direct referral to providers • Must be accredited to national standard Units and HE • To be developed in year 1

  19. In Implementation: Semta (live October) Proskills (live November) Construction Justice Hospitality Cogent For announcement in October: Skillset- Creative media ECITB- Engineering construction Skillfast-Fashion and textiles Asset-Property and facilities management In proposal development: E and U CCS Financial Services E-skills Compacts : Future Plans

  20. Issues • Describing and understanding the offer • Impact on targets and brokerage expectations • Capturing soft intelligence • Identifying provision • Identifying clusters and groups

  21. Questions • What are key challenges and issues? • National • Regional • What help and support do you need from LSC to deliver the package?

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