The Future of Apprenticeships in England

1. The Future of Apprenticeships in England Natasha Chopra Apprenticeship Unit 4 April 2014

2. What is an Apprenticeship? • Apprenticeships are real jobs with training • An apprenticeship is a way for young people to earn while they learn in a real job, gaining a real qualification and a real future • Apprenticeships are available at Intermediate, Advanced and Higher level, covering more than 170 industries and 1500 job roles in sectors from Nursing to Graphic Design, Horticulture, Electric Vehicle Engineering, Banking and Law

3. Apprenticeships are already highly successful… • Apprenticeships are central to Government’s drive to give people the skills employers need to grow and compete • Government’s planned investment in 2013-14 is over £1.5bn • Over 850,000 Apprenticeship participants in 2012/13 • Over 220,000 workplaces employ an apprentice

4. …providing strong returns for all parties Learners:Advanced Level apprentices earn between £77,000 and £117,000 more over their lifetime than those with lower level qualifications; this rises to £150,000 for those doing Higher Apprenticeships Employers: 70% report higher productivity and improved quality of product/service Economy:National Audit Office Report estimates that adult Apprenticeships deliver £18 of economic benefits for each £1 of Government investment

5. Higher Apprenticeships… • 13,000 Higher Apprenticeship publicly funded participants in 2012/13 - double the volume in 2011/12 • Since April 2013 can have degree and master’s level apprenticeships. Degree-level Apprenticeships available in Broadcast Technology and Airline Pilot Practice • £25m Higher Apprenticeships Fund for around 30 projects, expected to deliver over 22,000 new Higher Apprenticeships by 2015 in areas such as renewable energy, advanced engineering, insurance and space • £40m announced in 2013 Autumn Statement to deliver additional 20,000 Higher Apprenticeship starts over the academic years 2013/14 and 2014/15 • £20m announced in 2014 Budget announced in 2014-15 and 2015-16 for support for employer investment in Apprenticeships up to postgraduate level

6. Higher Apprenticeship funding… * doesn’t reflect Budget announcement • Current funding is complicated:

7. Higher Apprenticeships funding But … The Budget announcement of support for employer investment in Apprenticeships at degree and postgraduate level will mean a move from HE fee loans to direct funding to employers or HEIs We are working on what this means in practice so watch this space

8. Why are we reforming Apprenticeships? To meet the needs of the future economy for years to come To ensure Apprenticeships are more rigorous and responsive to the needs of employers following Richard Review Apprenticeships viewed with the same esteem as University. We want it to become the norm for young people to go into an Apprenticeship or go to University – or do both in the case of some Higher Apprenticeships The changes will build on existing strengths

9. What are the main aims of the reforms? High quality Higher expectations of English and Maths, more assessment at end of Apprenticeship and introducing grading. Simple Complex frameworks to be replaced by standards of around one page written by employers. Employer driven Ensuring rigorous training that will support economic growth

10. What changes are we making to Apprenticeships? Standards designed by employers will replace existing Frameworks New standards will be clear and concise, written by employersand no more than a few pages long All Apprenticeships will have an end-point assessment Apprenticeships will be graded for the first time All Apprenticeships will last a minimum of 12 months

11. What are we doing on English and maths? English and maths are crucial skills for successful careers All new apprentices will have to study and take the test for Level 2 English and maths (if not already achieved). If they are doing Level 3 and above they will need to achieve Level 2 Apprentices can meet the English and maths requirements through Functional Skills or GCSE qualifications It is our ambition that once the reformed GCSEs are implemented, Apprenticeships will use GCSEs rather than Functional Skills to meet the English and maths requirements

12. What are we doing on assessment? Employer concerns that apprentices are able to pass Apprenticeships but they do not judge them to be competent All new apprenticeships will have an end-point assessment - apprentice will be required to demonstrate competency across the whole standard End-point assessment will be synoptic – assessing skills and knowledge in an integrated way – and will be graded Trailblazers will set out their high level approach to the end-point assessment –what, how and who should assess Successful completion of an apprenticeship will require passing pre-requisite qualifications, as stated on the standard, and passing the end-point assessment

13. What changes are we making to the funding system? Giving employers the buying power by routing funding through them via a model using HMRC systems Ensuring greater employer buy-in by introducing a compulsory employer cash contribution… ….but with an additional support for the smallest employers and in relation to employment of young (16 to 17 year old) apprentices Technical consultation underway on the funding principles and payment mechanism (closes 1 May) - would welcome your views

14. How will we deliver the reforms? Trailblazers are leading the way in implementing the reforms Trailblazers are led by large and small employers. They are leading the way in developing new Apprenticeship standards and assessment approaches for key occupations in their sectors Over 400 employers are involved in the Trailblazers so far. They are building on what already exists to ensure that professionalism and quality in training are the primary focus

15. What are your plans for Trailblazers? Aerospace Automotive Digital Industries Electrotechnical Energy & Utilities Financial Services Food and Drink Manufacturing Life &Industrial Sciences Our first Trailblazers are in the following sectors: More than 80 employers are involved in the first phase of Trailblazer projects They have successfully produced the first Apprenticeship standards and can be viewed here: www.apprenticeships.org.uk/standards

16. Higher Apprenticeship Standards • Three of the new standards are Higher Apprenticeships, two at Level 4 and one at Level 6: Level 4 • Software Developer http://www.apprenticeships.org.uk/~/media/Apprenticeship-standards/Digital-Industries-SoftwareDeveloper.ashx • Network Engineer http://www.apprenticeships.org.uk/~/media/Apprenticeship-standards/Digital-Industries-NetworkEngineer.ashx

17. Higher Apprenticeship Standards? Level 6 • Relationship Manager (Banking) http://www.apprenticeships.org.uk/~/media/Apprenticeship-standards/FinancialServicesRelationshipManagerBanking.ashx

18. What are your plans for Trailblazers? Accountancy Actuary Adult Social Care Airworthiness Automotive Retail Aviation Butchery Cinema Civil Service Construction Conveyancing Craft Dental Health Early Years Emerging Technologies Hair and Beauty Horticulture Hospitality and Tourism Housing Insurance Land-based Engineering Law Maritime Media Nursing Property Services Rail Design Retail Travel • If you are interested in getting involved, you can email: apprenticeship.trailblazers@bis.gsi.gov.uk As momentum grows, we have announced a second phase of Trailblazers in 29 sectors.

19. What is the timetable for reform? The Trailblazers will pave the way for full implementation of the reforms during 2015/16 and 2016/17 The aim is that all new Apprenticeship starts from 2017/18 will be on the new programme As the new standards are developed and agreed, we will cease funding Apprenticeships under former frameworks

20. Where can I find out more? Funding consultation – deadline is Thursday 1 May. www.gov.uk/government/consultations/apprenticeship-funding-reform-in-england-payment-mechanisms-and-funding-principles Trailblazers Guidance www.gov.uk/government/publications/future-of-apprenticeships-in-england-guidance-for-trailblazers

21. Delivering Apprenticeships Over 400 Over 1.6m Over 700 Apprenticeship starts this Parliament. We are committed to delivering at least 2 million. Employers already involved in redesigning Apprenticeships Different job roles where you can already do an Apprenticeship. Return for every pound that Government invests in Apprenticeships By 2017/18 All Apprenticeship starts will be on new employer-led standards £117k Extra income earned by someone who completes a Level 3 Apprenticeship Over 220,000 Workplaces already offering Apprenticeships £1.8bn At least 12 months Duration for new Apprenticeships Added to economy by apprentices £1 £28 Over 20,000 Apprenticeships pledged during National Apprenticeships Week 2014 49,000 Apprenticeships in smaller businesses supported by the Grant for Employers New Higher Apprenticeships In occupations like space engineer and pilot 8 out of 11 Industrial Strategy sectors already covered by our Trailblazers 84% Level of employer satisfaction with Apprenticeships £1.5 bn Amount we invested in Apprenticeships last year

22. Contact Details:Natasha.Chopra@bis.gsi.gov.uk