LONDON'S APPRENTICESHIP CAMPAIGN5 December 2014

Kevin HoctorPrincipal Policy Off icerEconomic and Business Policy

• Pre-2010, London apprenticeship starts <21,000 (& much lower) and less than rest of the country.

• Key “non traditional” sectors e.g finance & business services) with few apprentices and their large firms (1,000+ employees) no apprentices.

• Mayor identified need to drive up employer demand via business engagement and set target of 100,000+ new apprenticeship starts 2010-2012.

OR IGIN S OF TH E CA MPAIGN

• NAS & GLA led a campaign to drive up apprenticeship numbers in London.

• Targeted Mayoral letter campaign with large employers (1,000+ employees), followed by meetings, and guidance through the process.

• Key message - apprenticeships could generate real business benefits (productivity, retention, loyalty etc.)

B I G B U S I N E S S E N G A G E M E N T

B I G B U S I N E S S E N G A G E M E N T

Over 100,000 Apprenticeships created by 2012 and then Mayor’s 250,000 Manifesto target set.

A D D I T I O N A L A C T I V I T Y• Extensive marketing, events, promotion, press,

advertising and work with partners.• 1000 apprenticeships across GLA Group/supply

chain.• 30% London apprentices travel concession.• Support NAW, apprenticeship awards, Skills London.• Pilot of doubling national SME AGE grant incentive

for part of 2013 (£1.5k-3k).

• London’s Local Enterprise Partnership.• Chaired by Mayor of London, with businesses,

Borough Leaders, & TfL. • Strategic view of employment, skills and

regeneration agenda in London.• LEP Jobs and Growth Plan outlines four

priorities/working groups:o Skills and Employmento SMEso Digital, creative, science and technologyo Infrastructure

• Funds projects to support Jobs and Growth e.g. £110m Growing Places Fund.

L O N D O N E N T E R P R I S E PA N E L

• London Economy – high skills requirement (over 50% of London jobs require level 4 qualifications as a minimum <40% across UK)

• Growth post recession driven by professional and administrative/ support industries

• Increase of 800,000 jobs requiring at least an ordinary degree projected in 2011 to 2036 & <5% of jobs requiring no qualification & STEM requirements to grow.

L O N D O N E N T E R P R I S E PA N E L

Annual starts decline (following national trend)?

Numbers in London double pre-2010 levels.

2012 ONWAR DS

S TR ATE GY GOIN G FORWA RDIncreased focus on SMEs, including:• SME focused

‘University of Work’ marketing campaign.

• Doubling of the AGE grant for SMEs to £3,000 in 2015.

• £1.8m Employer Led Apprenticeship Creation Programme.

• Focus on Higher Apprenticeships (LEP seeking

allocation for 2,500 Higher Apprenticeships 14/15 & 15/16)

• Apprenticeship Information Ambassadors

Network – information sessions in schools to promote apprenticeships to young people.

• Careers Service – Working with Prospects to ensure this meets London’s needs.

• 2014-20 European Funds – Extending the careers offer for young people, pre-apprenticeship support, work experience, basic skills training.

S TR ATE GY GOIN G FORWA RD

National Apprenticeship Service

Higher Apprenticeships

Negat LodhiEmployer and Delivery Services ManagerSkills Funding Agency – National Apprenticeship Service

Background

• Skills Funding Agency which is an executive Agency to BIS and responsible for the National Apprenticeship Service

• NAS work with large employers to encourage Apprenticeship recruitment and programme development

• Small Business Team provides services to smaller employers offering Apprenticeship opportunities

• Apprenticeship vacancies service work with Apprenticeship providers to advertise vacancies, free of charge, for young people to apply (last year offering 100,000 vacancies)

• Promotion and communication of Apprenticeships through a range of activities, such as Awards, Apprenticeship Grant for Employers, Campaigns or Policy changes

National Apprenticeship Service

What is an apprenticeship?

• An apprenticeship is about equipping individuals with new skills and learning they need for their job roles

• They are available across more than 170 industries and 1500 job roles from advertising to youth work via environmental engineering and nuclear decommissioning

• Available at three levels:Intermediate ApprenticeshipAdvanced ApprenticeshipHigher Apprenticeship

• Made up of three key componentsTechnical certificateNational vocational qualification Functional Skills

National Apprenticeship Service

Higher Apprenticeships

• A Higher Apprenticeship is a recognised learning framework at:Level 4 (Certificate of Higher Education)Level 5 (Foundation Degree)Level 6 (Bachelor’s Degree)Level 7 (Master’s Degree)

• Higher Apprenticeships are designed to enable a learner in employment develop the technical knowledge and occupational competence to perform a defined job role at a specified level

• Higher Apprenticeships are employer led focused on developing the higher level skills particular sectors need

• A Higher Apprenticeship is a recognised learning framework at:Level 4 (Certificate of Higher Education)Level 5 (Foundation Degree)Level 6 (Bachelor’s Degree)Level 7 (Master’s Degree)

• Higher Apprenticeships are designed to enable a learner in employment develop the technical knowledge and occupational competence to perform a defined job role at a specified level

• Higher Apprenticeships are employer led focused on developing the higher level skills particular sectors need

Higher Apprenticeship Investment fund

• Delivered 30 ambitious, sector led partnerships

• Promises additional 20,000 Higher Apprenticeship starts

• 45 Higher Frameworks developed or in development

• New Frameworks approved on www.AFO.org.ukw.AFO.org.uk

• New Frameworks are being promoted to increase take up by employers and individuals

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Higher Apprenticeship starts nationally

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2009/10 2010/11 2011/12 2012/130

2000

4000

6000

8000

10000

12000

The London picture

2009/10 2010/11 2011/12 2012/130

100

200

300

400

500

600

700

Higher Apprenticeship

Further government investment

• Autumn Statement: Nov 2013 - £40m for 20,000 HA starts by end of July 2015.

• Budget, March 2014 - £20m to support HE in Higher Apprenticeships

• Existing ASB training organisations can make a request through the LEP

• HEI’s workshops held for existing HEIs

• A further workshop planned in partnership with Universities UK about the offer 10.00 to 15.30 Thursday, 29th January 2015 Universities UK, Tavistock Square, London

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Apprenticeship reform –why?

• To meet the needs of the future economy and businesses

• To ensure apprenticeships are more rigorous and responsive to the needs of employers following Richard Review

• So apprenticeships are viewed with the same esteem as University

• To build on existing strengths

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What are the main aims of the reform?

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High qualityHigher expectations of

English and maths, more assessment at end of apprenticeship and introducing grading

Employer drivenEnsuring rigorous training that will

support economic growth

SimpleComplex frameworks to

be replaced by standards of around two pages

written by employers

What are the changes?

• Standards designed by employers will replace existing frameworks

• New standards will be clear and concise, written by employers and no more than two pages long

• All apprenticeships will have a synoptic end-point assessment

• Apprenticeships will be graded for the first time

• All apprenticeships will last a minimum of 12 months

Apprenticeship funding reform

• Employers will select a lead provider to co-ordinate their training and assessment delivery

• Employers will agree a price for their delivery with their chosen providers

• Providers can include many of the services they offer as part of their price

• Government will pay £2 for every £1 of this price invested by an employer up to the cap for the standard.

• Employer Incentive Payments are paid:- for 16-18 year old - 50% at 3 months and 50% at 12 months- For small businesses -100% at 3 months- For completion - at the end of the Apprenticeship

• Employers have complete flexibility on what they use any incentive payments for

Questions