Apprenticeship Levy Transfers How are councils using transfers

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Apprenticeship Levy Transfers: How are councils using transfers? Jamie Saddler, Apprenticeship Advisor, LGA jamie.

Apprenticeship Levy Transfers: How are councils using transfers? Jamie Saddler, Apprenticeship Advisor, LGA jamie. saddler@local. gov. uk www. local. gov. uk

What has the sector told us on transfers? • Councils want the flexibility to

What has the sector told us on transfers? • Councils want the flexibility to transfer – 93% support the government’s decision to increase the transfer allowance from 10% to 25% • But councils are more cautious about putting levy transfers into practice: – 56% of councils had carried out a transfer or were actively considering whether to do so – 13% of councils expected to use their full 25% allowance in 19/20 • Of those councils that had or were considering using levy transfers the most popular sectors to transfer to were: – – – Social care (35%) Charities/Third Sector/Voluntary Sector (14%) Council Supply Chain (13%) Local SMEs (13%) Other areas mentioned at least once include non-maintained schools, other health organisations (e. g. GPs, CCGs, Primary Care), construction, early years and District Councils.

Key Questions to answer when considering a transfer • How will we provide capacity

Key Questions to answer when considering a transfer • How will we provide capacity and resources to manage a levy transfer programme? • How much do we have available to transfer? • Will we be using the transfer function as a one off or as a sustained part of our apprenticeship programme? • How will we decide who we transfer funds to? • What selection criteria will we put in place? • Will certain sectors be prioritised? • Will we prioritise apprentices from certain age groups or backgrounds?

Deciding who to support 1. Work with who you know Wolverhampton – Decided to

Deciding who to support 1. Work with who you know Wolverhampton – Decided to consider organisations they had a close working relationship with for transfers. – Selected Wolverhampton Homes, an ALMO looking after 23, 000 homes for the council – Will support the development of their staff and have a direct benefit on the residents living and working within their city – Initially focused on L 3 Team Leader/Supervisor but regularly communicate other apprenticeship opportunities to the ALMO to explore other possibilities

Deciding who to support 2. Tackle a key skills shortage area LB Bexley –

Deciding who to support 2. Tackle a key skills shortage area LB Bexley – Took a corporate decision to transfer funds to their care sector – Most of their care homes are SMEs needing skilled employees and don’t have funds or levy to grow and develop their staff. – Raised awareness of opportunities with care sector and employers were asked to register interest via a simple form Dudley Council – Currently developing their transfer strategy – Have identified skills shortages in engineering and manufacturing in borough and are seeking internal support to focus on these areas

Deciding who to support 3. Supporting non-levy paying schools • Several councils have made

Deciding who to support 3. Supporting non-levy paying schools • Several councils have made it a priority of their Levy Transfer policy to support schools within their local authority that do not pay into the council’s own levy pot • This includes Brighton and Hove, Cornwall, Lancashire, Kent and West Sussex. • A benefit of this approach is that it can help to stimulate interest in nonmaintained schools for apprenticeships, potentially expanding your opportunities to develop cohorts with your maintained schools • This approach may not work for some LAs who have pooled PAYE schemes that include some non-maintained schools, which will prevent transfers. There is currently no solution for this problem, which has bene raised repeatedly with government

Deciding who to support 4. Supporting small businesses Warwickshire • Committed £ 300 k

Deciding who to support 4. Supporting small businesses Warwickshire • Committed £ 300 k of levy funds for transfers to work with small businesses • Prioritising key sectors for the county including Health and Social Care, Travel and Tourism, Rail, Childcare, Advanced Manufacturing and Hospitality. • Programme is aligned to wider offer of support for small business from the council and its partners, such as staff training and business growth funding • Businesses are also offered opportunity to recruit a supported young person with an apprenticeship for which more support is available from the council • A Business Skills Advisor works with the SMEs to undertake a free review of training and recruitment needs and identify if an apprenticeship is the best route for the company

Case Studies: Kent County Council’s Levy Transfer Process www. local. gov. uk

Case Studies: Kent County Council’s Levy Transfer Process www. local. gov. uk

Case Study: Kent County Council’s Levy Transfer Process Employers who can receive transferred levy

Case Study: Kent County Council’s Levy Transfer Process Employers who can receive transferred levy funds • Both levy and non-levy payers can receive funds for new or existing employees to undertake an apprenticeship training standard. Employers can be: • Kent employers in the council supply chain • Kent employers in voluntary, community and social enterprise sectors • Kent schools that do not pay into the council’s apprenticeship levy.

Case Study: Kent County Council’s Levy Transfer Process (cont. ) Employers must: • be

Case Study: Kent County Council’s Levy Transfer Process (cont. ) Employers must: • be registered on the apprenticeship service (council can support you with this) • have an agreement with the Education and Skills Funding Agency (ESFA). This will be set up when you register on the apprenticeship service • only use the funds for training and assessment for apprenticeship standards • only use the funds for training and assessment of either new apprentices or existing employees undertaking apprenticeships. • Kent CC are not able to transfer funds for apprenticeship training that has already started.

Case Study: Kent County Council’s Levy Transfer Process (cont. ) Criteria for bids •

Case Study: Kent County Council’s Levy Transfer Process (cont. ) Criteria for bids • So there is maximum benefit from the levy funds, employers need to demonstrate how the funding for the apprenticeship programme will contribute to Kent County Council’s strategic outcomes. This is the council’s vision for improving lives by ensuring every pound spent in Kent is delivering better outcomes for Kent’s residents, communities and businesses: • Children and young people in Kent get the best start in life • Kent communities feel the benefits of economic growth by being in work, health and enjoying a good quality of life • Older and vulnerable residents are safe and supported with choices to live independently

Case Study: Kent County Council’s Levy Transfer Process (cont. ) Bids will be prioritised

Case Study: Kent County Council’s Levy Transfer Process (cont. ) Bids will be prioritised using the following criteria: • Priority 1 - creating apprenticeship opportunities for disadvantaged groups living in Kent (for example: care leavers, NEETs, those with disabilities, long term unemployed) • Priority 2 - wider social care provision • Priority 3 - addressing skill shortages in Kent • Priority 4 - creating higher level apprenticeships.

Case Study: Kent County Council’s Levy Transfer Process (cont. ) To apply for funds

Case Study: Kent County Council’s Levy Transfer Process (cont. ) To apply for funds • Kent CC and the receiving employer will need to agree: – the amount of funds to be transferred – the number of apprentices that can be supported – which apprenticeship programme the apprentice will be enrolling onto – the duration of the apprenticeship programme. • All employers interested in receiving a transfer must fill in the council’s online expression of interest form. • In the event of successful applications exceeding funds available, a selection assessment exercise will be run to confirm successful bids. • Receiving employers must also commit to notifying Kent CC on the outcome of the apprenticeship.

Links to more LA Transfer Criteria • You can view other council’s criteria at

Links to more LA Transfer Criteria • You can view other council’s criteria at the following links Brighton and Hove: https: //www. brighton-hove. gov. uk/content/jobs/apprenticeships/apply-levy-transfer -funding Cornwall: https: //www. cornwall. gov. uk/jobs-and-careers/apprenticeships/apply-forapprenticeship-levy-funds/ Kent: https: //www. kent. gov. uk/business-loans-and-funding/hire-an-apprentice West Sussex: https: //haveyoursay. westsussex. gov. uk/workforce-organisationaldevelopment/apprenticeship-levy-funding-application/

Case Studies: Collaborative Working on Levy Transfer ‘Matchmaking’ Services www. local. gov. uk

Case Studies: Collaborative Working on Levy Transfer ‘Matchmaking’ Services www. local. gov. uk

WMCA – Transferring Funds Model • Collaborative project targeting businesses employing apprentices within: –

WMCA – Transferring Funds Model • Collaborative project targeting businesses employing apprentices within: – Seven constituent councils in the West Midlands Combined Authority – The Black Country, Greater Birmingham and Solihull and Coventry and Warwickshire LEPs – Telford & Wrekin and Shropshire Councils that fall outside of the CA are also involved • Covers a population over 4. 2 million

WMCA – Transferring Funds Model • The Levy Transfer programme is designed to help

WMCA – Transferring Funds Model • The Levy Transfer programme is designed to help deliver on the Metro Mayor’s Apprenticeship Commitment, which includes: – £ 40 m Apprenticeship commitment for Levy Transfer investment within the West Midlands – Proposals to increase SME Apprenticeship demand – Employer Engagement Strategy between Levy employers, providers and SME’s – Double the number of Apprenticeships by 2030 – Support young people to access high quality Apprenticeships

WMCA – Transferring Funds Model Levy Transfer funding criteria: • Level 3 and above

WMCA – Transferring Funds Model Levy Transfer funding criteria: • Level 3 and above standards covering: – – – – Science Technology Engineering Manufacturing Accountancy Digital Construction • All 16 -18 year olds for all available standards and levels (Employers with 50+ employee head count only)*

WMCA – Transferring Funds Model West Midlands Combined Authority (WMCA) in conjunction with the

WMCA – Transferring Funds Model West Midlands Combined Authority (WMCA) in conjunction with the Education & Skills Funding Agency (ESFA) and regional providers are supporting Levy funding employers to manage the process of finding SMEs and matching them to providers; significantly reducing the administrative impact to the business.

GMCA Levy Matchmaking Service • The Greater Manchester Combined Authority is working with large

GMCA Levy Matchmaking Service • The Greater Manchester Combined Authority is working with large employers within its boundaries (including LAs and the NHS) to develop a Levy ‘Matchmaking’ Service to promote levy transfers • After the transfer limit was increased to 25%, GMCA believed there was a need to create a simple process for both transferring and receiving employers to ensure that maximum levy investment was retained in Greater Manchester. • The Growth Company was commissioned to develop and deliver a digital platform that connects levy payers with SMEs to facilitate the transfer of unspent levy funding, whilst also negating the need for SMEs to pay the 5% co-investment costs.

GMCA Levy Matchmaking Service What does the service do? • The online service allows

GMCA Levy Matchmaking Service What does the service do? • The online service allows companies looking to donate unspent apprenticeship levy funds (maximum of 25%) to view details of opportunities created by smaller organisations looking for funding. • The platform allows organisations to specify the objectives from each organisation which then matches both parties by their specified criteria. • Once matched, an inbuilt messaging service allows both organisations to arrange the transfer of the levy funding.

GMCA Levy Matchmaking Service What are the benefits to large employers? The service will

GMCA Levy Matchmaking Service What are the benefits to large employers? The service will allow large employers to utilise their levy to support smaller businesses, whether that be developing their supply chain, forming strategic partnerships or demonstrating corporate social responsibility. Large employers will have exposure to numerous opportunities that they wouldn’t have known existed without the service. What are the benefits to SMEs? By connecting with levy paying organisations SMEs could benefit from fully funded apprenticeship training without the need for co investment (funding criteria apply). SMEs will be able to showcase their opportunity to larger national audience, in a straight forward simple way.

GMCA Levy Matchmaking Service • Interested employers looking to transfer funds can register their

GMCA Levy Matchmaking Service • Interested employers looking to transfer funds can register their interest online at: https: //levymatchfinder. co. uk/ • Employers can set up their matching preferences and begin to see the opportunities they can invest in. • Employers looking to receive funds register on the site and then create the opportunity that showcases why transferring employers should choose them.