Impact of Apprenticeship Levy on Commercial Training Providers - Part One

Last updated: 09 July 2021 16:09
Created: 11 May 2017 11:38
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Has the apprenticeship levy forced you to consider delivering apprenticeships?

For the past 8 months or so I have been writing about the apprenticeship levy and reform, concentrating on what ESFA funded training providers need to know.

Yes, there are huge changes ahead for these providers but it’s time I consider how commercial training providers will be affected too.

Questions to be asked:

1. Has the apprenticeship levy forced you to consider delivering apprenticeships?
2.   What impact will it have on your business if you are accepted on the Register of Apprenticeship Training
       Providers (RoATP)?
3.   Will your commercial clients have to go elsewhere for training provision to use their levy pot if you’re not on
       RoATP?
4.    Do you know what to do?

I’m taking a look at the process from a beginner’s point of view and as there is a vast amount of information to cover my research will be split over several posts to include:

•   How to apply to RoATP.
•   Who can deliver apprenticeship training?
•   What apprenticeships are available?
•   What rules have to be followed?
•   What qualifications can be delivered?
•   What are the implications?
•   What is data management?

Part One - Should you apply to the RoATP?

Many commercial training providers may find they are being pushed into applying to the Register of Apprenticeship Training Providers (RoATP), as their clients may now be paying the levy and want to use this to fund training.

There is a whole host of requirements for those new to apprenticeship delivery or indeed ESFA funded provision and getting on the RoATP will be the easy part!

There’s a lot of preparation involved but on the upside there is no limit to the number of apprenticeships you can deliver to levy paying employers, so this could offer potential growth for your company.

You need to ask yourself:

• How many clients you could potentially loose?

• How much time and resources will you need to invest?

• How you will manage the data management and compliance issues?

What levy paying employers need to know.

The Apprenticeship Levy is a tax specifically to fund apprenticeship training and nothing else!

“You can only use funds in your account to pay for apprenticeship training and assessment for apprentices that work at least 50% of the time in England, and only up to the funding band maximum for that apprenticeship.” ESFA

The levy can be used for recruiting new apprentices or up skilling existing staff but employers need to consider if the training they want is available as an apprenticeship.

Some of the training employers currently pay for may not be available as an apprenticeship and not all types of qualifications can be delivered.

For example, if an employer simply wants to use their levy pot to pay their favoured commercial training provider to deliver the same short courses they normally receive, the chances are you won’t be able to.

An apprenticeship is for a minimum of one year and must include functional skills maths and English.

Points to Note:

•   Only training providers accepted on the RoATP can deliver apprenticeship training.
•   Levy tax can only be used for apprenticeship training.
•   Employ a new apprentice or up skill existing staff.
•   Apprenticeship duration – minimum 1 year.
•   20% ‘off the job’ training.
•   ESFA approved Framework or standard (only if approved for delivery).
•   Ofqual regulated qualifications only.
•   Must be registered with Ofqual regulated awarding organisation.
•   In scope for Ofsted inspections.
•   Main provider on RoATP – only deliver to levy paying employers unless has direct contract with ESFA.
•   Monthly ILR submissions to ESFA & data management.
•   Must adhere to all ESFA funding rules.
•   Matrix Standard.
•   Must include functional skills maths & English (unless learner is exempt).
•   Must have safeguarding and prevent duty policies and procedures in place.

There are two types of apprenticeship programmes, frameworks and standards.

Frameworks are being phased out and being replaced by standards, many of which are still in development, and only those which are approved for delivery will be accepted.

Not all apprenticeship standards have a qualification as a part of the programme, but those that do must comply to the ESFA regulations and be available on the Hub.

Check List:

I've put together a check list to bring you up to speed on what you need to know when applying to the Register of Apprenticeship Training Providers (RoATP).

First of all you will need to locate a standard or framework which you are able to deliver making sure you are registered with an awarding body that provides the qualification, if indeed there is one associated with the standard.

You can download a list of occupations available on the apprenticeship standards.

Apprenticeship frameworks

First steps:

1.   Find the standard or framework to deliver.
2.   Make sure you have a UKPRN number.
3.   Register with the ICO.
4.   Register for access to the ESFA e-tendering portal.
5.   Complete your application to RoATP on ESFA Portal – this should open quarterly.
6.   After submission upload your apprenticeship offer to the Course Directory Provider Portal.

Documents to help you apply:

Application instruction documents:

Joining the register of apprenticeship training providers: application instructions

There is a blog post available on how to upload your apprenticeship offer to Course Directory Provider Portal

Further posts include:

•   Ofqual regulated qualifications
•   ESFA funding rules and regulations
•   Data management & ILR specification
•   Ofsted inspection requirements.

If you have any questions drop me an email, This email address is being protected from spambots. You need JavaScript enabled to view it., I’m only too happy to help.

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