Business Update - Issue 67 (May 2021)
Updated 1 November 2021
Applies to England
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In this edition of Business Update, our round-up of business-critical news and information from the Education and Skills Funding Agency (ESFA):
- New incentive payments for hiring a new apprentice
- Consultation launched to create new flexible apprenticeships
- Incentive payments for hiring a new trainee
- Update to ESFA apprenticeship funding rules
- Functional Skills Assessments in apprenticeships
- New guide for training providers: How to deliver high quality apprenticeships
- Review of National Apprenticeship Week 2021
- The Institute for Technical Education Revisions Status Report
- Checkyourpay Stakeholder Toolkit
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For more information about apprenticeships, you can visit apprenticeships.gov.uk or call 08000 150 600.
1. New incentive payments for hiring a new apprentice
1.1 Phase 1 application window extension
We have extended the application window for incentive payments for new apprentices who joined organisations between 1 August 2020 and 31 March 2021.
Employers can now apply for these apprentices until 31 May 2021.
You can view the details on GOV.UK.
1.2 Phase 2 incentive payments increase
To support employers, incentive payments for apprentices taken on as new employees from 1 April are increasing.
Employers will receive £3,000 for new employees of any age who start their apprenticeship from 1 April 2021 to 30 September 2021.
You can view the details on GOV.UK.
1.3 Updates to non-levy employer funding reservations for apprenticeships
Employers can make up to 10 new reservations
From 1 April 2021, we will reset reservation levels for employers who do not pay the apprenticeship levy. This will enable employers to make up to 10 new reservations to fund new apprenticeship starts in the financial year 2021-22.
Employers can reserve funds up to 6 months in advance
From 1 April 2021, we are extending the reservation period for employers who do not pay the Apprenticeship Levy from 3 to 6 months. This means that from 1 April, these employers will be able to reserve funds up to 6 months before an apprenticeship is planned to start.
2. Consultation launched to create new flexible apprenticeships
Sectors including the creative industries, agriculture, and construction, will soon be able to offer more apprenticeship opportunities.
On 20 April, a consultation was launched seeking views on how new flexi-job apprenticeship schemes could be run. Apprenticeships are at least 12 months long, so some sectors with flexible employment patterns and short-term roles, such as agriculture, construction and creative sectors including TV, film, and theatre production, have found it challenging to create enough opportunities.
2.1 How you can get involved
Please use Department for Education e-consultation platform Citizen Space to access the consultation. Please use the online system to provide your feedback.
If you are unable to use the online system, for example if you use specialist accessibility software, please email fundingrules.comments@education.gov.uk and we will provide you with details of how to return your response.
The consultation closes at 23:59 on 1 June 2021.
If you have any questions about this consultation, please email fundingrules.comments@education.gov.uk.
3. Incentive payments for hiring a new trainee
As announced in the Spring Budget 2021, an additional funding of £126m in academic year 2021 to 2022 has been made available for continued growth of traineeships to support more young people into employment.
£1,000 per young person placement (up to 10 incentive payments per employer, per region) is for employers offering traineeship work placements between 1 September 2020 and 31 July 2022.
You can view more details on GOV.UK.
3.1 Update to ESFA apprenticeship funding rules
We have published Version 4 of the ESFA apprenticeship funding rules 2020/2021.
The rules are being updated to reflect that from 25 February, eligible apprentices can start their end-point assessment before they achieve their functional skills qualifications if they have been waiting for the opportunity to access functional skills assessments but have been prevented from doing so due to coronavirus (COVID-19) restrictions.
They should be read alongside the apprenticeship response to coronavirus (COVID-19) as some of these flexibilities are continuing.
The changes we have made are detailed in the summary of changes which can be found on the apprenticeship funding rules page on GOV.UK.
4. Functional Skills Assessments in apprenticeships
Eligible apprentices can now take their End-Point Assessment (EPA) before achieving the required Functional Skills Qualifications (FSQ). This flexibility will be available until 31 May 2021 and applies to apprentices at all levels who:
- are ready to take and FSQ assessment but are unable to due to the impact of COVID-19 restrictions. This means they have exhausted all possibilities to access FSQ assessment via face-to-face and remote delivery.
- have confirmed their intent to continue and complete their FSQ within three months of starting their EPA.
- meet all other gateway criteria to progress to their EPA except FSQ achievement
Apprentices must take their FSQ within three months of their EPA in order that they complete their programme and receive their completion certificate. Employers whose apprentices have been unable to take an FSQ test should contact their provider to whether this option could support their apprentices.
Providers must retain evidence that the apprentice is ready to take an FSQ assessment but cannot take one. Providers will need to make a declaration to this effect. The apprenticeship funding rules and COVID-19 guidance will be updated to reflect this change.
5. New guide for training providers: How to deliver high quality apprenticeships
A new guide for training providers giving step-by-step advice on how to deliver a high-quality apprenticeship is now available.
This guide, informed by the sector and various quality bodies, is for all providers delivering apprenticeships at any level. It sets out all the minimum requirements and the building blocks required to support the delivery of high-quality apprenticeships for newer providers. It also supports the continuous development of more experienced providers by updating them on the latest requirements and highlighting good practice.
It includes links to more detailed guidance on specific topics, such as off the job training, ‘gateway’ and End-Point Assessment. These will be updated as further resources become available.
We will be seeking further feedback in due course to inform new resources and subsequent versions of the guide. If at any time you would be happy to share your thoughts, please email apprenticeships.qualitypolicy@education.gov.uk.
Similar resources will follow for employers, End-Point Assessment Organisations and apprentices, reflecting that successful apprenticeships are based on a strong partnership between the provider, employer, and apprentice.
6. Review of National Apprenticeship Week 2021
Between 8-14 February the whole apprenticeship community came together to celebrate the 14th National Apprenticeship Week.
National Apprenticeship Week gets bigger and better each year and #NAW2021 has beaten all expectations, particularly given the extraordinary times we find ourselves in. We would like to thank all our partners and stakeholders for their hard work in making it such a success – and demonstrating that apprenticeships can Build the Future!
NAW21 was a wonderfully busy week for hundreds of partners and apprentices taking part in virtual events and engagement activities, social media, and PR opportunities.
6.1 NAW21 at a glance
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600+ virtual events, including over 24 ministerial engagements
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3 Top UK Twitter Trends – #NAW2021 trended at number 1 nationally on Monday, and #AskAnEmployer and #AskAnApprentice both appeared in the top 10 twitter trends
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500+ million #NAW2021 impressions
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45,000+ mentions of National Apprenticeship Week on social media including; The Royal Family, Boris Johnson, 10 Downing Street, BBC Bitesize, Steph’s Packed Lunch (Channel 4), NHS Employers, Bank of England and many more!
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118,000+ views on the #NAW2021 launch video
7. The Institute for Apprenticeships and Technical Education Revisions Status Report
The Institute has updated the Revisions Status Report. This report will be updated regularly to show which live standards have entered the Institute’s formal revisions process, and the stage they are at in that process.
This regular dissemination of information aims to prewarn the sector that new versions are upcoming so it can prepare accordingly and allow the Institute to consult the sector on the appropriate notice period for each version change. It forms part of wider enhancements to the introduction of new versions of apprenticeship standards to the market.
Providers and End-Point Assessment Organisations (EPAOs) should review this note, which provides further information on the report and the action that providers and EPAOs should take with it, as well as the wider enhancements that we are planning.
8. Checkyourpay Stakeholder Toolkit
The National Living and Minimum Wage increased on 1 April 2021 for the two million eligible workers, including apprentices, in the UK. These increases are a key part of the government’s commitment to level up the UK and provide equal opportunities for all as part of the plan to Build Back Fairer.
To ensure that eligible apprentices receive the correct rates of pay, we would appreciate your support of the campaign to ensure that employers of apprentices are aware of their legal responsibilities and where they can go to for help or advice about pay.
As part of this HM Government have developed the Checkyourpay Stakeholder Toolkit. The toolkit contains suggested messaging, tracked links to the campaign website and images and videos to help you and other relevant stakeholders within your networks share on social media, in newsletters, on websites and anywhere else you can help us reach employers and apprentices.
9. Support
The Business Support Helpline number in England is:
Freephone :0800 998 1098
The helpline provides free, impartial business support and signposting services to businesses in England – which currently includes business advice on COVID-19.
You can also find free support, advice and sources of finance through your local growth hub or speak to an advisor on webchat about support for your business.
DfE coronavirus helpline: 0800 046 8687