2018 Report details for project: Apprenticeships Reform Programme

Project name: Apprenticeships Reform Programme - there are 3 reports for this project: 2017, 2018, 2019
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Organisation: DFE (D6) - see all reports for this organisation
Report year: 2018 (data is from Sept 2017)
Category: Transformation - see all reports for this category
Description: A multifaceted transformation programme, aiming to deliver against 4 key strategic objectives: · To meet the skills needs of employers - and the country by being high quality, relevant programmes that result in apprentices becoming fully competent in their occupation· To create progression for apprentices - by creating high quality programmes that result in apprentices becoming fully competent with transferrable skills in an occupation that offers progression.· To widen participation and social mobility in apprenticeships – to ensure that more people from a diverse range of backgrounds have access to the benefits of apprenticeships at all levels. · To create more quality apprenticeships - through our campaign work and by creating a sustainable funding system and a high quality apprenticeships offer. We have successfully developed and implemented a new employer levy and funding system, designed and implemented a new digital online IT system which enables employers to manage their apprenticeship programmes and established a new Institute for Apprenticeships all of which completed in April 2017. We are supporting transition from apprenticeship frameworks to new employer designed standards, establishing ways to raise BAME participation rates by 20%, designing a policy to ensure inclusive apprenticeships to support social mobility and, with the support of the Institute, significantly uplifting the quality and quantity of apprenticeships. We will also implement a comprehensive strategy to support employers and providers to understand the changes to the apprenticeship system and ensure that the wider market is ready.
DCA (RAG): Amber
DCA text: Provider register published. Institute for Apprenticeships established. Apprenticeship levy in effect.
Start date: 2015-05-08
End date: 2021-04-01
Schedule text: Critical milestones and schedule remain on track. Transfers minimum viable service Apr 2018, Non-Levy Beta Apr 2018, Frameworks to standards shift complete Mar 2020.
Baseline: £2,036.10m
Forecast: £1,684.10m
Variance: -17.00%
Variance text: The 2017/18 forecast costs are 17% below baseline as we are forecasting a participation budget underspend in 2017/18. This budget is very difficult to forecast as there is a lot of uncertainty around employer behaviour following the introduction of the new levy. Starts delivered since introduction of the Levy in May continue to be very low and show a reduction of 61% compared to the same time last year. The new levy has transformed the way that  Apprenticeships operate in addition to the transition from frameworks to standards. This is a lot of change for both employers and the market to get used to . Employer behaviour is hard to predict and it is very difficult to accurately forecast spend during a period of such uncertainty. Our updated forecast for 2017/18 reflects the reduction in the number of starts and also the slippage in our other spending plans as the need for enhancements to the Apprenticeships Funding Service are assessed. This has resulted in an expected underspend compared to baseline in 2017/18. As employers have 2 years to spend their levy funds It is likely that spending will increase in the next financial year resulting in higher than expected costs in 2019/20 and onwards. There is still a high level of uncertainty around these forecasts . Enhancements and changes to the Apprenticeships Funding Service are still being planned and the split between investment in change and Recurring new costs reflects current known plans. This will be updated as further enhancements obtain ministerial approval.
Whole Life Cost: £11,347.50m
WLCost text: Whole Life costs are currently within profile in the Strategic Outline Business Case
Sourcefile: IPA_2018.csv

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Acknowledgement: GMPP data has been re-used under the Open Government Licence.