2. SR15 - Impact on 16-19 Funding
Funding
• National Funding Formula base rate of £4,000 protected for four
years
• Apprenticeship budget increased by £166m per year by 2019/20
compared to 2015/16
• Lower numbers of 16-18 year olds = fewer places funded
• And ramping up to targeted savings of £160m per year by
2019/20
3. SR15 – Overall 16-19 Approach
Overall Approach
• 16-19 budget unprotected so must contribute to savings but:-
• Wide recognition of value of investing in 16-19 phase
• Direct link to HMT productivity plan and reducing the skills gap
• Pivotal to driving up wages and living standards
• Ambitious reform agenda to ensure 16+ skills match best in the world
• Simplify and streamline complex vocational system
• Create small number of focused technical and professional routes advised
by an independent panel (led by Lord Sainsbury)
• Fund the 3 million Aps in England by 2020 target via large employer levy
• One off opportunity to create a sustainable sector through ABRs
• Opportunity for SFCs to become academies if criteria are met and supported
by ABRs
4. SR15 – Supporting ABR recommendations
ABR Implementation
• Government committed to implementing ABRs
• Only where essential to achieving the outcome of the review
• To achieve long term sustainable provision, improved
educational outcomes and good VFM
• In many cases likely to be provided through repayable loan
• Treasury approval likely to be required in each case
• Funds will be available to reviews in process if essential to
achieving the outcome of the review
• SFC opportunity to become Academies
• https://www.gov.uk/government/publications/reviewing-post-
16-education-and-training-institutions-list-of-area-
reviews/reviewing-post-16-education-and-training-institutions-
details-of-the-area-reviews
• area.reviews@education.gsi.gov.uk
5. SR15 - Apprenticeships
Apprenticeships
• Agenda driven by improving skills and productivity and good VFM
• Committed to 3 million Apprenticeship starts by 2020
• And increased quality, relevance and employer involvement
• New independent employer led Institute for Apprenticeships
• Funded via 0.5% of payroll levy on ALL (public and private) larger employers via
PAYE system starting from April 2017
• With £15,000 allowance before the levy is payable
• Meaning only employers with a payroll of £3m (109 staff on median wage) pay
the levy therefore <2% of employers will pay it
• £2.5bn for English apprenticeships plus funds for devolved administrations
• Access by employers is through Digital Apprenticeship Service (DAS)
• Levy paying employers can get more out than they put in
• Non-levy employers expected to co-invest
• Greater costs of training 16-18s to be recognised
• Response to consultation published
• Consultation on existing levies through associations (DAS@bis.gsi.gov.uk)
6. SR15 – further Information
• Details affecting funding for 2016/17 – Aiming for before end of autumn term
• Approach for remainder of SR period – as soon as possible in the new year
• Funds to support implementation of ABR recommendations – early in the new year
• Criteria for SFCs to become academies – Aiming for February 2016
• Apprenticeships DAS – Working closely with employers and associations on detailed
design in the new year
SR Announcements
https://www.gov.uk/government/topical-events/autumn-statement-and-spending-
review-2015
Apprenticeship consultation response
https://www.gov.uk/government/consultations/apprenticeships-levy-employer-owned-
apprenticeships-training
