What is an apprenticeship?
Apprenticeships are paid jobs that incorporate on-the-job and off-the-job training leading to nationally recognised qualifications. As an employee, apprentices earn as they learn and gain practical skills in the workplace.
There are currently two types of apprenticeships: ‘frameworks’ and ‘standards’. An apprenticeship ‘framework’ typically contains the following separately certified elements:
• A knowledge-based element (the theoretical knowledge underpinning a job in a certain occupation and industry, typically certified via a technical certificate).
• A competence-based element (the ability to discharge the functions of a certain occupation, typically certified via work-based assessed national vocational qualifications (NVQs)).
• Transferable skills (English and maths) – key skills / functional skills.
• A module on employment rights and responsibilities.
• Personal learning and thinking skills (PLTS): independent enquiry, creative thinking, reflective learning, team working, self-management, effective participation.
Following a review and consultation of apprenticeships in England during 2012 and 2013, the government announced reforms to apprenticeships: https://www.gov.uk/government/consultations/future-of-apprenticeships-in-englandrichard-review-next-steps).
As part of these reforms, new employer-led apprenticeship ‘standards’ were introduced in 2014, and were initially known as ‘trailblazers’.
Apprenticeship standards are designed with employers to help ensure apprentices have the skills businesses need, and outline the skills, knowledge and behaviours (KSBs) required to carry out a certain job role. All apprentices must take an independent assessment at the end of their training to demonstrate the KSBs set out in the occupational standard.
New standards continue to be made available and have been replacing the older apprenticeship frameworks in recent years. All new apprenticeship starts will be on standards by the beginning of the 2020/21 academic year.
Apprenticeships are available at intermediate, advanced and higher levels – see Table 1 below for examples of equivalent qualifications. Higher apprenticeships are those at level 4 and above. Higher level apprenticeships at levels 6 and 7 may include a degree as a component qualification. Level 4 apprenticeships were introduced in 2006/07; level 5 apprenticeships were introduced in 2011/12; level 6 apprenticeships were introduced in 2013/14 and level 7 apprenticeships were introduced in 2014/15.
Table 1: Apprenticeship levels
Name | Level | Equivalent educational level examples |
Intermediate | 2 | 5 GCSE passes at grade A*- C or 9 - 4 |
Advanced | 3 | 2 A level passes Level 3 Diploma International Baccalaureate |
Higher | 4, 5, 6 and 7 | Examples of equivalent level 4 and 5 apprenticeships would be HNCs and foundation degrees, respectively. Apprenticeships at levels 6 and 7 are equivalent in level to a bachelor’s or a master’s degree, and can include a degree as a component qualification within the apprenticeship programme, which may or may not be mandatory |
For further information on apprenticeships please see here: https://www.gov.uk/topic/further-education-skills/apprenticeships.
Funding
Apprenticeship Levy
Since May 2017, funding arrangements for apprenticeships changed to give employers greater control over funding for apprenticeship training. The UK wide apprenticeship levy came into force on 6 April 2017 and required all UK public and private sector employers with an annual pay bill of £3 million or more to invest in apprenticeship training. The Apprenticeship Levy is a levy on UK employers to fund new apprenticeships and is charged at a rate of 0.5% of an employer’s pay bill.
More information on paying the apprenticeship levy can be found at this link: https://www.gov.uk/guidance/pay-apprenticeship-levy
Apprenticeship Service
The Apprenticeship Service was introduced in England as an online service to allow levy-paying employers to choose and pay for apprenticeship training more easily. They are able to access their levy funds to spend on apprenticeships, manage apprentices, pay training providers and stop/pause payments to training providers. Apprenticeships are a devolved policy, meaning that authorities in each of the UK nations manage their own apprenticeship programmes, including how funding is spent on apprenticeship training.
Employers register for an Apprenticeship Service Account (ASA) and the amount of funds available in each ASA will depend on how many of their employees live in England and the proportion of their pay bill paid to these employees.
Funds in ASAs can only be used to pay for apprenticeship training and assessment, and not other costs associated with apprentices, such as wages, statutory licenses to practise, travel and subsidiary costs, work placement programmes or the setting up of an apprenticeship programme).
Please see here for more information on the Apprenticeship Service: https://www.gov.uk/guidance/manage-apprenticeship-funds
Transfers
In April 2018 it became possible for levy-paying organisations to transfer up to 10 per cent of the annual value of funds entering their apprenticeship service account to other organisations on the apprenticeship service. From April 2019, this increased to 25 per cent.
Employers who do not pay the levy can access apprenticeship training via their selected training provider who is given an allocation of funds for apprenticeship training from the ESFA. The provider claims for these funds against their allocation using the Individualised Learner Record (ILR) as was the case before the introduction of the levy.
More information on transfers can be found here: https://www.gov.uk/guidance/transferring-apprenticeship-service-funds
Non-levy payers
From 09 January 2020 the apprenticeship service was extended for all non-levy paying employers to register and use. Employers who do not pay the apprenticeship levy are able to make a funding ‘reservation’ (or have a funding ‘reservation’ made on their behalf) with respect to an apprenticeship planned to start in the following 3 months. This will allow non-levy paying employers to access the benefits of the system and reserve funds to support their training.
Until autumn 2020 employers who do not pay the apprenticeship levy were able to access apprenticeship training either through a provider with an existing Government contract or via the apprenticeship service. From April 2021, all new apprenticeship starts are managed through the apprenticeship service.