The report also contained warnings that many employers will simply use the levy to re-badge existing learning and pass it off as apprenticeship training. If accepted, this involves co-investment. Educational think tank, EDSK claimed that employers and universities are mislabelling a range of training courses and jobs as apprenticeships to use up funding from the apprenticeship levy provided by the government. This apprenticeship is designed for any individual moving into a senior or strategic management role. Apprenticeship Levy. The introduction of the levy has since increased the number of new apprenticeships up to the master’s level. “I believe degree apprenticeships should continue to be fully funded from the levy for people 25 and under, occupations on the shortage occupation list, and adults who do not already have an equivalent qualification.”. Using the levy for high level qualifications has always been controversial within the training sector with Amanda Spielman, Ofsted chief inspector, among critics. The government needs to keep an eye on those types of apprenticeships to ensure they are offering the development planned.”. The introduction of the Apprenticeship levy will see large businesses (those with a turnover of £3m or more) paying 0.5% of their annual payroll into a fund which can then be drawn down against Apprenticeships. HR Shared Services “This apprenticeship sets out the knowledge, skills and behaviours employers require of competent senior Leaders and any qualifications must fit this criteria. Amanda Spielman, Ofsted chief inspector questioned the reasoning behind using the apprenticeship levy to fund university degrees that can already be funded through the student loan system. Email Newsletters IfATE, working with a group of employers, Leadership and Management Trailblazer worked together to develop a revamped version of the occupational standard and end-point assessment (EPA) plan without the MBA and have a rather positive take on this development. This report also comes following UK’s education secretary, Gavin Williamson’s ordered review of the level seven senior leader MBA apprenticeship standard. There were 393,400 apprenticeship starts in 2018/19, up 5% on the year before but down significantly from the 564,800 starts prior to the levy’s introduction. The MBA apprenticeship which is a part of the level-seven senior leader occupational standard scheme is set to be scrapped this year. Terms and conditions, • Employee Benefits The first Executive MBA programme in England to use the Apprenticeship Levy has started today at Cranfield School of Management. The implication is that management training including MBAs was already provided by organisations. Apprentices can continue learning on furlough, Fake apprenticeships are turning levy into farce, The IfATE stated: “As a senior leader, there is no regulatory requirement to hold such a qualification [an MBA], there is no requirement to be a member of a professional body and an individual would not be significantly disadvantaged in the senior leader job market without such a qualification.”, “The trailblazer has agreed to revise the occupational standard on this basis, focusing on ensuring that passing the revised end-point assessment (still to be drafted) will provide all the necessary assurance that full competence will have been achieved.”. It is designed to boost productivity and competitiveness in England by investing in skills development. Advertising specifications Using the levy for high level qualifications has always been controversial within the training sector with Amanda Spielman, Ofsted chief inspector, among critics. The MBA Degree Apprenticeship aims to accelerate the career development of high-potential employees and drive significant improvements in organisational performance. “I’d rather see funding helping to kick-start careers or level up skills and opportunities. Spielman questioned the use of the apprenticeship levy at a speech during the 2019 annual apprenticeship conference, “What is of concern is the fact that levy money is not always being spent in the intended way. MBA apprenticeship funding comes from a levy scheme where employers with annual wage bills above £3 million make a mandatory contribution equivalent to 0.5 per of their payroll. Levy Funding: The government funding band for the Senior Leader Standard is £18,000, which is the maximum that can be funded through the apprenticeship levy. “The government’s rushed implementation of the apprenticeship levy has resulted not in an increase in apprenticeship opportunities for the most disadvantaged, but quite the opposite,” she told delegates. The business pays 5% towards the cost of apprenticeship training. As an approved provider of Apprenticeship Levy Services to the Skills Funding Agency, Loughborough University is proud to have developed a suite of postgraduate apprenticeship programmes at the School of Business and Economics for organisations who wish to develop their talented managers using the Apprenticeship Levy. OH&W subscription terms. Workforce Planning, • About Personnel Today There are now over 100 universities in England on the register of apprenticeships training providers, and the number of degree apprenticeship programmes has increased, from 1,614 to 7,114 in the first quarter of 2019. Our Level 7 Senior Leader Masters level Degree Apprenticeship at Birmingham Business School is an exciting opportunity to gain a prestigious MBA, supported by employers and funded by the Degree Apprenticeship Levy. Apprenticeships: training providers’ body to take legal advice over support, EDSK’s Tom Richmond, called Runaway Training. With funding cuts looming on the horizon, the Institute for Apprenticeships and Technical Education (IfATE) announced the move to remove the MBA apprenticeship from the apprenticeship levy funding scheme – a decision which will be confirmed by the UK government in June. He concluded that higher level apprenticeships were more expensive to deliver so this trend was leading to high levels of overspending. “I am committed to maintaining an employer-led system, but I’m not convinced the levy should be used to pay for staff, who are often already highly qualified and highly paid, to receive an MBA. However, the UK Government will provide a ‘levy allowance’ of £15,000 to offset against this, as well as a 10% monthly top-up to the funds employers have for spending on apprenticeship training and assessments in England. The apprenticeship levy makes UK employers with an annual payroll of more than £3 million pay 0.5% of the total on training. Employee Benefits Live, • Occupational Health & Wellbeing Employers can choose to spend their apprenticeship levy funding as they wish, including providing opportunities for current and aspiring leaders to study an MSc or MBA. IfATE stated that senior leaders in an organisation are not bound by regulatory requirements to hold an MBA qualification. However, the Office for Standards in Education, Children’s Services and Skills (Ofsted) reported last year that these so called graduate apprenticeships were relabelled as such, from pre-existing graduate schemes. Organisational Development Privacy policy So, for example, on graduate schemes that are in effect being ’re-packaged’ as apprenticeships.”. “The employer group have made a clear recommendation, which we are now consulting on. So, for example, on graduate schemes that are in effect being ’re-packaged’ as … The Levy is collected at the same time as PAYE payments are made and can be used to purchase apprenticeship education through the Government Gateway’s Digital Apprenticeship Service. If a levy-paying employer runs out of funds in their levy account, they can trigger the non-levy route. It is of the utmost importance for the integrity of the programme and the apprenticeships brand that each and every standard meets our highest possible expectations.”. The Institute for Apprenticeships and Technical Education (IfATE) has responded to a letter from education secretary Gavin Williamson sent in late February to its chief executive, Jennifer Coupland, that questioned whether using apprenticeships for MBAs was providing good value for money. UK Apprenticeship Levy Under the UK government’s Apprenticeship Levy scheme, you can now utilise your levy fund in the most effective way by investing in the development of your senior leaders. Hardy said: “Surely this should not be considered an apprenticeship,” and in her opinion, “the government should end the 100% use of the apprenticeship levy for courses equivalent to a master’s degree.”. Contributions started in April 2017. Health & Safety In a letter to DfE’s Director of Professional & Technical Education for  Institute for Apprenticeships, Jennifer Coupland, Williamson states, “I am unconvinced that having an apprenticeship standard that includes an MBA paid for by the levy is in the spirit of our reformed apprenticeships or provides value for money. LJMU's Masters-level apprenticeship has been designed with the CMI to meet employer training needs for senior/high potential managers. HR Business Partner The funding for apprenticeships comes from a levy introduced in 2017 that requires employers with annual wage bills above £3m to set aside an equivalent of 0.5 per of their payroll. Learning & Development The employer group behind the programme has “revised” its content following a review ordered by the education secretary Gavin Williamson, who said in February he was “unconvinced” it was in the “spirit” of the apprenticeships programme… HR (General) Universities are still planning to offer the MBA in the level 7 senior leader apprenticeship, despite the qualification being axed from the programme. This levy was introduced in 2017, giving employers control over which qualifications can be classed as apprenticeships. She told the 2019 annual apprenticeship conference: “What is of concern is the fact that levy money is not always being spent in the intended way. Cookies policy Hardy also brought up the latest report on the apprenticeship system by former Department for Education adviser Tom Richmond, where he said 23 higher education institutions have developed an apprenticeship which requires a Ph.D., or another level eight qualification, to start. This distinctive MBA is intellectually-challenging, insightful and focused on improving practice in the workplace across all areas of management, leadership and the functions of business. Speaking on day one of FE Week’s sixth Annual Apprenticeships Conference, Hardy said that she supports their expansion at higher education providers across the country, but a decline in opportunities for the “most disadvantaged” needs to be addressed. The course—an MBA apprenticeship—is far removed from most apprenticeships, which tend to provide a path into a first job through in-work training. And with each start worth £18,000 from the apprenticeship levy pot, it is calculated that well over £100m has been spent on this standard. People Analytics Compensation & Benefits I question whether an MBA is an essential regulatory or professional requirement to work in this field of senior leadership. He wants to stop firms using the apprenticeship levy to subsidise MBA (Master of Business Administration) courses for "highly paid" managers. The cost of the apprenticeship is c. £24,000 covering the two years. Your school may also pay the levy through your local authority if you remain a community school.The contribution is … Education secretary Gavin Williamson has called for a formal review of MBA apprenticeships – days after Tes revealed that over £100 million of levy funds had been spent on the controversial level 7 senior leader apprenticeship standard.. Recruitment & Resourcing Talent Management © 2011 - 2021 DVV Media International Limited. Employee Relations Williamson asked for a formal review. As of May last year, 15 percent of apprenticeship levy spending had been on higher level programs, including master’s degrees. Diversity & Inclusion What is the Apprenticeship Levy MBA Programme? At the time of the apprenticeship levy’s launch, the CIPD warned there was evidence that many employers would simply use it to re-badge existing learning and pass it off as apprenticeship training. Employee Benefits Awards The trailblazer has also agreed to revise the occupational standard on this basis, focusing on ensuring that passing the revised end-point assessment will provide all the necessary assurance that full competence will have been achieved. She told the 2019 annual apprenticeship conference: “What is of concern is the fact that levy money is not always being spent in the intended way. In response, IfATE worked with the Leadership and Management Trailblazer (a group of employers) to develop a revamped version of the occupational standard and end-point assessment (EPA) plan without the MBA. Features list 2020 Wellbeing Aimed at executives, this programme includes 30 days of teaching, studying core courses surrounding business and management. Employee Benefits Connect RSS feeds IfATE added that as such, there is no requirement to be a member of a professional body and an individual would not be significantly disadvantaged in the senior leader job market without this qualification. That’s why I’ve asked for a review of the senior leader apprenticeship standard to ensure it is meeting its aims.”. HR Consultant This news hardly comes as a surprise, as the inclusion of MBAs as part of the government’s apprenticeship scheme has faced strong criticism from detractors as it consumes a large portion of the apprenticeship levy allocated for workplace training funds. With these recent headlines, the numbers are set to dip, as Emma Hardy Labour’s shadow minister for further education said that degree apprenticeship should only be fully-funded for people aged under 25, those without a first degree and in sectors with skill shortages. 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