mba apprenticeship levy

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.. Employee Benefits Connect Employee Benefits Live, • Occupational Health & Wellbeing The Apprenticeship MBA is an enticing opportunity to open up the MBA market to a new generation of leaders. “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. What is the Apprenticeship Levy MBA Programme? The MBA Degree Apprenticeship aims to accelerate the career development of high-potential employees and drive significant improvements in organisational performance. 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. 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. Earlier this month the Institute for Apprenticeships & Technical Education launched a consultation on a revised version of the standard which scrapped all references to MBAs. This means that a top-up of £9,000 must be covered by the employer, which cannot be recouped through the apprenticeship levy. 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. Williamson asked for a formal review. Recruitment & Resourcing Learning & Development HR Consultant HR Shared Services “I’d rather see funding helping to kick-start careers or level up skills and opportunities. This levy was introduced in 2017, giving employers control over which qualifications can be classed as apprenticeships. Privacy policy The government needs to keep an eye on those types of apprenticeships to ensure they are offering the development planned.”. Total revenues from MBA apprenticeships were expected to exceed £26m by May 2019, which would be about 1 percent of the money raised, according to TES. Features list 2020 Health & Safety Degree Apprenticeship funding. But MBAs are increasingly becoming associated with apprenticeships, thanks to a UK government policy that forces firms to invest in education. 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. AELP lambasts Department for Education over failure to meet Cabinet Office obligation to support all training providers. Payroll HR (General) “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 course—an MBA apprenticeship—is far removed from most apprenticeships, which tend to provide a path into a first job through in-work training. Hardy’s proposal came after warnings from the Institute of Apprenticeships and Technical Education and the National Audit Office that the apprenticeship budget is at risk of being overspent as the budget for England is set to be overspent by £0.5 billion this year, rising to £1.5 billion during 2021/22, according to the government agency for apprenticeships. Apprentices will work through a rigorous curriculum covering strategic management, finance, marketing, human resources and international business – preparing them for senior leadership. HR Systems I question whether an MBA is an essential regulatory or professional requirement to work in this field of senior leadership. OH&W subscriptions The Institute for Apprenticeships, the agency created by the Department for Education to administer the levy, has ruled that no more than £18,000 can be spent on master’s level degree courses. 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. 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… This report also comes following UK’s education secretary, Gavin Williamson’s ordered review of the level seven senior leader MBA apprenticeship standard. “This apprenticeship sets out the knowledge, skills and behaviours employers require of competent senior Leaders and any qualifications must fit this criteria. Cookies policy 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. The introduction of the levy has since increased the number of new apprenticeships up to the master’s level. Williamson’s letter in February informed Coupland: “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. 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 is a flexible option, as it allows the MBA to be fitted around any career or personal obligations. Using the levy for high level qualifications has always been controversial within the training sector with Amanda Spielman, Ofsted chief inspector, among critics. He concluded that higher level apprenticeships were more expensive to deliver so this trend was leading to high levels of overspending. Non-levy paying employers, such as SMEs, can request funding through the Apprenticeship Service. 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. This money can then be used to fund apprenticeship training, for new or existing staff, from Loughborough University or other Government-approved providers. IfATE added: “An employer group have looked closely at the senior leader level 7 following the request for a review by the secretary of state. The levy was introduced to help address the significant skills issues in the UK labour market. Your school may also pay the levy through your local authority if you remain a community school.The contribution is … 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. “The employer group have made a clear recommendation, which we are now consulting on. 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. It is has proved highly popular since its launch in February 2018. 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. 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. If your school has a wage bill of £3m or above you will now be paying into the apprenticeship levy. 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. The Personnel Today Awards Change Management MBA Apprenticeship Levy London connected Cambridge is just 1 hour 30 minutes drive north of London, or 50 min directly by train. 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. 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. OH&W subscription terms. Wellbeing Workforce Planning, • About Personnel Today 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. © 2011 - 2021 DVV Media International Limited. It is a government levy paid by all employers with a pay bill in excess of £3 million, set at 0.5% of the pay bill. Employment Law Although the apprenticeship levy will apply to employers across the UK, apprenticeships are a devolved policy. Employee Relations What is the apprenticeship levy? 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. The business pays 5% towards the cost of apprenticeship training. 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. According to FE Week, there were 6,387 starts on the programme up to the end of the first quarter of 2019-20. 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. In January, a report by EDSK’s Tom Richmond, called Runaway Training, cited the fact that the number of Level 2 apprenticeships had fallen since the levy was introduced (in the 2017-18 tax year) by 15 percentage points whereas training at Levels 4-7 had grown by nine percentage points. The MBA element of level 7 senior leader apprenticeship standards is to be removed after being queried by the education secretary. Diversity & Inclusion The first Executive MBA programme in England to use the Apprenticeship Levy has started today at Cranfield School of Management. This levy was introduced in 2017, giving employers control over which qualifications can be classed as apprenticeships. Personnel Today has launched a new email newsletter for 2020, focusing on all aspects of diversity and inclusion. A public consultation on the new standard will run until 29 April with a the new standard’s funding future to be decided by 1 June. The subject of MBA apprenticeships has been at the centre of criticism and controversial headlines upon its introduction. The level 7 senior leader apprenticeship was launched in February 2018 and can lead to apprentices gaining a master’s degree in management, either MA, MSc or MBA. Email Newsletters One of the most powerful ways you can generate value from your Apprenticeship Levy is to upskill your existing workforce. IfATE stated that it would share all responses to the consultation with the trailblazer group “so they can produce a final version of the occupational standard currently intended for submission to the institute’s approvals process by 20 May”. 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.”. The think tank claims that employers have wasted £1.2bn on “fake apprenticeships”, spending public funds on everything from an “apprenticeship” for CEOs in how to be a “senior leader”, to creating one for people learning to play football.”. He wants to stop firms using the apprenticeship levy to subsidise MBA (Master of Business Administration) courses for "highly paid" managers. level-seven senior leader occupational standard, questioned the use of the apprenticeship levy, Chartered Institute of Personnel and Development (CIPD). The cost of the apprenticeship is c. £24,000 covering the two years. As of May last year, 15 percent of apprenticeship levy spending had been on higher level programs, including master’s degrees. Apprenticeship Levy. 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. The apprenticeship levy makes UK employers with an annual payroll of more than £3 million pay 0.5% of the total on training. 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. 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. There are no direct fees paid by the apprentice as the programme is supported through the Apprenticeship Levy. For the first time, employers in England, who pay the Apprenticeship Levy, are able to access their Levy funds to pay for employees to access a world-class management education. 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. LJMU's Masters-level apprenticeship has been designed with the CMI to meet employer training needs for senior/high potential managers. The apprenticeship levy can also be used to partly fund the Alliance Manchester Business School Global MBA. If a levy-paying employer runs out of funds in their levy account, they can trigger the non-levy route. 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. It is designed to boost productivity and competitiveness in England by investing in skills development. Apprenticeships: training providers’ body to take legal advice over support, EDSK’s Tom Richmond, called Runaway Training. IfATE stated that senior leaders in an organisation are not bound by regulatory requirements to hold an MBA qualification. 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. 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. HR Business Partner The implication is that management training including MBAs was already provided by organisations. “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. 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. Contact us Aimed at executives, this programme includes 30 days of teaching, studying core courses surrounding business and management. We want to hear from as many people as possible.”. The MBA apprenticeship which is a part of the level-seven senior leader occupational standard scheme is set to be scrapped this year. If accepted, this involves co-investment. You may be a strategic leader in the private, public or third sector organisation, who lead, manage and direct organisations or are working towards this role. 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.”. CIPD’s skills advisor Lizzie Crowley warned that “There’s a real risk of abuse to the system and re-badging of existing training schemes internally to reclaim the levy money. 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