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There are no direct fees paid by the apprentice as the programme is supported through the Apprenticeship Levy. This report also comes following UK’s education secretary, Gavin Williamson’s ordered review of the level seven senior leader MBA apprenticeship standard. 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. 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. 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. 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. What is the apprenticeship levy? That’s why I’ve asked for a review of the senior leader apprenticeship standard to ensure it is meeting its aims.”. The first Executive MBA programme in England to use the Apprenticeship Levy has started today at Cranfield School of Management. AELP lambasts Department for Education over failure to meet Cabinet Office obligation to support all training providers. 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. I question whether an MBA is an essential regulatory or professional requirement to work in this field of senior leadership. 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. Degree Apprenticeship funding. 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. This means that a top-up of £9,000 must be covered by the employer, which cannot be recouped through the apprenticeship levy. level-seven senior leader occupational standard, questioned the use of the apprenticeship levy, Chartered Institute of Personnel and Development (CIPD). This is a flexible option, as it allows the MBA to be fitted around any career or personal obligations. Plans to remove the controversial MBA component attached to the level 7 senior leader apprenticeship standard have been revealed. Using the levy for high level qualifications has always been controversial within the training sector with Amanda Spielman, Ofsted chief inspector, among critics. Training 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. People Analytics “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. Using the levy for high level qualifications has always been controversial within the training sector with Amanda Spielman, Ofsted chief inspector, among critics. Senior Leader/MBA Degree Apprenticeship. MBA Apprenticeship Levy London connected Cambridge is just 1 hour 30 minutes drive north of London, or 50 min directly by train. 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. 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. The levy was introduced to help address the significant skills issues in the UK labour market. 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. The apprenticeship levy can also be used to partly fund the Alliance Manchester Business School Global MBA. 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. So, for example, on graduate schemes that are in effect being ’re-packaged’ as apprenticeships.”. “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. Research published on the Early Impact of The Apprenticeship Levy by the Chartered Institute of Personnel and Development (CIPD) conducted during the time of its inception, warned that the levy will not result in an increase in training, whether for practical apprenticeships or for MBAs. 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. 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. So, for example, on graduate schemes that are in effect being ’re-packaged’ as … The introduction of the levy has since increased the number of new apprenticeships up to the master’s level. Wellbeing This money can then be used to fund apprenticeship training, for new or existing staff, from Loughborough University or other Government-approved providers. This is not just the technical skills traditionally associated with apprenticeships but also higher and degree level executive and management training. HR Shared Services 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. 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. The subject of MBA apprenticeships has been at the centre of criticism and controversial headlines upon its introduction. Occupational Health 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. Your school may also pay the levy through your local authority if you remain a community school.The contribution is … The government needs to keep an eye on those types of apprenticeships to ensure they are offering the development planned.”. Payroll 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 of the utmost importance for the integrity of the programme and the apprenticeships brand that each and every standard meets our highest possible expectations.”. HR (General) Employee Benefits Connect It is designed to boost productivity and competitiveness in England by investing in skills development. 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 MBA Degree Apprenticeship aims to accelerate the career development of high-potential employees and drive significant improvements in organisational performance. Employee Benefits Live, • Occupational Health & Wellbeing 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. RSS feeds 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. HR Systems HR Director Aimed at executives, this programme includes 30 days of teaching, studying core courses surrounding business and management. Contact us 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. So, for example, on graduate schemes that are in effect being ’re-packaged’ as apprenticeships.”. 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. Richmond proposed that the levy should not be used for degree and masters level training. The implication is that management training including MBAs was already provided by organisations. Employment Law 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 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. Compensation & Benefits 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. 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.”. But MBAs are increasingly becoming associated with apprenticeships, thanks to a UK government policy that forces firms to invest in education. Email Newsletters 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. OH&W subscription terms. HR Consultant Performance & Engagement Employee Relations Universities are still planning to offer the MBA in the level 7 senior leader apprenticeship, despite the qualification being axed from the programme. Employee Benefits Awards 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. 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. The apprenticeship levy makes UK employers with an annual payroll of more than £3 million pay 0.5% of the total on training. Cookies policy 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”. © 2011 - 2021 DVV Media International Limited. Change Management I question whether an MBA is an essential regulatory or professional requirement to work in this field of senior leadership. Advertising specifications The MBA apprenticeship which is a part of the level-seven senior leader occupational standard scheme is set to be scrapped this year. 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.. The Personnel Today Awards He concluded that higher level apprenticeships were more expensive to deliver so this trend was leading to high levels of overspending. IfATE stated that senior leaders in an organisation are not bound by regulatory requirements to hold an MBA qualification. The University can draw down this funding to either upskill existing employees or to train newly employed apprentices. 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 business pays 5% towards the cost of apprenticeship training. If your school has a wage bill of £3m or above you will now be paying into the apprenticeship levy. 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. 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. 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.”. I ’ d rather see funding helping to kick-start careers or level up skills and opportunities of the through! Universities are still planning to offer the MBA apprenticeship was included as a of... 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