From education to employment

EpAO Business Planning in 2025: Part 2: Ten Policy Areas that will Shape your Business

In this second of series of articles on EpAO business planning I will explore the policy environment and how EpAOs can use it to shape it’s business planning (my previous article can be accessed here):  

Apprenticeships Scheduled for Retirement

Do you remember the previous minister issuing a letter which referenced improving or removing standards? Well we are now starting to see IfATE add red banners to the standards pages if they are proposing to retire standards. Sadly this is not communicated to the sector, so the onus is on you to keep checking, but please make sure you do as they have a very limited time for views to be submitted, and they could well impact your EPA offering.

Closure of IfATE and the Transfer of Functions to Skills England

On 9th October 2024 a Bill was brought forward to abolish IfATE & transfer its functions to Skills England. The intention is that the functions will be transferred to Skills England as an NDPB, but for now the functions will sit directly under the secretary of State. There are many challenges around the lack of independence of Skills England in House of Lords and House of Commons debates, so it will be an interesting one to follow. More important to EpAOs will be the transition of the ‘control’ of standards and assessment plans to Skills England. The Bill has removed the requirement for regular reviews of standard and the requirement to carry out of an examination of the standard or apprenticeship plan by an independent third party before it is approved. This may lead to a period of stability in terms of standards and assessment  plans not being changed. However, that potentially means a lack of ability to change standards or assessment plans that are no longer fit for purpose.

Industrial Strategy Driving the Skills Agenda

It was made clear in 2024 by the Skills Minister that the skill system would be driven by the Skills England reports and the Industrial Strategy (“Our new Growth & Skills offer will introduce greater flexibility to employers & learners, creating routes into good, skilled jobs in growing industries, aligned with our industrial strategy.”) . EpAOs should therefore familiarise themselves with the reports as it could indicate areas of risk and opportunity.

Introduction of Foundation Apprenticeships

The government announcements around apprenticeship reform in September 2024 referred to the introduction of foundation apprenticeships. No further details have been released by the DfE at this stage but there are a lot of suggestions around what they should look like.  Their introduction many impact EpAOs, for example, could foundation apprenticeships lead to reduced volumes on lower level apprenticeships? could foundation apprenticeships bring opportunities for EpAOs in terms of how the foundation apprenticeships will be assessed?

Withdrawal of Funding for Some Level 7 Apprenticeships

The government announcements around apprenticeship reform in September 2024  referred to businesses funding more of their level 7 apprenticeships outside of the levy. Speeches at conferences have suggested it will be a relatively large number of level 7 apprenticeships, but no further details have been provided. If you are an EpAO for level 7 apprenticeships, make sure you keep a close watch and begin contingency planning should the apprenticeships cease to receive public funding.

Reforms to the Apprenticeship Levy

The government announcements around apprenticeship reform in September 2024 referred to a new growth and skills levy which will replace the existing apprenticeship levy. No further details have been provided but there has been lots of speculation, so it is important for EpAOs to keep a close watching brief as changes to the levy could impact apprentice volumes, & the types of apprenticeships undertaken.

Removal of the APAR Conditions

I mentioned this in my previous article on quality assurance, but it is worth referring to it here as well because the removal will mean that you need to revisit various aspects of your service. For example, (a) now that the eligible / ineligible cost conditions have gone, what does that mean for your fees?  (b) now that the condition around the promotion of your service has been removed (“We do not expect you to promote or offer any additional financial reward, service or membership to improve your likelihood of being chosen by a provider”), what will be your unique selling points when competing with AOs that offer qualifications or professional bodies that offer memberships with the EPA?

Changes to National Insurance Contributions

In November, changes to employer NI contributions now mean that providers and EpAOs face increasing operational costs from April 2025.  The apprenticeship funding bands have not changed, so businesses will need to explore where any how they will cover those costs.  I have had a number of discussion with EpAOs around this exploring areas where there may be opportunities for greater automation, changes to staffing, and/or changes to the EPAs they offer. 

Mandated Qualifications

IfATE has a mandated qualifications policy, which is widely known for having difficulties with regard to implementation. With the closure of IfATE I would recommend keeping an eye on what happens with this policy.

Functional Skills

There have been many articles and debates around the requirement to achieve maths and English in apprenticeships and whether that is or is not blocking entry or achievement. Whilst there is no indication that this will change, there is a growing lobby for it to be revisited, so it will be worth watching this area.

By Jacqui Molkenthin, Specialist support for End-point Assessment Organisations

Jacqui has worked at the forefront of further and vocational education and apprenticeship policy design, implementation and operational delivery for 25 years. For the past 10 years, Jacqui has worked specifically with apprenticeships, both designing apprenticeship standards and setting up and managing a successful end-point assessment organisation (EpAO).  Since 2018 Jacqui has worked as an independent consultant supporting both new and established EpAOs to grow and develop, whilst ensuring the highest levels of quality and compliance. To enhance this support, Jacqui carries out sector research, publishes articles, and produces a weekly update for the sector on LinkedIn.


Related Articles

Responses