FAQS – Round 1
Last updated 18 December 2012. The latest FAQs will be listed at the top of the page
Q. What is the Employer Ownership of Skills Pilot?
The Employer Ownership Pilot was launched by the Prime Minister in November 2011. It gives employers direct access to government funding, to put alongside their own investment and procure the training which has the greatest impact for their business. Through the Employer Ownership Pilot, employers are given the space and opportunity to take greater ownership of the vocational skills agenda; encouraging innovation and new thinking as Government provides the platform for sustainable growth.
Putting purchasing power directly in the hands of employers generates innovative approaches to training and development, encouraging more employers to invest in training their staff. Co-investment offers greater value for money and greater leverage on private sector funding.
On 11 September 2012, the Secretary of State for BIS announced the first proposals to be supported through the pilot. In-principle grant commitments for projects in the first round of the pilot total almost £87 million, more than matched by £115 million in employer contributions. In the Autumn Statement the Chancellor increased funding for the Employer Ownership Pilot by £90 million, from £250 to £340 million
The Round 2 prospectus was launched on 20 November and further tests the value of employer ownership in terms of boosting productivity and growth.
To simplify the co-investment opportunities available to employers and present a unified bidding process we have aligned the Growth and Innovation Fund with the second round of the pilot. This will help bidders tackle their skills challenges more holistically; encouraging proposals that integrate training places with infrastructure elements.
Q. Who are the successful bidders from Round 1?
A. The list of successful bidders was published here in September 2012. There were 269 Round 1 bids in total, of which 37 were initially approved, subject to negotiation. So far, 7 bids have been approved with the rest in the pipeline. We will publish full details of each project once these are agreed.
Q. What do you think we have learned from Round 1 of EOP?
A. That employers are very keen to get involved and co-invest where they can own the solution. Many have suggested wider projects which support work experience, access to Apprenticeships, or which support wider supply chains. Successful bids come from all regions and sizes of business across England and many different sectors. Successful bidders are investing £115m of their own money alongside £87m of public funding over 2 years.
Q. How were Round 1 bids assessed?
A. Bids were assessed against the objectives set out in the prospectus. Specific investment criteria focused on economic benefit and value for money, innovation, project feasibility, and quality. When looking at value for money only economic benefits which were deemed to be additional to what would happen without Government support were considered (i.e. things businesses would have funded anyway were not included). Charlie Mayfield (Chair, UKCES) chaired the Investment Board which then made recommendations to Minister.
Q. Who was on the Investment Board?
A. The Board includes UKCES Commissioners representing business (including two SMEs), the FE sector and Trades Unions and representative of BIS, DfE, DWP, the Skills Funding Agency and the National Apprenticeship Service.
Q. Has EOP led to real innovation?
A. Yes. There are some really good examples in Round 1. Many bids have suggested wider projects which support work experience, access to Apprenticeships, or which support wider supply chains. We look forward to seeing how these develop; and there will be a BIS evaluation programme which will be published in due course.
Q. Will there be another chance to bid for those who were unsuccessful or chose not to bid in the first round?
A. The Secretary of State announced on 11 September the intention to conduct a second round, to be launched later in 2012. Round 2 was launched on the 20 November. Bidders who were unsuccessful in Round 1 are eligible to apply again, though they may wish to consider ways in which they could strengthen their bids.
