The Apprenticeship Levy is coming – Use it or Lose it!
From April 2017 Government is changing the way apprenticeships are funded in England. Employers with an annual wage bill of £3m or more will be required to contribute to a new apprenticeship levy, and there will be changes to the funding for apprenticeship training for all employers. The aim of the levy is to encourage businesses to take on apprentices or alternatively, upskill their existing staff through an apprenticeship.
The London Borough of Hounslow is also subject to the Apprenticeship Levy and, having extensive experience in the skills sector, is uniquely positioned to support your business. We can offer:
- Help planning your apprenticeship programme, support with your digital account and managing of your levy
- Advice choosing the right apprenticeship training and assessment for your company
- Help to advertise and recruit suitable apprentices
To discuss how the Apprenticeship Levy can work for your business contact Sally George on 0208 583 6177 or email firstname.lastname@example.org
Government agenda and rules
- The government has set a target of recruiting 3 million Apprentices by the year 2020. The introduction of the Apprenticeship Levy, due to start April 2017 will support this initiative. Not all employers will be effected but those that are will have to pay the levy at a rate of 0.5% of their payroll.
- Each framework & standard will be allocated a single funding band
- There will be no age restrictions, however there will be a bonus payment of £1,000 for taking on a 16-18 year old apprentice, 19-24 care leaver or those with a local authority education, health and care plan
- Employers and training providers will agree a price for the training required.
For employers who do not pay the levy (under £3m annual payroll)
- Will contribute 10% of the cost of the apprenticeship up to the maximum cost for the allocated funding band.
- Will pay the full cost of any training required above the funding band limit for an apprenticeship.
- Employers with under 50 employees will not need to contribute to costs for a 16-18 year old apprentice, 19-24 care leavers or those with a local authority education, health and care plan, (Special Educational Need) up to funding band limit.
- All apprentices are expected to achieve Level 1, in English and Maths, most Level 3 or higher apprentices are expected to achieve Level 2 English and Maths.
- Funding for Level 1 and 2 will be provided by the government which will be paid in two instalments at 3 and 12 months the employer is not expected to contribute.
- Any requirements at Level 3 or higher will be funded by the employer.
Funding Apprentices with prior qualifications;
- Employers can train any eligible individual at a higher level than a qualification they already hold.
- They can train an individual on an apprenticeship at the same or lower level than a qualification they already hold IF this allows the individual to acquire substantive new skills and the content of the training is materially different from any prior training or a previous apprenticeship (further guidance is to be issued).