Last month, the Government released the latest updates on the levy and funding landscape, the final changes before the new reforms come into force on 1st May 2017.
Here’s a summary of the key changes below:
Start date for the new Apprenticeship funding system
The start date for the new Apprenticeship funding system will be 1st May 2017. Any Apprenticeships started from this date will be funded according to the new rules.
Levy rate and allowance
Employers will need to pay the apprenticeship levy if their (gross) pay bill is more than £3 million each year – in any sector. The levy will be charged at 0.5% of your annual pay bill, with an annual allowance of £15,000 which can be offset against the levy payment.
Additional top-up funds for levy payers
The Government will apply a monthly 10% ‘top-up’ to the levy funds.
Accessing levy funds
Levy funds will be paid monthly into a new online digital account. The account will need to be set up by employers and will be available to set up in January 2017.
Employers have extra time to use their levy funds
Levy payers will now have up to 24-months to use their funds on training and assessment before the money leaves their account. You can find more information on the Apprenticeship Levy here.
Apprenticeship Funding for small to medium sized organisations
Non-levy paying employers with a payroll of less than £3 million per year will only have to contribute 10% towards the cost of apprenticeship training and assessment, with the remaining 90% funded by the government.
Additional funding for small to medium sized organisations
If you have fewer than 50 employees and want to develop the skills of a 16-18 year old then, 100% of the apprenticeship training and assessment costs will be paid for by the government. The government will also fully fund 19-24 year olds with an education and health care plan.
16-18 year old cash incentives for ALL employers
The government will be encouraging all employers to recruit and develop 16-18 year old apprentices by giving them £1000 per apprentice from May 2017.
Apprenticeship Qualifications for all levels of the workforce including GRADUATES
Newly redesigned workplace apprenticeship qualifications will be available to all levels of your workforce from entry level 2 to master level 7, so you can use funds to progress and develop all your employees from May 2017.
Apprenticeship Qualifications include Professional Qualifications
The majority of new Apprenticeships include highly credible professional qualifications – making them a very attractive way to develop the skills of your workforce e.g The New HR Level 5 Apprenticeship includes the CIPD Level 5 Intermediate Certificate or Diploma in Human Resource Management.
What New Qualifications will be available from the Apprentice Academy in 2017?
In line with the new reforms The Apprentice Academy has developed a suite of new Leadership and Management Apprenticeships available now to first line and senior managers (Level 5). From May 2017 we will have developed new apprenticeship standards in Finance up to Level 7, HR up to Level 5, Business and Customer Services up to Level 3, Digital Marketing up to Level 3 and Software Development up to Level 4.