Government sets out apprenticeship reforms

28 October 2016

The government has released more information on how the apprenticeship levy will work for employers.

The levy, which comes into force in April 2017, will affect all employers in the UK with a pay bill over £3million per year (for a breakdown of how the levy will affect you, click here).

The latest DfE announcements shows a U-turn on cuts to funding for 16-18 year olds, as the sector and many MPs lobbied to change the original plans which would affect the most disadvantaged learners. It also confirms that employers can transfer digital funds to other employers in their supply chains in their sector or to apprenticeship training agencies in 2018. A new employer group, including the Confederation of British Industry, Federation of Small Businesses, British Chambers of Commerce, Charity Finance Group and EEF - the manufacturers’ organisation – has been set up to help government develop this system so that it works for employers.

Other developments confirm that the Government will pay 100% of the cost of training an apprentice for small employers whose level of paybill means that they are not required to pay the levy but who take on apprentices who are aged between 16-18 and 19-24,  and/or care leavers or 19-24 year-olds with an Education and Health Care Plan.

In a separate release, the Skills Funding Agency has launched a new apprenticeship training tool to help employers to find providers, as part of the digital apprenticeship service. The tool is aimed to increase the choice available to employers, to accompany the levy.

Read the full levy guidance here.






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