In September we published an article on what you needed to know about the apprenticeship levy. Since then, the government have released a further update and we’ve attended a Chambers of Commerce briefing session to find out more too.

Here’s what it means in summary for your business:

• The DfE has confirmed that the funding system will be made up of 15 bands with an upper limit ranging from £1,500 to £27,000
• The upper limit is basically a funding cap which determines the maximum amount the government will co-invest
• All existing apprenticeship frameworks will be replaced by standards which will be placed in these funding bands
• The onus is on the employer to negotiate prices with training providers

Levy paying employers (payroll over £3M) –

• You will be paying 0.5% of your payroll bill into a digital account. Use it or lose within 24 months
• This can have an impact on training and development policies for both new and existing employees
• Levy paying employers should consider reviewing their strategies as soon as possible for recruitment, training and succession planning to fully utilise their levy pot before it comes into place in April 2017.
• Remember the opportunity to upskill your workforce (including degree level apprenticeships) will create a competitive advantage for those that fully exploit the opportunityThe government has made a commitment to allow levy paying employers to transfer 10% of their digital funds for the use of supply chains in 2018.

Non-levy paying employers

• 90% of the funding for an apprentice will be co invested (paid) for by the government
• Extra funding is available when recruiting 16-18 year-olds or young care leavers and those with a health care plan
• Consider roles that may attract apprenticeship qualifications. The easiest way to identify these will be to go on the digital apprenticeship service to see the list of qualification and training providers available (gov.uk – currently still in Beta testing).

Useful links

For more information about the register of apprenticeship training providers – https://www.gov.uk/government/collections/register-of-apprenticeship-training-providers
For more information about the government apprenticeship plans by 2020 – https://www.gov.uk/government/news/views-sought-on-plans-to-boost-apprenticeships
Estimate your levy and apprenticeship funding – https://estimate-my-apprenticeship-funding.sfa.bis.gov.uk/
For general information levy – https://www.gov.uk/government/publications/apprenticeship-levy-how-it-will-work/apprenticeship-levy-how-it-will-work