As the Apprenticeship levy reaches its first full year, some businesses are still unsure about certain elements.
Brendan Coulson, Business Engagement Director at North Warwickshire and South Leicestershire College talks through some of the changes and how local businesses can make the most out of funding available to them.
Frameworks or standards?
“The new standards have been designed by employers and relate to specific job roles. One of the main differences with the new standards is that rather than continuous assessment throughout their programme, Apprentices will complete one end-point assessment.
At the moment, there is a cross over period. Current frameworks will continue to be delivered until the new standards are gradually introduced.”
Funding – non-levy payers
“Non-levy payers, those whose annual PAYE bill is under £3million will pay 10% of the cost of training and assessment of Apprentices and the government will co-invest the remaining 90%.
“These organisations will also receive a £1,000 payment if they employ an Apprentice who is: aged 16-18 at the start of their Apprenticeship, or aged 19-24 and has an education, health and care plan provided by the local authority, or has been in the care of a local authority
“There is also additional government support if your organisation has fewer than 50 employees. If you employ an Apprentice who meets the above criteria, your 10% contribution will be waivered and the government will pay 100% of the costs.”
Funding – levy payers
Organisations whose annual PAYE bill is £3million and over will be paying into the Apprenticeship levy. This money can be reinvested into the organisation through Apprenticeship training – to new and/or existing staff
“The government also applies a 10% top-up to these funds every month. Employers also receive a £1000 payment if they employ an Apprentice who is:
- Aged 16-18 at the start of their Apprenticeship
- Aged 19-24 and has an education, health and care plan provided by the local authority or has been in the care of a local authority
If these funds run out in any month, employers are only required to pay 10% of the costs of training. The government co-invest the remaining 90%.”
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