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Here's what you need to know...

The government have unveiled plans for the introduction of the apprenticeship levy from May 2017. The levy requires all employers who operate in the UK with a pay bill of over £3 million each year to invest in apprenticeships regardless of whether they currently deliver them or not. For those employers who do not meet the levy requirements there is also government guidance for how apprenticeship funding will work. Those employers who meet levy requirements will be charged at a rate of 0.5% of their annual pay bill. Employers will have a levy allowance of £15,000 per year to offset against the levy they must pay. This means they will only pay the levy if their pay bill exceeds £3 million in a given year.

Levy paying employers will be given access to a digital account were they will be able to monitor their levy funds and see who their contracted training providers are and current members of staff in learning.

apprenticeship levy infographic

Those employers who do not have an annual pay bill of £3 million per year will not pay the levy however they will be expected to make a contribution to apprenticeship training and the government are currently seeking employers views on their proposal of 10% of the qualification paid for by employers, 90% paid for by the government.

For non-levy paying employers the process operates slightly different to levy paying employers. The SFA plans to give a funding allocation to training providers who pass the due diligence process which will be used to provide training to non-levy paying employer’s.

For both levy paying and non-levy paying employers, they can access a range of qualifications split into frameworks and standards.

Frameworks and standards now carry a funding ‘cap’ ranging from 1-15 and all qualifications have been slotted into the 1-15 funding ‘cap’ range.

Proposals and consultations are still underway but further information on the apprenticeships and how they will be working from May 2017 can be found by clicking on the following link:

https://www.gov.uk/government/LevyInfo

Support is on hand for employers and HYA Training are here to help. If you are interested in attending a workshop to find out more about the apprenticeship levy, what it means to your business and how you can prepare for it, contact Lauren by email on lsutton@hyatraining.co.uk or telephone 01482 211778.