The government 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 utilise an apprenticeship initiative or not.
Those employers who meet levy requirements will be charged at a rate of 0.5% of their annual pay bill. Employers will be given a levy allowance, by the government, 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.
For those employers who do not meet the levy requirements there is also government guidance for how apprenticeship funding will work.
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.
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 towards the agreed cost of individual apprenticeship training courses. This will be equivalent to 5% of the total core qualification cost, with the remaining 95% paid for by the government.
For all non-levy paying employers that would like to know more about how you can now secure funding for future apprentices, please click here.
For both levy paying and non-levy paying employers, they can access a range of qualifications split into both frameworks and standards.
Both 'frameworks' and 'standards' now carry a funding ‘cap’ ranging from 1-15, which is the maximum cost of any particular apprenticeships course. These costs are negotiable between employer and training provider, but must not exceed this 'cap'. This maximum value is decided upon by both the government and any organisations that have aided in the development of the course itself.
If you are a levy-paying employer, and would like to know more about how the apprenticeship levy will work, or how it affects your organisation, please see the following link: https://www.gov.uk/government/LevyInfo
Support is on hand for employers, with HYA Training being here to help. If you are interested in attending a workshop to find out more about your apprenticeship levy or non-levy funding, what it means to your business and how you effectively utilise it, please contact us by email on email@example.com, or telephone 01482 211778.