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The Government has now finalised the details of the Apprenticeship reforms so it is all systems go for employers across the country, whether you are an organisation paying the levy or not.

The Levy is 0.5% of payroll costs for those employers with a wage bill of more than £3m. This will be collected by HMRC from April 2017.  Following its recent consultation, the Government has confirmed the details of how the Levy funds can be spent.  They have made a few changes to the original proposals including:

  • The Levy funds can be spent within 24 months, which has been extended from 18 months
  • A number of the existing Apprenticeship Frameworks & new Standards will be uplifted where they are STEM subjects
  • There will be additional support for 16 -19 year olds including an incentive of £1,000 for both the employer and training provider as well as an additional 20% for utilising existing Frameworks to aid the transition to Standards
  • The new Standards developed by employers will be funded at a higher level
  • Commitment from the Government to fund 90% of the cost of training for non-Levy payers and 100% for 16 -19 year olds
  • Additional payments for those apprentices that come from disadvantaged areas
  • Commitment for employers to transfer funds to supply chain in 2018

Active IQ will be supplying more detailed information and guidance for centres and is in the process of becoming an End Point Assessment organisation for the new Standards.  More details on this will be made available in the coming months.