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Update on Apprenticeship Levy reforms

From April, employers will pay an extra 0.5% of their payroll above £3m into their levy pot. It is expected this will generate £2.5bn per year for England by 2019/20 and providers will access this pot via a new Digital Apprenticeship System.

  • New! A 90% subsidy when the employer levy pot is empty.  If a levy paying employer has no levy pot, or it runs out, the Skills Funding Agency are paying 90% of the negotiated rate on condition the employer has paid 10% in cash first to the provider
  • New! A new Funding system comes into place from May 2017.  The cost will be spread over the lifetime of the apprenticeship.  Skills Funding Agency will hold back 20% of the total cost, to be paid on completion of the apprenticeship. (note: completion, previously this was achievement )
  • New! Previously, digital funds expired after 18 months. Now this policy has been revised and the period is 24 months
  • New! Now and in the future, you can train any individual to undertake an apprenticeship at a higher level than a qualification they already hold.  PLUS From May 2017, an individual can be funded to undertake an apprenticeship at the same or lower level to acquire substantive new skills.
Timetable:
December Further employer guidance from HMRC on how to calculate and pay the apprenticeship levy
January Employers to register on the digital apprenticeship service
April Levy paid
May Service live • Make levy commitments to 2020 • All employers to use the service

If you would like further updates, and help with your apprenticeships, please contact us: email: sales@aldltd.co.uk or call: 0800 988 2155

*Source: Skills Funding Agency