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.
|December||Further employer guidance from HMRC on how to calculate and pay the apprenticeship levy|
|January||Employers to register on the digital apprenticeship service|
|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: email@example.com or call: 0800 988 2155
*Source: Skills Funding Agency