The Apprenticeship Reform – Trailblazers, Standards and the Levy – what does it all mean?
Education is undergoing the biggest reform of a generation and that includes vocational training in the workplace. The reform will impact what qualifications will look like, how they’re delivered and assessed, as well as learners and how they are funded.
The Key Points
The Apprenticeship Levy
- The government will introduce an employment Levy of 0.5% based on an employer’s wage bill through PAYE, it will only apply to employers if their wage bill is over £3m annually.
Employers Over £3m Annual Wage Bill
- The funds collected from the Levy can only be used to fund apprenticeship training through either Frameworks or the new Standards
- The Government will top up the Levy by 10% each month
- Unspent money will lapse after 18 months
- This collection will start from the 1st April 2017 with the first learning commencing in May 2017.
Employers Under £3m Annual Wage Bill
- If an employer does not have a wage bill over £3m annually then they will not pay into a Levy and will receive government support towards training but will be required to make a cash contribution set at 10% of the agreed cost of training
Frameworks and Standards
- Frameworks are the way apprenticeships are currently taught and assessed
- Standards are the way the Government is reforming how apprenticeships are taught and assessed
- Employers will design apprenticeship Standards which will replace current Frameworks, once they have been approved
Things to look out for;
- Creation of an Institute of Apprenticeships to oversee the regulation, design and delivery of apprenticeships, which will be overseen by a board made up primarily of employers
- The introduction of a Digital Apprenticeship Service (DAS) for employers, to simplify the process of finding apprentices and training providers. This Service is being tested throughout October and November and employers are being asked to volunteer to trial the Service.
- As more updates become available ICON will release further information via our newsletter, our website and social media.
For more information on how this will affect you and your company visit https://icon-training.com/funding/apprenticeship-levy/ and use the Levy calculator or follow us on Twitter for regular updates.