In April 2017 the way the government funds apprenticeships in England is changing, with the introduction of the new Apprenticeship Levy. Under the new system, some employers will be required to contribute to the Apprenticeship Levy, and there will be changes to funding for apprenticeship training for all employers.
UKWA is working with the Real Apprenticeship Company, officially approved by the Skills Funding Agency as an ATA (Apprentice Training Agency) to help members through the process of arranging apprenticeship schemes and obtaining funding.
Who pays the Levy?
The new levy requires employers operating in the UK, with an annual pay bill more than £3M to spend 0.5% of their total pay bill on the apprenticeship levy, to invest in apprenticeships.
However, there is a ‘levy allowance’ of £15K per year. This means that the total amount a business needs to spend is 0.5% of its pay bill, minus £15K.
The first payments are due to HMRC in May 2017.
Employers must make a 10% contribution to the cost of training and the government will pay the balance (90%), up to the maximum amount of government funding available for the apprenticeship in question. Payment must be made directly to the provider but may be spread over the duration of the apprenticeship.
Registration opens soon
Levy-paying employers will need to know how to access the funds paid into their digital account “ and how to spend them to achieve best return.
The Government are planning to provide those employers with a means to use their funds to buy training from the provider of their choice, but In order for that to happen, employers need to be able to set up an account, view statements, add PAYE and more.
From January 2017, all levy-paying employers will be able to set up an account, set up a team, add organisations and add PAYE schemes.
If you don’t qualify to pay the new Levy¦
If your business is not required to pay the levy, you can choose the training you’d like your apprentices to receive using the registers available on the digital apprenticeship service.
Whether you’re a Levy payer or not, you will need to engage a provider under a contract. This is different to the current process and demands an employer take action to source and secure a provider from lists approved by government.
How UKWA can help
Working with the Real Apprenticeship Company, UKWA can support members through the process, providing advice and practical help. As many of the changes and new requirements on employers are still taking shape; the Association will also be issuing regular information updates to its members.
Contact us for more information on available apprenticeships in our sector, how to obtain funding and finding a provider