Change is good
The reform includes an overhaul of the existing apprenticeship standards to ensure that the contents of apprenticeships are as relevant and specific to each sector as possible and to put England’s workforce at the forefront of the global business stage.
The Government’s ambitious aim is to provide funding to put three million apprentices in place by 2020 and this reform supports that ambition.
For employers, a new
Digital Apprenticeship Service
A revolutionary new Digital Apprenticeship Service (DAS) is being implemented by the Government that will give employers in England greater control over their apprenticeships, how they are run and their funding.
The DAS will be the central database for apprenticeship information, with details of all approved Training Providers (that’s us) and from where, using your personal account portal, all transactions are performed and recorded.
Will the new Levy apply to you?
A new system for the funding of apprenticeships will affect ALL EMPLOYERS across England and comes into force from May 2017.
It includes a mandatory tax equating to 0.5% of your annual paybill and will initially apply to companies whose annual paybill is in excess of £3million (or £250,000 a month).
It will be taken via the PAYE process and held in a digital account, ready to make payments directly to your chosen Training Provider for the sole purpose of funding apprenticeships within your company.
The Government will also top up any levy funds by 10%.
If the levy does not initially apply to you…
Companies will still be expected to contribute 10% to the cost of training and assessment, with the remaining 90% coming from the Government.
This ‘co-investment‘ will also apply to levy-paying companies where there is any shortfall in their Levy payments i.e. where the cost of the training they are purchasing exceeds their available levy funds.
The co-investment will be paid directly to the Training Provider you select via your digital account.
Bringing the Apprenticeship Levy into focus
All the information you need and that is currently available about the Levy along with helpful links and contact information is in our Levy document available here for you to download.
Our designated Levy team are on hand to help answer any questions or concerns so please do get in contact. We can arrange an appointment to go through the information in detail and see how we can support you with the changes.