Updated levels of apprenticeship funding revealed

Annalisa Deufemia | 26/10/16

The new announcement includes

In August, we encouraged our employer partners to take part in the government’s apprenticeship reform survey following on from the proposals published on 12th August. The consultation received 892 responses and Government has now released the updated funding policy for May 2017.

The new announcement includes:

  • Higher funding for STEM apprenticeship frameworks and higher pricing of apprenticeship standards to support improved quality, and greater flexibility to train those with prior qualifications.
  • Longer period of time for employers to spend funds in their digital account, now with 24 months before they expire.
  • A commitment to introducing the ability for employers to transfer digital funds to other employers in their supply chains, sector or to Apprenticeship Training Agencies in 2018, with a new employer group including the Confederation of British Industry, Federation of Small Businesses, British Chambers of Commerce, Charity Finance Group and EEF – the Manufacturers’ Organisation – to help government develop this system so that it works for employers.
  • Employers with a wage bill below £3 million, will have to pay towards the cost of an apprenticeship. Those employers are expected to pay a 10% contribution and the government will pay the remaining 90%.
  • A 100 per cent contribution from government to the cost of training for small employers that will not pay the levy and who take on apprentices who are 16 to 18 years old, 19 to 24 year old care leavers or 19 to 24 year olds with an Education and Health Care Plan.
  • £1,000 each from government to employers and training providers when they take on 16 to 18 year olds, 19 to 24 year olds who were in care or who have an Education and Health Care Plan.
  • Help for training providers to adapt to the new funding model through an additional cash payment equal to 20% of the funding band maximum where they train 16 to 18 year olds on frameworks; and
  • A simplified version of the current system of support for people from disadvantaged areas to ensure the opportunity to undertake an apprenticeship is open to everyone, no matter where in England they live, their background or family circumstances.

The Register of Apprenticeship Training Providers (RoATP) was also launched. Click here for more information.

Following on from the announcement, it looks like voices have been heard, and the government has made some developments in the updated proposal. Hopefully, the new updates should allow both providers and employers to have an easier transition in to the new reforms.

Click on the links below to learn more:

FE Week Article: Final Levels of Apprenticeship Funding Revealed

FE Article - Four changes in the apprenticeship announcements you need to know

Apprenticeship funding in England from May 2017

Apprenticeship frameworks: funding bands from May 2017

Apprenticeship standards: funding bands from May 2017

Supporting quality and employer choice through a new register of apprenticeship training providers

Apprenticeship funding: how it will work

The apprenticeship levy: how will employers respond?

Apprenticeship funding: rules and guidance for levy-paying employers

Apprenticeship funding: draft rules for employer-providers

Apprenticeship funding: draft rules for training providers

Draft apprenticeship performance management rules 2017 to 2018

If you wish to discuss this further, please contact us 020 8891 0992 and we can provide you with advice and guidance to recover your tax, invest in your workforce and grow your workforce in a sustainable way.

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