Apprenticeship Levy

On Friday, 12th August the government published proposals for a new funding model for apprenticeships and further details on the apprenticeship levy. The funding will support people of all ages to gain high-quality skills and experience and help employers to offer more training opportunities and build a skilled workforce.

The key points are:

  • The start date for accessing the new funding system will be 1st May 2017
  • The system applies to both levy and non-levy paying employers
  • Starts prior to 1st May will be funded for the duration of the apprenticeship under current funding terms and conditions in place at start of programme
  • Non-levy paying employers will not use the Digital Apprenticeship Service (DAS) until at least 2018
  • 15 funding bands have been proposed, with the upper limit of these bands ranging from £1,500 to £27,000. All existing and new apprenticeship frameworks and standards will be placed within one of these funding bands
  • Co-investment is a requirement of the new system for non-levy paying employers or employers who have used up their levy and it is proposed that employers co-invest 10 per cent of the costs, with government paying the remaining 90 per cent
  • For employers with less than 50 employees it is proposed to waive the co-investment element if these employers take on a 16 to 18-year-old apprentice
  • English and maths functional skills funding will not require an employer contribution nor will it be taken from levy paying employer’s accounts; it will continue to be paid directly to the provider
  • Re-training – it is proposed that eligible learners will be able to undertake apprenticeships at a lower level than their current education level ‘to acquire substantive new skills’.

The levy was first introduced in the 2015 autumn statement.

The SFA have released a series of 3 videos to further explain the proposed changes to Apprenticeship funding and the Register of Apprenticeship Training Organisations. The Videos have been embedded on the Apprenticeships4england website:

  • Introduction to Apprenticeship Funding and Levy.
  • Apprenticeship funding proposals August 2016.
  • Proposals for a Register of Apprenticeship Training Providers.
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