The government has just published proposals for a new funding model for apprenticeships and further details on the apprenticeship levy. Under the plans for the levy, the government has proposed that employers that are too small to pay the levy (a paybill of less than £3 million per year) will have 90% of the costs of training paid for by the government. Extra support - worth £2,000 per trainee - will also be available for employers and training providers that take on 16- to 18-year-old apprentices or young care leavers. Employers with fewer than 50 employees will also have 100% of training costs paid for by government if they take on these apprentices.
The government is inviting employers and training providers to have their say on the initial funding proposals, to try to ensure final plans fully meet the needs of all those involved in the apprenticeship programme.
Key proposals are:
Employers and training providers now have the chance to feedback on the proposals for apprenticeship funding. You can respond by completing this survey by 5 September. Final funding proposals will be confirmed in October 2016.Please copy HAE EHA into your responses as this will help us to identify further issues to raise with government on behalf of the hire sector. If there are issues you would like HAE EHA to include in our own response, please email email@example.com
The government has created a newonline calculator. The simple to use tool will enable employers to understand how much levy they will pay and how they could use their digital funds to pay for training in future.
The proposed apprenticeship funding system will be made up of 15 bands, each with an upper limit ranging from £1,500 to £27,000. The upper limit of each funding band will cap the maximum amount of digital funds an employer who pays the levy can use towards an individual apprenticeship or that the government will co-invest. All existing and new apprenticeship frameworks and standards will be placed within one of these funding bands and it will be up to employers to negotiate prices with providers.
For members also within scope of the CITB levy, a transition arrangement has been agreed with government for 2017/18 to allow for consensus discussions to take place on the future of the CITB Levy and how it is spent. HAE EHA is working with other Federations and attends regular cross-sector meetings with CITB.
The consultation papers can be found at: https://www.gov.uk/government/publications/apprenticeships-proposals-for-funding-from-may-2017