Apprenticeship funding
Friday, August 12, 2016
Proposals for a new system of apprenticeship funding, which includes the apprenticeship levy for large and mandatory cash contributions for small employers have been launched.
Details of the scheme include a 10% contribution from small employers to train apprentices, with 90% of the bill footed by the Government. A separate £2,000 incentive will be given to to employers or training providers which take on 16- to 18-year-old apprentices or young care leavers.
Under the current system, the government provides 100% of the funding for apprentices aged between 16 and 18.
The move is likely to mean those who take on older apprentices are better off, as currently for apprentices aged 19- to 24-year-olds a 50% contribution is made (while for over 25s the contribution is less).
Other key details include:
- Employers with fewer than 50 employees will have 100% of training costs paid for by government if they take on 16-18 year old apprentices.
- Those paying the apprenticeship levy will receive a 10% Government contribution for their monthly contribution. On top of this, for those without enough money in their accounts after paying the levy will be given subsidies of 90 per cent of these
- A new register of training providers will be introduced from April 2017. Under the scheme employers will negotiate the price of training directly with training providers and this is designed to help employers choose.
- Apprenticeship frameworks and standards from April 2017 will be funded from one of 15 bands, each with an upper limit - how much total funding will be attached to each type of apprenticeship - ranging from £1,500 to £27,000.
Deadline 5th September, with final details expected in October.
The consultation survey can be found here
