The Apprenticeship Levy: What You Need To Know
(Posted on 09/08/16)
Apprenticeships combine on-the-job training with classroom learning. Apprentices train towards gaining nationally recognised qualifications and essential skills whilst working and receiving a wage.
Apprenticeships follow a four part programme. At college, participants earn their technical certificate and functional skills, whilst onsite they work towards their NVQ in a way that will benefit your organisation.
From 16th April 2017, the way apprenticeships are funded is changing.
Rather than employers accessing funding through training providers or colleges, they will be able to procure the training themselves.
The government is introducing an Apprenticeship Levy, which enables employers to procure the training they require by way of digital vouchers, purchased from the Digital Apprenticeship Service, that can be used to fund training.
Organisations with an annual pay bill of over than £3million will pay a 0.5% levy to fund apprenticeships. Employers will have an allowance of £15,000 to offset against their levy payment.
The levy will be charged at a rate of 0.5% of your annual pay bill. You will receive an allowance of £15,000 per annum to offset against your levy payment. You will only pay the levy if your pay bill exceeds £3million in a given year.
- Whether they have contributed to the levy or not, all employers will have access to the Digital Apprenticeship Service.
- Those employers who have paid the levy will be able to use the service to cover or subsidise an apprenticeship with registered providers of their choice.
- Employers who pay the levy and are committed to apprenticeship training will be able to get out more than they pay in, through a top-up to their digital accounts.
From October 2016, employers can access the Digital Apprenticeship Service, which will enable them to select the appropriate apprenticeships, choose a training provider and pay for apprenticeship training and assessments.
THE GOVERNMENT'S 2020 VISION
- All apprenticeships will provide substantive training in a professional or technical route, transferable skills and competency in English and maths for all ages.
- Apprenticeships will be an attractive offer that young people and adults aspire to go into, as a high quality and prestigious path to a successful career.
- Apprenticeships will be available across all sectors of the economy and at all levels, including degree level.
- Every apprenticeship will be a high quality opportunity that delivers the skills, knowledge and behaviours that employers are looking for.
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