Introduction to the individuals, and by boosting the skills of - PowerPoint PPT Presentation

Apprenticeships benefit employers and government support to pay for Introduction to the individuals, and by boosting the skills of apprenticeships. Apprenticeship the workforce they help to improve Funding Reforms economic productivity. But to do all this, Policy development the new apprenticeships programme Policy proposals were published in April From May 2017 the way apprenticeships needs to be underpinned by a and then in August. Throughout this are funded is changing. The full policy sustainable funding system. time, the government engaged with document was published in October employers, training providers and 2016 and can be viewed here The aim of the reforms interested stakeholders to inform the The apprenticeship reforms will support policy development. This valuable input Why the reforms are necessary an increase in the quality and quantity of has shaped the final funding policy. Apprenticeships transform lives and are apprenticeships so that more individuals vital in making this a country that works have the chance to pursue a successful How employers are affected by the for everyone. career. reforms The reforms give employers more As well as giving young people the The Apprenticeship Levy control over designing, choosing and chance to build a better future by taking The funding policy changes the way paying for apprenticeship training. From their first step on the employment apprenticeships in England are paid for, May 2017, we are simplifying the way ladder, apprenticeships give those underpinned by the apprenticeship levy. apprenticeships are funded in England. already in work the opportunity to progress further. And for those just The levy will be paid by employers with a This will make it easier for employers of about managing, they can unlock a pay bill of over £3 million from April all sizes to navigate and choose the brighter future. 2017. Employers who pay the levy will apprenticeship training they want to be able to access a new digital purchase. That is why we are committed to 3 apprenticeship service that allows them million new apprenticeships by 2020, to spend available funds on Funding will follow employer choice, spending £2.5bn to transform this apprenticeship training. moving away from the current provider- country’s investment in skills, in our led model and meaning providers will people. The vast majority of employers will not have to be much more responsive to pay the levy and these employers will what employers need. continue to benefit from generous

Buying Apprenticeship Training What the funds CAN and CANNOT be used for Funds CAN be used for: Funds CANNOT be used for: Wages Approved Apprenticeship training & assessment Travel and subsistence costs Against an approved framework or standard Managerial costs With an approved training Traineeships provider & assessment Workplacement organisation programmes Up to the funding band maximum The costs of setting up for that apprenticeship an apprenticeship programme

Buying Apprenticeship Training Funding Bands • Apprenticeship exist in two different ways as a framework or as an employer lead standard • All existing frameworks and standards have been placed within an individual funding band. All new standards will be allocated a funding band as they become available Frameworks & Standards • Each apprenticeship regardless of the type is allocated 1 of 15 different funding bands, each has an upper limit ranging £1,500 - £27,000. Employers can spend beyond the upper limit if they wish to, funds outside of their Digital Account Each • Employers negotiate a price for the apprenticeship training they choose with an approved training Apprenticeship Is provider Allocated 1 Of 15 Funding Bands • A levy paying employer can use to fund an individual apprenticeship via their Digital Account • Government will co-invest with a non-levy paying employer, or a levy paying employer who has insufficient Funding Bands funds in their digital account Mark The Maximun That . .

Apprenticeship Funding Reforms Useful Links Useful Links Useful Links Useful Links • Policy document • How to . . • HMRC • Apprenticeship • Apprenticeship • When you have to Funding from May Funding: How it will pay Apprenticeship 2017 work Levy and how to report your • https://www.gov.uk/ • https://www.gov.uk/ payments government/publicat government/publicat ions/apprenticeship- ions/apprenticeship- • https://www.gov.uk/ funding-from-may- levy-how-it-will-work guidance/pay- 2017 apprenticeship-levy • Estimate my Apprenticeship Funding Tool • https://estimate- my-apprenticeship- funding.sfa.bis.gov.u k/

Apprenticeship Funding Reforms Levy Key Facts Apprenticeship Levy Apprenticeship Levy Apprenticeship Levy • Key facts • Key facts • Key facts • Effective 6th April • Employers receive a • Government provides 2017 £15,000 allowance to a 10% top up to funds offset against their entering an account • Set at a rate of 0.5% levy payment each month of pay bill • Levy funds can be • Government co-invest • Only employers with spent on 90% & employers 10% an annual pay bill of apprenticeship in cases where over £3m pay the training & assessment 1) employer is non- levy levy payer • Employers access • Applicable to all UK 2) levied employer their levy funds via employers in all has insufficient an online digital sectors funds in digital account: Digital • Only 1.3% of account Apprenticeship employers will pay Service the levy

Apprenticeship Funding Reforms Devolution Apprenticeship Funding Reforms Apprenticeship Funding Reforms Apprenticeship Funding Reforms • Devolution • Devolution • Example • The levy is based on an • The amount of levy • If 100% of an funds an employer employer’s pay bill that employer's pay bill is in receives into their is paid in England, England then they will digital account will be Scotland, Wales & receive 100% of the based on the proportion Northern Ireland levy payment into their of pay bill related to Digital Apprenticeship • To be funded through their workfore resident Service account the English system, an in England apprentice's main place • If only 80% of an • A monthly 10% top up of work must be in employer's pay bill is in from the government England but they can England then they will will also appear in the live and train receive 80% of the digital account elsewhere in the UK levy payment into their • The devolved Digital Apprenticeship administrations will have Service account their own apprenticeship funding systems