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Apprenticeship Levy Update

The government has confirmed its plans for apprenticeship funding, following the consultation in August 2016.

Apprenticeship funding announcements: At a glance

  • The expiry period of levy funds in an employer’s digital account has increased from 18 to 24 months.
  • The level of funding that will enter an employer’s account each month will be calculated as:
    • Monthly levy paid to HMRC
    • Multiplied by the proportion of the employer’s pay bill paid to their workforce living in England
    • Plus a 10% government top-up on this amount
  • The government has committed to allowing levy-paying employers to transfer up to 10% of the annual value of funds entering their digital account to other employers and Apprenticeship Training Agencies from 2018.
  • The government will apply a single test for whether apprenticeship training can be funded through the English system based on the apprentice’s main place of employment, but there are two exceptions to this rule:
    • Armed Forces and Royal Fleet Auxiliary personnel are treated as based in England wherever they are based in the UK; and
    • Apprentices whose occupation involves significant travel outside of the UK as a necessary part of their occupational development (such as in travel or tourism) and have a workplace in England.

In both cases, the apprentice must be undertaking an English statutory apprenticeship framework or standard and satisfy all other general rules on learner eligibility.

  • Individuals will be allowed to undertake an apprenticeship at the same or lower level as their existing qualifications, however, this policy will be kept under review to ensure that apprentices are genuinely learning new skills to the benefit of the wider economy.

The announcements have been influenced by training providers’ concerns about changes to funding of apprenticeship frameworks.

As such, the following arrangements will be in place for apprenticeship frameworks for the first year while the government reviews the best ways of ensuring apprenticeships provide equal opportunity to all:

  • Training providers will receive a 20% uplift on funding for 16-18 years olds, as a transitional measure designed to support stability whilst they adjust to the reforms.
  • Providers will also receive an additional £600 for training an apprentice who lives in the top 10% of deprived areas (as per the Index of Multiple Deprivation), £300 for any apprentice who lives in the next 10% of deprived areas (the 10-20% range), and £200 for those in the next 7% (the 20-27% range).
  • Importantly, these payments will come direct from the government and will not be deducted from an employer’s digital account.

This information has been summarised by People 1st

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UMBRELLA TRAINING

T: 0333 577 2557
E: info@umbrellatraining.co.uk

Unit 12, The Joinery Workshop
The Historic Dockyard
Chatham
Kent ME4 4TZ

Privacy
Terms & Conditions

Company Number - 08284521      Registered Address: 32 Alamein Avenue, Chatham, Kent, ME5 0HZ

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