Apprenticeship reforms and levy | Weston College

Apprenticeship reforms and levy

From May 2017, the way apprenticeships are paid for is changing.

The Government has introduced an apprenticeship levy which aims to promote apprenticeships as an effective way for young people and adults to enter the workforce equipped with the necessary skills and relevant work experience.

The cost of apprenticeships will be split into 15 funding bands ranging from £1,500 to £27,000. The prices will depend on the type of apprenticeship and the level it is taught at, and are negotiable with your training provider.

For 98% of employers, the reforms mean that employing an apprentice will be better value for money than ever before. Small businesses will only have to pay 10% of the training costs, with the Government picking up the remaining 90%. In some cases, the Government will fully fund apprenticeships for small businesses.

If your company is in the 2% of employers which has an annual payroll of over £3 million a year, you’ll have to pay 0.5% of that amount into the levy. This amount will be topped up by 10% and given back to your company through the new digital apprenticeship service. You can then use these funds on apprentice training. Click here for more information about how the reforms will affect your company.

Whether you have to pay the levy or not, Weston College can work with your business to ensure that you are maximising the potential benefits of the reforms and work with you to create bespoke and personalised training solutions.

 

Whether you have to pay the levy or not, Weston College can work with your business to ensure that you are maximising the potential benefits of the reforms and work with you to create bespoke and personalised training solutions.

Use it or lose it...

Do you pay into the apprenticeship levy?

If so, you might not be aware that those funds will expire 24 months after entering your Digital Apprenticeship Service account.

The levy was introduced in April 2017, so it’s likely that your levy fund will run out in just five months’ time.

A staggering £2.7 billion of the funding that has been paid into the apprenticeship levy remains unclaimed.

If this includes your funding, don’t worry – help is at hand. Our dedicated Training Solutions team can work with you to use the funds to create a bespoke apprenticeship programme for your business, upskill your existing staff and/or recruit new talent.

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