New Apprenticeship Levy

The government has published its policy proposal on how it wishes to fund Apprenticeships from May 2017.

With the introduction of the Apprenticeship Levy, the withdrawal of frameworks and the move to new standards, this is a challenging time for employers. We now have details of what the system may look like, and this new information allows employers to start to plan for the changes ahead to their workforce skills plans.

The government will also publish a new register of learning providers to be introduced from April 2017 to improve the link between learning providers and employers. This will help employers to identify a high-quality provider so they can deliver the skills they need to grow.

We outline the main points below, but there is also a powerpoint available for you to download. It is a useful summary if you are an employer who will be paying the levy. 

The main points:

The government is proposing that they introduce 15 funding bands for Apprenticeship learning.

These bands will set an upper limit on the amount of funding the government will provide. The cost of learning will have to be negotiated by employers with learning providers. Anything agreed above the upper limit will have to be funded by the employer.

The funding bands will be used for both the new standards and the old framework Apprenticeships until they are withdrawn. However the funding will not be the same for both systems.

The current proposal for adult social care is that for new standards published for Adult Care Worker and Lead Adult Care Worker the upper limit is set at £3,000 per apprentice. For framework Apprenticeships the proposal is that Level 2 Health and Social Care will have an upper limit of £1,500, Level 3 Health and Social Care will be limited to £2,000 (adult social care pathway only) and Level 5 Care Leadership and Management an upper limit of £2,000.

Employers who do not pay the levy will fund Apprenticeships through a co-investment model. 

The government is proposing that this will be a 1:9 ratio with the employer contributing 10% of the total negotiated cost of learning and the government co-investing the other 90%.

For employers who take a 16-18 year old apprentice there are additional incentives.

Employers who take on a 16-18 year old and who employ fewer than 50 employees will have 100% of the training costs paid by government. This will also apply where these employers take a 19-24 year old who is leaving care or who has a Local Authority Education, Health and Care plan.

Employers with more than 50 employees who take on a 16-18 year old or a 19-24 year old who is leaving care or who has a Local Authority Education, Health and Care plan will receive an additional £1,000 toward to cost of training support and their learning provider will receive an additional £1,000.

Support for English and maths will be paid by government to the learning provider and will not be taken out of the employer’s digital account.

Extra support is also available to the learning provider for support for apprentices with additional learning support needs such as dyslexia, learning difficulties or disabilities.

Employers will be able to offer Apprenticeships to individuals who already hold qualifications or other Apprenticeships (including at a higher level) as long as the new training allows them to acquire substantive new skills and the content of the training is materially different to any training undertaken previously.

From 2018 employers who pay the levy will be able to transfer up to 10% of the total value of funds to other digital account holders within State Aid rules.

So where do you fit in this system?

  • Levy of 0.5% of payroll less £15,000 allowance payable from May 1st 2017
  • Funding for all apprentices up to the upper limit of the standard or framework negotiated with the learning provider taken at 100% from your levy payments
  • Where levy payments are exhausted then additional apprentices funded on co-investment model of 1:9
  • £1,000 additional support for apprentices 16-18 years old and those aged 19-24 who are leaving care or who have a Local Authority Education, Health and Care plan plus another £1,000 to your learning provider
  • Levy monies not used expire after 18 months and will be removed from the digital account by government
  • From 2018 will be able to transfer up to 10% of the value of funds to other digital account holders (including ATAs) within State Aid rules.
  • Apprentices paid through the co-investment model. 10% of the negotiated price up to the upper limit to be paid by the employer, the remaining 90% funded by government for apprentices of any age
  • This funding model applicable for both new standards and existing framework Apprenticeships to the published upper funding limits set by government
  • £1,000 additional support for apprentices 16-18 years old and those aged 19-24 who are leaving care or who have a Local Authority Education, Health and Care plan plus another £1,000 for your learning provider
  • from 2018 eligible to receive funds from levy payers within State Aid rules 
  • 100% of training costs met by government for 16-18 year old apprentices and those aged 19-24 who are leaving care or who have a Local Authority Education, Health and Care plan
  • Apprentices outwith these groups are funded on the co-investment model of 1:9 to the value of the upper limit set for the standards or the frameworks
  • £1,000 additional support for apprentices 16-18 years old and those aged 19-24 who are leaving care or who have a Local Authority Education, Health and Care plan plus another £1,000 for your learning provider

If you are an employer likely to be paying the levy from April 2017 or an employer who would like to find out how apprentices can enhance your workforce, we can give you access to more information and support about the Apprenticeship levy, commissioning learning provision and using apprentices as part of your workforce strategy. 

To find out more please contact the Information Team on 0113 241 1275 or email information.team@skillsforcare.org.uk and we can talk to you about how our consultancy offer may help.

We also have a presentation which offers a useful summary for you if you are paying the levy

The Apprenticeship Funding Proposals are currently out for consultation with employers. The survey invites you to comment on the above proposals for funding Apprenticeships.

Responses need to be back with government by 5 September 2016. 

Go to https://beisgovuk.citizenspace.com/ to take part in the consultation

Details of the consultation process and the full published documents can be found here

https://www.gov.uk/government/publications/apprenticeships-proposals-for-funding-from-may-2017

 

Guidance for learning providers

We’re offering help to learning providers on all the new changes to social care qualifications and Apprenticeships

”By understanding the sector better you can improve your offer and potentially increase your business too”

 

 

 

 

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