Levy to go ahead April 2017 Government Announces

August 12, 2016

The Department for Education has announced this morning that the Apprenticeship Levy will go ahead from April 2017 as planned. The long awaited July update was finally posted today and provides employers and providers the next level of detail in how the new levy will work.

There are some key highlights that are worth noting and it’s great to see simplification of funding to help employers understand how to negotiate with providers.

So what’s new?

Co-investment contributions for non-levy paying employers has been reduced to 10%. For those SME’s (under 50 employees), that employ 16-18-year-old apprentices the co-investment fee is waived and there will be no contribution. This is great news for our SME businesses who are a large contributing factor to the success of apprenticeship growth in our country.

For levy payers – if they don’t have sufficient funds in their levy account, can also take advantage of the reduced co-investment fee of 10%, enabling higher levels of apprenticeship growth in our larger industries as well.

Frameworks and standards now have a much simpler funding system by applying only 15 funding bands. This banding is now also regardless of age or geographic location which provides a much more simplistic fee for employers to negotiate with when working with providers

The new funding system will be applied on May the 1st, this will allow the current funding model to continue through to the end of April.

This update shows that the government is listening to the sector and ensuring that Apprenticeship growth can continue across all sizes of business.

Sue Pittock, Remit Training, CEO Commented, “It is pleasing to see that the government has now provided more information on the way it intends to fund apprenticeships going forward.

For employers that want to know more about how these changes will affect their business, Remit Training is well positioned to support them and I would urge them to get in touch.

Of course, these changes are still under review and are not planed until April 2017, so we urge businesses considering an apprenticeship programme to act now and be more prepared for the future.”.