The Apprenticeship Levy - Are You Prepared? -

The Apprenticeship Levy – Are You Prepared?

As part of the Governments drive to reach its target of £3 million apprenticeships by 2020 there are a number of changes to Apprenticeships. Blackburn college provide the facts below to ensure you’re in the know when the apprenticeship Levy comes into force…apprentice

Despite a number of articles and press stories, there is still a large amount of businesses that are not fully up to speed with the new Apprenticeship changes which are due to come into force from the 1st May 2017.

All Apprenticeship Frameworks will be phased out and will be replaced by Apprenticeship Standards some of which will include a qualification and some will not but will all be classed as Apprenticeships. For employers who employ 50 or less members of staff and take on an Apprentice aged 16-18, the Apprenticeship would be fully funded.

Levy Employers

The facts:

  • Levy employers will start paying into the Levy from 6th April 2017.
  • Any business with an annual wage bill of £3 million (approx. 150 employees) will fall under the Levy
  • An estimated 2% of UK employers will pay into the Levy and will therefore, will pay a .05% of their total annual wage bill into a Levy pot via HMRCapprentice2

The Levy employer will be able to spend the money they accrue on Apprenticeships Training by accessing this fund through an online system named the Digital Apprenticeship Service (DAS).

Levy employers will only be able to spend their Levy with approved apprenticeship providers, listed on the Register of Apprenticeship Training Providers. Each employer will receive an initial allowance of £15,000 to offset against their Levy Payment. Once the Levy pot is used additional Apprentices can be taken on but the employer would be charged 10% of the Apprenticeship Standard cost.

Non-Levy Employers

For employers who are not an Apprenticeship Levy Payer, the process is very much the same as it is now, however,  from 1st May non-levy employers will have to make a 10% contribution to the cost of the Apprenticeship Standard on any Apprenticeship starts. So if you are looking to recruit you would save the 10% by recruiting before the 1st May 2017 as time is running out.

Looking to recruit an apprentice for your business? Blackburn College provide high-quality apprenticeship frameworks across a variety of sectors. If you would like to speak to the apprenticeship team to discuss training programmes call Nick Hall on:

01254 292848 or view their latest flyer here!bbcol






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