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Apprenticeship Reforms

APPRENTICESHIPS ARE CHANGING…

From May 2017, the way apprenticeships are delivered and funded in the UK is changing. The apprenticeship reforms will impact employers of all sizes – from sole traders up to organisations with a payroll of over £3m.

The reforms can be grouped into 3 key changes:

Standards

Apprenticeships will change from what are currently known as frameworks to standards.  Standards give employers more flexibility and control in designing apprenticeships and are developed by employers, for employers.

Funding

The funding system will be simplified so that employers can choose the right standard and understand how much they will contribute towards training costs or how much will be used from their Apprenticeship Levy fund (more info on funding below).

End Point Assessment

Every standard will have an End Point Assessment (EPA) at the end of the apprenticeship.  This means that the apprenticeship will be externally assessed, but not by the employer or the training provider, to ensure they meet the required standard.

Click here to read our full guide to the apprenticeship reforms.

HOW DOES THIS AFFECT YOU?

The reforms have different implications on your organisation depending on the number of employees you have and your payroll bill.

Click on the icon below which relates to your business size for more information.


I have UNDER 50 employees and a paybill of UNDER £3m

I have OVER 50 employees and a paybill of UNDER £3m

I have
a paybill of OVER £3m

Along with 98% of businesses, you will not pay the Apprenticeship Levy and will not have any deductions via HMRC.

10% CONTRIBUTION

The Government will fund 90% of training costs. You will only contribute 10%.

Unless you employ a 16-18 year old apprentice, in which case training is fully funded – there is no training cost to you.

For details on training costs and contributions for your sector, please get in touch.

RECRUIT AND UPSKILL

Funding available to train up existing staff or recruit apprentices – even those with a degree.

£1000 CASH INCENTIVE

If you hire an apprentice aged 16-18, you will receive a £1,000 cash incentive.

Along with 98% of businesses, you will not pay the Apprenticeship Levy and will not have any deductions via HMRC.

10% CONTRIBUTION

The Government will fund 90% of training costs. You will only contribute 10%.

For details on training costs and contributions for your sector, please get in touch.

RECRUIT AND UPSKILL

Funding available to train up existing staff or recruit apprentices – even those with a degree.

£1000 CASH INCENTIVE

If you hire an apprentice aged 16-18, you will receive a £1,000 cash incentive.

You will pay the Apprenticeship Levy.

THE APPRENTICESHIP LEVY

The Apprenticeships Levy is a mandatory government tax that will be payable by all UK employers with a pay bill over £3million. You will contribute 0.5% of your annual salary bill into the Levy.

The levy is collected through monthly HMRC deductions and the amount you pay will be credited to a digital account. The monies you build up in this account is yours but must be spent on apprenticeships. It cannot be used on wages or other staff expenses. You have 24 months to spend levy funds.

If you’re unsure whether your business is a levy payer click here to access a tool that will work out your levy contribution.

For details on the cost of apprenticeships for each sector, please get in touch.

 

APPRENTICESHIP SERVICE

Businesses will be able to access their levy funds via a new on-line portal called the Apprenticeship Service. You will need to register for an account. To find out how click here.

RECRUIT AND UPSKILL

Train existing staff or recruit apprentices using funds that will be located in your digital account.

10% GOVERNMENT UPLIFT

For every £1 that enters your digital account, you get £1.10 to spend.

You get out more than you put in!

Any further questions?

If you have any questions about the apprenticeship reforms, please do not hesitate to give us a call on 01274 728316 or send an email to info@citytraining.org.uk.


01274 728316
info@citytraining.org.uk

City Training Services, 39/41 Chapel Street, Little Germany, Bradford, West Yorkshire, BD1 5BY
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