The Apprenticship Levy update was finally given to us on August 12 2016. Here are some of the main points you need to know:
1. Employers too small to pay the levy will have to pay 10% of the training costs. The other 90% will be topped up by the government.
2. Employers who have less than 50 people working for them, will not pay towards training costs of 16-18 apprentices, this will be 100% met by the government.
3. Once employers take on a 16-18 apprentice, they receive £1,000 to ‘meet extra costs associated with this’. This will be paid in two equal instalments, after 3 and 12 months.
4. An extra £2,000 will be available for employers and training providers that take on 16-18 apprentices or young care leavers with an education, health and care plan.
5. Employers can use levy funds to retrain workers in new skills, even if they already have prior qualifications.
6. Those levy-paying employers with a pay bill over 3 million, that want to spend more on training than is in their digital account will see 90% of their additional apprenticeship training costs funded by the government.
7. There will be a new register of training providers from April 2017.
8. The proposed funding system will have 15 bands, each with an upper limit ranging from £1,500 - £27,000. Existing and new apprenticeship frameworks and standards will be placed within one of these funding bands, employers are then left to negotiate prices with providers.
9. For STEM framework pathways, the government is proposing to increase the government-funded adult rate by 40% at level 2 and 80% at level 3 and above. These frameworks will then be allocated to the nearest funding band.