Apprenticeship Levy Announcement by Peter Marples

As our previous news released this morning highlighted, the Government have now finalised the details of the Apprenticeship reforms so it is all systems go for all employers across the country, whether you are an organisation paying the levy or not.

We wholly support the Government’s reforms and expect to be a leading player in their implementation, working with our extensive network of over 4,000 employers across the country. We are already building a substantial new business, supporting levy clients with their needs and have 10 full-time staff working on this project already, including sales staff, implementation directors and project managers who serve individual clients.

We welcome the proposals contained in the publication issued today which confirms much of which was issued in August 2016 by the Government. Click here to see the proposals. 

So in essence, as a Levy payer, what does this mean to you?

The levy will be introduced in April 2017 and you will have a deduction from your wage bill each month of 0.5% deposited into your unique digital account. This will be topped up by 10% from the Government.

• You will receive credits to your account each month and have up to 24 months to spend it (it’s a bit like air miles – you either use it or you lose it).
• You will use the digital voucher scheme to commission a training provider like 3aaa to deliver on your behalf, either approved Apprentice frameworks or Standards at agreed rates.
• If you are recruiting a 16 – 18-year-old, you will receive an additional £1,000 to support the cost of this activity, which will be paid to you by your chosen training provider.
• If or when you have spent your levy pot and you want to contribute more, then the Government will provide 90p to every £1 towards the cost of this provision. Initially, you will pay this at 10p to every £1 to your provider of choice and they will reclaim the Government co-investment.

If you are a Non-Levy payer – it means:

• Your Apprenticeship training will be funded in the same way as it is at the moment, whereby we will work with you to identify your needs and deliver high-quality services.
• For most of our customers who are recruiting 16 – 18-year-olds and have 50 or less employees, there is some good news. You will receive an additional £1,000 towards the cost of the programme in the same manner as the existing AGE grant programme but it is not restricted to the number of Apprentices you decide to recruit. Again, this will be paid via your chosen training provider.

So, it really is systems go. Many people said that it will never happen but much like Leicester winning the Premiership, it has actually happened.

Contact 3aaa today to discuss how we can help you make the most of the levy or contact [email protected].