Apprenticeship levy - changes coming into effect in 2017

In April 2017 the way the government funds apprenticeships in England is changing, based on their new vision for apprenticeships. Some employers will be required to contribute to a new apprenticeship levy, and there will be changes to the funding for apprenticeship training for all employers.

The apprenticeship levy requires all employers operating in the UK, with an annual pay bill over £3 million, to make an investment in apprenticeships.

Employers in England will be able to reclaim their contributions as digital vouchers, using these to pay for the training of apprentices. Funds in the digital account can pay for apprenticeship training and assessment (with an approved provider and assessment organisation, up to its funding band maximum). These funds cannot pay for apprentices’ wages, travel or subsidiary costs, managerial costs, work placements, traineeships, or the costs of setting up an apprenticeship programme.

Further guidance is due from government after the summer recess, including information on;

• provisional funding bands, which will set the maximum amount of funding which is available for each apprenticeship from April 2017
• the provisional level of the government support that will be available towards the cost of apprenticeship training if you aren’t a levy paying employer, from April 2017
• the provisional level of the extra payment you can get for hiring 16 to 18 year old apprentices, from April 2017
• the provisional amount that will be paid for English and maths training for apprentices who need it, from April 2017
• eligibility rules that set who you are able to spend apprenticeship funding on and where
• more information on who can provide apprenticeship training and how you can set up your organisation to deliver apprenticeship training