What you need to know

  • New apprenticeship standards are currently being developed which are designed by employers and will replace frameworks
  • Employers who take on apprentices and are not paying the levy (around 98% of employers) will contribute 10% of apprenticeship training costs with the Government funding the remaining 90%
  • Funding bands have been created for apprenticeship frameworks and the new apprenticeship standards; there are 15 bands in total
  • Depending on the apprenticeship type and level, the 10% contribution from employers will range from £150- £2700
  • Employers with less than 50 employees will be able to train 16-18 year old apprentices without paying any contribution towards training, the Government will pay 100% the training costs
  • As an employer, you can play a key role in the development of the new apprenticeship standards
  • The Apprenticeship Levy, part of the reform, will be in place from Spring 2017 however, funds will not appear in an employer's digital account until just before the end of May for levy paid on their April payroll
  • Employers with an annual payroll over £3 million will pay 0.5% of their wage bill towards the levy
  • Levy paying employers will also receive £15,000 funding towards their apprenticeship training, in the form of a digital voucher
  • This voucher can be used to purchase training from recognised providers, to both new and existing staff with no set age limit

Northern Skills Group are offering free consultations to advise on the reforms and how it will affect your workforce planning