Here’s what you need to know about the government’s new apprenticeship levy, the details of which have been revealed today.
All apprenticeship starting before 1 May 2017 will be funded through existing rules.
The new system has 15 funding bands. Each type of apprenticeship will be placed in a specific band, the caps for which range between £1,500 and £27,000 depending on the apprenticeship type.
The government will simplify the funding system for apprenticeship frameworks, which will no longer allocate funding based on the age or location of the apprentice.
Employers who will not pay the levy, or do not have sufficient funds to cover monthly training costs, will be required to co-invest 10 per cent of the cost, while the government will pay the remaining 90 per cent.
How co-investing will work
Employer chooses apprenticeship in band 9 with a maximum price of £9,000
Employer negotiates a price of £8,500 with their provider
Government co-invests 90 per cent = £7,650
Employer co-invests remaining 10 per cent = £850
Employer and provider agree to spread this over 10 instalments of £85
Small employers (those with 50 staff or less) will not be required to contribute towards the cost of training apprentices, with the government covering the cost for care leavers or those in Local Authority Education, Health and Care plan aged 19-24.
Employers with apprentices aged 16-18, as well as those detailed below who have been in care, will receive an additional £1,000 and a further £1,000 to cover any additional training costs.
Employers should be able to use their funds in a digital account and benefit from government co-investment support to pay for training apprentices whose main place of work is in England.
Training providers will receive up to £150 a month from the government to support apprentices with learning difficulties or disabilities.
They will also receive £471 from the government for English and maths qualifications gained by apprentices.
Employers will need to show that individuals will gain “substantive new skills” in order to secure government co-investment in training.
Contractors will be able to transfer up to 10 per cent of their annual funds to subcontractors or other employers from 2018.
|Apprenticeship pathway||Level||Provisional max funding band value|
|Accessing and Rigging||2||£6,000|
|Applied Waterproof Membranes||2||£6,000|
|Built Environment and Design||3||£6,000|
|Civil Engineering for Technicians||3||£9,000|
|Construction and Building Services Management and Supervision (Sustainability)||4||£12,000|
|Construction Contracting Operations||3||£9,000|
|Construction Site Management||6||£12,000|
|Construction Site Supervision||4||£12,000|
|Decorative Finishing and Industrial Painting||2||£6,000|
|Foundation Degree in Architecture||5||£12,000|
|Foundation Degree in Built Environment||5||£12,000|
|Foundation Degree in Civil Engineering||5||£12,000|
|Foundation Degree Professional Practice in Construction Operations Management||5||£12,000|
|Geomatics Data Analysis||3||£9,000|
|Insulation and Building Treatments||2||£3,500|
|Management Quantity Surveying and Commercial Management||6||£12,000|
|Occupational Work Supervision||3||£5,000|
|Property Maintenance Operative||2||£9,000|
|Science Industry Maintenance Technician||3||£27,000|
|Specialist Concrete Occupations||2||£5,000|
|Steelfixing Occupations Major Projects||2||£9,000|
|Town Planning Technical Support||3||£9,000|
|Transport Planning Technician||3||£12,000|
|Wall and Floor Tiling||3||£9,000|
|Wall and Floor Tiling||2||£5,000|
What does the apprenticeship levy mean for you?