Government issues further details on Apprenticeship Levy funding

After a long wait, the government has unveiled further detail on how it plans to make the Apprenticeship levy work including funding plans.

With the aim of introducing three million new apprenticeships by 2020, education secretary Justine Greening, confirmed an additional 20% payment to train 16-18 year olds while keeping a ring-fenced support mechanism of around £60m to ramp up funding in disadvantaged areas.

The new Apprenticeship Levy , to be introduced in April 2017, will be set at 0.5% of a company’s pay bill and only employers with one over £3m will have to ‘pay’ it.

Employers not eligible to pay the levy will receive government support towards meeting the costs of apprenticeship training and assessment.

Skills minister Robert Halfon said: “The measures announced today are the first steps in upskilling the nation by giving millions a leg up on the ladder of opportunity to high-quality jobs, and giving employers the skills they desperately need.”

Among the key measures announced are that 100% of training costs will be paid by government for employers with fewer than 50 staff who take on apprentices aged 16 to 18 years old. This will also apply to smaller employers who take on 19- to 24-year-olds who were in care, or 19- to 24-year-olds with an education and health care plan.

A sum of £1,000 each will be paid to employers and training providers who take on 16- to 18-year-olds and 19- to 24-year-olds who were in care or who have an education and health care plan.

And providers that vow to train 16- to 18-year-olds on apprenticeship frameworks will be given an additional cash payment equal to 20% of the funding band maximum in a bid to help them to adapt to the new funding model.

The government also promised to deliver more flexibility for employers by giving companies 24 months to spend funds in their digital account, up from 18 months.

TUC general secretary Frances O’Grady said the levy “will give a welcome boost to funding for apprenticeships, and will make sure that all employers who benefit from a skilled workforce are paying their way”.

For more information and advice on the Apprenticeship Levy please contact Estio Training Tel 01422 898 888 or email



Source :ApprenticeEye 26/10/16