New Apprenticeship rules from 1 May 2017
Levy ( Pay bill over £3m per annum)
If your staff pay bill if more than £3m per annum, you will now be paying the Apprenticeship Levy, which is a charge of 0.5% of your pay bill over £3m. You must access your digital account to allocate funds.
The government will top up your levy pot by 10% and You can only use these funds to purchase apprenticeship training and must allocate to a register training provider on the digital system
If you run out of funds, then you can continue to have apprenticeship provision, but you will be required to pay 10% towards the cost of training and the government will pay the remaining 90%
Non Levy ( pay bill under £3m pa)
You will now be required to pay 10% of the cost of the apprenticeship training. The payment terms can be negotiated with the provider and can be paid completely at the start of training or in instalments, but an initial deposit is required to comment training.
The Government will pay the other 90%
Employers with fewer than 50 employees will have the 10% fee waived for 16-18 year old apprentices
Apprentices must have a contract of employment
They must be in a role within the organisation that allows them the opportunity to gain knowledge, skills and behaviours needed to achieve their apprenticeship.
An Apprenticeship is a genuine job with an accompanying skills development programme – this can be a new role or an existing role which requires significant new skills
Apprentices are eligible regardless of prior qualifications if they have been in the EU / UK for the last three years and require substantive training. I.e. a Graduate with an Engineering degree could undertake a Management Apprenticeship.
Apprentices and employers must commit to 20% off job training, which must be paid time, during normal working hours
There is an incentive payment of £1,000 to the employer for taking on a 16-18 year olds apprentice. This is payable in two instalments.
English and maths at level 2 or equivalent is now required for all apprentices and if they require training to achieve this level, it will be funded separately by the government and not be part of the 20% off job training as required in point 1.