Apprenticeship Levy a practical guide
Learn to love your levy – a practical guide
The Levy is now well on its way and employers are seemingly more positive about accepting it coming. The last update, about new funding systems and how providers will operate.
SFA Funding finally announced Key Points:
- 24 Months expiry on levy pots
- funding bands (and rates) of 1-15 confirmed
- Additional 20% funding for 16-18 yr olds on Frameworks
- £1000 to employers for 16-18 yr olds
- Learners can multiple qualifications/apprenticeships at the same level
- New guidance on Provider applications to the RoTAP
- Supporting providers need not register if delivering under 100K
- Sub-contracting allowed up to £500k – more rules on this to be announced
- Published March 2017 for public view.
Accessing the Levy in England
The cornerstone of the levy will be a ‘digital account system’. Each business that pays into the levy will be able to access their levy pot for their England proportion, plus a 10% top up, via their own digital account. You then use your digital account to pay for training – no cash transactions just a digital experience.
If you are an England only organisation you will receive more back than you put in as the Government is also giving all Levy paying organisations a 10% top up into their digital accounts – i.e. if your levy bill is £100,000 you will receive £110,000 into your account.
If you operate outside of England you will only be able to draw back the proportion of the Levy that represents your English Workforce, as the digital account system is not available outside of England, i.e. if your levy bill is £100,000 but 20% of your workforce is in Scotland you will only be able to draw down £80,000 into your digital account, then 10% will be added to this to make it £88,000.
The extra benefits of the levy
As not all businesses who have to pay in will choose to access their whole levy entitlement this will mean there will be more money available within the system to better fund Apprenticeships for those businesses who do not pay it. The current proposals are that the Government will support non-levy paying business up to 90% of the cost of each programme, a significant jump from the current funding of 66%. For businesses that employ less than 50 employees the Government are proposing to fully fund any Apprentice under the age of 18.