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APPRENTICESHIPS – trailblazing the way forward…. APPRENTICESHIPS – trailblazing the way forward …. Apprenticeships are being reformed to give employers more control over designing, choosing and paying for apprenticeship training.
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APPRENTICESHIPS – trailblazing the way forward… Apprenticeships are being reformed to give employers more control over designing, choosing and paying for apprenticeship training. Complex apprenticeship frameworks are being replaced by shorter and simplified standards. These standards have been developed by employer groups known as ‘Trailblazers’, and are designed to show what an apprentice will be doing and the skills required of them, by job role. More than 200 Trailblazer apprenticeships have already been written, and more standards will be published as they are developed and approved. Waste: The Waste & Recycling Apprenticeship Development Group is currently developing the levels 2 and 4 Sustainable Resource Management apprenticeships. EOI into BIS Trailblazer Apprenticeship Team. Co-ordinated by Energy & Utility Skills and comprised of organisations such as: WAMITAB, CIWM, Veolia, Cory, Biffa, Viridor, Grundon and various local authorities.
APPRENTICESHIPS – trailblazing the way forward… How are these new standards going to be funded? The Apprenticeship Levy was announced at Summer Budget 2015, and at Autumn Statement 2015 it was announced that it would come into effect in April 2017. This will affect employers in all sectors. Employers with an annual pay bill of more than £3 million will be required to spend 0.5% of this total on the levy, so in reality less than 2% of UK employers will pay it. While the levy is being introduced in April, payments are set to start in May 2017 and it will be up to employers to notify HMRC each month as to whether they are eligible to pay. However, the Government is also introducing a 'levy allowance' of £15,000 per year, which will be subtracted from the 0.5% total. So how will this work in practice…
APPRENTICESHIPS – trailblazing the way forward… Since each employer will receive a £15,000 offset allowance every tax year, it is likely that a majority of companies will not need to pay anything at all. For example, a company with a payroll of £3 million would pay nil, this is because 0.5% x £3 million = £15,000. An employer who would pay the levy though, is one with an annual pay bill of £5,000,000: levy sum: 0.5% x £5,000,000 = £25,000 subtracting levy allowance: £25,000 – £15,000 = £10,000 annual levy payment The £15,000 levy allowance is divided monthly, and any unused allocation money in one month will carry over towards the next one.
APPRENTICESHIPS – trailblazing the way forward… Any company paying the levy will gain access to the new digital account system, which will enable them to pay for training and assessment for Apprentices in England, provided as a voucher system. They will also be able to search for training providers to help deliver their apprenticeship programme on a Government register. These providers will have to pass quality and financial tests, as well as having a ‘good’ or above Ofsted rating. However, digital funds and government funding cannot be used for: •Apprentice wages •Apprentice travel and subsistence costs •managerial costs •traineeships •work placement programmes •the costs of setting up an Apprenticeship programme Companies will have up to 24 months to spend these vouchers or they will otherwise expire and cannot be used again.
APPRENTICESHIPS – trailblazing the way forward… So what about companies below the £3 million threshold? Non-levy paying employers will still have to make a small contribution towards training an Apprentice. There is a proposal that the government will pay 90% towards the cost of training and employers will pay the remaining 10%. This proposal will be confirmed at the end of the year. Any Businesses with under 50 employees won’t need to pay for anything taking on a 16-18 year -old Apprentice, with the government contributing 100% towards the total cost of training. A company’s Internal Workforce Development Program can be funded through the Apprenticeship Levy, provided the employee will be learning new skills/knowledge, the Apprenticeship is relevant to their role and is the most appropriate way towards progressing their career.
