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Apprenticeship levy


Many young school and college


leavers are recognising that university may not provide them with the skills needed to thrive in their chosen careers…


Companies are now able to choose the training provider best suited to their requirements, enabling them to create tailored initiatives that will help them mould the future workforce. Firms will also be able to draw down on the levy fund to complement their graduate schemes or boost the skills of their current staff, and some may look to offer degree-level or higher professional apprenticeships to their existing employees.


The launch of the Trailblazer Initiative, which aims to increase the standard of all apprenticeships at Level 4 and above, and the introduction of Degree Apprenticeships, also looks set to increase standards and means that those who do not choose the traditional university route have access to a high level of training that will enable them to thrive in their chosen sector.


Apprenticeship levy key facts:


• The levy will be implemented in April 2017.


• The rate for the levy will be set at 0.5% of an employer’s pay bill for any organisation with a PAYE of over £3m pa. This is mandatory levy – regardless of if an employer employs apprentices or not.


• Employers with a pay bill of £3m or less will not pay anything.


• The levy payment will then be ring- fenced in the form of an electronic voucher that can be used to purchase training from recognised providers.


• All employers will receive an allowance of £15,000 to claim back to fund apprenticeship training.


• The funding is only for external training costs associated with apprenticeships.


How will the levy impact employer’s early career strategies? If implemented correctly, the levy has the potential to dramatically change the early career landscape, and revolutionise the UK’s future workforce.


Many young school and college leavers are recognising that university may not provide them with the skills needed to thrive in their chosen careers, and with applications for graduate schemes becoming increasingly competitive, they are considering different ways to break into the sector of choice.


For businesses, the costs associated with hiring graduates and developing graduates is also increasing, especially amongst firms where professional qualifications are provided. Many firms are also recognising how they can utilise the apprenticeship


www.agr.org.uk | Graduate Recruiter 13


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