Apprenticeship Levy: we examine the pros and cons of the new employer scheme


In our fi rst article of 2016 we focused on the Apprenticeship Levy and what it meant for employers. Now, a year later with just a few months to go until its’ introduction, we revisit the topic.


What is the Apprenticeship Levy?


The Apprenticeship Levy comes into eff ect on 6 April 2017, requiring employers in the private and public sector with annual pay bills of more than £3 million, to pay a monthly 0.5% levy, with an annual allowance of £15,000 to off set against this.


Does this apply to all employers in the UK?


Yes all employers with an annual salary bill over £3m will have to pay through their monthly PAYE. How will it work?


In England, levy payers will be able to access funds from May 2017 via the Digital Apprenticeship Service (DAS) in the form of “vouchers,” with an additional 10% government contribution, valid for 24 months. They can only be used to cover apprenticeship training, assessment and certifi cation with registered providers only. Levy- paying employers can register for DAS from Feb 2017.


However, as education is one of the devolved powers, there will be diff erences in England, Northern Ireland, Scotland and Wales.


Can I recruit an apprentice before May?


Yes, apprenticeships started before 1 May 2017 will be funded for the full duration, under current terms and conditions. My wages bill is below £3m, how will apprenticeships be funded from May 2017?


Under the new system in England the government will pay 90% of the costs, and employers will be required to make a 10% contribution or ‘co- investment’. Non-levy payers will not be required to use DAS until at least 2018.


Will there still be incentives?


The government is encouraging businesses to help 16-18 year olds, young care leavers, and young people with an Education and Health Care (EHC) plan. If you take on an apprentice who


CHRIS JAMES CEO at WAMITAB, has over 30 years’ experience in vocational education as a Principal Lecturer, Chief Examiner, External Verifi er and Moderator with high profi le education and awarding organisations. WAMITAB provides an end-to-end solution - from operative to management level qualifi cations in resource management and recycling, cleaning, street cleansing, facilities management, and parking.


www.wamitab.org.uk 28 SHM February, 2017 @WAMITAB


meets the criteria, you will receive a payment to help meet the extra costs of employing them.


Businesses with under 50 employees won’t pay anything if they employ apprentices under 19, and will receive £1,000 payment with a £1,000 payment to the provider.


Who can do an apprenticeship?


The new system will allow more fl exibility in terms of who can do an apprenticeship, provided they are employed in a real job and the apprenticeship training lasts at least 12 months.


Employers will also be able to off er opportunities to individuals with an existing qualifi cation at the same or a lower level, provided it can be shown the programme will support them to acquire new skills.


What is a recognised apprenticeship?


Standards: covers a specifi c job role and sets out core skills, knowledge and behaviours an apprentice will need to be fully competent in their job role; standards are developed by employer groups known as ‘trailblazers’


Frameworks: a series of work-related vocational and professional qualifi cations, with workplace


Group of industry stakeholders coming together to develop roles


and classroom based training. These will be phased out by 2020; replaced by employer-led apprenticeship standards described above.


A group of industry stakeholders and employers recently came together to start developing new Apprenticeship Standards for the waste and recycling sector. Until this work is completed the existing Apprenticeship Frameworks will continue to be available – check gov.uk


An apprentice should spend at least 20% of their time on off -the-job training.


How do the new apprenticeship standards diff er to the old frameworks?


End Point Assessment: a new feature to assess skills, knowledge, and behaviours developed during the programme. This must be carried out by a third party who has not be involved in the training delivery, and the format is outlined in the assessment plan and could include a formal test, professional interview or similar.


Grading: an overall grade for the apprenticeship will be introduced (eg, pass, merit or distinction).


National Apprenticeship Week, 6-10 March


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