Feature
Apprenticeships, Skills & Training
In the know about apprenticeships
The Greater Birmingham Chambers of Commerce will be releasing new briefing information on apprenticeships. This is due to be released during National Apprenticeship week, which runs from 5-9 March 2018.
Since plans for the Apprenticeship Levy were unveiled in the Government’s 2015 Summer Budget, businesses have expressed concerns as to the uncertainty surrounding reforms to the apprenticeship system. The levy came into effect in April 2017 and alongside this, the Government implemented a number of reforms to the management, funding and support for apprenticeships. The apprenticeship levy is mandatory for employers
with a pay bill over £3m each year, and funds paid can be used to pay for apprenticeship training and assessment for apprentices that work at least 50 per cent of the time in England, up to the funding band maximum for that apprenticeship. From April 2018, the Government plan to allow levy-
paying employers to transfer funds to other employers, including those in their supply chains and apprenticeship training agencies. The amount transferable will initially be capped at 10 per cent of the annual value of funds entering levy payers’ apprenticeship service account. A British Chambers of Commerce Survey in 2017 on
workforces across the country revealed that 27 per cent of businesses in the West Midlands have limited or no understanding of the Apprenticeship levy, and 38 per cent don’t know what changes, if any, they will make as a direct response to the introduction of the levy.
50 CHAMBERLINK February 2018 Further, just 44 per cent of businesses in the region
eligible to pay the levy expect to recover 100 per cent or more of their levy payment. 33 per cent expected to partially recover their levy payment, and 17 per cent didn’t expect to recover any of their levy payment. Perhaps attributable to the confusion surrounding
the new apprenticeship funding system, total apprenticeship starts for May, June and July 2017 fell 61 per cent compared to the same period in 2016. The GBCC have recently added ‘hot topics’ pages on
the GBCC website, summarising key issues and policy changes affecting businesses, useful information for businesses and the GBCC position on them. This hot topic will be sponsored by Aston University,
and aims to clarify the full scope of apprenticeship reforms and what support is available to businesses. Founded in 1895 and established as a university since
1966, Aston is a research-led university known for its world-class teaching quality and strong links to industry, government and commerce. Aston University led the way with degree
apprenticeships and became the first in the UK to deliver them in 2015. Aston is also the first and currently the only university to have degree apprentice alumni, who graduated in July 2017. Emily Stubbs, policy and patron adviser at the GBCC said, “we are looking forward to working
Emily Stubbs, policy and patron adviser at the GBCC
‘Apprenticeships at all levels offer young people vocational routes into work which deliver the skills employers need as the workforce develops’
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