What is changing from May 2017?
- All Non-Levy paying (employers with less than a £3 million wage bill) must contribute a minimum of 10% cash towards the cost of Apprenticeship Training from May 2017.
- Any employer with less than 50 employees, who employs a 16-18 year old apprentice, will not have to contribute the 10% cash contribution.
- Employers will receive a £1000 incentive for taking on a 16-18 year old apprentice (£500 at 3 months and £500 at 12 months).
- ALL new Apprenticeship starts form 1st May 2017 must have 20% of their contracted hours off the job training outside of their normal role.
- Any current learners and new starts before 1st May 2017 will continue to be funded as they currently are.
Why all the changes?
- To get employers to own the funding system
- To find out the key drivers of employer businesses and target growth
- To double the amount of funding for Apprenticeships from £1.5 billion to £3 billion using the Levy and Co-Investment
- To raise the standards of Apprenticeships
What are my responsibilities as an Employer?
The Apprentice must:
- Be able to complete the Apprenticeship within the time they have available; if you know an individual is unable to complete the Apprenticeship in the time they have available, they must not be funded.
- Not be enrolled on another Apprenticeship at the same time as any new Apprenticeship they start.
- Not be asked to contribute financially to the direct cost of learning or assessment (this includes where an Apprentice leaves their programme early - you must not claim training or assessment costs back from ex-apprentices).
New Funding Bands
Every Apprenticeship will be placed in a funding band
- The upper limit of each funding band will cap the maximum price that the government will 'co-invest' towards, where an employer does not pay the levy.
Employers can negotiate the best price for the training they require
- If employers want to spend more than the funding band limit, using their own money, they will be free to do that.
- Funding bands do not have a lower limit.
What Alliance Learning will do?
- Continue to offer a free recruitment service
- Negotiate and offer schedule of payments for high funding bands
- Contribute to the delivery of high quality 20% off the job training
- Continue to use the latest technology - e-Portfolio, alternative assessment methods
- Engage with you as the employer to meet all your business and training development needs.