Apprenticeship Levy

The government has updated its apprenticeship levy guidance, providing more details of how the model will operate. The guidance revealed the levy system, set for introduction in April 2017, would not be fully operational until 2020. To view the guidance click HERE

Initially, from April 2017, employers that pay the levy will be able to use the digital apprenticeship service to see the funds they have available to spend, set the price agreed with their training provider and pay for apprenticeship training and assessment. By 2020, all employers will be able to use the digital apprenticeship service to pay for training and assessment for apprenticeships.

There was also confirmation that 98 per cent of employers would pay mandatory cash fees. The Association of Employment and Learning Providers chief executive Mark Dawe said the government needed “to think very carefully” about its impact on smaller employers. He added “If the financial contribution they have to make is too high and the payment system is too complex, we will lose them.

The guidance acknowledges that some employers will want to use the funds in their digital account to pay for training of apprentices employed by an Apprenticeship Training Agency. BIS says they will make an assessment of the pros and cons of this approach before providing further information in June. Further guidance on the levy will be published in June, October and December 2016.