Apprenticeship Levy Part 2

Part 1 of this blog was published on 6th May 2016

Co-investment from Government

Co-investment has been promised for non-levy paying employers and for those employers whose levy account does not cover the full cost of the apprenticeship.

Non-levy paying employers will be partially funded for their apprentices.   At the moment, they will need to pay 33% to the training provider and the training provider will be able to claim 67% of the funding from the Government.  This percentage was correct at going to press but Government say more information will be available from June 2016 and this is likely to change.    Official quote is “non-levy payers and those who have spent their levy budget will be required to make a small contribution as a co-investment”.   This system will commence in April 2017 but non-levy paying employers will not be required to use the DAS until 2018.  The Government plans to have all apprenticeships paid from the DAS by 2020.

Levy-paying employers will need to ‘top up’ payments if their levy payment does not meet the cost of the apprenticeship.  The Government has promised support and co-investment to help but no details yet on how much.   Each apprenticeship standard has a funding band limit set by the Government.

Funding limits

Extra Support and Incentive payments

The Government has promised payments for help meet the additional costs associated with training young apprentices so all employers will receive an incentive payment when they employ a 16-18 year old apprentice, or a 19-24 year old with an Education and Healthcare Plan provided by local authority or has been in the care of the local authority.   These payments are for the employer and will be paid to the employer.

Funding will be available for English and Maths training where the apprentice does not have the required minimum standard and needs to undertake an English and/or Maths course.  These payments will be made to the training provider.

Further information is due from the SFA/BIS during June so watch out for Part 3!