Content and learning requirements vary and could include:
Frameworks and Standards will both require English and Mathematics competencies.
In April 2017 the government is introducing a levy on employers with an annual salary bill of more than £3m to fund Apprenticeships. Employers with an annual salary bill of less than £3m will be subject to simplified funding rules.
With effect from 1st May these changes will apply to any Apprenticeship starting from this date.
Each framework and standard will be allocated a single funding band, see table below. Employers and training providers will agree a price for the training required within the band.
There will be no age restrictions on who can start an Apprenticeship. There is a bonus payment of £1,000 for a 16-18 year old apprentices, 19-24 year old care leavers or those with a local authority education, health and care plan
The government will fund, directly with the provider all required English and Mathematics training costs up to Level 2.
For employers who do not pay the Apprenticeship Levy
Additional Age Grants of £1500 per apprentice are available for employers with less than 50 employees and apprentices following an Apprenticeship framework (these are not available for apprentices on Standards)
Apprentices must be aged 16-24 years at the start of their Apprenticeship which must have commenced on or before 31 July 2017.
The age grant is only available in respect of a new recruit to the employer and not an existing employee.
There is a maximum of 5 grants per employer.
Funding Apprentices with Prior Qualifications
The levy will be set at 0.5% of the employer's pay bill. It will only be paid on any pay bill in excess of
Employers will have an allowance of £15,000 to offset against their levy payment.
The total pay bill includes:
Apprenticeship Levy payments are allowable for Corporation Tax.
Annual pay bill £5 million
x 0.5% = £25,000
Minus £15,000 allowance
= Annual levy payment £10,000
Annual pay bill £20 million
x 0.5% = £100,000
Minus £15,000 allowance
= Annual levy payment £85,000
Employers who pay the levy and are committed to apprenticeships training will be able to get out more than they pay in to the levy.
The government will apply a 10% top-up to monthly funds entering levy paying employers digital accounts, for apprenticeship training in England, from April 2017.
The Digital Apprenticeship Service is the mechanism whereby employers and training providers will be able to manage payments in respective of Apprenticeship taining.
This will be managed through the Digital Apprenticeship Account – see above.
To recognise the extra costs involved in supporting some apprentices the government will make a payment of £1,000 to employers when they train:
This will NOT be paid via the employer’s Digital Apprenticeship Service account.
The government will fund the support for English and Mathematics training for relevant Apprenticeship situations.